Franchising Since: 1968
Headquarters: Mission Viejo, California
Estimated Number of Units: 60
Franchise Description: Postal Instant Press, Inc. is the franchisor. A full service PIP Center offers a variety of business printing, business communications, marketing services, signs, desktop publishing, digital processing, document creation, duplicating, graphic arts, layout and design, mailing services, typesetting activity and related services. Franchisees own and operate a PIP center at a location within a geographic area specified in the Franchise Agreement.
Training Overview: The franchisor will train franchisees and one other person at Print Management University currently located at its corporate facility in Mission Viejo, California. Total instructional time currently runs 80 hours. The objective of the initial two-week training program is to train franchisees in four operating systems: production management, marketing and sales management, business and financial management, and employee management. Following successful completion of Print Management University, franchisees will receive several days of on-site field visit supervision and assistance by a PIP business management consultant. Franchisees are invited to attend every PIP convention held, but are not required to do so. The franchisor can require franchisees and/or their personnel to attend additional or supplemental courses on new procedures or programs that it deems to be of major importance to the operation of the PIP center. The franchisor also provides additional (non-mandatory) training in the form of training workshops to franchisees, and their employees.
Territory Granted: Franchisees are responsible for selecting the site of their PIP center, and then the franchisor then determines the boundaries of their territory in relation to the site of the PIP center. If franchisees faithfully and promptly perform and observe all of their obligations and conditions under the Franchise Agreement, the franchisor will not operate nor authorize any other person or business entity to operate a PIP center in the territory during the term. In determining the exact boundaries of any territory, the franchisor seeks to ensure a business count of at least 1,200 within the territory.
Obligations and Restrictions: The franchisor does not require franchisees to personally supervise their PIP center on-site (although it recommends it). However, franchisees (if a person, or if not a person, the person owning, operating and/or controlling the franchise) must supervise the overall management of the PIP center, and must devote their entire time, attention and best efforts exclusively to this management and operation. Franchisees may have a manager for their PIP center. Franchisees must also hire a full-time employee with at least six months’ prior experience in the operation of a printing press. Franchisees must sell only those goods and services the franchisor expressly authorizes. In addition, franchisees must not use the PIP center premises for any purpose other than the operation of a PIP center.
Term of Agreement and Renewal: The length of the initial franchise term 10 years. The term may be extended for two successive 10-year periods if the franchisee is in compliance with the Franchise Agreement.
Financial Assistance: Neither the franchisor nor any PIP affiliate offers direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $55,000 | $55,000 |
| Purchased Equipment | $70,527 | $70,527 |
| Leased Equipment | $2,454 | $2,454 |
| Additional Funds (working capital) | $125,000 | $150,000 |
| ESTIMATED TOTAL (for a full service center) | $252,981 | $277,981 |
| Type of Fee | Amount |
|---|---|
| Continuing Franchise Fee | From 0.25% to 6.5% of gross sales, depending on gross sales during any calendar year. |
| National Advertising Funds | 2% of gross sales, up to a maximum of $1,150 per month per center. |
| Regional/Local Co-op Advertising Obligation | Varies. |
| Transfer Fee | Currently $10,000, subject to change. |
| Audit Fees | Cost of audit. |
| Indemnity | Payment of the franchisor’s losses, damages, and costs of the PIP center or under Franchise Agreement. |
| Attorney's Fees | All costs incurred in suit, arbitration or other proceeding (including reasonable attorneys’ fees). |
| Other Payments to PIP | Varies. |
| Interest | California judgment rate, currently 10%. |
| Additional Training | Currently $1,000 per person. |
Franchise Direct's Disclaimer