Valpak
Valpak franchises enable owners to operate businesses that promote and sell cooperative direct mail advertising in branded VALPAK® Envelopes, distributed to residential addresses within exclusive geographic territories. Franchisees also offer digital coupon advertising via valpak.com, PlusOne postcards, and potentially other products like Clipper Magazine advertising. The business model targets small to medium-sized local businesses needing cost-effective promotional solutions in a competitive direct mail and advertising market.
Franchise Costs
No royalty or brand fund; monthly software/tech fees approx. $130-$370 (license $35-175 + support $78-180 + toll-free $17) + $0.168 per Advertising Insert Association/Marketing fee
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How Valpak Compares
Key Insights
- Lower than average SBA loan default rate in Business Services
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Valpak Current | $80K – $201K | $2K | N/A | 48 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
| SERVPRO (UNIT) | $259K – $380K | $100K | 10.0% | 2,286 |
Business Services Average 188 franchises | $118K – $284K | $46K | 10.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 188 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+14 more states
SBA Loan History
Historical SBA 7(a) loan data for Valpak franchisees (2014 – 2020)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
50 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
50 Contacts Available
Unlock all Valpak franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Termination disputes due to bankruptcy and default, disclosure and misrepresentation claims, and intermarket sales compensation disputes leading to termination.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a Valpak franchise ranges from $80,200 to $200,800. This includes a franchise fee of $2,000.
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Also includes FDDs for
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