Money Mailer Franchise Cost, Revenue & Review 2026
- Investment
- $65K – $76K
- Disclosed sales
- $686K
- gross sales, not profit
- SBA charge-off
- 14.9%
- on 60 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Money Mailer is a direct-mail advertising franchise that mails local coupons and offers to households on behalf of businesses. Franchisees run a local territory selling shared-mail and digital advertising to merchants and coordinating the mailings.
FranchiseVerdict summary · 2026
A Money Mailer franchise requires a total initial investment of $65K – $76K, including a $60K franchise fee. Per the 2025 FDD, average unit revenue was $686K[2]. SBA 7(a) loans show a 14.9% charge-off rate across 60 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $65K – $76K
- 20th pct Business Serv…
- Avg gross sales
- $686K
- 9th pct Business Serv…
- Royalty
- Flat fee
- Units
- 131
- 50th pct Business Serv…
- SBA charge-off
- 14.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $65K – $76K including a $60K franchise fee.
- RETURNSAverage unit revenue of $686K/year (median $649K), with an estimated 140% cash-on-cash return (based on Average Annual Total Gross Profit 1). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 46/100 (higher is better). SBA loan charge-off rate of 14.9% across 60 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -6 franchised outlets in the latest year (1 opened, 7 closed) (Item 20).
- DECLINESystem contracting at -23.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Money Mailer, LLC
- Parent company
- JAL Equity Corp.
- FDD Item 1, page 6 of the 2025 FDD
- Predecessor
- MoneyMailerUSA Inc. (MMUSA); Money Mailer Franchise Corp. (MMFC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Tom Baber
- Incorporated in
- MO
- HQ
- 101 Workman Ct, Eureka, Missouri 63025-1079
- Auditor
- Armanino LLP
- Audited financials
- Franchisor revenue
- $31.5M
- Most recent fiscal year
Overview
About
- CEO
- Tom Baber
- Headquarters
- MO
- Founded
- 2023
- FDD year
- 2025
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical business services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $1K | $5K |
| Equipment, build-out, other | $4K | $11K |
| Total initial investment | $65K | $76K |
Source: Money Mailer 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $65K – $76K
- Top 40% of category vs category
- Liquid capital req'd
- $1K – $5K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- Flat fee per zone per shared mailing; tiered by annual du…
- Ad fund
- Marketing/Admin fee of $0.50 per spot (per-unit); not a p…
- Total fee load
- 0.5%
- vs 9–13% typical
- Payback period
- 0.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $120 |
| Transfer fee | $18K |
| Renewal fee | $0 |
| Total fee load | 0.5% of rev |
A 0.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales land near the business services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Money Mailer until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$73K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $179K as Average Annual Total Gross Profit 1. This is a disclosed figure, not our estimate — we publish no modelled profit for Money Mailer.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Money Mailer unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $686K
- Per unit, per year
- Median gross sales
- $649K
- Avg average annual total gross profit 1
- $179K
- Reported as Average Annual Total Gross Profit 1 in FDD Item 19
- Cash-on-cash
- 140.1%
- Based on Average Annual Total Gross Profit 1 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and gross profit
- Sample size
- 23 outlets
- vs category median 37
- Range (low → high)
- $240K→$1.7MCited, not corroborated — printed on page 43 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is 9.7x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $686K/year in gross sales. Revenue-to-investment ratio: 9.7x.
Fee burden
Total ongoing fee load of 0.5% — below the Business Services median of 9.0%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -23.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Money Mailer Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 131
- Opened
- 1
- Last reporting year
- Closed
- 7
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 105
- Corporate units in the system
- % franchised
- 20%
- vs corporate-owned
- Net growth (3-yr)
- -23.5%
- Net unit change over 3 years
- 3-yr CAGR
- -23.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 4
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
7
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 60
- Loan volume
- $7.1M
- Median loan
- $60K
- 50th percentile
- Charge-off rate
- 14.9%
- on 60 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 41
- Defaults
- 7
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 14.5%
- brand above franchise avg ↑
- Jobs supported
- 88
- 1.7 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in direct mail advertising, franchised businesses charge off at 14.5% vs 20.4% for independents — franchising is associated with 29% lower SBA default risk in this category.
Vintage analysis
Money Mailer charge-off rate by loan vintage
Top lenders financing Money Mailer franchisees
Showing 3 of 41 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Money Mailer from SBA 7(a) FOIA data.
- Principal loss rate
- 6.2%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 6.33%
- Avg chargeoff amount
- $47K
- Lender concentration
- 6.1%
- Job velocity
- 1.7 per $100K
- NAICS benchmark
- 18.8%
- NAICS 541860
- Jobs supported
- 88
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 3 | $1.2M | 0.0% |
| 2 | PNC Bank, National Association | 3 | $90K | 33.3% |
| 3 | Federal Deposit Insurance Corporation | 2 | $134K | 0.0% |
| 4 | Old National Bank | 2 | $75K | 0.0% |
| 5 | Citizens Bank, National Association | 2 | $30K | 0.0% |
| 6 | Regions Bank | 2 | $111K | 0.0% |
| 7 | Pinnacle Bank | 2 | $91K | 0.0% |
| 8 | Stearns Bank National Association | 2 | $164K | 0.0% |
| 9 | Celtic Bank Corporation | 2 | $250K | 50.0% |
| 10 | Choice Financial Group | 2 | $373K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 6 | 1 | 16.7% |
| ILIllinois | 5 | 2 | 40.0% |
| MNMinnesota | 4 | 0 | 0.0% |
| NCNorth Carolina | 4 | 0 | 0.0% |
| COColorado | 3 | 0 | 0.0% |
| KSKansas | 3 | 1 | 33.3% |
| TXTexas | 3 | 1 | 50.0% |
| MOMissouri | 2 | 1 | 50.0% |
| NENebraska | 2 | 0 | 0.0% |
| TNTennessee | 2 | 1 | 50.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting system with litigation history, no territory protection, questionable going concern status, and unverified financial claims present material risks for franchisee profitability.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
One predecessor (MMUSA) case: MoneyMailerUSA, Inc. v. Response Marketing, Inc. and Robert Chase (AAA Case No. 01-21-0018-1133, filed Dec 22, 2021); settled November 2022 with Chase Respondents paying $600,000.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Armanino LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures from the audited Balance Sheets of Money Mailer Franchising, LLC (a Missouri limited liability company), as of December 31, 2024 (most recent) and 2023. Reported in whole US dollars, not scaled. Single entity; no parent/guarantor mixed. Balance sheet reconciles: total liabilities (657) + member's equity (74,415) = total assets (75,072). The Statements of Operations page (Item 21 page 4) was NOT included in this image set, so revenue and net income are not available; member's equity declined from 74,881 (2023) to 74,415 (2024). Auditor: Armanino LLP, St. Louis, Missouri, report dated April 10, 2025.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 46 / 100 verdict
- 01MINORSystem declining sharply: -18.8% unit contraction YoY (131 units) indicates franchisee dissatisfaction or market saturation
- 02HIGHLitigation history: $1M+ breach of contract dispute in 2021-2022 with fraud/deceit counterclaims raises franchisor-franchisee relationship concerns
- 03MINORNo territory protection — direct competition from other Money Mailer franchisees in same zone; capped royalty ($350/zone) suggests thin margins
- 04MINORNet income of $179K on $686K revenue (26% margin) may not justify $64.6K initial investment + ongoing royalties, especially in declining market
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 40,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 7 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | St. Louis, Missouri |
| Jury trial waiver | Yes |
| Governing law | MO |
| Litigation count | 1 |
View Item 3 litigation summary
One predecessor (MMUSA) case: MoneyMailerUSA, Inc. v. Response Marketing, Inc. and Robert Chase (AAA Case No. 01-21-0018-1133, filed Dec 22, 2021); settled November 2022 with Chase Respondents paying $600,000.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 32 hrs
- Training location
- Virtually online from home office; field training in franchisee's territory
- Ongoing training
- Required
- Franchisor financing
- Not offered
- Item 10
- POS system
- Money Mailer Online (MMO)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Money Mailer Online (MMO)
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Money Mailer franchise?
The total investment to open a Money Mailer franchise ranges from $65K – $76K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Money Mailer franchise owners earn?
According to Item 19 of the Money Mailer FDD, the average gross sales per unit is $686K. The median is $649K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Money Mailer?
Money Mailer is franchised by Money Mailer, LLC. Its parent company is JAL Equity Corp.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Money Mailer FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Money Mailer FDD and qualifies whose outlets they describe.
What is Money Mailer's franchise failure rate?
Based on SBA 7(a) loan data, Money Mailer has a charge-off rate of 14.9% across 60 loans, meaning 14.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Money Mailer franchise locations are there?
As of their most recent FDD filing, Money Mailer has 131 total units in the United States, including 26 franchised units and 105 company-owned units. 1 new units were opened in the latest reporting year.
Is Money Mailer a good franchise to buy?
FranchiseVerdict rates Money Mailer as a B-grade franchise with a verdict score of 46 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.