Are you looking to buy a Licensed Post Office?
A Licensed Post Office (LPO) is a privately owned post office which is operated under contract (licence) to Australia Post. LPOs sales are often advertised in weekend newspapers, under the Businesses For Sale column. Some are sold privately by the vendor, some are sold through an Agent.
The purchase price will vary according to many factors, including :
- Location - suburban, regional, country
- Premises - owned or leased
- Electronic or manual operation
- Size of any in conjunction business
- Income from post office part of the business
- Income from the other part of the business
- Size of premises
- Condition of premises
- Contents of disclosure document
There is no territory with a post office licence, nor is there a term to the Licence. A Licensee can sell the post office licence at his/her discretion, subject to Australia Post approving the incoming Licensee. Any prospective purchaser should check their eligibility to be a post office Licensee with Australia Post prior to purchase. As well, Australia Post expects certain skills and standards from Licensees, including ability to relate to customers and to retain and build up the retail business. Trustworthiness, reliability and the ability to keep customers' business confidential are essential. Australia Post will provide training to the incoming Licensee, including training with Australia Post's technology where applicable. Post office counter staff are the face of the post office and high standards are expected of them.
Licensees are also franchisees, and are thus covered by the Franchising Code of Conduct. A disclosure document must be provided to prospective purchasers by Australia Post and the vendor. Purchasers should acquaint themselves with the Franchising Code of Conduct, a copy of which is available through the ACCC.
When you sign your purchase contract, please contact POAAL and we will arrange to send you a membership kit, a membership application form and details of the mandatory insurance. We can arrange the necessary Public Liability insurance for you. You can download an Expression of Interest form and send it to us or ring our National Office on 03-96544533.
The role of the ACCC
The ACCC has responsibility of administering the Franchising Code of Conduct and investigating potential breaches. It has also had success in facilitating discussion between franchisees and franchisors to resolve problems, avoiding the potential for matters being escalated to a point where breaches of the Act arise.
There does remain a significant imbalance between the two sectors of the industry: franchisees and franchisors. While many franchisors could be described as small businesses, they retain a superior bargaining position over franchisees and this can raise problems if the superior party tries to ignore the Code. Problems may also arise if the franchisor engages in misleading or deceptive conduct or other TPA breaches in its dealings with franchisees.
Reproducted with permission of the Australian Competition and Consumer Commission.