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PostNet Franchise Cost & Fees

Date of Incorporation: 1992
Franchising Since: 1992
Headquarters: Denver, Colorado

Business Description: PostNet offers franchises for neighborhood business centers that provide a broad array of printing and document services, graphic design, web and marketing services, shipping, packaging and mailing services, and other related business services under the name “PostNet.”

Franchise Offer: PostNet offers franchises for neighborhood business centers that provide business and consumer services and products with a unique and distinctive center design and selling system under the PostNet brand.

Financial Assistance: Neither the franchisor nor any agent or affiliate of it offers direct or indirect financing. The franchisor does not guarantee any note, lease or other obligation.

Training and Assistance: The Classroom Training Program will last for approximately 12 calendar days. Training will be held at the corporate headquarters in Denver, Colorado, and will cover comprehensive PostNet Center operations and best practices. The Initial Onsite Training Program will be held at the franchisee’s Center at approximately the time the Center opens or, if the franchisee is purchasing an existing Center, approximately one to two months following the transfer date. Initial Onsite Training will last for eight to 12 calendar days, of which three to five days will be after the Center is open for business if the franchisee is not a transferee. The Follow-Up Training visit will occur approximately 60 days after the Center’s opening and will be conducted by a PostNet certified trainer who may be an Area Franchisee. The trainer will work with the franchisee for two to three days (at the franchisor’s discretion). There will be no Follow-Up Training Visit for Conversion Owners, transferees, or existing franchisees that open additional Centers. The franchisor may, from time to time, require that franchisees (including, if applicable, your designated manager, staff, and employees) attend additional training programs that it designates at the times and places that it designates.

Territory: The Franchise Agreement designates the Approved Location for the Center. The franchisee will not receive an exclusive territory. During the term of the Franchise Agreement, neither the franchisor will establish or operate, or franchise any entity to establish or operate, a business using the Proprietary Marks and System at any location within the area described in the Franchise Agreement (“Protected Territory”). The size of the Protected Territory will likely differ among franchisees, and will be determined by the demographics and attributes of the area in which the PostNet Center is situated. As a general rule, the area will be approximately 1/4 mile to 1/2 mile from the Approved Location for an urban area, approximately one mile from the Approved Location for a suburban area, and approximately one and 1/2 miles from the Approved Location for a rural area.

Term of Agreement and Renewal: The length of the franchise term is 15 years. The successor franchise right allows a franchisee to remain as a franchise after the expiration of the initial term of franchise agreement for an additional 15 years if conditions are met.

Obligations and Restrictions: Each PostNet Center is required to have a “Designated Manager,” the franchisee, or one of the owners, if the franchisee is an entity. Franchisees must offer and sell only products and services that the franchisor has expressly approved for sale in the Manual or otherwise in writing.

Estimated Number of Units: 675

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Center Development Package $89,900 $89,900
Extra Development Expense $0 $10,400
Lease of Center Premises $1,067 $5,250
Equipment Lease or Rental Payments $1,200 $2,000
Security Deposit Fees $3,000 $8,000
Insurance $900 $2,000
Initial Training Expenses $2,700 $4,725
Miscellaneous Pre-Opening Expenses $3,500 $10,000
Grand Opening Advertising Campaign/span> $2,500 $5,000
Additional Funds (3 Months) $30,000 $40,000
Estimated Total $169,767 $212,275
Other Fees
Type of Fee Amount
Royalty Fee 5% of gross sales.
National Advertising Fund Contribution 2% of gross sales.
Individual Advertising Expense Greater of 2% of gross sales for previous 12 months or $6,000 per year, if spent annually (currently required) or greater of 2% Gross Sales for each previous calendar year quarter or $1,5000 per quarter, if spent quarterly, upon written notice.
Interest on Late Payments Lesser than 18% per annum or maximum allowed by state law.
Transfer Fee $10,000 or no more than 50% of the then-current franchise fee.
Broker Fee $10,000 to $15,000
Remodel or PostNet Center Upgrades $0 - $35,000
Audit Amount of underpayment, interest, and cost of audit estimated to be between $600 to $15,000
Default Fee In certain circumstances, at least 3% and no more than 12% of gross sales. For all other defaults, all of the franchisor’s costs related to the default including the franchisor’s attorney fees and administrative costs.
Additional Training Then-current fee (currently $350 per day plus reimbursement of the trainer's expenses, which are estimated to be between $75 to $150 per day).
Successor Franchise Fee 25% of the then-current Initial Franchise Fee.
Thrive Registration Fee Varies each year.
Thrive Absentee Fee $300
Annual Point-of-Sale Software Fee The then current cost, (currently approximately $130 per month).
Technology Fee Currently $100 per month.
Adobe Creative Cloud The then current cost, currently $50 per month.
QuickBooks Online ("QBOE") Business Package The then current cost, currently $270 per year.
Reimbursement of monies paid by franchisor on franchisee's behalf Varies.
Unauthorized Advertising Fee $500
Indemnification Will vary under circumstances.
Professional Fees and Expenses Will vary under circumstances.
Payment Service Fee Up to 4% of total charge.
Insufficient Funds Fee $100 per occurrence.
Customer Satisfaction Reimbursement Reasonable costs the franchisor incurs for responding to a customer complaint, which varies.

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

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