Proof that the industry is still an attractive business comes with the news that a Melbourne print franchise is up for sale for $915,000.  

The business listed for sale is billed as being ‘arguably the best design and print franchise in Victoria’ with an annual turnover of about $1.5m, and is part of a major franchise chain.

It is said to be one of the top five performing stores nationally in its chain and is a Franchise of the Year winner within its group. Broker Ascent says it has ‘high turnover and excellent return to the owner’ and is ‘truly the best in Victoria’, according to the listing.

Some industry figures are sceptical about the high price considering the turnover, although profitbaility is the main factor for price, and other factors come into play such as the clients, product mix, location, equipment. The average franchise print shop turns a profit of about 10 per cent of revenue and even the best are not much higher than 15 per cent.

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An independent digital print shop in Melbourne with a $2.6m turnover was recently sold by Ascent for $700,000. An A1 commercial offset printer with a $5m turnover is currently for sale at $3m, while a $1m+ turnover digital printer with A3 offset is up for sale at $350,000.

The $915,000 price tag is almost as high as the record $1m sale of Worldwide’s Adelaide CBD shop in 2012, which is said to have a turnover of pushing $3m.

Worldwide managing director Rob Dallimore couldn’t comment on that shop’s progress since new ownership, but says considering the current printing industry environment all franchises are doing well, coming off a productive national conference last month.

“There’s always risk associated with buying any business, print or otherwise. It’s important to have the right team in place to be successful,” he says.

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