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Free franchise report brochure advertising PostNet franchise opportunities.

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  • ContentsWhat is PostNet? ....................................................................................................................................... 1

    The PostNet Story ..................................................................................................................................... 3

    What Are the Startup Costs? .................................................................................................................... 5

    How Big Is the Printing Industry? ............................................................................................................ 7

    How is a PostNet Franchise Different? ................................................................................................... 9

    Who are PostNets Customers? ............................................................................................................. 12

    What is a Neighborhood Business Center? ......................................................................................... 13

    Who makes a Great PostNet Franchisee? ............................................................................................ 14

    What Services Does PostNet Provide? ................................................................................................. 15

    Technology Powers PostNet .................................................................................................................. 17

    Do I Need Printing and Shipping Experience? .....................................................................................19

    Why Is PostNets Support the Best in Franchising? ............................................................................20

    A Day In the Life of a PostNet Franchisee ............................................................................................ 22

    Reviews from Actual PostNet Owners .................................................................................................. 24

    How Does PostNet Define Territories? ................................................................................................. 26

    What Equipment Do I Need? ................................................................................................................. 27

    Why PostNet Is Great For Veterans ...................................................................................................... 28

    How to Finance Your PostNet Franchise .............................................................................................. 29

    How Marketing Support Sets PostNet Apart ....................................................................................... 30

    Meet the PostNet Management Team ................................................................................................. 31

    PostNet FAQ ............................................................................................................................................ 33

    Next Steps ................................................................................................................................................ 37

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    1

    established to provide the support small businesses need to prosper. Sophisticated digital printing, online marketing and shipping solutions are critical to small businesses, and we serve as a one-stop destination for busy entrepreneurs, who represent a fast-growing part of the American economy. The United States has more than 27 million small businesses. Self-employment has grown tremendously since 2001 as Americans have left frustrating corporate jobs with long hours and shaky job security for small businesses with growth potential; the trend has accelerated since 2008, when the economic crisis eliminated thousands of corporate jobs.

    Our franchise focuses on building relationships with other small businesses and consumers. PostNet customers include small entrepreneurial start-ups, existing and mature businesses, local organizations and institutions, and the rapidly growing home-based and mobile workforce.

    PostNet delivers on its brand promise by consulting with customers on their marketing needs and by offering a wide range of solutions everything from logo design, branding, website creation and search engine optimization to business forms, brochures and marketing materials, direct mail and email marketing campaigns, signage, banners and vehicle graphics, just to name a few. We provide everything a business needs to attract new customers and reach out to existing ones.

    We also offer shipping and logistics solutions for businesses and consumers, partnering with UPS, FedEx, DHL and the U.S. Postal Service to offer customers freedom of choice and reliable service options. PostNet offers professional packing services for all types of items and international expertise

    What is PostNet?PostNet Neighborhood Business Center a Digital Printing Franchise that provides Marketing Solutions for Small Businesses

    PostNet has been franchising since 1993 and has more than 700 locations, nearly 300 in the United States and the balance in South Africa, Canada, Australia, Brazil, Colombia, Costa Rica, the Dominican Republic, Panama and Venezuela.

    Our franchises are operated by people who help small businesses thrive in their communities by offering business services such as digital printing, online marketing and shipping three industries with a combined value of more than $380 billion.

    PostNets breadth of knowledge in those industries provides small and medium-sized businesses a gateway to solid marketing and growth. When someone is just launching their business and needs a logo and a set of business cards and letterhead, we can get it done. When they are ready to grow and need signage, or are ready to print and distribute marketing materials, we can help. When they need a website that is easy for customers to find and also works on mobile devices, we can get it done. Since PostNet Neighborhood Business Centers are owner-operated, local business owners also know that we understand their challenges and time constraints. When people need quality work done fast, they come to us.

    What Does PostNet Do?

    Terry Stokes describes his PostNet franchise in Steamboat Springs, Colo., as the make it go away place. Customers bring their printing, shipping or marketing projects to us, often with urgent deadlines, and just want to know we can get them done professionally and on time. Thats where we shine.

    PostNet is the only franchise system

  • 2so that customers dont have to try to figure out how to get their packages from Dallas to Dubai we already know, and we make it simple.

    By providing expert services to a wide range of businesses and consumers, were able to reach deep into our communities and help make them stronger.

    If our country is going to stay strong, weve got to focus on small businesses and helping them grow, and its exciting to know that we are part of that, says Irene Fenolio, who owns the PostNet on West Horizon Ridge Parkway in Henderson, Nev., with her husband, Ronald. We are a small business and we know what they need, and its exciting to provide the resources they need to grow.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    3

    The PostNet StoryA Highly-Respected Name in Printing Franchises

    Today, PostNet is a local, full-service digital printer and marketing solutions provider for small and medium-sized businesses, giving businesses one reliable source for getting things done right, on budget and on schedule. Our owner-operated business centers develop relationships in the community, building the trust that comes from one small business owner working closely with another. Customer service sets PostNet apart. We dont just offer products; we also offer ideas and guidance. Breadth of service sets us apart, too. PostNet partners with dozens of outside providers in order to offer customers a huge range of services, saving business owners valuable time they would otherwise spend researching options. Weve done the research for them, we have the partnerships in place to get the work done, and our project management expertise ensures that the job is done right and on time.

    Todays PostNet is the result of three decades of innovation and evolution driven by our co-founders, Steve Greenbaum and Brian Spindel.

    Steve and Brian began in the pack and ship industry in Las Vegas in 1983, in the midst of one of the citys frequent boom periods. The Postal Service couldnt keep up with growth; it didnt have enough P.O. boxes, and its customer service left a lot to be desired. Steve and Brian, who were both in their early 20s, recognized the demand for a shipping, packing and private mailbox provider with great service.

    Consumers in other cities were looking for alternatives to the USPS in the 1980s, too, and entrepreneurs were racing to get into the mailbox, pack and ship business. Steve and Brian decided to share their knowledge with others as consultants and helped more than

    400 people start their own independent mail and parcel businesses from 1985 1992.

    Starting PostNet

    By the early 1990s, it was clear to Steve and Brian that the business they were developing would need the resources and power of a national brand to compete. So they turned to franchising to build a global brand with robust systems and bargaining power that would deliver more value to owners. The PostNet franchise was founded in December 1992, with Steve as CEO and Brian as president and chief operating officer.

    PostNets Growth and Evolution

    From the beginning, PostNet has operated ahead of the market. It began as a mailbox, packing and shipping center focused on consumer needs but evolved into a full-service digital printer and business marketing solutions provider that serves the needs of local businesses of all sizes and types. PostNet has one overall guiding principle, Steve says: Our business will always evolve with consumer needs and technology.

    PostNet met customer demand in the 1990s by offering copies, binding and high-speed internet access; added graphic design services and full-service printing at the turn of the millennium; added marketing support services to help small businesses grow in 2003; unveiled a suite of digital and online marketing solutions in 2012; and is now bringing 3D printing to customers.

    Steve and Brian are great individuals who think outside the box, says Greg Claiborne, who has owned the PostNet in Round Rock,

  • 4Texas, since 2003. When we started, I didnt know how much change was happening in the industry. Steve and Brian are always anticipating opportunities and keeping us ahead of the curve.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    5

    What Are the Startup Costs?An Affordably-Priced Printing and Shipping Franchise

    The startup costs for a PostNet Neighborhood Business Center are $167,067 to $205,550. PostNet keeps startup costs low thanks to exclusive relationships with dozens of vendors. That means PostNet owners can outsource many types of jobs, which saves them from having to invest in expensive equipment a serious burden, especially during their first year or two in business.

    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, PostNets 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 start-up capital to cover advertising, operation and other costs during the initial phase of operation of the Center.

  • 6A 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 $35,000 Lump sum

    Upon signing Franchise Agreement and upon selection of site or lease signing

    Us

    Center Development Fee

    $89,900 $89,900 Lump sum

    When you sign your lease for the PostNet Center premises or 90 days before our projected opening date for your PostNet Center, whichever date is later

    Us

    Extra Development Expense

    $0 $10,400 Lump sum Prior to opening Us or Suppliers

    Lease of PostNet Center Premises

    $1,067 $5,250

    Per agreement with landlord

    Monthly Landlord

    Equipment Lease or Rental Payments

    $1,200 $2,000 Per agreement Monthly Equipment lessors

    Security Deposit Fees $3,000 $8,000 Lump sum Prior to opening Landlord, utilities

    Insurance $900 $2,000 Lump sum Annually Insurers

    Initial Training Expenses $1,000 $2,500 As incurred As incurred

    Providers of transportation, food and lodging, Us

    Miscellaneous Pre-Opening Expenses

    $3,500 $7,500 As incurred As incurred

    Government agencies (such as sales and use tax), craftsmen, architectural, electrician, etc.

    Grand Opening Advertising Campaign

    $1,500 $3,000 As incurred Within eight (8) weeks after the opening Third parties

    Additional Funds (3 Months)

    $30,000 $40,000 As incurred As required during the first three (3) months Various

    TOTAL $167,067 $205,550

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    7

    How Big Is the Printing Industry?Digital Printing Is Driving Print Franchise Industrys Growth

    Commercial printing generated more than $78 billion in revenue in 2012 and is expected to grow to between $86.1 billion and $87 billion by 2016, according to the National Association for Printing Leadership a growth rate of 2% to 3% a year.

    But the real action within the industry is in digital printing. According to a 2013 report by Smithers Pira, the global market for digital printing is expected to grow from $131.4 billion in 2013 to $187.7 billion in 2018 an annual growth rate of 7.4%. That growth is largely driven by printing demand from small and medium-sized businesses PostNet printing franchises customers.

    How Digital Printing Franchises Help Small BusinessesDigital printing is transforming the printing industry by making it much less expensive to quickly deliver small orders of high-quality brochures, business cards, signs, banners and

    other marketing materials. Rising quality and falling prices have enabled business printing franchises like PostNet to meet the needs of smaller businesses.

    High-quality printing used to be too expensive for many businesses. For 100 years, the industry was dominated by offset printing, which can quickly produce beautiful printed materials, but which requires laborious setup such as the creation of printing plates. If youve ever seen a movie scene featuring newspapers coming hot off the presses, you know what offset printing looks like. If youre printing 100,000 copies of The Daily Beagle, it makes sense. Offset printing is fast, and if you have a large enough print run, its still the less expensive option. But if you only need 100, or 1,000 copies of a document, offset printing doesnt make sense. The setup is simply too expensive.

    Digital printing traces its roots to the desktop publishing revolution that started in the 1980s when laser printers were first introduced. As the technology improved and prices dropped, digital printing became a cost-effective, high-quality alternative to offset printing especially for smaller print jobs like 100 menus, 1,000 business cards or 2,000 brochures. Suddenly, small businesses were able to order materials that matched the slick, professional look of even the largest competitor.

    PostNet recognized the need for a printing franchise that could give small businesses the professional polished look they deserve.

    There were 27 million businesses with fewer than 100 employees in the United States in 2010, according to U.S. Census data, and many of those businesses are young and need help with their marketing in order to

  • 8grow. According to Global Entrepreneurship Monitor, in 2013, 12.7% of Americans either owned a business that was less than 42 months old or were in the process of starting one.

    PostNet Neighborhood Business Centers reach out into the business community to help solve marketing needs.

    I do a lot of mentoring people who are much smaller clients, says John Yovetich, who owns the PostNet in Missoula, Mont. They very much look to PostNet for help. You are their total marketing resource, and they look to you for advice. They trust you to make sure youre doing the right thing for them.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    9

    How is a PostNet Franchise Different?UPS Store, FedEx Office, FastSigns, AlphaGraphics None can match PostNets range of services and value

    PostNet Neighborhood Business Centers offers small business owners guidance, direction, problem-solving and support for printing, marketing and logistics. Here are some of the things that set our franchise apart:

    Convenience:

    PostNet Neighborhood Business Centers are closer to where customers live and work in the interior of neighborhoods and in convenient retail locations.

    Consultative, Personalized Service:

    PostNet centers are owner-operated, and owners build trusting business relationships that allow them to function as advisors not just vendors for their business communities.

    Freedom of Choice for Customers:

    Unlike a traditional postal or mailbox franchise, PostNet offers a multi-carrier

    selection. Every PostNet Center is a UPS-, FedEx- and DHL-authorized ship center. PostNets can serve customers who are loyal to all three of the major brands, and they can also offer a complete line of postal services. PostNet is supported on the UPS, FedEx and DHL locator systems, and these companies send their customers to PostNet Centers, whereas the UPS Store, for example, is only listed on the UPS store locator online and through their 800 number. Being a multi-carrier outlet allows PostNet to offer freedom of choice for customers.

    World-Class Leadership and Support:

    Our senior management team and founders are extremely well-known and recognized worldwide for their involvement and leadership in the franchise industry. Our CEO, Steve Greenbaum, served as Chair of the International Franchise Association and is looked upon as a leading authority on growing and supporting a successful franchise system.Comparison of PostNet and Other Shipping, Printing, and Logistics Franchises

  • 10

    PostNet The UPS StoreFedEx Office Alphagraphics Fastsigns Allegra

    Minutemen Press

    Currently franchising Shipping services Multi-carrier Signs (Wide format) Full printing services Web services Marketing services Locally owned and operated

    Investment $162.2 - $200.7K

    $148.7 - $347.2K N/A $234 - $377.4K

    $171.2 - $277K

    $166.4 - $584.7K

    $66.2 - $221.3K

    PostNet offers extensive training and resources that help you become the problem solver for businesses in your community. But our biggest advantage isnt the services we offer. Its the culture we have as a business and the mindset that we bring to customers: We are passionate about helping others succeed.

    Rich DeMatteo, who owns a thriving PostNet in downtown Denver, says 25 percent of the business is product, 75 percent is service. We had a guy on a skateboard come in for a few copies. It was about 25 cents worth of work and I just gave it to him, no problem, Rich says. He thanked me and asked more about what we do, and he wound up being someone who does a lot of work at medical trade shows. I wound up getting $20,000 worth of business from that one quarter I gave away.

    More ways to serve customers and make money

    Richs story illustrates a key point about PostNet Neighborhood Business Centers. There are two lucrative channels that bring revenue to franchise owners: walk-in customers and ongoing B2B customers. Many customers stop into PostNet for shipping and printing because we are so convenient. We are typically located in areas with a strong mix of high-middle to high-income residents and nearby businesses. This includes downtown locations like Richs in Denver, which benefits from a high density of businesses, as well as a growing number of downtown residents.

    Many customers stop into PostNet for the first time because they are looking for a convenient place to send a package through UPS, FedEx, DHL or the USPS. While they are here, they discover all the other services we provide. Whichever service they choose, excellent customer service and personal

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    11

    attention keeps them coming back.Ron Fenolio, who owns a store in

    Henderson, Nevada, with his wife, Irene, says when buying businesses, they say the three most important criteria are location, location, location. But just important is customer service, customer service, customer service.

    PostNet owners are also able to generate sales by networking with business owners in their community and letting them know about the services PostNet offers. Again, the personal touch makes a huge difference.

    If you compare us to places like FedEx Office, Office Max or Office Depot, there is just

    a huge difference in terms of the knowledge and expertise that is offered to customers, says Greg Claiborne, who owns a PostNet center in Round Rock, Texas. Business people are busy. They are willing to pay a fair price for professional quality printing, expert help with branding and knowing that theyre dealing with store owners who care deeply about the finished product.

    We network within the business community, get to know other businesses and support them. In the process, PostNet becomes indispensable.

  • 12

    Who are PostNets Customers?Trusted business relationships bring recurring sales, higher transactions

    PostNet makes money by selling commercial printing services to business customers; serving the pack-and-ship needs of business customers and neighborhood residents; and by offering marketing solutions such as branding, graphic design, web services and direct mail marketing.

    We can handle all kinds of marketing needs particularly for small to medium-sized businesses. The United States has more than 27 million businesses with fewer than 100 employees, and their owners wear multiple hats and work a lot of hours to succeed. PostNet Neighborhood Business Centers make money by partnering with those business owners and offering one-stop shops for their marketing and fulfillment needs.

    PostNet offers customers everything from logo design, branding assistance, website creation and search engine optimization to

    business forms, brochures and marketing materials, direct mail and email marketing campaigns, signage, banners and vehicle graphics. And thats just a sample. We provide everything a business needs to attract new customers and serve those they already have.

    We also offer shipping and logistics solutions for businesses and consumers, partnering with UPS, FedEx, DHL and the U.S. Postal Service to offer customers freedom of choice and reliable service options. PostNet offers professional packing services for all types of items. We have international expertise, making it simple to ship packages to destinations worldwide.

    By providing expert services to a wide range of businesses and consumers, we reach deep into our communities and make them stronger.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    13

    What is a Neighborhood Business Center?PostNet franchisees thrive on community and one-on-one culture

    PostNet franchise owners care about community, and they thrive by providing one-on-one attention to like-minded small business owners who need a convenient way to create and print high-quality materials, to send and receive packages and to compete effectively for the attention of potential customers. Neighborhood Business Centers make it easy for local businesses to access these services, and they allow PostNet owners to become an integral part of their local communities.

    In an increasingly distracted world there were 8.7 billion internet-connected devices in 2012 the Neighborhood Business Center model allows franchise owners to get back to the basics, helping create an environment where communication, customer service and community come first. A 2013 survey commissioned by Chinet found that 62 percent of respondents would strive to reduce technology use in favor of more personal interaction. That personal touch is a key attribute that helps the Neighborhood Business Center model stand out.

    Youre not just a business, says Ron Bradley, who has owned a PostNet for 15 years. Weve got people who say, I go to my PostNet people; I go to the people who take care of me.

    Meanwhile, the market for those who require Neighborhood Business Center services is rapidly growing. In fact, more than 17 million Americans identify themselves as either self-employed or as an independent worker as of May 2013, according to a report from MBO Partners. That number is expected to grow to 24 million by 2018. At the same time, the number of small businesses in the

    United States has increased 49 percent since 1982. These independent workers appreciate working in an environment where suppliers share their sense of collaboration and community.

    And with hours of operation between 9 a.m. and 6 p.m. and the ongoing support of PostNet representatives, the Neighborhood Business Center model allows franchise owners to maintain their work-life balance. As a PostNet franchise owner you can make a positive impact on your community and still have time to enjoy it.

  • 14

    Who makes a Great PostNet Franchisee?Qualifications for PostNet Franchise Ownership

    The most successful PostNet franchisees are civic-minded and outgoing people who gain fulfillment from working with small business owners, schools and others in their communities people like Tom Fletcher of Sewell, N.J.

    Tom was a senior vice president at Chemical Bank in New York City before the company was purchased by J.P. Morgan. It was the latest in a series of mergers that removed Tom more and more from customers. After 33 years in banking, Tom was ready for a new challenge. I thought this was madness, he says, and I wanted to do something different.

    Tom loves being able to once again connect with small business owners and help them grow. He immediately set out to join the business community in Sewell and he is now president of the Chamber of Commerce and the local Rotary Club, sits on the mayors economic development task force and is the president of his BNI networking group. People do business with people they know, Tom says.

    Of course, you dont have to be as involved in the community as Tom to run a successful PostNet. But you need to be comfortable getting out from behind the counter and building relationships in the community. Your services can benefit nearly every business person you meet.

    PostNet Franchise owners receive awards at the annual conference.

    Financial considerations for owning a printing franchise

    A prospective PostNet franchisee must have a net worth of at least $350,000; access to (or the ability to become) liquid for a minimum of $60,000 in cash; and good credit. PostNet offers several financing options, including SBA loans, and we can help with lenders documentation requirements.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    15

    What Services Does PostNet Provide?Printing, Shipping, Design, and Logistics: PostNet Does It All

    PostNet provides digital printing, branding, marketing and shipping services. We offer a huge menu of services but dont be intimidated: We use in-house equipment and expertise to fulfill many customer orders, but we also have close relationships with vendors throughout the country, which allows us to offer the broad spectrum of services you see below. Our overall mission is to ensure that when customers come to us for a solution, we can get it done. Here are some of the services we offer:

    Digital Printing Franchise

    Business Identity (letterhead, business cards, envelopes, stationery, labels)

    3D Printing (prototypes, replacement parts, architectural models and more)

    Business Form Printing (receipts, carbonless forms, contracts, invoices)

    Marketing Materials (postcards, self-mailers, tent/rack cards, flyers, catalogs, brochures, door hangers)

    Large-Format Printing (posters, banners, signs, trade show displays, window clings, car magnets, vehicle decals, yard signs)

    Promotional Products (magnets, stickers, pens, notepads, calendars, bookmarks)

    Hardcover, Comb or Spiral Binding (for books, presentations and manuals)

    Stapling and Folding (for booklets, brochures and newsletters)

    Newsletter Printing, Design and Mailing Services

    Laminating Services (luggage tags, outdoor signs, business cards, report covers)

    Business Greetings (event invitations, announcements and custom holiday cards)

    Wedding Printing (invitations, RSVP cards, place cards, photo books)

    Custom Invitations and Announcements (births, graduations, anniversaries, birthdays)

    Memories (photo books, custom calendars, photo enlargements)

    Branding and Graphic DesignPostNet offers consultative, personal design services that help our clients create a brand identity that will make them stick out in the minds of customers.

    We start each graphic design job with an initial consultation to determine: The business or organizations values and

    goals The target audience for designs or printed

    pieces

  • 16

    Some locations have 24-hour access. During business hours, someone is always there to accept mail and packages.

    PostNet also offers fast access to U.S. Postal Service services without the wait: Postage stamps and metering APO/FPO shipping and mailing for service

    members and their families First Class, Priority and Express Mail

    services Bulk mail service for newsletters, postcards

    and brochures, which can save customers as much as 30 percent on mailing costs.

    Artwork, Antique Vase, Canoe or Elk We Can Ship It All

    PostNet offers professional packing services for customers fragile, intricate and oversized items. For do-it-yourself types, we also offer a full range of packaging supplies, including bubble wrap, packing peanuts and padded envelopes.

    How the logo or printed materials will be used

    We then work with the client to create: The best logos for a new business or

    organization Logo re-creation (if they have an existing

    logo but dont have access to the original files)

    Professional business cards, letterhead and stationery, as well as marketing materials to match, from flyers and brochures to posters and banners

    Shipping, Packing and Mailbox Services

    PostNet partners with all major shipping carriers. We were one of the original pioneers of the authorized shipping programs with UPS and FedEx and also partner with DHL and the U.S. Postal Service. We offer:

    Shipping

    FedEx and UPS ground shipping. A cost-effective, environmentally friendly option.

    FedEx, UPS and DHL air shipping. We offer two-day, overnight and international air shipping.* (*DHL service availability varies by location.)

    FedEx and UPS drop-off packages. We accept pre-labeled packages for the major carriers.

    Freight and logistics. We can ship everything from cars to valuable artwork.

    Safe, secure mailbox rentals

    PostNet Private Mailboxes provide a secure alternative to mail delivery at your home or business and a professional-looking street address not just a P.O. box number for home-based businesses.Advantages include: A street address means PostNet can

    accept packages from UPS, FedEx and DHL. Home-based businesses can easily keep

    business mail separate from personal mail. We let customers know by email, phone or

    text when important items arrive.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    17

    Technology Powers PostNetPostNet is a consistent innovator for both its customers and its franchisees

    When Steve Greenbaum and Brian Spindel co-founded PostNet, one of their core convictions was that the company would embrace technology and use it to meet the needs of customers and franchisees. In other words, to evolve with consumer needs and technology, according to CEO Steve Greenbaum. Heres a look at some of the technology that enables PostNet Neighborhood Business Centers to thrive:

    Tools for serving customers

    Proprietary point of sale system (POS)/Center Management System:

    Our point of sale system makes it easy for franchisees to quickly and easily quote and manage the entire shipping transaction. Thats no small feat, since franchisees offer service through four different carriers delivering to nearly all corners of the globe. Depending on the type of package a customer wants to deliver, how quickly they want it to arrive, and where, we can recommend the best shipping option. PostNets POS system also includes a mailbox manager, packaging estimator and is integrated with QuickBooks Online for seamless accounting support.

    It is also fully integrated with our print management platform since many of our shipping customers are print customers and vice versa. For easy print estimating, PostNet owners and team members walk customers through the options for creating different types of print projects. First and foremost, what is the objective of the print project? Who are they sending it to? How many pieces do they want or need? Then comes the fun part. By using a set of samples

    and examples customers are guided through the print process and select paper type and weight, document format and folding options and finishing services. It is also integrated with our online print center so customers can quickly and easily order and reorder online.

    Tools for winning customers

    PostNet.com:

    PostNets website underwent a revolutionary redesign in 2014, and the purpose was to drive higher search engine visibility for our franchisees, drive customers to their centers and encourage repeat business. We accomplished this by upending the way franchise websites normally work. Most franchise system websites spend a lot of time describing services, buy just a page describing each individual franchisee. We engineered postnet.com so that new visitors are encouraged to select a local center, and that center then becomes the face of postnet.com, with information about the local center embedded in each page of the site.

    Online print center:

    The online print center makes engaging with PostNet convenient, anytime, anywhere. When you are in bed at 2 a.m., customers can still place orders. When you are out meeting new potential clients at a networking dinner, a longtime customer can re-order business cards, invoice forms or other materials.

    Customer management software:

    B2B networking and sales is a great way to grow a PostNet business, and we have partnered with Salesforce to create tools

  • 18

    to help PostNet owners keep track of sales opportunities and automate follow-up activities for example, automatically emailing a restaurant owner a few months after their most recent order to see if they need more takeout menus printed. It is a powerful tool for managing customer relationships and marketing to customers, and one that we continue to expand.

    Tools for running your business

    PostNet also provides an intranet that franchisees can use to quickly find answers to questions, thanks to a vast library of resources and an active message board that PostNet franchisees use to share ideas.

    Wiki knowledge database:

    PostNets intranet features an ever-expanding wiki-style knowledge database that provides human resources materials, such as training manuals, troubleshooting guides for equipment and details about how to provide different types of services for customers.

    Internal message boards:

    Franchisees also use internal message boards to get answers to questions. Business support coaches at PostNet HQ monitor the boards and answer questions, and so do franchisees nationwide. Franchisees share best practices and problem-solve together, with help from HQ. Its one of the reasons our franchisees are a tight-knit group.

    These tools, combined with training and support from PostNet HQ, allow franchisees to serve customers, win more customers and tap into the collective knowledge of PostNet owners nationwide to maximize their business.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

    19

    Do I Need Printing and Shipping Experience?PostNets training and support help you become the go-to resource for businesses and neighbors

    You dont need a background in graphic design or digital printing to succeed with PostNet. You dont need years of shipping experience, either. Our franchise owners have diverse business backgrounds, and very few of them were in the printing or shipping business before joining the PostNet family.

    PostNets systems enable you to provide a wide array of services and products to clients without needing to master every one. Our proprietary point of sale system allows you to recommend the best shipping option for customers based on the weight and size of their package, speed of delivery, and destination and is fully integrated with our print estimating and management platform.This enables our owners to develop a professional quote and quickly determine whether they can best meet their customers needs by providing in-house production or by working with an outsourced partner. While you and your employees will fulfill many jobs in the center, outsourced partners are a valuable resource. PostNet headquarters has developed relationships with specialty trade printers across the United States and Canada to allow PostNet franchisees the ability to offer a wide range of services while keeping their overhead costs low and enjoying healthy profit margins. The relationships allow PostNet franchisees to handle everything a small to medium-sized business needs for printing and marketing without needing to invest in specialized equipment.

    The essential skills that go into running a PostNet print franchise are project management and business-to-business networking.

    Project management:

    PostNet print franchise owners manage dozens of jobs for clients each day event tickets, postcard mailers, banners, signs and other items so organization is key. Proofs must be created for clients, approved and completed. In addition to managing jobs done in-house, a PostNet owner must also send jobs to suppliers and stay on top of the status of those orders. We provide best-in-class systems and tools that help you handle the work-flow process to ensure that deadlines are met.

    Business-to-business networking:

    Networking is essential to getting the word out and meeting prospective business clients. You dont have to be a networking expert but you do have to be comfortable meeting people and telling them how you can help make it easier for them to the things they need done.

    PostNet print franchises can make life easier for businesses, but only if they know about the full breadth of our offerings and our great personal service. Smaller businesses, especially companies with 40 or fewer employees, are looking for advice and some help, says Rich DeMatteo, who owns the PostNet in downtown Denver. Only 25% of the business model is what we produce: Print jobs and websites are the what. The other 75% the why is that we are fellow small business owners who can offer great advice and act as a conduit for getting their jobs done. You can go to all sorts of places if you just want to have copies made. If you want to know the best things to do to grow your business, you come to PostNet.

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    Why Is PostNets Support the Best in Franchising?PostNets thorough training program will help you get your printing franchise off to a great start!

    PostNets training and support sets us apart from other franchises. PostNet offers seven days of classroom training, then five days of on-site training just before launch to refresh your knowledge, answer any questions and assure your center enjoys a smooth opening. What happens next is the part that makes PostNet extraordinary.

    Four Tools to Develop a Successful PostNet Franchisee

    After you learn how to run your business, well teach you how to grow it:

    Sixty days after your PostNet opens, we return for two more days of on-site training. Why separate the training this way? Simple: When a franchisee launches their first PostNet, they need to concentrate first on how to operate all aspects of their new business, so thats what our initial on-site training focuses on. After four weeks, most franchisees have a solid grasp of how to operate the business what they want to know is how to grow it. Thats why our second round of on-site training focuses on marketing, business-to-business sales and opportunities to expand revenue.

    Business Support Consultant dedicated to your success:

    When you call PostNet for support, you dont have to wonder who youll be talking to. Each franchise owner has a dedicated Business Support Consultant assigned to work with you. And our BSCs are a lot more than troubleshooters they actively keep tabs on your business to help you monitor the health

    of your center and understand opportunities to grow your business. Often, instead of you calling us, well call you to check up, ask and answer questions, offer suggestions and gather your ideas for improving the business. BSCs also visit centers periodically. By building a personal relationship with franchisees, BSCs are able to understand the challenges and opportunities that your business encounters every day and develop solutions or share solutions that one franchise owner has developed so that everyone in the PostNet family benefits.

    Making it easy to share ideas:

    John Yovetich, who owns the PostNet in Missoula, Mont., says one of the keys to his success is a Performance Group of franchisees with similar markets and operations: On a regular basis, you get together and share in-depth details about your business your challenges, your financials and then you consult with one another. Its like being able to peek into a competitors operation.

    One of the key advantages of a franchise organization, even beyond the proven business systems, is the relationships franchise owners build with each other. PostNet has succeeded in part by granting franchises to people who are generous with their advice. New franchise owners are paired with mentors, and PostNet owners get to know one another during the annual convention, regional conventions, franchise advisory councils and conference calls. PostNet also provides an online message board for franchisees.

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    Online tools:

    PostNet believes in the power of one-on-one relationships, and the right technology allows us to harness all those relationships and combined knowledge and turn them into a powerful business advantage.Here are some of the tools we use: PostNet has its own Wikipedia-style

    database with instructions on how to manage various aspects of the business, as well as training manuals and employee handbooks. The Wiki is a searchable repository of knowledge that is kept up-to-date and is always available.

    Advanced dashboards and business intelligence tools help track transaction counts, gross profit margins and other key business metrics.

    PostNets center management/point of sale system allows you to process sales, produce professional estimates, manage inventory, invoice customers and capture and manage customer data.

    Center web/mobile sites feature a blog that makes it easy for franchise owners to share news about their centers.

    PostNets Integrated Marketing Center provides access to proven marketing materials, tools and programs.

    Each center has an Online Print Center which allows customers to request quotes, submit files and approve orders and proofs online. It also provides 24/7 access to your services and makes re-ordering easy, which encourages repeat business.

    Online forums, databases and blogs allow franchisees to find answers and connect with experts and mentors within the system and keep up-to-date on important PostNet events.

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    A Day In the Life of a PostNet FranchiseeThe daily responsibilities and tasks of a PostNet print franchise owner

    Rich DeMatteo, who owns the PostNet print franchise in downtown Denver, gets to work around 7:30 a.m., which gives him time to turn on all the equipment before his center on 17th Street opens at 8 a.m.

    Rich takes a look at the previous days production sheet to ensure that jobs were completed for customers and checks on the status of any jobs that are still pending. At 10 a.m., his first employees arrive, and he runs a production meeting to let the staff know what needs to be done that day, how the jobs need to be prioritized and who will handle different orders.

    He also checks the online dashboard tools provided by PostNet to gauge how his business is doing in terms of total customers, revenue per order and gross profit margin. Rich has owned his print franchise for three years and has been growing the business aggressively by targeting the printing needs of the hundreds of small businesses that surround him in downtown Denver.

    When it comes to our customer base, we love our customers, he says. And just like me, theyre small businesses, and they have a lot of needs, especially in printing and website development, and we work very closely with them.

    The businesses we work with typically have 40 or fewer employees, and we act as their back office support. We take on parts of their web department, parts of their marketing department and parts of their administrative department whether theyre a legal office, a plumber or a political campaign. (President Obamas determination to win Colorado in 2012 turned into a windfall for Richs print franchise.)

    The main thing about our customers is that we build momentum with them over time. They may come to us at first just needing business cards, and as they grow with us, we start putting together entire marketing campaigns for them.

    Rich tries to meet with one or two of his customers every day to touch base between jobs, and his wife Kathy acts as a fulltime sales person. All told, the DeMatteos try to reach out to at least 30 current or potential customers every week. PostNet is a great business for couples, Rich says. One of you needs to go out and do sales, and one of you needs to be here to handle production.

    Heres what the production schedule looked like one day in December: Create three signs, two guest books, and

    brochures for a childhood development business

    Print business cards and application cards for an oil business

    Print Christmas cards and holiday envelopes for a microseismic monitoring company that helps oil and gas companies use hydraulic fracturing to access energy reserves

    Print invitations, tickets and giveaways for New Years Eve bashes being held by a nightclub operator in Denver

    Print business cards for a company that arranges corporate housing

    Create stake signs and an Every Door Direct Mail brochure for a roofing company

    Create an Every Door Direct Mail brochure for a sports nutrition company

    Create backlit signs and a postcard mailer for a charter school

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    Create retractable signs for a financial consulting business

    Print business cards for a luxury hotel in Denver

    Richs center closes at 6 p.m. Monday-Friday. It is also open from 10 a.m. to 2 p.m. on Saturdays. The hours are pretty typical for PostNet: Print franchises normally open between 8:30 and 9:30 a.m. and close between 6:30 and 7:30 p.m., Monday-Friday. Some centers open for half a day on Saturday, and all PostNet centers are closed Sunday.

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    Reviews from Actual PostNet OwnersTalking to PostNet franchise owners is invaluable. Here are samples of what they say about the business.

    PostNet franchise owners share a few outstanding traits: They are outgoing, like meeting and supporting people and their businesses and organizations, and love being involved in their communities. You can watch the videos above to see what CEO Steve Greenbaum and President Brian Spindel say about who makes the best PostNet franchisees, but we also asked PostNet franchisees themselves:

    Irene and Ron Fenolio, owners of PostNet NV141 in Henderson, Nevada:

    Irene: Anybody can do it, but you have to focus on making sure you can establish relationships with people. You have to like people, and you have to know how to handle customer issues and customer service. If youre not doing that, this is not the right place for you. You wont grow the business. Theres a (competitors) store across the way from us, and he is so rude that he practically throws customers our way! Why be in this kind of business if youre going to be rude to customers?

    Ron: You have to be a people person. When buying businesses, they say the three most important criteria are location, location, location. But just important is customer service, customer service, customer service. You have to greet people when they walk in and say, Hey, how are you doing, Ill be right with you! When youre at the post office in line, they dont even acknowledge you. People want to be acknowledged. Once you know their names, one of the things people like best in life is their name. Customer service is the

    key. If you build on that, you can build your business.

    Kathy Stokes, owner of PostNet CO105 in Steamboat Springs, CO:

    I think the best franchisees have to be very, very customer service-oriented and outgoing. They need to be a cheerleader for their business community. They need to be comfortable with and proficient in technology and find that exciting and what they want to do not scary. I think its also important that they understand staffing and are able to be comfortable with hiring, training and building a good team. Your quality of life depends on having good people who can help you with this business. If youre the only person who knows everything, this business can be hard, and you limit your growth. You need to be able to share the knowledge.

    Lee Daniels, owner of PostNet NJ124in Montvale, N.J.:

    There are people from all kinds of backgrounds who have very successful PostNet centers . It takes someone who will be involved with the franchise and get connected with their community. Those who are more outgoing and can talk to everyone they meet, I think, have an edge. It needs to be somebody who will work on their business and not just get stuck behind the counter.

    Michael Looby, owner of PostNet IL140 in Wheeling, IL:

    Before I joined PostNet, I had a very good conversation with Jerry Kahn, who owns the Center in Lake Forest. He shared a lot

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    of information about how his business was doing and about the franchise itself. Through many years in business, you sometimes hear bad stories about different franchises, but I heard nothing but great things about PostNet and its responsiveness and support. When I researched further, calling other franchisees, I found the same good feedback. When I asked people to rate various things about the franchise on a level of 1 to 10, it all came out as 9s or 10s.

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    How Does PostNet Define Territories?Sophisticated tools and research ensure great locations for PostNet printing franchises

    PostNet Neighborhood Business Centers are spread throughout the United States, Canada and abroad. Territories are available in most areas, although existing franchise centers enjoy territorial protection, as a general rule, of at least half a mile in urban settings and a mile and a half in more rural settings.

    Our business-to-business model makes PostNet a great fit for a wide variety of areas. We have successful franchise owners in cities as big as New York and as small as Steamboat Springs, Colorado. Ideal locations typically have diverse business density, moderate to above-average income levels and reasonable access and visibility in the community. We are flexible when drawing territory maps. For instance, a PostNet located near a shore wont benefit from having territorial protection that extends into the water, so we sometimes extend the territorial protection north and south along the shoreline. Likewise, while PostNets business model works well in rural, suburban and urban settings, the territory size will be adjusted to ensure that franchisees will enjoy an abundant pool of potential customers.

    We use specialized mapping and database software to help choose the best site for a Neighborhood Business Center. Our mapping software draws from a wealth of data that allows us to analyze the demographic makeup of a community, spotting business and residential customers who match the profile of PostNets existing customers and identifying neighborhoods where likely customers are clustered. The data is quite specific: We can see where customers who meet our primary

    demographic are located, where customers who meet our secondary demographic work and live, and even customers who are likely to be less frequent. We us the mapping software to place PostNet franchises in the middle of customer hotspots.

    Thats not all. Our mapping software also allows us to see where competitors and nearby PostNets are located so we can give franchisees maximum competitive advantage without siphoning business away from an existing PostNet owner.

    Once weve worked with the franchisee to establish the best area for a PostNet, we then work with the franchisee and with local real estate experts to explore locations. Our center development team will inspect potential locations to catch any problems or opportunities that the algorithm may have missed.

    Its a thorough process that includes considering over 20 key factors designed to ensure that your Neighborhood Business Centers location will be the right one for your area.

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    What Equipment Do I Need?PostNet keeps equipment costs lean; you can add as your printing franchise grows

    Low overhead costs help make PostNet unique among digital printing companies. Starting out, a PostNet franchise owner needs to buy or lease just three key pieces of printing equipment: two high-speed copier-printers (one for black and white, the other for color) and a large-format printer. Typical lease costs for the equipment are $1,200 to $2,000 per month.

    How can we offer so many different services without investing in hundreds of thousands of dollars worth of equipment? PostNet has developed relationships with outside suppliers who can handle large or unusual requests from our clients. By working with outside vendors as a conduit for our customers, we avoid hundreds of thousands of dollars in equipment costs and offer customers multiple options at the price and quality that best serves their needs all while maintaining a healthy margin for PostNet franchise owners.

    PostNet President and COO Brian Spindel described the outside vendors as a factory for the PostNet franchisee. Of course, busy small business owners often face urgent deadlines, and PostNet has won clients loyalty by turning projects around quickly and with high quality. If a customer discovers that hes out of business cards the day before a big convention, his local PostNet Center can quickly provide him with new ones. If a sales team is going to a trade show and discovers that it is running low on brochures, PostNet can quickly replenish them with supplies. The equipment that each franchise start out with is enough to ensure that they will be able to offer customers quick turnaround times for common print orders.

    As a PostNet locations customer list and work volume grows, franchise owners often times add a few pieces of equipment in order to bring more of the job fulfillment in-house, which also bumps up profit margins. PostNet can help you decide when in-house production versus outsourcing makes sense. Starting out, our business model is designed to minimize overhead so a new franchise owner can become profitable more quickly.

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    Why PostNet Is Great For VeteransDiscounts and support for service members who start their own PostNet Franchise

    Amanda Crow, who owns a PostNet Center in Norfolk, Va., is one of numerous PostNet franchise owners who got their start in the U.S. military.

    Amanda and her husband, Jeremy, were serving in the Navy and were PostNet customers when Jeremy suggested they look at PostNet as an option for their post-military careers. He handed her a franchise brochure, and they decided to look into it in about five years. Tragically, Jeremy was killed in February 2010, which led Amanda to leave the military. But she hadnt forgotten their dream. She contacted PostNet, which helped her open her center in Norfolk in October 2010.

    She excelled.Amanda was awarded a Great Start Award

    at PostNets annual Thrive convention in 2012 in recognition of her high gross sales for a new center.

    Her success was no surprise. PostNet is always eager to have veterans join our team. Number one, we believe in our franchise system and know it offers veterans an excellent new career, and we work hard to honor their service by working hard to offer them the support they need to succeed. Second, the traits that make someone an excellent service member also make them an excellent franchise owner: Problem-solving ability, perseverance, leadership skills, mastery of teamwork, and the ability to follow proven systems to achieve success.

    PostNet is part of the International Franchise Associations VetFran program, through which franchises offer discounts to veterans who want to start a business. PostNet offers veterans a 35 percent discount on our franchise fee a savings of more than $12,000.

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    How to Finance Your PostNet FranchisePostNet Franchise Loan Experts Can Help Find a Lender

    Tapping a 401(k) or IRA:

    A franchisee or a family member can tap into a 401(k) or IRA retirement savings to fund a business without facing financial penalties for early withdrawal as long as they do it the right way. Tapping retirement funds requires a series of legal steps, including the creation of a C corporation and corporate retirement account and movement of corporate stocks. Its become a popular financing option since it allows you to, in effect, lend to yourself, allowing you to sidestep reluctant banks.

    Boefly.com (a Match.com for businesses and banks): PostNet has partnered with Boefly.com, a website that allows entrepreneurs to fill out a loan application that is sent simultaneously to hundreds of banks across the United States. Banks that like your lending profile then compete for the right to issue a loan.

    Its been tough for the last few years to obtain financing to start a business but it can be done, especially with the right help. PostNet has taken several steps to make it easier for franchisees to obtain financing, including:

    An internal finance department dedicated to supporting franchisees: Josh Greenbaum, son of co-founder Steve Greenbaum, has a degree in commerce and business administration from Loyola University of Chicago. I speak bank, Josh says, meaning that he understands how bankers qualify people for loans, including the importance of proper documentation, a well put-together business plan, sales projections, repayment schedules and listings of business assets. As financial support manager, Josh helps potential franchisees put together bank packages and communicate with lenders. Josh also provides bookkeeping and accounting-related services for franchisees, and works with others in the finance department to help franchisees gauge their center and plan for equipment upgrades or expansion.

    Small Business Administration Loans:

    PostNet is part of the SBA Registry, a list of franchises that have had their Financial Disclosure Documents and operations vetted by the Small Business Administration. PostNets presence on the SBA Registry saves several steps in the SBA lending process for franchisees.

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    How Marketing Support Sets PostNet ApartWell-financed marketing push helps build a customer base for your PostNet franchise

    Once youve opened your doors, how do you get the word out? PostNet offers an aggressive plan to ensure that your community knows what you have to offer. We help you plan local marketing and promotional activities your first year in business. This allows you to master business operations and also focus on direct sales during your startup phase so you can build the relationships that will keep customers coming to your center long-term.

    Intensive marketing support continues into the future to help you fully establish your new Neighborhood Business Center.

    Our comprehensive ongoing marketing support includes:

    National Event Promotions:

    PostNet coordinates promotions nationally, but the efforts are focused on generating sales for centers. We use a mix of strategies to attract attention to your center, including targeted direct mail, online advertising, contests and sweepstakes.

    Technology:

    PostNet uses its National Advertising Fund to improve customer relationship management tools and resources, which enable franchisees to conduct sophisticated email marketing campaigns that tap into their customer database. PostNet also maintains an Integrated Marketing Center that gives franchisees access to a customizable library of proven marketing materials that can be used in local marketing efforts.

    Promotional items:

    PostNet provides franchisees with promotional items that can be given to customers during direct sales calls to keep your center top-of-mind.

    Public relations and social media efforts:

    These efforts are designed to earn attention for center both in traditional media and online. Our marketing teams efforts ensure that you have a steady stream of targeted content to share with customers.

    Targeted sales advice:

    Knowing how to communicate PostNets value to potential customers is critical. Wondering about the most effective way to approach a medical office, or a law firm, or a restaurant, or a school alumni association? Our marketing team has prepared tip sheets to help you understand the most effective ways to communicate with different types of potential clients. Virtually every business in America can benefit from what PostNet has to offer, but not every business speaks the same language. We help ensure nothing gets lost in translation.

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    Meet the PostNet Management TeamFranchise industry leaders have guided PostNet from the beginning

    Brian Spindel, President and Chief Operating Officer

    As President and Chief Operating Officer, Brian uses his operational aptitude and business savvy to bring big ideas to life. Brian is a frequent panelist at International Franchise Association conferences and conventions and serves on the IFAs Technology Committee, Research Committee and the IFA Educational Foundations Board of Trustees. He is recognized as an expert in operational support within the franchise industry. Click here to watch an interview Brian did with MO.com, explaining how the business he and Steve started in 1983 evolved into todays PostNet system.

    Brian Zugschwert, Business Support ManagerBrian Zugschwert came to PostNet in 2008 as a Business Support Consultant before being promoted to manager of the department. Brian helped evolve the companys intranet to provide financial dashboards that help franchisees better understand key metrics and trends that are driving their businesses. As Business Support Manager, his objective is to ensure franchisees enjoy frequent support and feedback designed to help them increase sales and profitability. He has extensive experience offering IT support, having worked six years offering Tier 3 support while working as an agent and manager for Convergys.

    PostNet CEO Steve Greenbaum and President and Chief Operating Officer Brian Spindel have been friends and business partners for more than 30 years, combining their strengths and passions to grow the PostNet system. They co-founded their first business in 1983, when they were both in their early twenties. Since then, they have worked to support other entrepreneurs, first as consultants and then by founding the PostNet franchise in 1992.

    Steve Greenbaum, CEO

    As Chief Executive Officer, Steve serves as the companys visionary, leading the way for the future with innovative ideas and creative new ways to approach business. PostNet launched in 1992 the same year as the first commercial web browser and Steve quickly foresaw the importance of the Internet in PostNets future and customers need for high-speed Internet access. PostNet can now help build websites for customers, and we offer online marketing services such as social media management and SEO all of which provide recurring revenue for franchisees. Steves vision and business acumen has won respect throughout the franchise industry. He served as chairman of the International Franchise Association in 2008, was named the organizations Entrepreneur of the Year in 2003, and received the Gary Rockwell Award for Excellence in Franchise Development in 2004. Steve was also featured in an episode of the CBS show Undercover Boss in December 2012 (Season 4, Episode 5).

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    Josh Greenbaum, Financial Support Manager

    Josh offers financial support to franchisees helping them arrange the financing to launch their business, then offering financial support and advice to help them grow. Josh has a degree in commerce and business administration from Loyola University, which helps him understand how bankers qualify people for loans and provide the support and materials necessary to get banks to lend. Josh supports franchisees by offering bookkeeping and accounting services for every PostNet in the United States and Canada, helping franchisees gauge their centers performance and plan for equipment upgrades or expansion.

    Tim James, Training Manager

    The first thing youll notice about Tim when you come in for franchisee training is that hes young. The next thing youll notice is that hes dynamic and knows his stuff backward, forward and sideways. Tim developed the Wikipedia-style database that serves as a repository of knowledge and resources for PostNet franchisees, and he makes sure

    franchisees know the basics about how to run their new business and its equipment and systems, then tests them on what theyve learned.

    Jason Tragesser, Field Trainer and Operations ExpertJason has been part of the PostNet family for 20 years. His father, Rick, is a PostNet franchisee in Panama Beach, Fla., and Jason helped manage the center from 1992 to 1998. Jason was called upon to help train and mentor new franchisees so often that he joined PostNet headquarters 14 years ago.

    Rick Greenbaum, Director of Franchise SalesRick has been supporting franchisees for 20 years, working in sales and franchise development for PostNet, The Coffee Beanery, Homewatch International Franchise Corp., and Driven Brands. His extensive knowledge and experience in the franchise industry allows him to understand the motivations and drivers of success for potential franchisees, which helps ensure a great match.

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    PostNet FAQCommon questions about owning a PostNet franchise

    allows PostNet to offer freedom of choice for customers.

    Professional, User-Friendly Environment: PostNets store design, proprietary signage, and merchandising sets us apart by creating a bright, professional, and user-friendly environment that is engineered to be efficient and deliver a great service experience for PostNet customers.

    World-Class Leadership and Support: Our senior management team and founders are extremely well-known and recognized worldwide for their involvement and leadership in the franchise industry. In fact, our CEO served as Chair of the International Franchise Organization and is looked upon as a leading authority on growing and supporting a successful franchise system.

    What are the minimum qualifications to become a PostNet franchisee?

    The most successful PostNet franchisees are those with outgoing personalities who feel a sense of fulfillment from serving and supporting small-business owners and others through their Neighborhood Business Centers. While prior business and management experience is helpful, they must have a love and skill for building relationships with customers.

    On a financial level, a potential PostNet franchisee must have a net worth of at least $350,000 and be (or be able to become) liquid for a minimum of $60,000 in cash. PostNet offers assistance to secure a number of different types of financing, including SBA loans.

    What makes PostNet different from other printing franchises or shipping franchises or other businesses like the UPS Store or FedEx Office?

    Our relationship-based culture sets us apart from any other small business franchise. Anyone can provide copying, shipping or printing services. But only PostNet creates a Neighborhood Business Center environment that small business owners rely heavily upon, not just for tangible services, but for the guidance, direction, problem-solving and support that we are equipped to provide. Other differentiators include: Convenience: PostNet Neighborhood

    Business Centers are located closer to where customers live and work on the interior of neighborhoods and in convenient retail locations.

    Consultative, Personalized Service: PostNets are owner-operated, allowing for higher level of service for customers.

    Freedom of Choice for Customers: Unlike a traditional postal franchise or mailbox franchise, PostNet offers a multi-carrier selection. While the UPS Store offers only UPS services and FedEx Office only offers FedEx services, every PostNet Center is a UPS, FedEx and DHL authorized ship center. PostNets can serve customers that are loyal to all three of the major brands, and also offer a complete line of postal services. PostNet is supported on the UPS, FedEx and DHL locator systems, and these companies send their customers to PostNet Centers, whereas the UPS Store (for example) is only listed on the UPS store locator online and through their 800 number. Being a multi-carrier outlet

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    Can I be an absentee owner of a PostNet franchise?

    Not initially. PostNets Neighborhood Business Center culture is rooted in our franchise owners abilities to relate to the small business community. So PostNet grants franchises only to individuals who plan to work initially as a full-time owner-operator. When the franchise succeeds, the owner can eventually hand off operations to a manager, but its critical for the owner to run things at first.

    How much does a franchise cost?

    The PostNet investment is made up of three primary components:1. A $35,000 franchise fee, which covers all

    of the initial assistance for store opening along with the training, education, franchise support and rights to use the brand over the 15-year term of the franchise agreement. Unlike other small business franchises, PostNets franchise fee is inclusive there are no other significant tuitions, construction management or other fees added on top of the franchise fee.

    2. A $89,900 store development fee, which covers all of the construction, inventory supplies, fixtures and other items necessary to get the center up and running. This fee includes PostNets innovative First-Year Advertising Program to build awareness of your new PostNet franchise and its services in your area.

    3. Operating, working and start-up capital is approximately $60,000, covering costs such as initial advertising, monies available to the owner operator to cover the negative cash flow during the start-up period.

    How much are royalties and advertising contributions?

    PostNets royalty payment, which covers the ongoing service and support from PostNet headquarters, is 5 percent of gross sales.

    Royalties give the store owner access to PostNets Approved Vendor programs, which offer significant discounts, benefits and advantages, as well as PostNets ongoing world-class service and support.

    The national advertising contribution is 2 percent, which helps support a number of national advertising campaigns on an annual basis, as well as locator systems and other system-wide advertising, marketing and public relations initiatives designed to support the success of your PostNet franchise.

    How much money can I make as a PostNet franchisee?

    The beauty of owning your own business is that you control your own success. As a PostNet franchise owner, you have many built-in advantages in todays marketplace, including a pent-up demand for our unique services. Our support systems and programs have proven to be successful in hundreds of PostNet franchises around the world. However, the financial return you will realize as an owner depends on how well you perform and follow the systems provided to you. Your success will also depend on circumstances including local economics and costs, competition, and how aggressively you market yourself and your business.

    Once you apply for a franchise, you will have the opportunity to speak with numerous franchisees to learn about their experience and satisfaction with the PostNet brand, including the financial performance of their own franchise. By speaking with franchisees, you will be able to better understand the potential of the business and what is necessary to be successful.

    What about location? Do I have to find the location on my own?

    Knowing how important it is to find the ideal site for your franchise, PostNet is with you every step of the way, from identifying a location through the opening of your business. We have a full-service approach that starts

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    with our Real Estate Department working with you and local real estate professionals to identify every location in your market that meets PostNets criteria. This criteria includes physical attributes of the locations, such as access, visibility, signage, tenant mix and traffic patterns. It also includes a demographic review looking at the population and makeup of the trade area around the proposed location.

    Ultimately, the location is selected by the franchisee with PostNets assistance, and then it is up to PostNet to approve your site. Once the location is identified, PostNet offers assistance through the lease negotiation and culminating in the execution of a lease for your new business location.

    How big is the typical PostNet center?

    The average center is 1,000 to 1,200 square feet. However, we have centers as small as 700 square feet and larger stores that range upwards to 2,000 square feet. The PostNet concept is flexible and the size of your center will depend not only on your plans, but also on the availability of locations in your market.

    How flexible is PostNet with respect to operation of the business and the services and products offered?

    In franchising, consistency of brand, image and service offerings is important. With PostNet, every franchisee offers a core of proven and high-demand services and products that our customers count on. However, every market presents a unique set of needs. Depending on the needs of your community and your own attributes, other complementary services that are consistent with the other PostNet offerings may be approved by PostNet. Document shredding, advanced computer and database services, and business accounting and financial services are just some examples of other services and products that PostNet franchisees may offer to the public.

    Does PostNet help with franchise financing?

    Yes. PostNet offers complete support associated with various methods of financing, including the SBA 7a program and various leasing options. PostNet is also listed on the SBAs Franchise Registry to make the process of SBA financing a smoother transaction. After you become a franchisee, a PostNet Financial Support Analyst will work with you to develop a business plan and complete the related materials necessary to be approved for your loan.

    How will I compete as a PostNet franchisee in the design, copy, printing and shipping segment?

    The more than $380 billion combined market for copying, printing and shipping services presents a tremendous opportunity for PostNet franchisees to stand out above all other players. Our user-friendly center design, our relationship-based culture, our unparalleled support programs and services, along with the best franchisees in the business, continue to position PostNet as a leader in the marketplace. We are the only brand in the industry to carve a niche as a Neighborhood Business Center, located conveniently in the heart of neighborhoods within communities. With all of those value-adds to customers, PostNet continues to lead the pack in serving the fastest-growing segment of business today: the small and micro businesses including Small Office Home Office (SOHO) workers, home-based businesses, retail and service businesses, and road warriors (traveling businesspeople).

    Will I need employees for my printing franchise? If so, how many?

    Yes. Initially, an owner/operator of a franchise will typically have one to two part-time or full-time staff members to help with the operation of the store, depending on time of year and volume. As the business grows, and as you build a customer base, more employees and staff will be necessary. Our highest-volume

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    locations have four to six full-time staff members, including the franchisee.

    What are the hours of operation?

    Typical hours of a PostNet Center begin between 8:30 a.m. and 9:30 a.m. and end between to 6:30 p.m. and 7:30 p.m., Monday through Friday. Most stores are typically open for half a day on Saturdays between 10 a.m. and 3 p.m. and are closed on Sundays. Many PostNet Centers also offer 24-hour access to the private mailboxes, but it is not a requirement.

    What about marketing? Will PostNet assist me with marketing my franchise?

    Absolutely. PostNet places a high priority and invests significantly in marketing programs to help support PostNet franchisees from their opening stage and ongoing. Support services include: Dynamic and powerful local marketing and

    advertising programs, which the franchisee utilizes to build brand awareness, drive sales and create loyalty with existing customers.

    National awareness programs that are conducted by the PostNet National Ad Fund.

    Customer feedback tools and technology to ensure customer satisfaction and identify areas for improvement.

    Also, PostNet is the only company in the industry that offers a First-Year Advertising Program that includes both consumer advertising and business-to-business advertising to help develop an initial customer base and momentum for the growth of the business.

    How long does it take to get a PostNet printing franchise open?

    Once a franchise has been awarded, it usually takes approximately 90 to 180 days. This depends largely on the real estate that is identified. In the case of a newly constructed shopping center, the timeframe could be longer.

    How can I get a copy of PostNets Franchise Disclosure Document?

    To receive a copy of PostNets Franchise Disclosure Document (FDD), please submit the Information Request form at the upper right, and you will begin our franchise evaluation process. If you would like to speak with a representative now, call 1-800-841-7171 or 1-303-771-7100.

    What is the PostNet franchise investigation process? How long does it take?

    PostNet has designed a mutual investigation process to determine if PostNet and the potential franchisee are a good fit. Should you decide to enter the process, you will participate in a series of informative discussions that will illustrate the strength and value of the PostNet organization and franchise opportunity.

    This four-to-six week process will culminate in a meeting at PostNet World Headquarters in Denver, Colo., where we and you will decide whether you and PostNet are a good fit.

    If you like what youve seen so far and would like learn more, complete our request for franchise information form and we will be in touch with you shortly. If you would like to speak with a representative now, call 877-373-6734.

    We are looking forward to hearing from you and getting started in your exploration of PostNets opportunity.

  • FRANCHISE INFORMATION REPORT / POSTNETFRANCHISE.COM

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    Next StepsWhat to expect if youre buying a PostNet print franchise

    Thank you for taking the time to learn about PostNet and our exciting franchise opportunity. Were eager to meet people who are interested in helping our nations small businesses grow by giving them the tools they need to succeed.If youre just beginning to explore business or franchise opportunities, we urge you to get in touch. Our 20 years of franchise experience has taught us that there are two basic types of people who are interested in starting a small business. The first look for the right time to start a

    business, but often never do because life almost always presents obstacles.

    The second make it the right time to start a business and then go to work to make sure they are right about that decision. They believe skill, intelligence and execution conquer obstacles and make the right time now.

    Were eager to tell you more about what PostNet offers franchisees as well as the communities we serve, and were also happy to put you in touch with franchise owners in your area so that you can ask them their views on the business. Starting a business is a big decision, and we want to answer any question you may have.

    To learn more, heres how to get in touch:Enter your basic information in the form at right to download our free franchise information report and one of our representatives will contact you shortly. If you would like to speak with a representative now, call 303-771-7100 and press 3.

    Thank you for your interest in PostNet. Good luck as you consider business opportunities. We hope to welcome you to the family soon!

    What is PostNet?The PostNet StoryWhat Are the Startup Costs?How Big Is the Printing Industry?How is a PostNet Franchise Different?Who are PostNets Customers?What is a Neighborhood Business Center?Who makes a Great PostNet Franchisee?What Services Does PostNet Provide?Technology Powers PostNetDo I Need Printing and Shipping Experience?Why Is PostNets Support the Best in Franchising?A Day In the Life of a PostNet FranchiseeReviews from Actual PostNet OwnersHow Does PostNet Define Territories?What Equipment Do I Need?Why PostNet Is Great For VeteransHow to Finance Your PostNet FranchiseHow Marketing Support Sets PostNet ApartMeet the PostNet Management TeamPostNet FAQNext Steps