PostNet Franchise Startup Cost, Revenue and Profit Margin

PostNet started its humble beginnings in 1985 as a small packing and shipping business.

However, the story is different today as it has turned into a huge global brand with franchising operations in several countries. PostNet began franchising in 1993 and continues to expand into new locations.

Currently, this PostNet is seeking to conquer more territories both within the United States and beyond. It is seeking for passionate investors with interest in services such as printing & document services, marketing services, graphic design, mailing shipping, and packaging services.

These are the services the franchisor specializes in.

What Makes This Franchise Opportunity Unique?

According to the franchisor, there are lots of reasons why prospective investors should be excited.

Apart from being part of an international franchise brand, its business model is wired for success. This is shown in the success of existing franchisees who benefit from recurring revenue, multi-carrier shipping provider, plus a rich menu of services.

Other benefits include vibrant and lively center designs, its problem-solving approach to business, and round the clock support both from the franchisor and other franchisees.

What more? PostNet has a personal and close relationship with its partners, gets the job done fast, provides exceptional customer care services, also, bringing convenience to its franchise operations.

PostNet has also provided a list of things its franchisees are happy about to include its ability to stimulate work diversity.

Additional benefits include being able to adopt a community-centered approach, a clean work atmosphere, sane business hours and a great family business potential. These and more make this franchise opportunity very rewarding for many.

Financial Requirements

Owning a PostNet franchise is tied to the fulfillment of its financial requirements. These include the franchise fee, royalties plus the estimated initial investment among others. An estimated initial investment fee ranging from $185,617 to $227,550 is required.

The exact sum you pay depends on the size or number of PostNet franchise units, and location among other factors.

The estimated initial investment consists of other fees as shown by the following breakdown; an initial franchise fee starting at $35,000 is included.

Others include a center development package at $97,000, extra development expense ranging from $0 to $10,400 and lease of center premises with an average cost of $1,067 and $5,250. Equipment lease or rental payments start from $750 to $1,000, while security deposit fees have a low and high of $3,000 and $10,500 respectively.

Insurance costs anywhere from $900 to $2,000, initial training expenses at $3,500 to $5,500 and miscellaneous pre-opening expenses from $3,500 to $10,000. An initial marketing fee starting at $10,000 and additional funds of $30,000 to $40,000 for 3 months are included.

  • Additional Fees

There are other additional fees too. A few such fees include audit fees between $700 to $15,000, default fees of about 3 to 12% of gross sales, additional training fees of $350 per day and a successor franchise fee of 25% of the then-current initial franchise fee.

Other fees include customer satisfaction reimbursement, payment service fee of 4% of the total charge, insufficient funds fee of $100 per occurrence, and varying professional fees and expenses among others.

Details on these and more are included in the FDD.

Is Financing Available?

There is no mention of financing for prospective franchisees. However, further information on financing is made available upon application. You can ask the franchisor about this and any other questions you might have about its franchise opportunities.

PostNet Franchise Term And Renewal

All new PostNet franchisees get a franchise term limit of 15 years. So, is this subject to renewal? Yes! However, this isn’t automatic. It isn’t automatic in the sense that the franchisor only approves franchise term renewal for franchisees considered to be in good standing.

In other words, such franchisees must have merited or met its (the franchisor’s) requirements. A term extension or renewal of 15 years applies.

Apply For This Opportunity

The PostNet franchise is offering you a chance to become a part of its success story. The information provided to this point has highlighted the basic information required to take your first step. Whether you’re fully convinced or want to learn more, you only need to fill out its form. This enables you to download its free franchise guide.

Contained in the free franchise guide are details on initial investment breakdown, how to proceed, as well as the support you get as its franchisee. The next step involves the discovery process. This includes attending a “Discover PostNet” virtual webinar, taking a personality assessment test and submitting your application.

Prospective franchisees are to attend a virtual “Opening Your Center” webinar. After this, the franchise disclosure document (FDD) is handed out by the franchisor for review. You also get the opportunity to chat with existing franchisees to find out further details about its prospects.

Next are the discovery day and signing of the franchise agreement at PostNet’s headquarters. This is followed by site selection, training, building your center, and promoting your franchise with the help of PostNet’s marketing team.

  • Training

Franchisees are taken through a detailed training process to enable them to hit the ground running. New franchisees are required to complete 10 days of training at the franchisor’s headquarters. So, what does this training cover? It covers its vital operational procedures.

Some of the areas to be covered include center operations, systems, sales, products & services, marketing, and finance among others. Additional in-center training is offered for a week in a designated PostNet center.

Here, new franchisees get hands-on training in addition to real-world business experience from an existing and qualified franchisee or entrepreneur.

The PostNet franchise offers prospective franchisees an opportunity to join its family. The information included here, though brief is sufficient enough to take the first step to actualize your desire. You get guided through the entire process by the franchisor right up to the time you first open your doors for business.

More importantly, franchisees benefit from a series of support services. These include training & refresher courses, marketing support as well as ongoing support covering all aspects of its operations.

By enhancing the chances of its franchisees to succeed, the impact is felt by the franchisor too. This creates a win-win situation for both the franchisor and its franchisees.