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 $174,767 to $217,275. 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 $94,900 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|
|Initial Franchise Fee||$35,000.00||$35,000.00||Lump sum||Upon signing the Franchise Agreement||Us|
|Center Development Package||$94,900.00||$94,900.00||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|
|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|
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.