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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
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
Franchise Stats
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 to Other Business Services Franchises
Key Insights
- Lower than average SBA loan default rate in Business Services
| Franchise | Investment Range | Franchise 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 187 franchises | $118K - $285K | $46K | 10.4% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 187 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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a Valpak franchise?
The total initial investment to open a Valpak franchise ranges from $80,200 to $200,800. This includes a franchise fee of $2,000.
How many Valpak franchise locations are there?
As of the 2024 FDD, Valpak has 48 franchise locations. The company has been franchising since 1986.
Can you get an SBA loan for a Valpak franchise?
Yes, SBA loans are available for Valpak franchises. Historical data shows 7 SBA 7(a) loans have been approved for Valpak franchisees, with an average loan amount of $609,457. The historical default rate is 14.3%.
Is Valpak a good franchise to buy?
Whether Valpak is a good franchise investment depends on your personal goals, available capital, and local market conditions. We recommend reviewing the full FDD, speaking with existing franchisees listed in Item 20, and consulting with a franchise attorney before making a decision.
Interested in Valpak?
Talk to a franchise advisor to get personalized guidance and learn if Valpak is the right fit for you.
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