AP's "franchised postshop" proposal

Australia Post has circulated a Licensee Information Bulletin extolling its "franchised postshop" proposal. AP has also advertised in many major newspapers, calling for expressions of interest in their new proposal.

• Does AP have any "franchised postshops" to sell?
• Will AP convert its corporate post offices to "franchised postshops"? Unlikely.
• Will many Licensees be shortsighted enough to convert to franchised postshop operations? Unlikely.
• Will many Licensees sell their LPO to AP so that it can be converted and re-sold? Unlikely.
• Will "franchised postshops" be as profitable as LPOs? Unlikely.
• Will AP try to sell its four franchised postshop "pilot" sites? Probably.

Licensees who are invited to an AP "Information session for Licensees" do not have to attend. This invitation appears to be targeting tier 1 LPOs in metro and regional areas. AP claims that Licensees "will be under no obligation" and that "there will be no pressure from Australia Post for a Licensee to be involved in this program", however we understand from the calls we've received that some Licensees may feel under an obligation and under pressure.

Our advice to Licensees in regard to

is:
• THINK ONCE
• THINK TWICE
• THINK AGAIN
• Ring your POAAL State Chairman to discuss it

If someone from AP visits or calls you and tries to convince you that the "franchised postshop concept" is right for you, listen carefully but make no commitment. You could probably benefit from some legal advice.Licensees will note in the AP bulletin the word "voluntary" in relation to LPO buybacks. That means that you cannot be forced into it. It is difficult to see any benefits of changing from an indefinite term, protected Licensed Post Office Agreement to a limited term franchising agreement where AP has all the control.Protect your investment in your LPO. Don't let yourself be pressured by AP - call your POAAL State Chairman if you have any queries.