Pak Mail (Retail Center) Franchise Costs, Fees & FDD

Year Business Began: 1984

Franchising Since: 1984

Headquarters: San Diego, California

Estimated Number of Units: 305

Franchise Description: Annex Brands, Inc. is the franchisor. The franchisor offers new retail center franchises under the brand “Pak Mail” (as well as the following trademarks and trade names: PostalAnnex, AIM Mail, Parcel Plus, Handle With Care Packaging Store, and Sunshine Pack & Ship). Standard or express retail center franchisees sell business support, mailbox rental (physical and virtual), package receiving, postal, printing, copying, packaging, shipping, office supply, passport photo, notary, fingerprinting, and related products and services. Flex retail center franchisees sell some of the services of a standard or express retail center, as well as crating, pick-up and delivery services, and boxes and packaging materials. In addition, the franchisor also offers commercial logistics center franchises under a different FDD.
Training Overview: Franchisees (or, if the franchisee is a legal entity, one of the principals) and/or the designated personnel (not to total more than four persons) must successfully complete initial training to the franchisor’s satisfaction. The franchisor and any regional licensee for the brand and geographic area will assist franchisees to prepare for initial training and provide initial and other training to them before they open their retail center. Currently, initial training for standard, express and flex retail centers will typically last for eight classroom days, nine hours per day, with up to one additional six-hour day for flex retail centers. Pre-training materials and workbooks may be given to franchisees before initial training. The franchisor may provide an online training program before franchisees and/or their personnel attend the initial training class that may reduce the number of classroom days for initial training. The franchisor may require any principals or personnel who become actively involved in the management of the retail center to successfully complete any training programs it requires. National conventions may occur about every 10 to 18 months. Franchisees and/or their designated personnel must attend the full program of, and must stay at the designated hotel of, each national convention. The franchisor also may organize periodic regional meetings. Franchisees and/or their designated personnel must attend any regional meetings in their geographic area.

Territory Granted: Franchisees of a retail center will receive a protected area. If franchisees remain in compliance with the Franchise Agreement, the franchisor will not license another retail center or establish a company-owned retail center of the same type designated within the protected area. If franchisees operate a standard retail center or flex retail center, the protected area will be the geographic area within a 1/2-mile radius of the standard or flex retail center. If franchisees operate an express retail center, the protected area will be the facility in which the retail center is located.

Obligations and Restrictions: Unless the franchisor permits otherwise in writing, franchisees (or a principal of any legal entity that owns the retail center) or an equivalently trained manager must personally devote full time, energy and best efforts to the management and operation of the retail center. Franchisees (or a principal of any legal entity that owns the retail center) and/or any manager of their retail center must successfully complete initial training. Franchisees must sell only products and services that the franchisor has approved or authorized. At no time may franchisees sell prohibited or unapproved services or products. Franchisees must use their retail center solely for that purpose, must keep the business open and in normal operation for the minimum hours and days the franchisor specifies or approves in writing, and must refrain from using or permitting the use of the business for any other purpose or activity at any time without the franchisor’s prior written consent.

Term of Agreement and Renewal: The initial length of the franchise term is 20 years. Renewal is for an additional 20-year term if requirements are met.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees or guarantees any of their notes, leases or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$17,500	$35,000
Fixtures	$17,000	$50,000
Mailboxes	$8,000	$16,000
Package Lockers	$0	$3,500
Flooring	$5,000	$9,000
Interior Signage	$1,000	$2,500
Exterior Signage	$3,500	$8,000
Construction Services	$20,000	$90,000
Construction Consultation Fee, if applicable	Varies
Equipment	$2,000	$6,500
Computer Hardware and Software	$4,500	$13,000
Initial Inventory	$2,000	$7,000
Insurance	$0	$7,000
Online Financial Training Portal License and Administrative Fee	$330	$330
Travel, Lodging and Meals for Initial Training	$1,000	$4,000
New Center/New Owner Marketing Program	$5,500	$5,500
Supplies	$1,000	$2,500
Business Licenses, Business Permits, etc.	$300	$1,000
Deposits and Pre-paid Expenses	$13,500	$20,000
Architect Fee	$0	$6,000
Miscellaneous Expenditures	$2,000	$3,000
Additional Funds (1st 12 months)	$0	$60,000
ESTIMATED TOTAL	$104,130	$349,830

Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross receipts.
Marketing Fee	2% of gross receipts.
Advertising Association Fee	Monthly, the greater of $150 or 1% of gross receipts.
Transit Insurance	Premiums generally are $0.55 to $1.75 per $100 of property valuation, packaging and shipping charges.
Retail Center PostalMate POS Network Software End User License Fee	Currently, $35 annually.
Retail Center Postalmate POS Network Software Maintenance Fee	Currently, $105 annually.
Retail Center Postalmate POS Network Software License Transfer Fee	Currently, $0, but the franchisor may charge a transfer fee in the future.
Software Upgrade Fee	Fee the franchisor determines at the time (the franchisor has no current plans to discontinue use of the current software).
Technology Services Fee	Currently, $16 per week.
Customized Web Pages or Website, Additional Retail Center Email Addresses, and E-commerce Services	Current fees.
In-Center TV Marketing Program Fee	Currently, $17 per month.
Special Field Assistance	Currently, $300 per day per person, plus expenses.
Management Fee	Currently, $300 per day per person, plus expenses.
National Convention Registration Fee	Currently, estimated to be a proportionate share of the franchisor’s out-of-pocket costs for hosting, meals, and convention activities.
National Convention Hotel Fee	Currently, room charges, taxes and fees for one room at the convention hotel during the convention dates.
National Convention Participation Deposits	Currently, $25 per week.
Regional Meetings	Currently, there is no registration fee for any regional meeting, but the franchisor may in the future charge a fee, estimated to be a proportionate share of the franchisor’s out-of-pocket costs for hosting the meeting.
Fee for Required Refresher Courses or Optional Training Programs	Currently, not to exceed $300 per day.
Sales Consultant Fee	$12,000 to $36,000
Transfer of Franchise	15% of then-current non-discounted initial franchise fee.
Transfer of Franchise to Family Member	Currently, $750.
Transfer of Franchise to the Franchisee’s Legal Entity	Currently, $350.
Entity Name Change (non-transfer)	Currently, $350.
Ownership Change (non-transfer)	Currently, $350.
Renewal	$8,500
Audit	Cost of audit ($500 minimum) plus 1.5% per month interest or the highest rate allowed by law on underpayment. In addition, franchisees must pay the franchisor a late fee of $35 per week.
Failure to Provide Audit Documents	$525 per type of document not supplied on auditor's request, but in no event an amount greater than $2,600 per occurrence and cost of audit including reasonable expenses incurred by auditor if rescheduled.
Failure to Provide Annual Reports	$525 per type of document not supplied, but in no event an amount greater than $1,600 per occurrence.
Retail Center Maintenance	The franchisor’s actual cost.
Late Fee	Greater of $35 or 10% of amount due, or highest amount allowed by law.
Interest	Lesser of 1.5% per month or highest rate allowed by law (in California, the highest lawful rate of interest is 10% per annum).
Attorneys’ Fees and Costs	The franchisor’s actual cost.
Indemnification	The franchisor’s actual cost.
Strategic Marketing Alliance Fees	Reasonable specified fees.
Co-branding Fees	Reasonable specified fees.

The above information has been compiled from the FDD of Pak Mail. Year of FDD: 2025.
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