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FDD Talk 2018: Navis Pack & Ship Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Published on June 20, 2018 by Franchise Chatter Leave a Comment
in FDD Talk: Service Franchises, Franchise Earnings, Shipping Franchise



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

  • Section I – Background information on the Navis Pack & Ship franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Navis Pack & Ship franchise, based on Item 7 of the company’s 2018 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Navis Pack & Ship franchise, based on Items 5 and 6 of the company’s 2018 FDD
  • Section IV – Number of franchised and company-owned Navis Pack & Ship outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of Navis Pack & Ship’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • fiscal year 2017 average, median, and range of annual gross volume for the upper third, middle third, lower third, and all 40 franchised Navis Pack & Ship commercial centers open 12 months or more as of September 30, 2017
  • fiscal year 2017 average and median annual gross margin for the 37 franchised Navis Pack & Ship commercial centers open 12 months or more as of September 30, 2017, and that used the Navis Pack & Ship proprietary software application called ABConnect

Section I – Background Information

11 Things You Need to Know About the Navis Pack & Ship Franchise

Minnesota Location Helps Organization Spread Message of Inclusivity

1.  As division in the United States spreads, one group called All Are Welcome Here has been working since November 2016 to celebrate, nurture, honor, and protect diversity in its home state of Minnesota and the United States as a whole. All Are Welcome Here says that its mission is to “support an inclusive, non-partisan, and positive environment for All in the state of Minnesota and the broader United States.” The group sells products that support inclusivity and donates 10% of its merchandise sales to the American Civil Liberties Union (ACLU).

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2.  In late November, All Are Welcome Here highlighted the local small businesses that help in spreading the group’s message, and Navis Pack & Ship in Eagan, Minnesota was mentioned. The group said that Navis Pack & Ship provides a safe place to store the organization’s goods, as well as logistical and labor support for shipping its products all over the United States.

Connecting With Local Businesses

3.  One of the ways that Navis Pack & Ship spreads the word about its unique shipping services is by partnering with local small businesses. Each location selects a neighboring business as its Featured Local Neighborhood Business and encourages local residents to buy from these businesses and also consider using Navis Pack & Ship’s services.

4.  Some of the businesses that the brand has featured in the past include Junket: Tossed & Found in Minneapolis, Minnesota, featured by Navis Pack & Ship in Eagan, Minnesota; 1 Source Office Furniture in Elkride, Maryland, highlighted by the nearby Navis Pack & Ship; and Fascination St. Art in Denver, Colorado in partnership with Navis Pack & Ship in Commerce City, Colorado.

5.  All of these small businesses sell fragile, large, and unique items, which Navis Pack & Ship specializes in properly packing and shipping both domestically and internationally.


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Specializes in Shipping Large and Valuable Items

6.  Navis Pack & Ship stands out from other shipping services by focusing on specialty pieces that include large and valuable items. The brand provides customized solutions in the following niches: Antique Shipping; Art Shipping; Auction Shipping; Computer Shipping; Electronics Shipping; Equipment & Machinery Shipping; Estate & Trust Distribution; Freight Shipping; Furniture Shipping; Medical Equipment Shipping; Senior Downsizing; and Technology Equipment Shipping.

7.  Navis Pack & Ship offers customized crating and double wall corrugated containers for valuable items of any size. Full-service pickup and on-site packing options are also available at every Navis location. Customers have the option of choosing standard delivery or premium white glove delivery to businesses and residences. Navis also offers international expertise that ensures items meet customs regulations.

Company History

8.  Navis Pack & Ship was started as a spin-off franchise in 2002 by the Navis Logistics Network (NLN). NLN was originally founded in 1980 in Denver, Colorado as a single, company-owned retail store operating under the Handle With Care Packaging Store (HWCPS) name. Navis Pack & Ship was similar to HWCPS, but only operated in a warehouse and specialized in difficult-to-ship and valuable items. Many of these items were fragile, large, awkward, or valuable. The company trademarked FLAV to represent serving these items.

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10.  NLN continued to franchise both HWCPS and Navis Pack & Ship until it sold HWCPS in 2007 to Annex Brands, Inc., which also franchises PostalAnnex, AIM Mail Centers, Sunshine Pack & Ship, and Annex Copy Center. In 2011, NLN also sold Navis Pack & Ship to Annex Brands, Inc. Today, there are over 50 Navis Pack & Ship stores in the United States and Canada.

Entrepreneur’s Franchise 500

11.  Navis Pack & Ship did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Navis Pack & Ship franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Navis Pack & Ship’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  47
  • Outlets at the End of the Year:  46
  • Net Change:  -1

2016

  • Outlets at the Start of the Year:  46
  • Outlets at the End of the Year:  46
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  46
  • Outlets at the End of the Year:  50
  • Net Change:  +4

Company-Owned

2015

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2016

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  0
  • Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

  • The information below is based on the actual Gross Volume and Gross Margins, in the fiscal year ending September 30, 2017, of the franchised Navis Pack & Ship commercial centers open 12 months or more as of September 30, 2017.
  • The information is based solely on reports supplied by the commercial centers.
  • Except as noted below, all of the commercial centers were full, standard size, commercial facilities using the Navis Pack & Ship Marks and the Navis System, and were generally operated from physical warehouses in light industrial areas.
  • The financial performance representations in this Item 19 show historical results. They should be read in conjunction with the explanatory notes and all other information in the disclosure document.

Part 1 – Annual Gross Volume Ranges and Average and Median Annual Gross Volume, in Fiscal Year Ending September 30, 2017, of Commercial Centers Open 12 Months or More as of September 30, 2017



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