What Are the Startup Costs?

A low initial investment and high potential return make PostNet a smart franchise investment

PostNet is a low-cost investment opportunity with a proven business model that offers high potential returns. The total investment necessary to begin operation of a PostNet franchise ranges from $169,767 to $212,275. PostNet owners start with a minimum of $60,000 in liquid capital, and the rest of the franchise cost is leasing packages, equipment purchases and business loans.

Compared to other printing franchises, PostNet boasts a substantially lower-cost investment and a potentially quicker return on investment. For starters, the initial investment is well below $200,000. The reason for this is simple — unlike other printing franchises, PostNet doesn’t require substantial investments in printing technology or machinery. PostNet has made the business model easier to run by establishing relationships with industry-leading companies to outsource many of our franchise owners’ printing needs. This gives the franchisees a wide range of service capabilities, without the expense and experience needed to manage said equipment. This added benefit allows  PostNet to be  able to attract and partner with franchise owners who are passionate about their local small business community rather than solely those with prior printing experience.

The initial PostNet investment is threefold:

  • A $35,000 franchise fee, which covers all of the initial assistance for center opening along with the training, education, franchise support and rights to use the brand over the 15-year term of the franchise agreement. And, unlike other business service franchises, PostNet’s franchise fee is all-inclusive — there are no other significant tuitions, construction management, design or other fees.
  • An $89,900 center development fee, which covers construction, inventory supplies, fixtures and other items.
  • Roughly $60,000 in operating, working and startup capital to cover advertising, operation and other costs during the initial phase of operation of the Center.

 

A full list of our startup costs, from Item 7 of our Franchise Disclosure Document:

Type of Expenditure Amount Method of Payment When Due To Whom Payment is to be Paid
Low High
Initial Franchise Fee $35,000.00 $35,000.00 Lump sum Upon signing the Franchise Agreement Us
Center Development Package $89,900.00 $89,900.00 Lump sum The latter of (a) when you sign your lease for the PostNet Center premises or (b) 90 days before the Opening Date Us
Extra Center Development Expense $0.00 $10,400.00 Lump sum Prior to opening Us or Suppliers
Lease of PostNet Center Premises $1,067.00 $5,250.00 Per agreement with landlord Monthly Landlord
Equipment Lease or Rental Payments $1,200.00 $2,000.00 Per agreement Monthly Equipment lessors
Security Deposit Fees $3,000.00 $8,000.00 Lump sum Prior to opening Landlord, utilities
Insurance $900.00 $2,000.00 Lump sum Annually Insurers
Initial Training Expenses $2,700.00 $4,725.00 As incurred As incurred Providers of transportation, food and lodging, Us
Miscellaneous Pre-Opening Expenses $3,500.00 $10,000.00 As incurred As incurred Government agencies (such as sales and use tax), craftsmen, architectural, electrician, etc.
Grand Opening Advertising Campaign $2,500.00 $5,000.00 As incurred Within eight (8) weeks after the opening Third parties
Additional Funds (3 Months) $30,000.00 $40,000.00 As incurred As required during the first three (3) months Various
TOTAL $169,767.00 $212,275.00

Your actual startup costs may vary within this range. To learn about financing options and gain valuable insight into our franchise opportunity, please fill out the form on this page and start researching what could be an excellent career.