Considering a Navis Pack & Ship Franchise? Don’t Overlook These 45 Important Franchise Fees

If you are considering a Navis Pack & Ship franchise, don’t get blindsided by these 45 important franchise fees (from the initial franchise fee, to the royalty fee, to 43 other fees found in Items 5 and 6 of Navis Pack & Ship’s 2017 FDD).

1.  Initial Franchise Fee:  $11,980 to $29,950

• You must pay Navis a $29,950 initial franchise fee. The initial franchise fee is due when you sign the Franchise Agreement.

• If you are an honorably-discharged veteran of the U.S. armed forces and meet Navis’ requirements, under its participation in the International Franchise Association’s VetFran Program, Navis will discount the initial franchise fee by 20% ($5,990), and you will pay Navis a $23,960 initial franchise fee.

• If you already own and operate a commercial center or one of Navis’ retail centers, Navis will discount the initial franchise fee by 50% ($14,975), and you will pay Navis a $14,975 initial franchise fee for your 2nd or further additional commercial center.

• However, if you are an honorably-discharged veteran of the U.S. armed forces and meet Navis’ requirements, under its participation in the Intemational Franchise Association’s VetFran Program, Navis will discount the initial franchise fee by 20% ($2,995), and you will pay Navis an $11,980 initial franchise fee.

2.  New Center/New Owner Marketing Program Deposit:  $4,500

• You must deposit with Navis at least $4,500 before or at initial training. Navis will use these funds to advertise your commercial center before and within about 90 days after its opening if it is a new commercial center, or its transfer if you assume operations of an existing commercial center after a transfer.

3.  Technology License Fee:  $6,250

• At the time you sign your Franchise Agreement, you also must sign the ABConnect license agreement for your new commercial center or for a commercial center being converted from an existing business. You must pay Navis a nonrefundable, one-time technology license fee of $6,250 for the right to use the web-based operating system developed for Navis for use in the operation of a packing/shipping/logistics business (the “ABConnect System”).

4.  Centralized Freight Billing Deposit:  $750

• Before or at initial training, you must deposit with Navis a $750 centralized freight billing deposit for a new commercial center. The deposit will be retained by Navis to ensure payment by you of centralized freight billing invoices.

5.  On-Site Initial Training:  no charge

• At a time when Navis’ personnel are available, it will provide on-site initial training at your commercial center for up to 4 days for a new franchisee or 1 day for a transfer or existing franchisee, at no charge to you.

• At your request, and at a time when Navis’ personnel are available, if you require additional training after this initial on-site training, Navis may require you to pay its daily fee (currently $250 per person), and its costs for transportation, lodging, and meals.

• Salaries and other charges for Navis’ personnel time will be at Navis’ expense.

6.  Royalty Fee:  6% of Gross Volume received or earned during the preceding weekly period of Monday through Sunday

• Due Date:  Weekly on Wednesday of each week for the preceding week.

7.  Marketing Fee:  3% of Gross Volume received or earned during the preceding weekly period of Monday through Sunday

• Due Date:  Weekly on Wednesday of each week for the preceding week.

8.  Regional and Local Marketing Cooperative (“RMA”):  greater of 1% of Gross Volume or your per capita share of costs incurred by RMA

• Due Date:  Weekly on Wednesday, after the close of business, for the preceding week.

9.  RMA Additional Dues:  your proportionate share of campaign cost

• Due Date:  When assessed.

• The members of an RMA may vote to carry out special marketing or promotional campaigns. The amount of the additional dues will depend on the extent of the campaign.

• All members of the RMA have a vote on the decision to assess additional dues.

10.  Referral Fees:  currently, 5% of gross billed price you charge for the job

• Due Date:  As incurred.

• Due when you perform work with another franchisee’s customer.

11.  New Center Development Referral Fees:  currently, 5% of gross billed price you charge for the job during the 1-year period after the opening of the remote operation or the opening of the new center, whichever comes first

• Due Date:  As incurred

• Due when you perform work for another franchisee whose customer was referred to you as part of your new center development.

12.  Insurance for Freight or Transit Damage and Related Risks:  generally, $0.39 up to $1.19 per $100 of property valuation (typically this expense is passed through to the customer)

• Due Date:  Payable weekly with royalty and marketing fee payments.

13.  Centralized Freight Billing Program Processing Fee:  currently, $4.50 per freight shipment processed and billed

• Due Date:  Payable weekly with royalty and marketing fee payments.

14.  ABConnect Software Upgrade Fee:  reasonable fee

• Due Date:  As incurred.

• Payable to Navis if upgrades or enhancements to the software or Internet web portal technology are developed.

15.  ABConnect Technology License Transfer Fee:  $350

• Due Date:  Before transfer.

16.  Customized Web Pages or Website, Email Addresses, and E-commerce Services:  reasonable fee

• Due Date:  10 days after invoice for customized web pages or website and e-commerce and each Wednesday for additional center email addresses.

17.  Special Field Assistance:  currently, $250 per day per person, plus expenses

• Due Date:  10 days after invoice.

• If required, you must pay Navis’ then-current daily fee and its out-of-pocket expenses.

18.  Management:  currently, $250 per day per person, plus expenses

• Due Date:  10 days after invoice.

• If Navis manages your business because of your illness, incapacity, death, or failure to timely cure a default, or because the franchise expires, terminates, or is not renewed, you must pay Navis’ then-current daily fee and its out-of-pocket expenses.

19.  National Convention Registration Fee (per person):  currently, estimated proportionate share of Navis’ out-of-pocket costs for hosting, meals, and convention activities

• Due Date:  Before convention.

20.  National Convention Hotel Fee:  currently, room charge, taxes, and fees for 1 room at the convention hotel during the convention dates

• Due Date:  Before convention.

21.  National Convention Participation Deposits:  currently, $25 per week

• Due Date:  Weekly on Wednesday for the preceding week, beginning after the opening of your commercial center, or after you assume the operation of an existing commercial center through a transfer.

22.  Regional Meetings:  currently, there is no registration fee for any regional meeting, but Navis may in the future charge a fee, estimated to be a proportionate share of its out-of-pocket costs for hosting the meetings

23.  Fee for Optional Training Program:  not to exceed $250 per day; not to exceed more than 10 days per year

• Due Date:  Before or at the time training is provided.

24.  Sales Consultant Fee:  $12,000 to $36,000

• Due Date:  On or before closing of the sale of your commercial center.

25.  Transfer of Franchise:  15% of then-current non-discounted initial franchise fee

• Due Date:  Before transfer.

26.  Transfer of Franchise to Family Member:  currently, $750

• Due Date:  Before transfer.

27.  Transfer of Franchise to Your Legal Entity:  currently, $350

• Due Date:  Before transfer.

28.  Entity Name Change (Non-Transfer):  currently, $350

• Due Date:  Before change.

29.  Ownership Change (Non-Transfer):  currently, $350

• Due Date:  Before change.

30.  Renewal:  $5,000

• Due Date:  Before renewal.

31.  Audit:  cost of audit ($475 minimum), including the charges of any independent auditors and their travel expenses, room and board, and applicable per diem charges for Navis’ and their employees, plus 1.5% per month interest or the highest rate allowed by law on underpayment. In addition, you must pay Navis a late fee of $25 per week.

• Due Date:  10 days after invoice.

32.  Failure to Provide Audit Documents:  $500 per type of document not supplied on auditors’ request, but in no event an amount greater than $2,500 per occurrence, and cost of audit, including reasonable expenses incurred by auditor if rescheduled

• Due Date:  10 days after invoice.

33.  Failure to Provide Annual Reports:  $500 per type of document not supplied, but in no event an amount greater than $1,500 per occurrence

• Due Date:  10 days after invoice.

34.  Software Upgrade Fee:  reasonable fee

• Due Date:  When Navis determines to adopt new or updated software system-wide.

35.  Bookkeeping, Accounting, Reporting, and Record Retention Systems Fee:  reasonable fee

• Due Date:  10 days after invoice.

36.  Product or Service Payments:  actual supplier charges

• Due Date:  10 days after invoice.

37.  Product, Service, or Supplier Evaluation Fee:  Navis’ actual cost

• Due Date:  Before review and evaluation.

38.  Center Maintenance:  Navis’ actual cost

• Due Date:  10 days after invoice.

• If you do not maintain the condition and appearance of your commercial center as required by the Franchise Agreement, Navis may: 1.) arrange for the necessary cleaning, repair, remodeling, upgrading, decorating, or painting; and 2.) replace the necessary fixtures, displays, signs, equipment, leasehold improvements, or furnishings.

39.  Replacement of Salesperson or Operations Person:  Navis’ actual cost

• Due Date:  10 days after invoice.

• If you fail to replace a sales person or operations person within 60 days, Navis may choose to select a replacement until you fill the position.

40.  Telephone and Fax Numbers or Yellow Pages Advertising Payments or Deposit:  Navis’ actual cost or deposit based on usage

• Due Date:  10 days after invoice.

41.  Customer Satisfaction/Quality Control Audit Program Costs:  Navis’ actual cost

• Due Date:  10 days after invoice.

• If Navis institutes any customer satisfaction or quality control audit programs, it may require you to pay the program costs.

42.  Late Fee:  greater of $25 or 10% of amount due, or highest amount allowed by law

• Due Date:  10 days after invoice.

43.  Interest:  lesser of 1.5% per month or highest rate allowed by law

• Due Date:  10 days after invoice.

44.  Attorneys’ Fees and Costs: Navis’ actual cost

• Due Date:  As incurred.

• Payable if your default causes Navis to incur legal expenses.

45.  Indemnification:  Navis’ actual cost

• Due Date:  As incurred.