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.
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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.
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.
Wow I was just looking at one of these. So Chris are you also saying yours was not profitable at all?
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.
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.
What an awful situation in comparison to that franchisee’s loss. You have to reprint business cards AND letterheads !?!?! What a drag! You should totally sue him for the socks and underwear he’s still wearing…
My complaint is I paid Packmail $499.00 to deliver two French antique tapestry armchairs to my customer in Spokane WA. They arrived badly damaged. The declared value is $300.00 per chair. I paid $6.75 per chair for insurance. I specifically requested Blanket Wrap “White Glove” delivery. Several days later the new owner had the production mgr call me and rerouted my delivery on a FedEx truck in separate boxes. I gave my okay believing they would safely package my items. They did not. Now the owner wants to keep my merchandise pay me a Default payment sent by FedEx for $100.00 and $200.00 he deems adequate for chairs that replacement is at several hundred dollars. I have contacted FedEx many times. My last contact said they would issue checks for $177.00 per chair.
I have not received any further contact from the Alpine Store in Grand Rapids
I was just notified by production manager at Packmail that the one chair is now at a church donation center in Rockford Michigan. I never authorized that my ownership was relinquished. This matter was Never Discussed with me and Never would I have authorized such nonsense. I did not Sell my merchandise to Packmail and want all of my merchandise returned to me. Tracking numbers 785726902678 and 785726875854 my FedEx account 643664992
These Pak Mail stores are a bunch of Crooks!
Have only had amazing experiences with all of the west MI pak mail stores. Not sure about the rest of the country but the MI crew has it together — especially at the store I frequent in Cascade.
PASS PACKAGING & SHIPPING SPECIALIST MICHAEL ARLIN GALLAGHER FEDERAL COURT FRAUD & THEFT LAWSUIT $150,000 awarded to me. STOLE MONEY EARMARKED FOR MY FURNITURE & FIXTURES IN AMOUNT OF $75,000 then overcharged me on 1st franchise store when I paid $60,000 for $30,000 he paid. I was promised “national discounts “. Not blatant THEFT. I SUED HIM & won. HE WAS NO SHOW IN FEDERAL COURT LUBBOCK CASE #5:20-CV-111-H. Read it for yourself. Public Record!
PAKMAIL Moore’s Mill, Auburn, AL
Manager : (Ann)
Owner: Karen Kinsey
I used Pakmail for the first time and it was the biggest mistake if my life,
I sold a very expensive antique Kwan yin statute in the most amazing shape that was white porcelain. I am a paralegal and was swamped the day it needed to be mailed and my daughter came by, I took pictures with date and time stamps and she drove my car straight to pakmail 10 minutes away, and did not stop. Last conversation we had was please get insurance.
She arrived at the store, the employee opened the box, inspected it for damages, and there were none, put a value of $1500 on bill of lading, requested insurance and was told no, it wasn’t available. It was close to closing time. 2 days later the purchaser calls the statue pinky finger was broken, not in the box, I had to return the money.
I called manager, she said they didn’t do it, she watched tapes, I ask to view them and I was denied, the called my daughter a liar, insurance was $20, she’s 32 yo and very educated young lady. The manager said they couldn’t file a claim, I contacted FedEx, Pakmail did file a claim.
Owner says he believes the employee but I still can’t see the tapes. What’s my next course of action? I’m out of a lot of money on this. I am livid!
Pakmail
Moore’s Mill, Auburn, AL
Manager : (Ann)
Owner: Karen Kinsey
They are trying to give me $100 for the statue, plus $29 for shipping, ( they text me everyday for my address).
I refunded the purchaser the money she paid me if $1000.00, cancelled consignment with a seller which cost me $98.00., shipping was $29.00
The actual replacement value is $10,000.00 and I can only find one for sale like it. (I had no idea the value increased that much from 10 years ago)
The manager Ann told me a claim could not be filed, I called FedEx and found out she did file a claim for $1729.00., I don’t think she ever intended me to have anything.
Let me know if you need anything further
Thank you again
Michael Arlin Gallagher of Lubbock Texas PASS PACKAGING SHIPPING SPECIALIST Has paid back franchisee over $20,000 of Texas Federal Court Judgement of over $144,000 awarded to me. Wendi Mohl of Pinckney Michigan is the daughter. The two of them are “the “National Team” advertised online. He promises to continue payments of at least $200/month. If he makes sales he is to pay more toward his debt. So that is very good. I will share testimonies ; give a reference of my experience to any future franchisees. The truth is so very important. SHOTMDL12@GMAIL.COM to reach Nancy
BIG THANKS TO THIS WEBSITE!!!! They are guardian angels sent from above !!!!!
Congratulations, Nancy Goodwin! You should be an inspiration to all the franchisees who are afraid to speak up and fight back.
Kudos to Michael Arlin Gallagher of Lubbock Texas, PASS PACKAGING SHIPPING SPECIALIST, & Wendi Mohl of Pinckney Michigan for accepting responsibility and paying for your mistake. We will invite you to keep or accelerate your payment schedule, and let us know. Be advised that we will be checking periodically to make sure (and share) whether your are maintaining payments in good faith.
Michael Arlin Gallagher of Lubbock Texas, PASS PACKAGING SHIPPING SPECIALIST, & Wendi Mohl: We invite you to share your side of things, what you believe you should have done better and what changes you’ve made to keep this from happening in the future. You may post here or email us a statement UnhappyFranchisee [at] Gmail [dot] com.
Glad we could help start the resolution process rolling.