Skip to Content

How Much Does It Cost to Open PostalAnnex Franchise?

Do you want to open a courier business by buying Postal Annex franchise? If YES, here is how much it cost to open Postal Annex franchise successfully. Annex Brands started in 1985 when Jack Lentz established PostalAnnex+ near San Diego, California. Lentz envisaged a need that no other mail and parcel centre at the time was fulfilling – offering a complete line of small office and home-based office services under one roof.

Within the first year, Lentz opened three stores and started franchising the PostalAnnex+ concept in 1986. Within the next few decades, PostalAnnex+ grew to a couple hundred locations.

In 2006, the company envisaged another opportunity to continue growing through acquisition. That September, PostalAnnex+ acquired the Florida-based Sunshine Pack & Ship retail and commercial shipping centre franchise. Sunshine acquisition offered new opportunities with the shipping of large, fragile, and valuable items through its logistics and van line operations.

Then one year later, PostalAnnex+ added another brand, Handle with Care Packaging Store. These locations strengthened the company’s vertical reach into the shipping and transportation business via its commercial logistics operations, including creating packing solutions via custom-built corrugated cartons or wooden crates.

Owing to the growth of a couple of brands beyond the flagship brand PostalAnnex+, the company renamed itself Annex Brands, Inc. in late 2007. Annex Brands spent the next few years organising and boosting its three brands and in 2011 acquired two additional brands: Navis Pack & Ship and AIM Mail Centre. In 2012, Annex Brands hounded the Annex Copy Centre as a full-service copy and print centre.

Then in 2014, Annex Brands grew once again with the acquisition of Parcel Plus, which had 28 locations at the time. Even more recently, in April 2016, Annex Brands acquired Pak Mail Centres of America, Inc., a franchisor of over 370 Pak Mail locations in the U.S., Mexico, and Japan.

PostalAnnex+ has grown into a giant in the industry and buying a franchise has never been easier. You can be your own boss and let your time and energy go toward shaping a future that you can be proud of.

Why Buy a PostalAnnex Franchise?

Have it in mind that with PostalAnnex+’s 24 years of business know-how, you’ll be on the path to success from the first day your franchise opens as you join a respected national network of professionals. Very easy to purchase and practical to run, PostalAnnex+’s expertise makes buying a franchise a smart investment in your future.

If you have always dreamed of opening a small business, PostalAnnex can help you build your business from the very start, by helping you find the perfect spot for your franchise, giving you two weeks of training before the business opens and even providing a week of on-site support after the store has opened.

Indeed that’s just the beginning! They also offer assistance with marketing, business operations, point of sale systems and much more. One other great thing about franchising with PostalAnnex+ is that you won’t be taking a chance on a high-risk business.

You will be offering integral services to your community that will help you create a loyal customer base. Also note that you will have the capability to offer a FedEx Franchise, UPS, and USPS shipping, copying, mailbox services, printing, and everything in between. You will be a one-stop-shopping experience to meet.

Financial Requirements of Opening a PostalAnnex Franchise

According to the Annex Brands’ 2022 Franchise Disclosure Document, below are estimate costs of acquiring a PostalAnnex franchise in the United States. However, note that these figures are estimates and are based on the development of an 800 to 1,500 square-foot leased facility for a standard or flex retail centre.

1. Initial Franchise Fee: $29,950

2. Fixtures: $27,500 to $38,500

3. Mailboxes: $6,800 to $8,900

4. Flooring: $5,500 to $8,500

5. Interior Signage: $1,000 to $2,500

6. Exterior Signage: $5,500 to $6,500

  • Signage includes interior and exterior signs that bear Annex Brands’ trademarks.

7. Construction Services: $28,000 to $36,000

Note that the cost for construction services will vary widely depending on the size, condition, and location of your standard or flex retail centre, your lease, and other factors, but typically will be between $18 and $28 per square foot for a standard or flex retail centre. For a new standard or flex retail centre, the constructions services include the purchase and installation of a 24-hour access security gate ranging in cost from $7,000 to $8,000.

This estimate expects standard development based on a leased facility delivered to you in “vanilla shell” condition. If the leased facility is delivered to you in any condition other than “vanilla shell” (i.e., “grey shell” or other condition), your build-out costs will be higher.

8. Construction Consultation Fee, if applicable: $0 to $2,500

Annex Brands will assign a contractor for your use who is familiar with its requirements. If you use Annex Brands’ designated contractor, you do not pay this fee. If you want to use, and Annex Brands approves, a substitute contractor, you are expected to pay Annex Brands a construction consultation fee of $2,500 before construction begins.

Additionally, if your contractor does not supply a 24-hour access security gate, you may have to purchase it on your own. Any substitute contractor is expected to have a state license and be insured as required by law.

9. Equipment: $3,500 to $6,000

  • The equipment cost estimate expects that you will finance (and not purchase) 2 walk-up self-serve photocopiers and 1 multi-function colour photocopier. The full purchase cost for the 3 photocopiers would be about $25,000.
  • Every walk-up self-serve photocopier may be financed through a leasing company at a cost of about $55 each per month over 3 years, maintenance included.
  • Note that a multi-function colour photocopier may be financed through a leasing company at a cost of about $250 to $300 per month over 5 years, plus about $0.01 per copy. The cost to digitally connect a multi-function colour photocopier is about $100 per month on a 5-year lease.

10. Computer Hardware and Software: $4,500 to $13,000

  • You are expected to have your computer and establish Internet access before or at initial training. Annex Brands recommends a DSL line for Internet access, which is faster than a standard modem.
  • The monthly cost for a DSL line ranges from $59 to $89 per month. The cost of a standard modem line ranges from $10 to $40 per month.
  • The computer software cost includes the license fee for the use of Annex Brands’ proprietary PostalMate POS network software.

11. Initial Inventory: $5,000 to $7,000

  • Annex Brands advices that you begin the operation of the standard or flex retail centre with a specified initial inventory. The initial inventory may vary according to the anticipated volume of business, and the size and location of the standard or flex retail centre.

12. Insurance: $2,500 to $5,000

  • You are expected to maintain comprehensive general liability insurance with a limit of not less than $2,000,000 per occurrence and $4,000,000 aggregate.
  • You are expected to maintain motor vehicle liability coverage that includes bodily injury and property damage on all owned, non-owned, leased, hired, rented, or borrowed motor vehicles having a combined single limit of at least $2,000,000 resulting from each occurrence.
  • You are expected to maintain Notary professional liability insurance of at least $500,000 or the maximum permitted by the state if less than $500,000.
  • You are expected to maintain property insurance for your standard or flex retail centre. The coverage also is expected to include property of others in your care, custody, or control, with a minimum limit of $400,000.
  • Coverage for business interruption also is expected to be provided on an “actual loss sustained” basis for a period of not less than 24 months. You also are expected to maintain coverage for employee dishonesty ($25,000 limit).
  • You are expected to maintain any workers’ compensation, employer’s liability, or comparable insurance as required by law in your jurisdiction, or additional types and coverage amounts as Annex Brands may periodically designate.
  • Coupled with carrying other insurance described in the Franchise Agreement, you are expected to participate in any Annex Brands group-wide or other designated insurance program that is available to franchisees regarding small parcel, freight, or transit damage and related risks. Premiums generally are from $0.50 to $1.65 per $100 of property valuation.

13. Travel, Lodging, and Meals for Initial Training: $250 to $3,000

14. New Centre/New Owner Marketing Program Deposit: $4,500

15. Supplies: $1,000 to $2,000

  • Note that you will need office supplies such as telephones, answering machines, shipping labels, brand labels, telephone connections, business cards, letterhead, Notary equipment, etc.

16. Business Licenses, Business Permits, etc.: $300 to $1,000

17. Deposits and Pre-paid Expenses: $7,500 to $13,000

  • Deposits may vary from location to location. Some utility deposits may be refundable after a designated period.
  • The landlord may mandate you to pay a security deposit and the 1st month’s rent in advance. The security deposit will depend on the size of the facility, location, and other factors (for example, 1,000 square feet at $2 per square foot is a deposit of $2,000).
  • The deposits payable to Annex Brands in this range include: a $5,500 to $7,500 deposit for a new standard or flex retail centre to apply to the cost of shipping fixtures and equipment to your standard or flex retail centre; and a $2,000 deposit to apply to the cost of building permits for a new standard or flex retail centre (included in low and high ranges).

18. Architect Fee: $4,000 to $6,000

  • An architect Annex Brands designates will prepare architectural plans meeting local structural, electrical, plumbing, and other construction-related requirements. If “as built” plans are not provided by the landlord, or the site is delivered to you in an “as is” condition, there may be additional architect inspection fees, which are included within this range.
  • Additionally, local government agencies may charge fees for reviewing and approving those plans.

19. Miscellaneous Expenditures: $2,000 to $3,000

20. Additional Funds (1st 12 months): $25,000 to $50,000

  • Note that you may need additional funds to operate your standard or flex retail centre during its 12-month initial period to cover operating expenses that are in excess of typical start-up revenue.

Total: $164,300 to $244,350

Steps on How to Open a PostalAnnex Franchise

PostalAnnex+ has already helped over 400 franchisees set up successful businesses worldwide. Owing to the company’s experience with opening franchises and keeping franchise costs low, you will be freed up to focus of what’s most important: making your business, and your life, the success you always knew it could be. Below are steps you are expected to follow.

1. Review the Information

You will have to visit the company’s website to read instructions and show interest. By reviewing the information on the website, you have just taken the first step towards owning your own business. The company is always excited to share with you information about the company and their franchise opportunity.

2. Ask Questions

After you must have completed your review, it is time to get your questions answered. During this step, the franchisor will begin a one-on-one dialogue with you to discuss the company. Listed below is information on how to contact the PostalAnnex franchise development team members. Please feel free to contact them at any time during this process.

  • By Phone: (866) 964-3142
  • By Email: info@postalannex.com
  • By Mail: 7580 Metropolitan Dr Ste 200 San Diego, CA 92108-4419

3. Apply

When you feel you are ready, you will be asked to complete the Qualification Form. If approved, then the franchisor will send you the Franchise Disclosure Document (FDD) for your review.

4. Finalize Your Plans

Immediately your Qualification Form has been approved, it is time to conduct your “due diligence.” Note that during this step, the Franchising team member assigned to be your personal contact throughout the process will work with you to review the FDD and answer any questions you may have. You may also desire to begin a dialog with other current franchisees to learn about the business from their perspective as well.

5. Sign Up and Get Started

At this point, if you feel ready to get started, the franchisor will send you agreements to execute. Once these agreements are signed and approved, you officially become part of the PostalAnnex family. PostalAnnex staff members will then begin to help you find your postal franchise location, including lease negotiation assistance and providing any guidance you may need in obtaining financing.

Conclusion

PostalAnnex+ offers a low franchise cost for starting your own business. A PostalAnnex Franchise+ not only offers a low franchise cost, they will help you get your business started from the very first day. It simply means that you will have all of the benefits of owning your own small business disguised as a low cost franchise opportunity, without the hazards and steep learning curve that many first time business owners encounter.