PAK MAIL Franchise Complaints

Pak Mail franchise opportunity:  Are you considering it?

Be aware that data released by the Small Business Administration (SBA) indicates that Pak Mail franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 28%.

That qualifies Pak Mail for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)

Are you familiar with the Pak Mail franchise opportunity? If so, please share your experience, opinions or insights with a comment below.

If you are an Pak Mail franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.

Postal center franchises that appear on the WORST FRANCHISES  list include AIM Mail Centers (44%), Postal Connections (35%), PostNet (30%), Postal Annex+ (30%) and Pak Mail (28%).

(The UPS Store franchise is not on the SBA worst list, but it is one of the most controversial franchises among franchisees – See THE UPS STORE Franchise Complaints)

Pak Mail franchise owners have an alarming 28% SBA default rate.

The apparent drop in Pak Mail franchises in recent years is also a cause for concern.

Pak Mail Franchise
Pak Mail U.S. franchises in 2008: 340
Pak Mail U.S. franchises in 2011: 268
Growth in franchise units 2008 – 2011 (#) -72
Growth in franchise units 2008 – 2011 (%): -21%
SBA loans granted since 2001: 66
SBA loan failure rate: 28%
Sources:  Entrepreneur (growth), Coleman report (SBA)

 

The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.

It’s likely that Pak Mail franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.

Are you familiar with the Pak Mail franchise opportunity?

What do you think accounts for the SBA loan failure rate of Pak Mail franchise owners?

What steps should Pak Mail be taking to stop further franchise failures?

Has Pak Mail taken serious action to address the problems that led to these loan failures?

Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.

ARE YOU FAMILIAR WITH THE PAK MAIL FRANCHISE OPPORTUNITY?  ARE YOU A CURRENT OR FORMER PAK MAIL FRANCHISE OWNER?  PLEASE SHARE A COMMENT BELOW.

Contact UnhappyFranchisee.com

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5 thoughts on “PAK MAIL Franchise Complaints

  • July 24, 2012 at 3:24 pm
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    I use Pak Mail to ship TV which was damage and filed a claim.I been wait for 3 months now and fedx denial claim. Sent photos twice and the manager is giving me the run around.

  • November 9, 2013 at 3:10 pm
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    Most people have no idea how these types of businesses operate. They are essentially resellers of services provided by others–like UPS, FedEx. Understand that if UPS or FedEx deny a claim for damage or loss, and your shipping store pays the claim anyway, it is one step closer to closing, because that money comes right from their pocket–100% of the sale amount is refunded, which means the store makes zero. That is death to any business–to incur the expense of the service but have ZERO revenue for it.

    In this business, with the help and encouragement of the carriers like UPS & FedEx, the biggest competitors of these shipping stores are their own customers, who essentially think shipping is a waste of money and they want it for free.

    This business is also very sensitive to competition. Competition in this business if BAD for business–more shipping stores in a given area does NOT increase the size of the pie, it decreases the size of each slice of an unchanging pie. A clear path to bankruptcy and closure.

    It can be fun, intellectually stimulating, but making money? Questionable. If you do not truly LOVE everything about it, then don’t get into this business. And I do mean EVERYTHING.

  • November 11, 2013 at 1:03 pm
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    Wow I was just looking at one of these. So Chris are you also saying yours was not profitable at all?

  • December 18, 2015 at 11:04 pm
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    Because I am a current owner, I cannot be specific to my location. Pakmail can be profitable, but it would be in spite of the corp. office not because of them. Maybe 20 stores in the nation are truly profitable. The insurance Pakmail offers to the stores makes it difficult at best to file claims. If denied which many are it does come out of the franchisee’s pocket. The Corp. Office does not care, they give you two week of training, and then you are an expert packer! If the items are not packed to “Pakmail” standards, you pay. They take 5% royalties and 2% for adverting and give you back 1k for your ads. In addition, taking $60 a month for the convention they hold every year. They push you to go but it is a waste of time. A lot of talk about all the “nuggets” you will get from other owners is BS. Most of the owners never see sales above $250k a year. Which means they work all the time and have maybe a couple part time people? If you are late on filing your taxes, they take another $50 a month until you turn in the paperwork never mentioning if you file an extension, the fee is waived if you give them a copy. After everything would I buy a Pakmail again, NO! I was never a person that could take being pissed on and told it was raining. If you are successful, it will be because of you and not what Pakmail provides. The system could work, but they are so fixated on the top 5-10 stores they see nothing else. They think these people have the answers, obviously not. They have had no growth in years and have even closed more than 70 stores in the last ten years.

  • March 17, 2016 at 9:22 am
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    The local PakMail in Atlanta closed with two days notice! The Franchisee lost the business in October, 2015 but was not shut down by the Franchise for another four months, February 2016! Now all the PO Box holders are scrambling to find new addresses and a way to receive mail which will not be forwarded by the US Post Office because it was a PO Box! I am beyond frustrated, I had two business addresses for 14 years at that location and now have to change my business cards, letterhead, etc. They also continued to collect fees until the day of closing! I paid an annual fee and the Franchise basically said tough luck. I’m looking for an Attorney to sue both the Owner and the Franchise. I will never use a service of this nature again.

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