For Sale: 2BR, 2ofc, Victorian. Located in active home-schooling comm. Walking dis. from Starbucks, Mail Boxes Etc., Barnes & Noble. T-1 capability, Dell server in bsmt, home network-ready. 20 min.from airport. Flexible zoning.
• Ad in Washington Post real estate section June 14, 2009¹

The ad shown above is fictitious---notice it is dated 2009. But it was written to describe the future of a rapidly growing lifestyle in America today---the home based business. In his book, Free Agent Nation, Daniel Pink describes a legion of tech-savvy fulfillment-seeking entrepreneurs who simply can't function without a convenient place down the block to pick up mail and make copies. The rest of us might be happily employed in the corporate world, but when it comes to doing our personal business, we're just plain old sick of the line winding out the door at the post office.

Enter Mail Boxes Etc. (MBE), the little store in the corner mini-mall whose huge success is built largely around the surging home business demographic trend. Jim Amos, MBE's president and chief executive officer, is a former Marine Corps captain and veteran of two combat tours in Vietnam. Amos runs his operation like one big warm family, while insisting on efficiency and enthusiastically promoting ethics. Amos believes fervently that Americans, and American businesses, need to focus on the fundamentals of values like fair play, honesty, integrity, and personal accountability.

Founded in 1980, Mail Boxes Etc. is was ranked by Entrepreneur magazine as second among franchise opportunities in America, sandwiched in between McDonald's, which is number one, and Subway, number three. MBE has over 4,400 locations worldwide that deliver products and services such as mailbox services, copies, faxes, U.S. Postal services, shipping via UPS and FedEx, freight shipping, packaging, printing services, and more. The MBE network generates more than $1.5 billion in revenue annually, receives 124 million customer visits and ships 40 million parcels. MBE has over 800,000 mailbox holders in the U.S, and has master licensee agreements in 82 countries.

At Mail Boxes Etc., free agents and everyone with little free time can whiz in and out to complete copying and mailing tasks in about two minutes, or, hang around and talk for a while. "I go out the back door, down the alley, and walk a block to Mail Boxes Etc. I go in there and joke with everybody. It's my community," states Janna King of Minneapolis, in Free Agent Nation.

Amos joined MBE in 1996, and has been instrumental in developing the mission, vision and core values that provide the foundation of MBE's strategic plan for the millennium. Amos's enthusiasm for the franchise industry, his warm personality and his accessibility are qualities widely admired by the people he works with. In-house meetings are frequently referred to as "family reunions" rather than business conventions. "I met Jim and was in total and absolute awe of this gentlemen," says Ben Spielman, the owner of MBE #44 in Tarzana, California. "I have never met anyone who was such a positive thinker and such a warm, bright, friendly individual."

During his Marine Corps career, Amos received 12 decorations, including the Purple Heart and Vietnamese Cross of Gallantry. He is the author of two books, Focus or Failure: America at the Crossroads and The Memorial.

"Listen America, we need renewal," Amos wrote in Focus or Failure. "This is not an issue of subsidies or government or process. It is a one-on-one spiritual issue of accountability and responsibility. You and I are a part of the fabric of life, and what we do effects the profile of the whole. Our lives are not our own business. Restoring our identity personally and corporately brings us back to responsibility. Today is the day to become the type of people we are dreaming of becoming."

Most recently, he contributed to The Entrepreneur's Creed- The Principles & Passions of 20 Successful Entrepreneurs, and The Transparent Leader. Amos also currently serves as the chair of the International Franchise Association (IFA).

Veterans as Franchise Owners

Amos feels that veterans make excellent franchise owners, and hopes to attract more vets to positions as owners at Mail Boxes Etc., and within the franchise industry as a whole. "Most vets come out of the military with systems-oriented behavior and excellent work habits---that's what we're looking for," he says.

The training Amos received in the Marine Corps gave him experience that he feels is invaluable. "The basic leadership skills I learned through the military experience, and all the lessons that were taught in the corps are qualities that I still use in business today," Amos says.

Amos hopes that more vets will consider careers built upon the power of the franchising concept. "One half of every retail dollar spent in the U.S. is spent in a franchise store," Amos says. "I think that a smaller percentage of veterans go into franchising today than you might expect because it isn't publicized enough. They come out of the military without franchising being a top destination in mind, many times getting into insurance or some field and often don't think about the possibility of becoming a franchisee themselves," Amos says. "However, organizations like the International Franchise Association target the military as potential quality candidates, especially as the military has downsized through the 90's."

Amos hopes to put the idea of being a franchised business owner higher on the list of priorities for veterans transitioning into civilian life, and states that MBE already has many ex-military personnel within its ranks, including a two-star general, colonels and majors.

A non-profit organization was initiated following the Gulf War called VetFran, which offered a specifically designed package to help veterans with financing and other areas of becoming a franchise business owner. Unfortunately, VetFran's founder passed away and the organization no longer exists as an entity. "However, the concept still exists in practice," Amos says. "Franchisors are still pursuing the military vet as a quality candidate. Vets like the decision-making role and the responsibility of business ownership perhaps more than civilians, and there is a like for discipline and structure. They don't want to start at the bottom of the corporate ladder. You generally have people with a strong sense of commitment, emotional ties to what they do, who clearly enjoy a personal challenge, and they're used to working hard."

"Franchising is a huge economic engine in the U.S. and around the world," Amos says. "The reason you see seventy industries doing business this way is because it uses people's capital to expand. When you consider the ability to penetrate multiple markets and the potential for global penetration as well, there are few economic engines as powerful as the franchise. You have big ticket franchises that require significant investment, and smaller operations that require much less. Some require higher levels of training. There's a whole spectrum to choose from. Franchising embraces 72 industries and brings in nearly a trillion dollars in business annually."

"The MBE concept is particularly strong because of the proliferation of the "soho" market," Amos says, referring to the small office/home office. "These are people that require the services that an MBE provides. We've created a huge cottage industry that is sweeping the world, and that is a trend line that will continue. These people have certain constraints-they are time starved. We offer the service and the convenience that they need."

Amos points out that almost fifteen hundred franchisors register annually in the U.S. However, the niche that MBE fills is unique. "All of the 'mega' franchises, or those opening over two hundred locations a year, are food service businesses, with the single exception of Mail Boxes Etc," he says. "We are business people meeting the specific needs of business people."

The Power of Individual Initiative

The real power and success of the MBE concept, depends on the individual franchisee, Amos says. "We have the credibility of the trademark and the logo, but the owners are the ones who open the center and spend the time building business relationships." Amos believes that an individual's potential for success as an MBE owner is unlimited. "Thirty one percent of our system is multiple store ownership," he says. "As these systems mature, you see that coming into play. That's a high percentage of the system and it speaks to the power of the concept."

How much money can an MBE franchisee expect to earn? "There's a range of financial success," Amos says. "We have centers that do over a million and some that do a couple of hundred thousand. One of the powers behind franchising is that it brings an opportunity to each person to live their own dream. Each person can ask themselves, 'How big is my dream and what do I want to accomplish in this role? Do I want to leave a legacy for my children? Do I want to make a statement in my local community? Do I want that type of sense of purpose? Do I want multiple units and to become a public entity myself someday?'"

Amos emphasizes that it is up to the initiative of individuals to create a successful business. "You can't have a business that large without having some failures," he says. "Franchising doesn't guarantee success to everyone who walks through the door, but it does guarantee them the opportunity. We create 170,000 new jobs a year."

As chair of the International Franchising Association, Amos recommends that individuals interested in becoming owners contact the IFA in Washington, D.C. "It's the largest clearing house in the world," he says. "It requires a code of ethics to participate. Those folks would be able to guide them through the process in an unbiased intelligent manner. I always encourage everyone to ask a few basic questions of the franchisees in the system and of themselves. They should ask if franchisees are happy with their business and would they do the same thing again, and they should ask themselves if they are willing to make a commitment to succeed. No one succeeds significantly in anything without working hard. It requires work, focus and commitment."

Amos states that the IFA will work with veterans to get them into the franchise system in multiple ways. "We absolutely work out programs that will assist veterans in making the transition into the private sector," he says. He also feels that the Small Business Administration tends to be "veteran friendly" in providing financing programs.

Commitment to Veterans and the Community

Amos is currently working with the military to put Mail Boxes Etc. services on naval and airforce bases. "We have six or seven out there today in areas like Coronado and Pearl Harbor and we are currently negotiating with other army bases," Amos says. "Veterans would be perfect candidates to participate as a franchisor in a location on a military base."

Amos also works with "Stand Down" in San Diego, a program that was first organized in San Diego, the location of MBE's corporate headquarters, by Vietnam Veterans and is now sponsored in part by the Department of Veterans Affairs. Stand Downs are typically one to three day events providing services to homeless veterans such as food, shelter, clothing, health screenings, VA and Social Security benefits counseling, and referrals to a variety of other necessary services, such as housing, employment and substance abuse treatment.

"Stand Down in San Diego is reflective of a much large effort that takes place across the country each year," Amos says. "We put a tent up and invite homeless veterans in. I think there are 280,000 Vietnam vets homeless today. There have been more that committed suicide than have been killed on the ground. We help them make phone calls to contact loved ones. Recently, we helped a lady get a new set of teeth. It's a very worthwhile effort."

For more information on Stand Down locations, please contact the office of the Director of VA Homeless Programs at (202) 273-5764. The program reports that currently, the number of homeless male and female Vietnam era veterans is greater than the number of service persons who died during that war.

In 1998, Amos founded the MBE "We Deliver Dreams Foundation" to make a difference in the lives of disadvantaged children who are victims of violence, neglect, abuse, poverty or illness. The foundation has helped individuals with special needs, including one young man named Tyler. Born with a congenital heart disease and as a result, developmentally delayed, Tyler needed special computer equipment to learn to communicate. The foundation provided Tyler with a computer all the learning software his family requested.

A Satisfied Franchisee

Ben Spielman fell in love with the MBE concept "by accident" when he saw a classified ad advertising opportunities with MBE and called out of curiosity. Now he owns one MBE location and after only two years as an owner, hopes to own multiple stores. "The experience has exceeded every expectation I ever had," Spielman says.

Spielman's admiration for Amos' leadership and encouragement is tremendous. "We were going through some trials and tribulations," Spielman says. "Amos came up with the three Aramaic words which mean 'This too shall pass.' When he said those words, we connected instantly." Spielman describes Amos as a "whiz" and a "big teddy bear," and states that Amos is always accessible for problem-solving.

"All the help I ever needed in a start up business was made available to me, whether it was with technical issues I needed to get used to or anything else---there was always someone there to walk me through it," Spielman says. "Every fear I had about going into franchises was eradicated as soon as I met Jim."

Spielman bought an existing MBE store and states that he knew exactly what his costs would be from the beginning. "All the fees were given to me up front and there were no hidden costs or surprises," he says. "Even though I did spend more money then the purchase price to get me up and running, on computer equipment needed to upgrade from the last franchisee, everything was above board. Business is what you make of it. MBE stands behind me they've come through every time I've needed them."

Spielman also feels that a key to the success of his store is customer service. "We pride ourselves in world class customer service and at MBE, they train you to deliver it," he says.

MBE's History

The MBE chain's growth continues at the brisk pace it established at its birth in 1980, when its founding partners planned to create a more friendly and convenient environment for consumers to conduct postal business, at a premium price. Initially, banks and venture capitalists failed to grasp the potential of the MBE concept, so the company turned to franchising to expand their company.

As the popularity of MBE and other retail postal centers grew, the company negotiated for a better deal from the Postal Service and private carriers such as UPS and Federal Express. In 1990 MBE sealed a deal with an overnight carrier called DHL Worldwide, which allowed consumers to pay the same rate through MBE that they would have paid had they shipped directly through DHL.

The addition of secretarial, answering, and other services made MBE even more of a one-stop business services center by the early 1990s. The company's success spawned a wave of new competitors, with names like Postal Annex Plus, The Packaging Store, and Mail "N More, but MBE remained the clear leader in this emerging industry.

MBE's connection to the big shippers, especially UPS, made MBE attractive to many potential franchisees, and franchise fees remained by far the most important source of revenue for the company. The ongoing alliance with UPS was cemented when UPS purchased 9.5 percent of MBE's stock, with the option of increasing its holdings. The transaction ensured that UPS would not set up its own retail network, as Federal Express had done, thereby depriving the chain of one of its biggest revenue sources. And for UPS it provided a low-cost, wide-ranging distribution system that was already intact and fully operational.

By 1993 MBE was well-enough established on both the national and international levels that it was able to introduce its "Big or Small. We Ship It All" program, in which participating MBE stores had the capacity to ship just about any item to just about any destination in the world.

Canada, Italy, France, the United Kingdom, Spain, Greece, and Turkey, to name just a few, were all home to MBE stores by the mid-1990s. MBE's international expansion was accomplished through the sale of master licenses, which gave a company the rights to subfranchise MBE stores for a whole country. The MBE concept was particularly appealing in countries with historically poor mail service, since customers there were generally eager to skirt the existing national postal monopolies.

On March 2, United Parcel Service announced that it had agreed to acquire MBE. Under the deal with Atlanta-based UPS, the delivery service is buying out the assets of MBE from under its current owner, financially ailing Washington, D.C.-based U.S. Office Products, for $200 million. The deal will allow MBE to develop new opportunities in small business services, e-commerce and financial services and will allow UPS increased access to retail customers.

The total investment required to become an MBE owner is between $100 and $200 thousand dollars. MBE itself provides up to $40,000 in financing for additional equipment and fixtures. Amos has high hopes for the future. "As MBE and UPS work together to develop a retail strategy that blends the strengths of two world class brands, we will continue our pursuit of becoming the largest and most profitable franchise system in history," Amos says.

1 Daniel H. Pink, Free Agent Nation.