-Established brand and business concept that has been franchising since 1993
-Offers variety of services to businesses and consumers, including both the printing, marketing, and design side as well as the shipping side
-B2B concept which allows for more recurring revenue streams
-Franchisor provides strong training and support
-Strong The profit a business makes after deducting the costs involved in making, providing, and selling the goods and services. In an income statement, it is the sales minus the cost of goods sold.Gross profit = Revenue – Cost of Goods Sold… margins
-Competitive retail landscape competing against both nearby brick-and-mortar locations as well as online competitors
-Slightly declining net unit growth in the U.S. in 2014 and 2015
-Quality of operations and service seem to be primary competitive differentiators
-The three industries in which PostNet operates — printing, marketing and shipping — have a combined value of more than $380 billion in the U.S.
-In 2013 more than 17 million Americans identify themselves as either self-employed or as an “independent worker”, with the number expected to grow to 24 million by 2018
-Over 28 million businesses in the U.S. with fewer than 100 employees
-The number of small businesses in the U.S. has increased 49% since 1982
-Profitability can be negatively impacted by close location of like competitors
-Business must continually adapt to an evolving B2B services market
-Online B2B service providers operate with different cost structures that enable them to react faster / disrupt the market more so than brick-and-mortar businesses
According to Items 6 and 7 of PostNet 2019 FDD
FDD Disclaimer: “This Item 19 provides certain historical data provided by our franchisees. We currently have 209 Centers in the United States operated by 201 franchisees across 39 states which have been in operation for an average of 14 years (see Item 20). These Centers offer products and services to both consumers and business customers. The following tables provide information about the The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue…. performance of those Centers that have been open for more than 12 months. Written substantiation of the data used in preparing this information will be made available upon reasonable request.
For purposes of this Item 19, “Gross Sales” has the same meaning as defined in the Franchise Agreement. It means the aggregate amount of all sales of products and services, whether for cash, by check, credit card or trade or otherwise, made or provided at or in connection with the Center and including any sales made at a Facility or pursuant to a Facilities Management Agreement (whether or not the Marks are used in the operation of the Facility). “Gross Sales” also includes monies derived at or away from the Center by a franchisee including the sale of products or services in connection with the placement or servicing by the franchisee of self-service digital operating equipment. The term “Gross Sales” does not include: (1) any federal, state, municipal or other sales, excise, service, or value added taxes that a franchisee pays or accrues; and (2) discounts allowed to customers on sales.”
“The Centers table below lists the annual Gross Sales information reported by 193 Centers that have been in operation in the United States for 12 months or more as of December 31, 2018. These 193 Centers reflect substantially the same U.S. geographic distribution as disclosed in Item 20. The table excludes data from 16 Centers that i) were not in operation for all of the 2018 calendar year; ii) were a PostNet Express; and iii) were legacy Centers allowed to operate under PostNet branding other than the marks which are the subject of this offering, such as “ShipNet.” we have also excluded a single Center which we do not believe to be open during regular business hours as required by our system standards, and which is therefore not representative of the offering.”
Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
According to Item 19 of PostNet’s 2019 FDD