William "Bill" D. McIntyre, president and CEO of Allegra Network LLC, was asked to take over the company’s top spot in l991, when the company was facing serious financial problems. That year, the company lost $20 million and was headed into bankruptcy. Already a master franchisor (investor) in the former American Speedy system, McIntyre knew his first job was to restructure the company’s debt and seek possible investors. Among the interested buyers, McIntyre was most impressed by the vision and track record of computer pioneer Rick Inatome who, along with former NBA basketball star Isiah Thomas, became American Speedy principal shareholders in l993. McIntyre re-engineered the company’s focus away from increasing the number of franchise locations to increasing value at existing franchise locations and successfully brought the company out of bankruptcy.

Under McIntyre’s leadership, the franchise system has experienced dramatic growth. A key strategy has been the acquisition of competing franchise companies in the quick print industry. The successful acquisition of three companies in the last seven years have driven system sales from approximately $185 million in 2001 to a projected more than $300 million in 2002.

While employing an aggressive acquisition strategy, the company also launched a new full service concept in 1997, which is reflected in the success of the Allegra Print & Imaging brand. In October of 2000, the corporate name was changed from American Speedy Printing Centers Inc. to Allegra Network LLC. Less than a month later, the company was purchased by an investment group led by McIntyre, other members of Allegra Network management and Domino’s Pizza founder and former CEO Thomas S. Monaghan.

Before his position with Allegra Network LLC, McIntyre was the president of a venture capital firm and operated a company specializing in western European imports. He also headed international operations for the Monroe Auto Equipment Company for more than 20 years, and seven of those years were spent living in Fribourg, Switzerland, and Brussels, Belgium.

McIntyre received his education at the University of Detroit and the University of Notre Dame and Harvard University. During his international career, he took part in the Harvard Advanced Management Program. He is a member of the Detroit Presidents’ Organization, Chief Executive Organization, Legatus and Society of Automotive Engineers. A long-time resident of Monroe, Michigan, McIntyre and his wife, Susan, have four grown children and two grandchildren.

About Allegra Network

Allegra Network LLC, is the world’s third largest printing franchise linking more than 500 locations in the United States, Canada, Poland, and the Far East, including Japan. The organization was founded in 1976 and began franchising in 1977 with five locations in Michigan. The company ranks in the top 200 in sales among all franchise companies in the world. It offers advanced printing technologies including full-color printing, graphic design services and electronic publishing, digital color copying, high speed copying and on-line file transfer. Allegra Network’s mission is "to build a progressive network of the best print and graphic communications providers in North America," and is considered a leader through its aggressive programs in franchisee profit mastery, technology enhancement and customer relationship building.

The company successfully operates eight brands, including Allegra Print & Imaging, Allegra Digital Imaging, American Speedy Printing Centers, Speedy Printing Centers, Instant Copy, Insty-Prints, Quik Print and Zippy Print.

Q: Allegra Network has made several acquisitions and experienced tremendous growth in the last couple of years. Tell us about this strategy and goals you have with this effort.

McIntyre: In 1995, our organization acquired Zippy Print, a Canadian franchise printing company with 37 locations. Then in 1998, we acquired the franchise agreements of 24 Quik Print and Instant Copy centers from XYAN, Inc. In February 2001, Hugh Eagan, owner of four Instant Copy locations, joined the Allegra Network, with annual sales of nearly $6 million, becoming the largest member of our franchise. Finally, recently, on January 31, 2002, we acquired Insty-Prints, Inc., with 210 locations in the United States and Poland and system-wide sales of over $124 million (2000).

Our goal is to be the best, not necessarily the biggest, print and graphic communications providers in North America. By expanding our geographical reach, especially now with additional states and locations through the Insty-Prints acquisition, we have created an even more powerful link of comprehensive services and capabilities. This link enables us to meet all of our customers’ projects from anywhere in the country and from many locations around the world.


Q: Specifically, the acquisition of Insty-Prints increased your revenue to well over $300 million annually. Can you update us on the integration thus far and circumstances around this deal?

McIntyre: The integration process has been very positive. The further along we progress in this transition, the more similarities we encounter. Over the last few months we have introduced Insty-Prints franchise members to our organization and the many programs we offer through several various communications. For example, myself and other members of the management team have presented a series of six "Road Show" meetings in highly populated Insty-Prints areas and one at our corporate office, further introducing our organization, getting to know our new franchise members and answering any questions they had. Insty-Prints franchise members are very enthusiastic and have shown great excitement to be a part of our organization and support programs.

We will continue to proceed with many of the Insty-Prints events as they were scheduled, such as their leadership trip and national convention and plan to make this transition as smooth as possible. In addition, we are working with our new Allegra Network staff in Minneapolis, to "take the best of both worlds" and combine the strongest aspects of both organizations’ programs to create unified support in all areas, especially in marketing, training and technology. This process will steadily continue; we plan to have all integration completed by the end of this year. We are very excited about the upcoming possibilities that will result from this acquisition, benefiting all our franchise members.


Q: Your group has been known for the "consecutive" increases in revenue year over year – are you continuing this trend and describe same store sales in 2001.

McIntyre: Allegra Network has experienced tremendous sales growth and franchise profitability due to our annual Operational Study, the Profit Mastery program, and our Performance Groups in which franchise members exchange ideas and financial information to help improve their business’ performance. Our franchise system sales have grown from $11 million in 1981 to $152 million in 1991 to $186.9 million in 2001. As you mentioned, we project our 2002 sales to surpass $300 million. Last year posed difficult economic times for all, creating obstacles prohibiting us from obtaining a record system-wide sales increase. Our company’s per center sales averaged $567,000 in 2001, an increase from $549,000 in 2000.


Q: The Acquisition Program helps your franchisees buy local printers. How does this work and is now a really attractive time for owners to take advantage considering the sluggish economy?

McIntyre: Through our Acquisition Program, we work with franchise members to help identify and acquire independent printers. The acquisition program was established in 1995 to assist our franchise members in identifying suitable independent printing businesses to purchase and assist him or her throughout the entire purchasing process. Since 1995, we have completed over 100 acquisitions with over $36 million in incremental sales.

Now is a very opportune time to complete an acquisition due to the sluggish economy. According to TrendWatch, in 2000, there were nearly 32,000 commercial printers in the United States. By 2010, it is projected there will be only 23,500 (a 26 percent decrease). By taking advantage of the industry’s consolidation, the Acquisition Program is one of the quickest ways to build sales and profitability.


Q: The franchise business model – is there still an abundance of professionals that come in from the outside to be part of your network or are the franchises converted from previous independent printers?

McIntyre: Our organization continues to attract professionals outside of the industry. Many of our franchise owners possess diverse backgrounds including corporate executives, engineers, sales representatives, teachers, police officers, accountants and professional athletes.

Many independent printers join our organization as well. Our development department assists printers on converting those independent operations that qualify to transition to the Allegra Print & Imaging brand in appropriate markets.


Q: Many say the Internet is transforming the way people work. Have you been able to use the web for less expensive training and service to your franchise owners?

McIntyre: Utilizing the advantages the Internet has to offer is essential to growth and success in today’s business world. We are in process right now of making our franchise members’ Web site an even more resourceful tool for all our franchise members. From the site, members and their staff have access to the latest Allegra Network news and programs, members can view and download marketing materials, programs, manuals and artwork in addition to various communications materials. Instead of mailing bulletins and various support documents to our franchise members, franchise members can download the materials at their convenience.

In addition, in a couple weeks, our first online course for franchise members and part of our "Toner University" program, will be officially launched. This new e-learning initiative was designed with the help of key industry experts, suppliers and top producers in our system to accelerate sales growth and take advantage of the increasing growth of toner and digital output. Franchise members will receive an introductory CD, which will explain the program and guide them to our franchise members’ Web site where they can take the course online and test how much they’ve learned. Our franchise members are very excited about this program and look forward to the many benefits e-learning can offer, such as elimination of time and travel expenses, while learning material at their own pace.

Included in our e-commerce initiatives is our i-Site program that offers franchise members the opportunity to have their own Web site. The Web sites are hosted and maintained by our corporate office for each owner and is quarterly updated. Of course, each site can be customized and modified by the owner if he or she chooses to do so. Customers can upload files for print to the i-Site and easily transfer files to our franchise members. I-Site owners may also enroll in our program, Allegra Direct, our online ordering system where their customers can place and track orders as well as view their purchase history.


Q: What is your view of web based print systems within your individual locations?

McIntyre: Along with many capabilities in our industry, in order for the solution to be effective for customers, the tool has to fit a need. Web based print systems may not be useful for all printers and all customers. A need must be established first, and then the solution can be provided. As I mentioned previously, Allegra Direct is the proprietary program created for Allegra Network where customers can place and track their orders as well as view their purchase history and a list of orders needing approval. The program is ideal for businesses with multiple locations or customers who have more than one person ordering printing. Allegra Direct is a great asset to order print online and for print management. We have several dozen franchise members who are using the program effectively to increase and maintain their accounts.


Q: In terms of equipment, how does today’s franchise look versus five years ago?

McIntyre: For the last eight years, we have trained our franchise system on the importance of fiscal responsibility. This has given us the ability to move into newer technology without jeopardizing our operations. We watch for the line between bleeding edge and leading edge technology. If you get in at the bleeding edge, you bear the cost of paving the way for leading edge.

In the past we used large high speed copiers with hefty price tags to produce our copy work while today we use smaller digital equipment to produce higher quality work, more cost effectively. With the functionality of today’s equipment, we can take advantage of efficiencies of integrating copying and bindery in a single operation. The same can be said about the color copy business. The pre-press and pressroom has seen the most changes in the last five years for our business. We have moved into a digital workflow using direct to technologies with a focus on higher quality output. The typical operation a few years ago worked on a single color press with a t-head producing acceptable quality. To keep competitive today, we need to produce higher quality work on equipment that gives us better capabilities. The same can be said for the type of client we are working with. As we improved the equipment in our locations we also look for an upgrade in the type of client we are working with.


Q: Many say computer-to-plate (CTP) technology is taking root in small to mid-sized firms. What is your view of CTP and the evolution taking place in prepress?

McIntyre: With the quality levels required from today's quick printer, computer-to-plate is a necessary component. We have set a standard configuration for our locations that includes CTP technologies once their revenues reach $500,000. CTP by itself is not the answer. As we moved into CTP, we also are forced to upgrade the staff on workflow issues, file management issues, color management, etc. We have training in place for both pre-press and press departments that address the issues in moving to CTP.


Q: For a printer considering a franchise – or any professional, update us on the marketing, buying and technology advantages of The Allegra Network.

McIntyre: Now with our Insty-Prints acquisition, as a network we possess expanded geographic reach, greater vendor leverage and name recognition. Franchise members will soon benefit from increased resources including access to advanced printing technologies. Being a part of such a large organization provides great opportunity to thrive in an ever-changing industry, especially during a weakened economy.

Our franchise members operate full service communications businesses, marketing a range of products. We are recognized as one of the premier training organizations in the franchise industry. Our franchise members are supported by:

- Marketing Support – an in-house sales and marketing support and public relations agency producing turn-key materials and programs to build brand awareness, account development and name recognition in the community.

- Technological Support – answers to questions on prepress, printing and bindery operations, equipment selection, pricing, computer systems and many other topics; research on new products, ideas and strategies and published bulletins plus a toll-free help desk.

- Regional meetings and bi-annual conventions
- Regional Operations Managers
- Franchise member National Advisory Council
- Financial Services/analysis; annual Operating Ratio Study
- Performance groups
- Acquisition Program
- Newsletters and weekly communications
- Training programs for all levels of staff within the business
- A customizable Web site to help promote the business


Q: Finally, what is your outlook for the economic "up-tick" and what would you advise printers in a sluggish economy?

McIntyre: I believe the economy is beginning to improve and will help our industry as a whole. We recommend that our franchise members continue a strong marketing effort at all times. They should also be positioned to take advantage of our Franchise Acquisition program. There are plenty of opportunities to grow for those who consistently follow a well-designed plan.