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Postal Connections Franchise Costs & Fees

Date of Incorporation: 1985
Franchising Since: 1995
Headquarters: Frisco, Texas

Business Description: The franchisor is Blue Stamp Franchise Company. Postal Connections stores provides retail customers with mailing, shipping, fax, copy, key duplication, mailbox rental, packaging, shipping, Federal Express and United Parcel Service, sale of stamps, related products and services, and in some cases, notary public and other authorized programs.

Franchise Offer: The franchisee will operate a specialty postal and copy service center within a defined territory using the Postal Connections service marks.

Financial Assistance: The franchisor may help arrange for franchisees to secure financing from other sources to build out and equip their Outlet (does not include the initial franchise fee) if they meet the lender's or the lessor's qualifications. The loans are currently available through the Small Business Administration or a unique capital lease the franchisor has arranged with a reputable lessor.

Training and Assistance: For PC Stores, franchisees receive a Postal Connections Training Package with the training outlined in 4 Phases with a total of 16 days or 128 hours of training. For PC Express outlets, franchisees receive a Postal Connections Training Package with the training outlined in 4 Phases but with a total of 13 days or 112 hours of training. The Initial Training Program is mandatory for franchisees (if the franchisee is an individual) and the General Manager. The successful completion of initial training by the designated General Manager to the franchisor’s satisfaction is a condition to the opening of an Outlet to the public. An additional 4 days of in-store training is provided when franchisees open their Outlet. The franchisor may periodically conduct an annual conference or convention and national or regional meetings or training session, and if the franchisor does, it will determine its duration, curriculum and location. Franchisees (if an individual) and their General Manager must attend each annual conference, convention or training session.

Territory: Franchisees will receive a protected territory within which they are permitted to own and operate a franchised Outlet. The size of the Territory for a PC Store varies from a radius of 2 city blocks (as measured in the franchisee’s city) around the Outlet (if franchisees are in an urban area having a population of 50,000 or more) to a possible radius of 20 miles (if franchisees are in a non-urban (suburban or rural) area). The Territory for a PC Express consists of the confines of the building of the Host Store.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years for a PC store and 3 years for a PC Express. If franchisees are in good standing, they can add additional terms of (i) 10 years for a PC Store and (ii) 2 1-year extensions for a PC Express (subject to approval of the Host Store).

Obligations and Restrictions: While the Franchise Agreement does not specifically require franchisees or their principals to personally participate in the direct operation of the franchise, it is the franchisor’s intention to select only those franchisees whose principals plan to actively participate in the direct operation and daily affairs of the Outlet, unless they own or plan to own more than one store. Additionally, franchisees must employ a full-time Manager for the Outlet who has successfully completed Initial Franchise Training. Franchisees must offer all goods and services that the franchisor designates as required for all Postal Connections franchisees. Franchisees may only solicit or accept orders from customers outside their Territory using the authorized online e-commerce system.

Estimated Number of Units: 40

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee for Initial Store $12,450 $24,900
Real Estate (rent and security deposit) $1,500 $3,000
Architect Fees $0 $1,000
Outlet Assembly & Installation – Modular Cabinets, Fixtures, Retail Equipment, Mailboxes Development Costs and Tenant Improvements (does not include freight) $41,500 $42,500
Outlet Decor – Signage (Interior and Exterior), Instant Postal Store Image and Identity Package, Grand Opening Materials $40,200 $40,900
Inventory, Supplies and Miscellaneous Items $6,900 $7,200
Point of Sale System $2,500 $3,000
Additional Equipment $3,500 $5,150
Equipment (freezers, etc.) $65,700 $84,900
Insurance $250 $1,000
Grand Opening Advertising $3,000 $4,500
Travel, Living Expenses for Initial Training $1,650 $2,000
Miscellaneous Opening Costs $1,900 $2,500
Additional Funds - 1st 3 months $15,000 $18,000
ESTIMATED TOTAL $130,350 $155,650
Initial Investment for an Express Outlet
Name of Fee Low High
Initial Franchise Fee for Initial Store $5,000 $18,000
Real Estate (rent and security deposit) $8,500 $12,000
Architect Fees $0 $1,000
Interior Product Assembly, Installation, Apparel and Decor (not including freight) $13,000 $23,000
Inventory and Supplies $11,000 $17,000
Point of Sale System $1,400 $3,000
Additional Equipment $1,500 $4,000
Insurance $500 $700
Grand Opening Marketing and Advertising $1,200 $1,800
Travel, Living Expenses for Initial Training $1,500 $2,600
Miscellaneous Opening Costs $12,000 $14,000
Additional Funds - 1st 3 months $4,000 $6,000
ESTIMATED TOTAL $59,600 $103,100
Other Fees
Type of Fee Amount
Royalty Fee 4% of Gross Volume).
Marketing Fund Contributions 2% of Gross Volume up to a maximum of $175 per month.
Interest on Late Payments Maximum legal interest rate (not to exceed 1.5% per month).
Late Report Fee $50 per late report.
Audit Expenses Costs of audit.
Collection Costs Costs incurred to collect amounts the franchisee owes to the franchisor and has not paid.
Transfer Fee $5,000
Management Fee $200 to $500 per day plus all costs including compensation, travel, meals and incidental expenses of manager.
Supplier Approval Fee The franchisor may require franchisees to pre-pay reasonable charges for our review and evaluation of any proposal.
Grant of Security Interest Franchisees grant the franchisor a security interest in assets of the Outlet.
Convention Support Fee Reasonable related fees to offset the cost of a convention program may be set by the franchisor (this is typically $500 to $1,000 per Outlet).
Renewal Fee $5,000

The above information has been taken from the FDD of Postal Connections. Year of FDD: 2016

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