Risk Score
Pending analysis
Investment Range
$230,200 - $296,800
Franchise Fee
$19,975
Min Cash Required
$30,000
Total US Locations
198
Business Summary
PostNet operates franchised businesses that offer a wide range of services for both consumers and businesses. These services include printing, document services, graphic design, shipping, packaging, and mailing. PostNet centers provide digital printing, large format printing, finishing, scanning, direct mail, domestic and international shipping, and related services like fax and notary services.
Corporate History
PostNet International Franchise Corporation was incorporated in Nevada in 1992 and began offering PostNet franchised businesses in July 1993. In 2017, PostNet became a wholly owned subsidiary of U.S. Business Holdings, Inc. (USBH), which itself is a subsidiary of MBE Worldwide S.p.A. Historically, PostNet also offered franchises under other brands like "PostNet Express" and "ShipNet," but these are no longer actively offered, with only one "PostNet Express" location remaining. PostNet does not operate any company-owned centers and focuses solely on its franchised business model.
Financial Overview
Investment Range
$230,200 - $296,800
Franchise Fee (Low)
$19,975
Franchise Fee (High)
$39,950
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$131,750
Equipment Costs (High)
$142,400
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PostNet's financial condition, as presented in its financial statements, raises questions about the company's ability to provide services and support to its franchisees. The company has an accumulated deficit of $365,743 as of December 31, 2024. While the auditor's report provides an unqualified opinion, the FDD itself highlights this financial condition as a special risk for prospective franchisees to consider.
Financing Details
PostNet does not offer any direct or indirect financing options to its franchisees. Additionally, the company does not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
198
Franchised Units
198
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
PostNet is currently involved in one pending lawsuit. This case was filed in October 2024 by former PostNet franchisees who claim PostNet breached their franchise agreement by not providing adequate support, systems, software, and equipment. The former franchisees also allege that PostNet tried to misuse their trade secrets, interfered with customer relationships, and engaged in unfair trade practices. They are seeking monetary damages, including lost profits, and injunctive relief. PostNet, in turn, has filed counterclaims, stating that the former franchisees abandoned their PostNet center, reopened a competing business using PostNet's confidential customer data, failed to pay royalties, and violated non-compete agreements. PostNet is seeking injunctions to stop the former franchisees from competing and misusing confidential information, along with monetary damages. Both parties have filed motions to dismiss each other's claims, and PostNet has also requested to transfer the case to a Colorado court.
Bankruptcy History
PostNet has no bankruptcy history to report.
Agreement Terms
Initial Term
15 years
Renewal Term
15 years
Renewal Conditions
To renew their PostNet franchise, franchisees must provide timely written notice and not be in default of their agreements or system standards. They must be current on all debt obligations and make any necessary repairs or renovations to their center to meet current brand standards. Franchisees are required to sign PostNet's then-current successor franchise agreement and any related documents, which may have different terms than their original agreement. Additionally, they may be asked to sign a mutual general release of claims and must pay a renewal fee equal to 25% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
PostNet provides comprehensive assistance to its franchisees, starting before the center opens. This includes help with selecting a site, advising on lease negotiations, and providing access to PostNet's operations manual. Franchisees receive a complete Center Development Package, interior design plans, and an initial training program that combines online, classroom, on-site, and follow-up sessions. They also get initial personalized forms, stationery, marketing materials, and branded apparel. Before opening, PostNet conducts a final inspection and offers initial advice. After the center is operational, PostNet offers continuing advice and assistance, additional training programs, and keeps franchisees informed of mandatory specifications and standards. Support also includes advice based on performance reports and inspections, and continued access to confidential materials and trademarks. PostNet may also offer optional services such as system modifications, periodic on-site visits, supplemental training, and annual Network Conferences.
Initial Training Hours
48
Training Location
Virtual and PostNet Headquarters in Lakewood, Colorado
Ongoing Support
PostNet provides ongoing advice and assistance, offers additional training programs, and informs franchisees of mandatory specifications and standards. Franchisees can also receive advice on their center's operations based on reports or inspections. Optionally, PostNet may modify and update the system, conduct periodic visits to assist with operations and management, and offer supplemental training for new and transferring franchisees during their first year. PostNet also administers a brand fund for advertising and promotion and holds an annual Network Conference for franchisees.
Franchise Requirements
Ideal Candidate Profile
PostNet seeks franchisees, or their designated managers, who are committed to full-time involvement, working at least 40 hours per week to supervise daily operations and promote the center. Ideal candidates should be able to operate the PostNet Center professionally, comply with the system, and be readily available to communicate during business hours. For existing franchisees looking to expand, PostNet requires them to meet "Certification For Expansion" qualifications, including business experience, net worth, liquidity, strong performance of existing centers, and compliance with existing agreements and standards, along with a detailed multi-unit business plan. PostNet also offers incentives for honorably discharged U.S. veterans, members of ethnic minority groups, and women-owned businesses.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
PostNet defines its protected territories based on the demographics and attributes of the area surrounding the approved location. For urban areas, the territory is approximately one-quarter to one-half mile from the center. In suburban areas, it is about one mile, and for rural areas, it is approximately one and a half miles from the center. Urban areas are considered densely populated major metropolitan areas, suburban areas are outlying areas connected to major metropolitan areas, and rural areas have a low population density.
Staffing Notes
PostNet requires each franchise center to have a Designated Manager, typically filled by the franchisee or one of its owners. This manager must work at least 40 hours per week, supervising daily operations and actively promoting the center. The Designated Manager must also be capable of operating the center professionally, communicating with PostNet during business hours, and authorized to cure any agreement defaults. PostNet's prior written approval is required for hiring or replacing a Designated Manager, who must complete the initial training program. Franchisees are solely responsible for hiring, training, and managing all other staff members, ensuring they are competent, courteous, and meet PostNet's service standards. PostNet does not have the authority to hire or fire franchisee employees, emphasizing the independent contractor relationship.