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NEW POSTAL BUSNIESS PROVIDES MYRIAD SERVICES - Clayton Pioneer January 23, 2009
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POSTAL CONNECTIONS SETS RECORD GROWTH RATE IN FIRST HALF OF 2008
Unique Lease Financing Option a Factor in Rapid Expansion

June 24, 2008—Franchise businesses with low entry costs and an easy to learn, proven business model, are becoming favorite choices for people concerned about the economy and poor job security who are seeking new careers where they can control their own destiny. As a result, Postal Connections of America is among the franchises that are enjoying rapid growth.

Postal Connections is a franchise network of 90 postal, shipping and business services stores in 23 states that grew from just 43 stores four years ago, an expansion of 109%. The pace is increasing: In the past six months alone the company has opened or sold eleven new franchise stores.

Postal Connections is owned by two veterans in the franchise pack & ship industry, C. “Andy” Thompson and Fred Morache. Both men were senior executives with Mail Boxes Etc. (now The UPS Store) where they were instrumental in growing that franchise chain from a collection of neighborhood stores to a worldwide organization.

“It may sound counter intuitive, but franchise startups tend to grow in a tough economy. Franchising is the easiest way to replace a career if you pick a franchise that’s a proven business model that’s easy to learn,” said Fred Morache, Postal Connections Managing Partner. “As large employers lay off staff, many of the individuals affected by cutbacks view this as an opportunity to be their own boss and lead a lifestyle they want,” he said, adding that “franchising is an excellent way to create and build a family business”

“An individual can start up a Postal Connections store for as little as $35,000 in cash. The total initial investment ranges between $115,000 and $150,000, depending on the size of the store and other factors,” said Fred Morache.

He attributes Postal Connections’ rapid growth primarily to three factors: its affordability and reasonable initial investment, it’s an easy to learn business, and a unique financing option that Postal Connections offers to qualified prospective franchise owners that does not require putting up as collateral the equity in a house or other assets. This financing option uses the tangible assets of the new store to secure a capital lease that features a $1 buy out at the end of five years. “Potential owners like the idea of qualifying for financing with a personal guarantee and not tying up the equity in their home or other assets as with a secured bank loan,” said Morache.

“Our goal is to keep entry costs down and ongoing royalties low so our franchisee’s overhead, debt service and operating costs are at reasonable levels,” he said.

“We also have franchisees who choose traditional SBA backed business loans, or self finance,” said Morache.

“Postal Connections is a perfect fit because it’s an affordable, easy to learn business,” said Pete Pierce, owner of a Postal Connections store in Bend, Oregon. Before buying his Postal Connections store in 1998, Pierce, 44, was a Kinko’s store manager, and earlier was a territory sales manager for Brown & Williamson. “I wanted to get into my own business and control my own destiny,” Pierce said.

“I chose Postal Connections after extensive research confirmed its affordable initial franchisee fee and low monthly royalties, which make a big difference. Postal Connection’s management has strong industry experience and a good reputation,” said Jim Bowe, owner of a Postal Connections store in Lancaster, Pennsylvania. Bowe had previously been a pilot for American Airlines, which furloughed him after five years of service. Earlier he was a US Air Force officer.

Bowe said that compared to other postal and business services franchises, Postal Connections stores are typically $20,000 to $75,000 less expensive to open.

Postal Connections, headquartered in San Diego, is a member of the International Franchise Association (IFA) and is registered to sell franchisees throughout the United States.