Sir Speedy Buys Franchise Agreement for 87 Florida Shops

Sir Speedy Inc. said it purchased the master franchise agreement for all 87 Sir Speedy printing centers in Florida from Fort Lauderdale-based Gamma Graphics Inc.

Terms were not disclosed, but the Florida shops are expected to generate sales of about $25 million this year, the company said.

Royalty income from the Florida franchises amounts to about 5% of each shop’s sales volume.

Laguna Hills-based Sir Speedy has about 650 franchised centers, all of them now reporting and paying royalties directly to the corporate headquarters rather than to a master franchiser like Gamma.

Sir Speedy is the third largest quick-printing chain in the nation, behind Los Angeles-based Postal Instant Press and Houston-based Kwik Kopy.

The company is owned by closely held KOA Holdings Inc., the Montana-based operator of campgrounds and manager of money market funds.

KOA purchased a 77% stake in Sir Speedy in 1977, guided the company out of bankruptcy reorganization proceedings and purchased the rest of the company in 1981.

Sir Speedy franchises normally sell for $86,000, which includes training and all the equipment necessary to start a quick-printing shop.

In 1985, Sir Speedy franchises had total sales of about $150 million.