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Updated RecentlyDirectBuy vs PostNet Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of DirectBuy vs PostNet including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $359,000 - $904,000 | $186,567 - $233,500 |
| Franchise Fee | $75,000 | $35,950 |
| Royalty Fee | 22% | 5% |
| Advertising Fee | 3% | 2% |
| Year Founded | 1971 | 1985 |
| Year Franchised | 1972 | 1993 |
| Term Of Agreement | 12 years | - |
| Term Of Agreement | 12 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | PostNet is a retail and service business, and as such we are looking for people with outgoing personalities that would do an excellent job of representing the brand and their business to the public. The most successful PostNet franchisees are civic-minded and outgoing people who gain fulfillment from working with small business owners, schools and others in their communities. On a financial level, a potential PostNet franchisee must have a net worth of at least $300,000.00 and be (or be able to become) liquid for a minimum of $55,000.00. | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | Yes/Yes | -/Yes |
| Start-up Costs | No/Yes | -/Yes |
| Equipment | No/Yes | -/Yes |
| Inventory | No/No | -/Yes |
| Receivables | No/No | -/Yes |
| Payroll | No/No | -/Yes |
Training & Support |
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| Training | At regional meetings | On-The-Job Training: 58 hours Classroom Training: 65 hours Additional Training: At store location 6-8 weeks after opening |
| Support | Newsletter, Meetings, Internet, Field operations/evaluations | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks, National media | PostNet's marketing programs include- * Local programs, which the franchisees utilize to build and develop awareness and loyalty with current customer base. * Regional and cooperative advertising, where PostNet franchisees get together with other franchisees and leverage their strength in numbers. * National programs that are conducted by the PostNet National Ad Fund. PostNet is the only company in the industry that offers a first-year managed marketing program that includes both consumer advertising and business-to-business advertising to help develop an initial customer base and momentum for the growth of the business. Co-op Advertising Ad Templates Social media SEO Website development Email marketing |
| Operations |
1% of all franchisees own more than one unit Number of employees needed to run franchised unit: 9 - 12
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | PostNet only grants franchises to individuals that are planning on being involved initially as a full-time owner operator. Long term, full-time ownership and operation of the centers are not required; however, initially it is critical because PostNet is a neighborhood business and it is up to the individual store owner to become actively involved in the community to promote the services and products offered. With PostNet, every franchisee offers a core of proven and high-demand services and products through their PostNet Center. However, depending on the needs of the local market and the franchisee's own attributes, other complimentary services that are consistent with the other PostNet offerings may be approved by PostNet. Services, as bookkeeping, advanced computer and database services, and eBay selling services are just some examples of other services and products that PostNet franchisees offer to the public through their PostNet Centers. Initially an owner operator of a franchise will typically have one (1) to two (2) part-time or full-time staff members to help with the operation of the store. As the business grows, and you build a customer base, more employees and staff will be needed. Our highest volume locations have six (6) to seven (7) full-time staff members including the franchisee. |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | Yes |
Company Overviews
About DirectBuy
James L. Gagan founded UCC TotalHome in 1971 and began franchising the following year. Based in Merrillville, Indiana, the private company has over 90 locations throughout North America. DirectBuy began with a vision. It was a vision of liberating consumers from the high cost of retail buying; of allowing consumers to buy goods for their homes at manufacturer direct prices plus freight, handling and sales tax; of restoring to families the opportunity to buy the things they need and want at prices they could afford. That was over three decades ago. Today, the vision has materialized into an exceptional opportunity for DirectBuy franchise owners. We provide a proven, replicable system that allows them to realize the results and rewards of their business quickly. DirectBuy is the largest, most successful business of its kind in North America. For homeowners, remodelers and families in general, our centers are a very significant channel of alternative purchasing in North America.
About PostNet
PostNet offers a variety of franchise opportunities from owning and operating a single store to taking our brand into new markets across the globe.
Single Unit
PostNet's single unit license grants an individual or entity the right to own and operate an individual PostNet center in an approved business location.
Area Development
PostNet's area development license grants an individual or entity the right to own and operate multiple PostNet centers with exclusive development rights in a specific territory.
Area Franchising
PostNet's area franchise license grants an individual or entity the right to assist PostNet headquarters in developing a specific exclusive territory. This assistance includes providing hands-on support in recruiting new franchisees, securing new locations, coordinating the store development process and providing local training and pre-opening support to new franchisees.
Master Franchise
PostNet's master franchise license grants an entity the exclusive right to develop and franchise PostNet Centers in a particular country with the training, guidance, and support of PostNet World Headquarters.
International Single Unit, Area Development and Area Franchise Opportunities Whether you are interested in developing a single store, multiple stores, an entire territory or pioneering the PostNet brand in your country, we have the right opportunity for you.
Veteran Incentives 35% off franchise fee
#293 in Franchise 500 for 2020.