Valpak FDD Summary
Type of Business
The franchise is for the establishment and operation of a business that promotes and sells cooperative direct mail advertising in VALPAK® Envelopes to be distributed within designated geographic areas. Valpak’s primary business is printing, publishing and distributing cooperative direct mail advertising. “Cooperative direct mail advertising” is a method of advertising in which advertisements from multiple businesses are included in a single envelope or package for mailing, allowing the costs of the mailing to be spread among the businesses. Valpak’s principal advertising medium is the “VALPAK® Envelope.” VALPAK® Envelopes are envelopes, identified by the “VALPAK™” trademark and/or other trademarks, service marks, trade names, and logos owned by Valpak, which contain Advertising Inserts, and which are assembled, addressed and prepared for publication and direct mailing by Valpak primarily to residential addresses. In addition to the printing of Advertising Inserts and the publication and distribution of VALPAK® Envelopes, Valpak operates an Internet website, www.valpak.com, which offers electronic coupon advertising. Valpak allows its franchisees to offer and sell electronic coupon advertising through the various channels including valpak.com website, sms texting, email and mobile applications on terms and conditions that may vary from time to time.
Corporate Information
Valpak Direct Marketing Systems, Inc. is a Delaware corporation that was incorporated in August 1986. Valpak’s principal business address is 8605 Largo Lakes Drive, Largo, Florida 33773. Valpak is a wholly-owned subsidiary of Cox Target Media, Inc., a Delaware corporation which, in turn, is a wholly-owned subsidiary of Cox Enterprises, Inc., a Delaware corporation.
Investment
The total investment necessary to begin operation of a VALPAK® Business, exclusive of working capital, insurance and the cost of a vehicle for use in the business, ranges from $91.200 to $200,800. These totals include the following amounts in Item 5 that must be paid to us or our affiliates: (1) a $2,000 initial franchise fee for an operating franchise or $2,500 for a dormant franchise; (2) a $13,000 training fee for an operating franchise or $15,000 for a dormant franchise; and (3) a territory acquisition fee that varies depending on the size of the Franchisee’s territory and its current mailing status, but not less than $12,000. If you purchase an existing VALPAK® Business from us or one of our affiliates, the total investment ranges from $300,000 to $1,208,300, which includes the initial franchise fee of $2,000 and a $13,000 training fee (the territory acquisition fee is part of the purchase price).