Pak Mail
Date of Incorporation: 1984
Franchising Since: 1984
Headquarters: Englewood, Colorado
Country: U.S.
Description: Pak Mail offers a variety of packaging, shipping, mailing, communications and information products and services to residential and commercial customers. Pak Mail Centers utilize the services of both the U.S. Postal Service and private carriers. Pak Mail Centers offer parcel and freight shipping; custom packing and crating; freight forwarding; residential and office moving; package receiving; priority through parcel post mail service; an alternative declared value program; electronic commerce; facsimile transmissions; notary public services; photocopying; laminating; custom printing. Pak Mail Centers also sell packaging materials, office supplies, greeting cards and other items and materials which they approve. Not all Centers offer all of these services and products.
Franchise Offer: There are three kinds of Pak Mail franchise offerings:
i. Pak Mail Center:Offers the standard variety of packaging, shipping, mailing, communications and information products and services
ii. Conversion Franchise: A franchise established by converting an operating packaging and shipping center to a Pak Mail Center
iii. Area Franchises: Marketing of franchised Centers. Area franchise operators provide certain assistance and support for Pak Mail Centers within a designated geographic area.
Financial Assistance: Franchisees are eligible for expedited and streamlined Small Business Administration loan processing through the SBA’s Franchise Registry Program. Neither Pak mail nor any agent or affiliate currently offer, directly or indirectly, any financing arrangements to franchisees. Pak Mail does not guarantee any lease or other obligations for franchisees. Pak Mail can, however, recommend a third party lender to franchisees.
Training and Assistance: Within 90 days before the opening of a Center, the franchisee must attend and complete the initial training program. All training is held at the corporate headquarters in Centennial, Colorado. The training material consists of written, video and audio taped instruction. There are eleven days of training in the corporate office, two days of on-the-job training at a designated Pak Mail Center operated by another franchisee upon a space-available basis, and three additional days of on-the-job training at the trainee’s Center at or around the time the Center opens for business.
Territory: Franchisees may operate a Center only at the franchised location approved by the franchisor. The franchisor bases its approval of the proposed franchised location on a variety of factors including the viability of the location and demographics of the proposed franchised location. The franchisor may not operate or grant any franchises for the operation of other Pak Mail Centers within a specified area encompassing the franchisee’s Center.
Term of Agreement and Renewal: The initial length of the franchise term is 15 years. The franchisee has the option to renew for an additional 15-year term if the franchisee meets the requirements of the franchisor.
Obligations and Restrictions: The franchisor does not require the franchisee to participate personally in the direct operation of the Center. If the franchisee does not participate in the day-to-day operation of the Center, a manager (Principal Operator) must be designated to be responsible for the direct on-premises supervision of the Pak Mail Center at all times during its hours of operation. The franchisee or the Principal Operator must successfully complete the mandatory initial training program for a Pak Mail Center. The franchisee and its managers, including the Principal Operator; must enter into a confidentiality and noncompetition agreement with the franchisor. The franchisee may sell only those products arid services approved by the franchisor and may not use the Center or the Franchised Location for any purposes other than the operation of a Pak Mail Center. The franchisee must sell the products and services approved by the franchisor, but certain additional products and services approved by the franchisor may be sold.
Total Number of Units: 464 units
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $29,950 | $29,950 |
| Build-Out | $57,500 | $57,500 |
| Networked Point of Sale Computer System | $12,775 | $14,500 |
| Equipment and Office Supplies | $1,300 | $2,100 |
| Opening Inventory | $4,960 | $6,650 |
| Security Deposits, Utility Deposits, Business Licenses | $2,500 | $4,000 |
| Initial Marketing Materials | $1,500 | $1,500 |
| Additional Funds -3 months | $25,000 | $50,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $135,485 | $166,200 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | Sliding Scale from 5% to 3% of Royalty Based Revenues |
| Interest | Lesser of 1.5% per month or highest rate of interest allowed by law plus a $50 late filing charge |
| Advertising Contribution | 2% of Royalty Based Revenues |
| Costs of Inspection and Audit | Vary according to franchisee location |
| Internet Service Provider | Ranges from $50 to $200 per month |
| Electronic communication services | Upwards of $110 a year |
| Transfer Fee | $4,000 |
| Successor Franchise Fee | $2,500 |
| Training Program Expenses | Costs associated with attending mandatory training sessions |
| Costs and Attorneys' Fees | Will vary depending on nature of franchisee default |
| Indemnification Under Franchise Agreement | Will vary depending on nature of the claim against franchisor |
| Payments for Items Supplied by Us | Will vary |
| Business Insurance Premiums | Will vary depending on franchisee location and insurer |
| National Convention Fee | Currently $495, but is subject to increase based on franchisor costs |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Pak Mail.
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