PostNet
PostNet is a shipping, printing, and business services center franchise competing directly with The UPS Store and FedEx Office. Total investment of $230K to $297K is moderate, and the upfront Center Development Package ($131K) is unusual — it includes most of your equipment, computers, and fixtures in a bundled purchase. The system has been essentially flat for three years (198–201 units), which suggests limited organic growth opportunity in a category dominated by far larger competitors. Item 19 revenue data exists but was not fully captured in this extraction — specific revenue figures are unavailable.
Initial Investment Breakdown
| Category | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,950 | $39,950 |
| Center Development Package | $131,000 | $131,000 |
| Extra Center Development Expense | $0 | $10,400 |
| Lease of PostNet Center Premises (monthly) | $2,500 | $5,250 |
| Equipment Lease or Rental Payments (monthly) | $750 | $1,000 |
| Security Deposit Fees | $3,000 | $8,000 |
| Insurance | $900 | $2,000 |
| Initial Training Expenses | $2,100 | $4,200 |
| Miscellaneous Pre-Opening Expenses | $10,000 | $35,000 |
| Initial Marketing Fee | $10,000 | $10,000 |
| Additional Funds (3 months) | $30,000 | $50,000 |
| Total | $230,200 | $296,800 |
Financial Performance (Item 19)
Unit Growth
| Year | Total Units | Opened | Closed |
|---|---|---|---|
| 2022 | 200 | — | — |
| 2023 | 201 | — | — |
| 2024 | 198 | — | — |
Other Ongoing Fees
| Fee | Amount | Frequency |
|---|---|---|
| Network Conference Registration Fee | $725 | annual |
| Default Fee | Varies |
* "Varies" — this fee is listed in the FDD without a specific dollar amount. Consult the full FDD or contact the franchisor for current rates.
Quick Facts
FDD Analysis
What You'll Pay
The PostNet franchise fee is $39,950 for new single-unit franchisees, with several discount structures: 50% off ($19,975) for existing PostNet, AlphaGraphics, or World Options franchisees; 20% off for VetFran qualifiers; and 8% off for diversity/women-owned businesses. Conversion franchisees (converting an existing independent shipping/printing business) pay $19,975–$39,950 depending on circumstances.
The Center Development Package is $131,000 — a mandatory upfront purchase that covers computer hardware, equipment, fixtures, signage (up to a 24" exterior sign), and 25 hours of graphic/design services. For centers larger than 1,200 sq ft or with larger exterior signage, an additional $0–$10,400 applies. The Initial Marketing Fee adds $10,000.
Total investment of $230K to $297K breaks down as: $39,950 franchise fee + $131,000 Center Development Package + $10,000 marketing fee + $2,500–$5,250/month in rent (first month shown) + $3,000–$8,000 security deposits + $900–$2,000 insurance + $10,000–$35,000 miscellaneous pre-opening + $30,000–$50,000 working capital (three months).
Ongoing fees: 5% royalty on gross sales (reduced to 3% Year 1 and 4% Year 2 for Conversion franchisees). Brand Fund contribution: 2% of gross sales. Local advertising: the greater of 2% of prior year gross sales or $6,000/year. Technology costs add approximately $363/month (POS $125/month + technology fee $125/month + QuickBooks $49/month + website tools $26/month + other software $38/month). Network Conference registration is $725/year.
The renewal fee (Successor Franchise Fee) is 35% of the then-current franchise fee — approximately $13,983 today. Below-average for the category. The transfer fee is the greater of $10,000 or 50% of the current franchise fee (~$19,975).
What You Could Earn
PostNet's Item 19 discloses historical gross sales data for centers open 12+ consecutive months as of December 31, 2024, covering 198 U.S. centers. The full revenue table was not captured in this data extraction — specific revenue figures by percentile tier are unavailable in this profile.
For context in the shipping/business services category: PostNet centers operate in the same space as The UPS Store, which reports average gross revenue of approximately $800K–$1.1M for franchised locations. PostNet, as a significantly smaller brand with less consumer recognition, likely generates lower average revenue. The business model spans shipping (FedEx, DHL, USPS partnerships), digital and offset printing, mailbox services, packaging, notary, and business services.
Revenue in this category depends heavily on two factors: proximity to The UPS Store or FedEx Office locations (direct competitors), and the quality of your commercial printing and design business development. Retail shipping alone at PostNet scale is unlikely to generate strong returns — operators who invest in B2B commercial printing relationships tend to achieve meaningfully higher revenue.
Request the full Item 19 revenue table directly from PostNet as part of your validation process.
Growth & Stability
PostNet has been essentially flat: 200 units at the start of 2022, 201 at the end of 2023, 198 at the end of 2024. The -3 net unit change over three years indicates the system is not growing, and closures are offsetting new openings.
The competitive context explains the stagnation. The UPS Store has approximately 5,000 U.S. locations; FedEx Office operates roughly 2,200. PostNet's 198 locations lack the brand recognition, marketing budget, and consumer awareness of these category giants. PostNet operates as part of the PostNet International Franchise Corporation family alongside AlphaGraphics (commercial printing) and World Options (international shipping) — but this corporate relationship doesn't translate into significantly stronger consumer brand presence.
PostNet is owned by an entity that also owns AlphaGraphics, which is a stronger brand in commercial printing. If you're evaluating this category, comparing PostNet against AlphaGraphics directly is worthwhile — they're different concepts but share infrastructure and ownership.
For a new franchisee, a flat-to-declining system raises questions about ongoing franchisor investment in marketing, innovation, and support. A 198-unit system has limited scale for national advertising impact.
Watch Out For
Competing directly with The UPS Store is the central challenge. The UPS Store has 5,000+ locations, ubiquitous brand recognition, and a deeply entrenched customer base. PostNet's differentiation is primarily in commercial printing and design services — if you don't actively develop B2B commercial clients, you're fighting a brand awareness battle you're unlikely to win on shipping alone.
The Center Development Package ($131K) is non-refundable and non-negotiable for new franchisees. You're buying an equipment package sight-unseen, which limits your ability to negotiate pricing or substitute preferred vendors. Confirm what specific hardware and equipment is included and whether it aligns with current-generation point-of-sale and production technology.
The default fee structure is unusual and worth reading carefully: PostNet can charge 3–12% of gross sales for specific defaults including refusing an audit or failing accounting compliance. These penalty rates are applied on top of your regular royalty obligations and could represent a severe financial penalty for compliance failures.
The required Network Conference registration fee ($725/year, billed monthly at $60.42) includes a $250 absentee fee if you miss the annual conference without an excused absence. Annual conference attendance is essentially mandatory.
The flat system growth over three years suggests limited franchise sales momentum. This has implications for brand fund spending power — a 198-unit system contributes only ~$400K/year to the Brand Fund at 2% of even $1M average revenue, which is insufficient for meaningful national media.
Explore More
Seriously considering PostNet?
A franchise consultant can verify the Item 19 numbers with real franchisee contacts, flag territory conflicts, and walk you through the FDD before you sign. Their fee is paid by the franchisor — your consultation is free.
Source: FDD filed in MN, 2025. Extracted 2026-01-01.
These figures are sourced from the PostNet 2025 Franchise Disclosure Document filed in Minnesota. Item 19 gross sales data exists in the FDD but was not fully captured in this extraction — specific revenue figures are not available in this profile. Consult with a franchise attorney and accountant, and review the complete FDD directly, before making any investment decision.
Frequently Asked Questions
- Is PostNet a franchise?
- Yes, PostNet is a franchise with 198 locations. Prospective owners purchase the right to operate under the PostNet brand and system by signing a franchise agreement and paying a franchise fee. The full terms are disclosed in the Franchise Disclosure Document (FDD).
- How much does it cost to open a PostNet franchise?
- The total initial investment for a PostNet franchise ranges from $230K to $297K, according to the 2025 FDD. This includes the franchise fee, build-out, equipment, and initial working capital.
- Does PostNet disclose franchise earnings?
- PostNet does not include an Item 19 financial performance representation in their FDD, which means they do not publicly disclose revenue or earnings data for franchisees. Prospective buyers should request this information directly from existing franchisees listed in Item 20.
- How many PostNet franchise locations are there?
- As of the 2025 FDD, PostNet has 198 total units (-1.52% growth rate).