Year Business Began: 1985
Franchising Since: 1993
Headquarters: Lakewood, Colorado
Estimated Number of Units: 665
Franchise Description: PostNet International Franchise Corporation is the franchisor. The franchisor is a wholly owned subsidiary of its parent, U.S. Business Holdings, Inc. PostNet businesses provide a broad array of printing and document services, graphic design, marketing services, shipping, packaging and mailing services, and other related business services under the “PostNet” trade name and business system.
Training Overview: Franchisees (or the franchisee is an entity, the designated manager) must attend and successfully complete to the franchisor’s satisfaction, an initial training program on the operation of a PostNet center. Any other management-level employees franchisees request may attend training upon the franchisor’s authorization. Franchisees or their designated manager are required to complete each of the steps of the training program. The franchisor will connect new franchisees with a qualified fellow owner (mentor) in their area to offer support, assistance, and advice. The franchisor may, from time to time, require that franchisees (including, if applicable, their designated manager, staff, and employees) attend additional training programs that it designates at the times and places that it designates. The managing owner, designated manager (if applicable) and other employees of the franchisee that have signed a confidentiality agreement may attend Thrive, the franchisor’s annual national convention of franchisees.
Territory Granted: The Franchise Agreement designates the approved location for the center. Franchisees will not receive an exclusive territory. During the term of the Franchise Agreement, if franchisees are in compliance with the Franchise Agreement and all other agreements they or their affiliates may have with the franchisor, the franchisor will not 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 one-half miles from the approved location for a rural area.
Obligations and Restrictions: Each PostNet center is required to have a “designated manager,” a position normally filled by franchisees if they are an individual, or one of the owners if they are a legal entity. The designated manager must fulfill a specific set of qualifications as stated in the FDD. Each designated manager and successor designated manager must attend and complete the initial training program. Franchisees must offer and sell only products and services that the franchisor has expressly approved for sale in the manual or otherwise in writing. Franchisees may not conduct e-commerce unless they have received the franchisor’s prior written permission or unless such activities are expressly authorized by the manual.
Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing and they meet other requirements, they may add one successor renewal term of 15 years.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $36,750 | $36,750 |
| Center Development Package | $111,947 | $111,947 |
| Extra Development Expense | $0 | $10,400 |
| Lease of PostNet Center Premises | $2,500 | $5,250 |
| Equipment Lease or Rental Payments | $750 | $1,000 |
| Security Deposit Fees | $3,000 | $8,000 |
| Insurance | $900 | $2,000 |
| Initial Training Expenses | $3,500 | $11,000 |
| Miscellaneous Pre-Opening Expenses | $10,000 | $25,000 |
| Initial Marketing Fee | $10,000 | $10,000 |
| Additional Funds (3 Months) | $30,000 | $40,000 |
| ESTIMATED TOTAL | $209,347 | $261,347 |
| 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. Instead of the annual requirement, the franchisor may require the greater of 2% of gross sales for the previous calendar year quarter or $1,500 per quarter. |
| Advertising Cooperative | 3% of gross sales. |
| Interest on Late Payments | Lesser than 18% per annum or maximum allowed by state law. |
| Transfer Fee | Greater of $10,000 or 50% of the then-current franchise fee. |
| Referral Fee | $10,000 to $15,000 |
| Remodel or PostNet Center Upgrades | $0 to $40,000 |
| Audit | Amount of underpayment with interest plus the cost of audit, which is estimated to be between $700 and $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 $500 per day plus reimbursement of the trainer's expenses, which are estimated to be between $200 and $350 per day, plus airfare/travel expenses). |
| Successor Franchise Fee | 25% of the then-current initial franchise fee. |
| Thrive Registration Fee | Then-current fee. |
| Thrive Absentee Fee | $250 |
| Point-of-Sale/Print/Web-to-Print Software Fee | The then current cost, (currently approximately $150 per month). |
| Technology Fee | Then-current fee (currently $125 per month). |
| Adobe Creative Cloud | The then current cost (currently $52.95 per month). |
| QuickBooks Online (QBOE) Business Package | Then-current subscription fee (currently $48 per month), and one-time $50 initial setup fee per center. |
| Canva Design Tool | Then-current subscription fee (currently $12 per month). |
| Reimbursement of Monies Paid by Franchisor on Franchisee’s Behalf | Varies. |
| Unauthorized Advertising Fee | $500 per occurrence. |
| 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 compiled from the FDD of PostNet. Year of FDD: 2023.
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