Proforma Franchise Startup Cost, Revenue and Profit Margin
Are you seeking for franchise opportunities in the prints and promotional products industry?
Proforma franchise could provide you with the answers you seek. Proforma provides a wide range of services a few of which include the printing of business documents, forms, and promotional products for both medium and large corporations.
As a Proforma franchise owner, you’ll be acting as a sales agent.
Here, you’ll be helping businesses with a wide range of solutions that include e-commerce & multimedia solutions, as well as all promotional products for their marketing needs. Such work is then contracted out by Proforma franchisees to preferred material suppliers and wholesale printers.
Proforma was founded in 1978. However, it wasn’t until 7 years later in 1985 that it began franchising.
Headquartered in Cleveland, OH, Proforma is seeking to open franchise units across the world.
The Proforma Edge
In doing business, having edge counts. This is what Proforma boasts of. According to this franchisor, it churns out millionaires. At least 25 of its franchise owners have been listed in Inc. 5000’s list of fastest-growing businesses. This counts for something for persons seeking growth opportunities.
Proforma has a set of pro advantages franchisees derive through entering into a partnership with it. First, you get the $500 million purchasing power advantage of Proforma in addition to its preferred pricing through its Supplier Partner Network. This franchisor also has a $4 million Marketing and Business Development Fund to boost your business.
What more? Franchisees get dedicated strategic advisors who are always available to assist in any way possible. Lead generation, recruitment, and appointment setting assistance are provided by experts. This is in addition to e-commerce solutions, shipping discounts, free credit insurance and a Mergers & Acquisitions Team that helps you overcome competition.
Proforma has back-office support that enables you to have more time for other things. Lastly, its heavy investment in state-of-the-art technology has positioned it as one of the leaders in the industry. All of the above benefits automatically apply to its franchisees.
Prospective franchisees seeking to own this franchise opportunity must qualify for it. There’s the financial angle to ownership. Here, a franchisee is expected to meet up with an estimated initial investment of $5,000 to $59,695, a net-worth requirement of $100,000 and liquid cash of $50,000. Ongoing fees include a royalty fee and an ad royalty fee of 5-8 and 0.25-1% respectively.
Getting into the cost details of the estimated initial investment is necessary for better understanding. This is made up of the franchise fee ranging from $0 to $34,500, a customized veteran’s fast-track marketing kit (only applicable to qualified vets & start-up franchises) starting at $4,500.
Computer hardware will cost anywhere from $0 to $4,000, internet service providers and antivirus will cost between $30 and $200. Further initial investment breakdown includes equipment, fixtures, fixed assets & stationery at $700 to $3,000. Pre-opening lease for the first month plus rent & security deposits range from $0 to $2,000.
There are also utility deposits, licenses and insurance ranging from $300 to $3,000. Travel, room & board for first training will cost anywhere from $1,000 to $2,000. Supplemented training at $0 to $495 while additional funds for lasting for a duration of 3 to 6 months will range between $3,000 to $6,000.
Other costs might apply during the franchise term. A few such expenses include the payment conversion fee which is three times the amount collected by the franchisee, account acquisition fee, a business charter default fee of $1,000 and a service fee of 5 to 8%.
Additional fees include marketing fund, supplier rebates, interest on late payments as well as supplemental training fees among others. A detailed cost review is contained in the Franchise Disclosure Document (FDD). This will be issued during the application.
Franchise Term And Renewal
From the moment a franchise agreement is signed, it becomes effective and starts the initial term. However, the franchisor has not made information about the franchise term available. Nevertheless, prospective franchisees get details of this and more in the FDD which will be given them for review and signing.
Support is an essential part of Proforma’s franchise operations. Franchisees are provided with all the assistance they need in key areas of operations. This helps enhance their success, growth, and profitability.
Support includes marketing and ongoing support.
Under its marketing support, lots of areas are covered which include cooperative advertising, use of the franchisor’s ad templates, national and regional media advertising plus social media advertising.
Others are SEO, website development, email marketing, and loyalty programs.
Ongoing support covers areas such as membership of Proforma’s purchasing cooperatives, newsletter releases, as well as meetings & conventions. Others include a toll-free line, a grand opening ceremony, online support, field operations, use of its proprietary software and access to its franchisee intranet platform.
Franchisees benefit from Proforma’s in-house financing arrangement which covers accounts receivable. That isn’t all. There are incentives for veterans too. To honor them for their sacrifice to the nation, Proforma has waved off the franchise fee.
If you feel this franchise opportunity is right for you or need additional information, you can begin by calling 1.800.352.2186. The other alternative is filling its confidential contact form. The franchisor gets in touch shortly by calling to discuss as well as provide answers to any questions you may have.
It doesn’t end here. If you’re interested in proceeding with the application, the detailed process is unveiled. You are taken through the step-by-step process and should have no difficulties from hereon. However, proceeding with the application largely depends on meeting its set requirements.
Training of new franchisees begins after the franchise agreement has been signed. Franchisees attend a 3-day mandatory training class at a location chosen and communicated by the franchisor.
Apart from initial training, existing franchisees also benefit from an ongoing training program.
This training takes the form of business meetings. Unlike the initial training, this is optional and generally lasts 2 days. Activities during such business meetings include operational training, product sales, as well as focus on operational issues.
There are also round table discussions, vendor showcase, recognition banquets plus other related activities.
Proforma is offering a great franchise opportunity for interested investors. To find further information on this opportunity, you can contact the franchisor for a more comprehensive update on what is applicable. The word “update” is used here because Proforma reserves the right to change its franchise terms.