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FDD Talk 2015: The Pak Mail Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on December 9, 2015

in FDD Talk 2017: Service Franchises, Franchise Earnings, Shipping Franchise

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Pak Mail Photo from proVanceTek

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Pak Mail franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Pak Mail franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Pak Mail’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross sales for the Top 10%, Top 30%, Top 50%, and all 219 franchised Pak Mail Centers that were in operation at least two years before the reporting period of December 1, 2013 through November 30, 2014

Section I – Background Information

Pak Mail Seeks Franchisees in New England, Rest of U.S.

Pak Mail, a one-stop packing, crating, shipping and business support solutions provider, is specifically seeking franchisees in New England, although opportunities to own a Pak Mail business exist across the entire United States.

Pak Mail Centers of America, based in Englewood, Colorado, got its start in 1983 with a single Pak Mail location. The company started franchising in 1984. Pak Mail provides packing, shipping and other services in the U.S. and several other countries and is 98 percent franchised, with more than 225 locations.

Company Helps Veterans Become Business Owners

The company has partnered with the Veterans Transition Franchise Initiative, or VetFran, to provide help to veterans who wish to become business owners. Honorably discharged service members can get a 50 percent discount on the initial franchise fee. VetFran helps returning service members make the transition to civilian life while being productive and successful.

Pak Mail has been named a Military Friendly Franchise by G.I. Jobs, a publication that provides education, training assistance and employment opportunities for returning veterans. Pak Mail is also a featured sponsor and official collection location for Cell Phones for Soldiers.

Pak Mail was No. 316 on Entrepreneur’s 2015 Franchise 500 list. It was also No. 87, up from No. 188 in 2014, on the 2015 Entrepreneur Top Global Franchises list.

‘Anything, Anywhere’

The company says “We pack and ship anything, anywhere,” including large items, valuables and freight items (hazardous materials such as explosives are exceptions). There are no weight or size limits, and Pak Mail works with its chosen carriers to provide commercial and residential delivery.

Specialty shipping services cover fine art and antiques, military shipping, entire households and estates, holidays and special events, and other categories. For international shipments, customers can get real-time estimates and let Pak Mail manage the process, selecting the most efficient delivery options.

Crating and packing options include a variety of containers, such as proprietary wood crates, corrugated fiber-board containers and prefabricated boxes. Large items such as grandfather clocks, antique furniture and even motorcycles can be crated and shipped, and Pak Mail can even crate and ship a customer’s entire home, office or warehouse.

Innovative Crating for Bronze Horse Statue

When the right box or crate cannot be found, Pak Mail will work with the customer and create a custom container. An example of Pak Mail’s innovative shipping services can be found in the shipment of a 250-pound bronze statue of a horse that needed to be shipped from Florida to New Hampshire.

Pak Mail Boca Raton East packing specialists transported the statue to the store in a trailer to plan how it would be shipped. In front of the store, the team created a custom crate around the bronze bronco, also developing stabilizing pieces inside the container.

Company Helps Small Businesses Streamline Operations

Pak Mail can also manage a small business’s shipping needs while the business focuses on its customers. Warehousing services enable Pak Mail to store a customer’s inventory and pack and ship items from that inventory.

Business support services include mailbox rental, notary services, document shredding, printing, sales and more. Private mailboxes have street addresses and include package receiving.

Pak Mail, Agora Culture Partner for Fine Art Shipping

Pak Mail Centers of America announced a partnership with The Agora Culture in August 2014. The company became the preferred shipping solution for online sales of fine artwork by the Agora Culture, which was founded in July 2013.

Section II – Estimated Costs

  • Please click here for detailed estimates of Pak Mail franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis

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