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1 BENEFITS GUIDE together we can think beyond the box Pak Mail Centers of America, Inc South Havana Street, Suite 600 Centennial, CO tel fax
2 It s about inspiration. It s about drive. Innovation, dependability, and determination combined with honest values, shared vision, and proven methods are what create and sustain success in today s fast-evolving business world. The ability to offer a time-tested, highly flexible product and service has tremendous value. Since 1984, Pak Mail has worked diligently to build a unique business model. And our success is no mystery. It is the direct result of the hard work, camaraderie, and inspiration of every member of the Pak Mail community, from the store to the International Support Center level, working within our system. We take pride in being original thinkers who together celebrate this entrepreneurial spirit as we discover new opportunities for ourselves and our customers. We encourage input and participation from the entire community of Pak Mail franchise owners in order to continuously meet the changing needs of the people we serve. Pak Mail franchise ownership offers a diverse experience. While we provide the foundation and the tools to create a rewarding business experience, it is your Pak Mail to manage and grow. We invite you to exercise your individual entrepreneurial sense and share your knowledge in order that we may learn from, and grow with, one another. The question is: What do I want my Pak Mail to be? A single store? A store with a warehouse? A freight facility? A customer solutions center? A chain of stores across the country? Or, all of the above? When we balance shared goals with innovation and common perspective, there is no limit to what we can achieve. Together, we can think beyond the box. Alex Zai President 1
3 It s about opportunity. Welcome, and thanks for your interest in Pak Mail. We are a world-class franchisor of packing, shipping, and business support services for commercial and residential customers. We have nearly 500 locations across the United States, Canada, Mexico, Panama, and Japan. Every Pak Mail center carefully packs and ships anything anywhere and we mean anything including everyday, large, heavy, valuable, fragile, and awkward items. Since our founding in 1984, Pak Mail has enjoyed a pattern of planned growth and development that places the company squarely within the multi-billion dollar logistics industry and among the top franchise offerings in America. During that time, we ve earned a well deserved reputation for exceptional quality, customer satisfaction, and business innovation. If you are a motivated, hardworking entrepreneur, inspired by a desire for independence, variety, and the security that comes with a proven franchise model, explore our exceptional business opportunity in an industry with unlimited potential for growth. N O T E S» Pak Mail features a proven business model that provides the foundation for sustained growth, opportunity, and success.» Pak Mail evolves and diversifies our service offerings ahead to maintain a strong competitive advantage.» Pak Mail empowers its franchise owners to use their entrepreneurial skills and modify services to fit their needs.» Pak Mail supports its growing franchise network with a wealth of beneficial resources.» Pak Mail offers tremendous potential, with a modest initial investment and low ongoing operating expenses. Pak Mail s franchise offering is outlined in detail in our current Franchise Disclosure Document. To request a copy, please refer to Next Steps on the last page of this brochure. 2
4 It s about scale. The power of a Pak Mail franchise lies in its ability to offer scalable services in a way that no one else can in one convenient location. On any day, you may ship some packages. Build a custom crate. Arrange to ship large freight. Manage ocean cargo logistics. Consult with a customer about carrier benefits. Or help a family or business account pack and ship for an out-of-state move. As a franchise partner, you ll have the freedom and power to find individualized solutions for customers, and in return, a genuine sense of achievement and pride. Our franchise partners continually reinvent the meaning of versatility in their locations to create mutually beneficial opportunities. What do you want your Pak Mail to be? A single Pak Mail franchise is many things to many people. To residential customers, Pak Mail is a fullservice packing, shipping, mailing, and moving resource. To businesses, Pak Mail is a strategic business partner, shipping and receiving department, fulfillment house, warehouse, and mailroom. Though we believe in consistency across our franchise offering, we also believe firmly in the power of scalability. We encourage each franchise partner to diversify services to meet individual market needs. Because of our small package, large item, and freight packing and shipping capabilities, we can offer more essential services than most competitors and create complementary revenue streams within a single franchise concept. 3
5 It s about versatility. With a wide array of store and online service offerings, resources, and available target markets, Pak Mail owners are well equipped to identify the challenges of, and provide solutions for, today s customer. Pak Mail Services Domestic and international shipping Online estimates and tracking Air, ocean, ground At Custom crating and packing Warehousing, inventory, and fulfillment Auctions Art & antiques Estates, households, & more Moving support services Short-term storage Large-item and specialty crating Mailbox rental, receiving, forwarding Equipment, electronics, furniture Business services Commercial freight forwarding and logistics Notary public Business printing, finishing Air freight, ocean cargo, road & rail Oversized, LTL, FTL, break bulk, consolidated, direct Full-service transportation brokerage Packaging and moving supplies Business and residential mail services Boxes, bubble wrap, tags, tape and more Estates, households and furniture shipping 4
6 It s about diversity. In addition to individual store franchise partnerships, Pak Mail offers the following exciting possibilities for ownership. Multi-franchise partners enjoy the same benefits, selections, and world-class support available to all Pak Mail franchisees. Enterprise Franchising» Multiple franchises Open several locations and receive a discount on the standard franchise fee.» International master franchises Introduce the convenience and service of Pak Mail to your own country. Special Franchising Opportunities» Retired U.S. military veterans Visit our U.S. Military Veterans section to learn more.» Existing and independent store conversions We invite independent packing and shipping stores, self-storage facilities, and other business partners to experience the benefits of Pak Mail. 5
7 It s about proven resources. At Pak Mail, you ll be in business for yourself, not by yourself. In return for your hard work and ambition, we provide an unparalleled support system from a company with many years of franchise and retail experience. From ISC staff to area developers, to colleagues in worldwide locations, the collective resources and experience of the entire Pak Mail franchise community are behind every owner.» Site location and lease negotiation Through sophisticated market and demographic research, we ll help you select and secure a strategic location close to the offices, businesses, and neighborhoods of your prospective customers.» Build-out and merchandising Our efficiently designed build-out, merchandising strategy, and start-up marketing programs ensure smooth and efficient opening and operation of a professional, fullservice retail center.» Training and education for new franchise partners All new franchise partners receive: - two weeks of comprehensive training at Pak Mail s International Support Center, with hands-on instruction in the Pak Mail operating system and procedures, packing and shipping, business operations, basic business accounting, marketing, sales, and personnel practices - 3 days of on-site support during the new store opening.» Operations From proprietary point-of-sale and database applications to comprehensive procedures and manuals, we ll provide an effective foundation for efficient business operation.» Strategic marketing and media An aggressive marketing and public relations program, underwritten by the National Ad Fund, provides efficient and regularly updated multimedia tools to support year-round promotional needs.» Immediate access to our franchise network - A toll-free franchise hotline - Company intranet, discussion forums, and newsletter - Regional training sessions - Local Pak Club meetings and site visits - Franchise System Advisory Council - Regularly scheduled Pak Mail conventions to dialogue with other owners, share ideas, and keep current on company and industry developments. 6
8 It s about marketing options. Pak Mail s marketing materials are provided through the International Support Center and the National Advertising Fund. We give you all the elements you need to support an annual marketing plan. Our most successful locations take full advantage of additional possibilities available through our comprehensive marketing guides and program.» Store opening marketing program» Annual strategic marketing schedule» Visitor-friendly ISC Web site with links to individualized store pages» ISC intranet to keep you connected» Cooperative Yellow Pages advertising» Monthly targeted marketing programs» Timely events and sales promotions» Marketing flyers and brochures» In-store signage, banners, and posters» Targeted campaigns» Specialty promotional items» Public relations and electronic media kit» Account sales training protocols 7
9 It s about time. Meet your Pak Mail. Look inside. See what we see. The vision of your Pak Mail store is close at hand. Now that we ve told you about our company and unique offering, you understand the strengths of a Pak Mail franchise. We offer a full line of complementary products and services. Multiple revenue streams. An experienced resource network. The security of a proven system. In your control to manage, direct, and grow. So, what s your Pak Mail going to be? That s up to you. And every day brings something unique. You may pack and crate a valuable, fragile heirloom. Palletize and move an entire warehouse. Handle a priceless piece of artwork. Or track a freight shipment to the other side of the world. All the while, you determine the best options to service your customers and advise your colleagues, backed by the knowledge and experience of an entire network of entrepreneurs just like you. What does your Pak Mail look like? From the front door to the front counter, your Pak Mail Center will project confidence, competence, and a service orientation integral to the Pak Mail brand. Within the store, you will enjoy a contemporary, professional working environment, complete with the tools and technologies that promote your enterprising vision. A bright, functional layout offers defined traffic-ways, customer and employee workstations, supply storage, and prominent product visibility. Strategic signage, displays, and promotional literature guide customers through the store. Your hand-picked competent, friendly staff stands ready to advise, consult, and add value to each customer s experience. 8
10 It s about your future. Ask. You ve come this far. And you probably have many more questions.before you decide to pursue franchise ownership with Pak Mail, please review some helpful Frequently Asked Questions. How many Pak Mail locations are there and where are they located? Founded in 1984, Pak Mail has nearly 500 independently owned and operated store locations around the U.S., Canada, Mexico, Panama, and Japan, with continual plans for expansion. What is the estimated initial investment and what does it include? The estimated initial investment is detailed on the enclosed investment sheet. It includes the franchise fee, startup costs, equipment, initial supplies, deposits, freight, marketing, and working capital. What are the minimum financial requirements to own a Pak Mail? To be considered for franchise partnership, you must have at least $50,000 in cash or liquid assets and a total net worth of $150,000. Is small business management or packing and shipping experience necessary to own a Pak Mail? Though always helpful, experience is not mandatory. If you are committed to hard work, and have the drive to be successful, we ll train you in the time-tested Pak Mail System. How long does it take to open a new store for business? In most instances, your new Pak Mail store will be open for business within days from the date of lease signing. Will Pak Mail help me find a location, negotiate my lease, and build out my store? Yes. Pak Mail s site selection team and Area Developers will utilize demographic and market research to help you identify and select an advantageous site, negotiate a favorable lease, and create a professional retail environment that is consistent with the Pak Mail brand. What initial training and support will I receive? Prior to opening, all new franchise partners receive two weeks comprehensive, hands-on training at our International Support Center in Colorado and three days of in-store instruction, included in the franchise fee. After opening, you ll benefit from ongoing seminars, conventions, site visits, and daily access to our intranet. May I open additional centers in the future? Of course. We are happy to speak with you about multiple franchise ownership scenarios, becoming an Area Developer, or an international master franchise agreement. 9
11 Next Steps 1. Complete the Pak Mail application. 2. On receipt and approval, we ll send you our Franchise Disclosure Document, which includes important information about Pak Mail, as well as a complete list of our franchise locations. 3. A Franchise Licensing Representative will contact you to answer any questions and further discuss the prospect of Pak Mail franchise ownership. Please feel free to contact Pak Mail at any time with questions or for more information. Pak Mail Centers of America, Inc South Havana Street, Suite 600 Centennial, CO tel fax
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