India Post Office Franchise Best Guide in 10 Steps | How to Get Post Office Franchise

Hello curious businessman, I know you eagerly want to know how to get India Post Office franchise. But before we go deep down into this let’s understand some brief points about the India Post postal system. Also here is the table of contents available, by which you can directly go to the part you want to know about.

  • A post office is a place that is a government-operated postal system in India that provides services such as posting, receiving, sorting, handling, and moving or delivering mail, letters, or packages, and the employees deliver it to the destination.
  • Did You Know? The first post office in India was started by the British East Indian Company in 1764. And Mahatma Gandhi was the first person whose picture was depicted on free India’s stamp (1948).
  • The Postal Index Number (PIN code) is a six-digit, Unique code of post-office numbering. It was introduced on 15 August 1972 by Shriram Bhikaji Velankar.
  • According to market research firm Research And Markets, India’s Logistics Market is estimated to be USD 435.43 Bn in 2023 and is expected to reach USD 650.52 Bn by 2028, growing at a CAGR of 8.36%.
  • Indian postal system is divided into nine postal zones, where eight zones are called the regional zone and one functional zone (used for the Indian Army).
  • As per the available government data, the total number of post offices in India is 1,59,225. It has become the world’s largest postal network. So, now you know the potential of getting a Post Office Franchise and if you want to kick start your entrepreneurial journey with India Post Office then let’s understand how to get Post Office franchise in this article of Bazaar Neeti. Let’s Go!

Benefits of India Post Franchise:

  • Brand Reputation: As we all know, India Post is a government-operated postal system in India, that is part of the Department of Post under the Ministry of Communications. It has become the world’s largest postal network. A franchisee can easily leverage brand recognition to quickly establish himself/herself in the market and attract customers.
  • Technology Leverage: The government is consistently working for the modernisation of the post offices using technology by providing thousands of crores as per the Department of Post. recently in Gujrat, it has completed delivery through drones.
  • Franchisee Training & Support: India Post focuses extensively on training its franchisee partners. After your successful joining, they will provide you with the training required to provide swift logistics solutions.
  • Customer Obsession: India Post focuses on the Indian market. So, it remained the backbone of all its customers of choice. Government is not only working to enhance the reach by opening more post office franchises but also wants banking and financial services to be available to people within 5 kilometres of their dwellings.
  • Viability: The viability of each franchise only requires to be assessed by the concerned field unit so as to ensure adequate returns to ttr€ franchise. The expected minimum revenue would depend on the range of services, a particular location, potential revenue, the investments that the franchise is willing to make, the cost likely to be incurred by the department in providing support facilities, etc.

India Post Office Mission, Vision & Values:

  • Mission:
  1. To sustain its position as the largest postal network in the world touching the lives of every citizen in the country.
  2. To provide mail parcel, money transfer, banking, insurance and retail services with speed and reliability.
  3. To provide services to the customers on a value-for-money basis.
  4. To ensure that the employees are proud to be its main strength and serve its customers with a human touch.​
  5. To continue to deliver social security services and to enable last-mile connectivity as a Government of India platform.​
  • Vision: India Post’s products and services will be the customer’s first choice.
  • Values: India Post will maintain its iconic status as a unique and trusted national institution by:​​
    1. Always providing the human touch in all our interactions with society.
    2. Being responsive and reliable.
    3. Demonstrating the highest order of integrity, honesty, transparency and professionalism. Discharging its responsibilities towards the society in an environment of deep trust, mutual respect and a culture of service before self.

Post Office Franchise Scheme:

In order to effectively meet such demand, the Department of Posts provides postal services through Franchise Scheme. There will be two types of franchises:

  1. Counter services through Franchise Outlets in areas where there is demand for postal services, but a post office cannot be opened.
  2. Sale of postal stamps and stationery through Postal Agents in urban and rural areas.

In Case You Missed It: How To Get DTDC Franchise

How To Get Ecom Express Franchise

India Post Franchise Outlet Scheme:

Features of Post Office Franchise:

  • Only counter services are to be franchised, while delivery and transmission will continue to be through the Department. Linking arrangements for the franchised outlets will be provided by the franchises.
  • The franchise will provide service across the counter for a minimum-defined time schedule with the flexibility to work around the clock.
  • Products and services offered:
  1. Sale of stamps and stationery (including philatelic items).
  2. Booking registered articles, speed post articles, money orders (on EDBO model), e-post, etc. Bulk booking of registered/speed post articles is allowed without any limit. No rebate for bulk booking of speed post articles will be admissible over and above the commission payable to the franchisees as applicable from time to time. However, the franchisees will not do bulk bookings from BNPL customers. Further, Link Post Offices should report any cases of heavy bulk bookings to the HO. The HO would send a report to the Divisional Office. The Divisional Office will then alert the Marketing Executives in the Speed Post Centres etc. to make efforts to bring such customers into the fold of the BNPL Scheme of the Department. The restrictions imposed by the Department regarding bulk booking on the outsourcing agents would also be applicable to the franchisees for bulk booking.
  3. Franchise outlets will not book any money order for a value less than ₹100.
  4. Functioning as a direct agent for PLI and providing related aftersales service, including the collection of premia. (subject to fulfilment of criteria for PLI agents).
  5. Marketing products for which the Department has a corporate agency or tie-up and provides related follow-up services (subject to agreement with the other organizations involved).
  6. Providing retail including the sale of revenue stamps and CRF stamps and bill/tax/fine collection/payment services of the Department (subject to agreement with the other organizations involved).
  7. Facilitating the provision of e-governance and citizen-centric services (subject to agreement with the other organizations involved).
  8. Any other service introduced by the Department in future through its outlets that are considered amenable to the franchise model (subject to agreement with the other organizations involved).

The model has adequate flexibility built in to allow a range of services to be extended through the outlets according to the need/demand, and to increase the range when found necessary. Thus, the range of counter services that can be offered through different outlets can vary, keeping in view the location and its capacity to generate revenues.

India Post Postal Agents Scheme:

Features of Postal Agents:

  • Only counter services of postal stamps and stationery (including philatelic items) are to be franchised through PostalAgents.
  • The Postal Agents will provide service across the counter for a minimum defined time schedule with the flexibility to work round the clock.
  • Products and services offered: Sale of postal stamps and stationery (including philatelic items).

India Post Franchise Training:

  • India Post Office focuses extensively on training its personnel. After successful joining, they will provide effective hands-on training to all franchise partners so they become a holistic part of the India Post Office family.
  • Introduction to the objectives, products/ services, basic procedures, upkeep of the premises and customer care would be part of the induction training of the franchisees. The briefing will be done by the Sub-Divisional Inspector of the area.
  • Franchises shall be able to transact postal business on computers.

How to Get India Post Office Franchise?

The process of getting a Post Office franchise is very straightforward. It follows the robust model, which means that interested franchisee partners can register on the platform and can become partners of the world’s largest postal network.

Also, India Post Office has mentioned eligibility criteria, documents, equipment, space requirement and manpower to become an India Post Office franchise partner. Additionally, we also added some important points, and if you have mentioned these qualifications and requirements you would get more preference over others.

Post Office Franchise Online Apply

Eligibility Criteria for Post Office Franchise:

Criteria for selection have been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options. The criteria are as below:

  • Individual as well as institutions/organizations/ other entities like corner shops, Paanwalas, Kiranawalas, stationery shops, small shopkeepers, etc. in urban and rural areas and new upcoming urban townships, special economic zones, major highway projects, upcoming new industrial centres, colleges, polytechnics, universities, professional colleges etc. are eligible for taking up the franchise work. In the case of an individual, the individual will enter into an agreement and in the case of an institution/organization/other entity, the Head of the institution/organization/entity will enter into the agreement.
  • The members of the family of serving postal employees are not eligible for taking up a franchise scheme in the same division in which postal employees are working. Members of the family for this purpose would include the following:
  1. The spouse, but not including a separated spouse or one living separately while judicial separation proceedings are on.
  2. Children and stepchildren but not including children and stepchildren of whose custody the serving postal employee has been deprived by law.
  3. Other persons such as wards are dependent on and normally live with the serving postal employee.
  • Age: Above 18 years. No upper age limit.
  • Educational Qualifications: 8th class pass from a recognized school.
  • Preference:
  1. Postal pensioners.
  2. Those able to provide computer facilities
  • Premises: Properly appropriately located and accessible premises, properly maintained with the suitable display of approved signages.
  • A business plan would be prepared to take into account the anticipated minimum level of business/revenue worked out by the Divisional Head for the specific franchise.

Documents Required For Post Office Franchise:

  • ID Proof: Aadhar Card, PAN Card
  • Address Proof: Bank Account Passbook, Ration Card, Electricity Bill
  • Phone Number, Email ID, Photographs
  • Other Financial Documents including GST, NOC
  • Land Ownership/Rental Agreement
  • Demand draft for security deposit and setup fee if required
  • A Canceled cheque & 6 months’ Bank Statement

India Post Franchise Equipment Requirement:

    • Computer, Printer, Scanner, Bar Code Reader.
    • High-Speed Internet connectivity.
    • Pre-printed Barcode Stickers shall be provided to Franchise Outlets using Point
      of Sale Software.
    • Adhesive, Staplers & Pins.
    • Electricity or Inverter Facility for continuous electricity.
    • Interiors as per advised by India Post Office.
    • CCTV camera for security purposes.
    • Parcel Vehicle.

Space Requirements For Post Office Franchise:

If you want to take India Post Franchise then it is very important for you to know how much land is required to become a Post Office franchise partner. It will be beneficial to have a large enough space of about 500 square feet for the service centre, shipments management, proper space for the showroom and at the same time you will also need enough space for the stock and parking area.

  • Office: 150 square feet to 200 square feet
  • Vehicle parking space: 200 square feet to 350 square feet
  • Godown: 500 square feet to 800 square feet
  • Well, the space requirements also depend on you that in which level you are going to open the India Post franchise.

Location For Post Office Franchise:

  • The franchise model will be implemented in fast-developing areas of urban growth like metros and their satellite towns, as also such urban and rural areas where there is a justification for post offices on the distance norms but there is difficulty in providing the same through redeployment/relocation.
  • In addition, the Head of the Circle may relax the norms in such cases where there is significant revenue potential and the franchise may be opened subject to a minimum estimated monthly revenue generation of ₹50,000 per month, and no adverse impact to neighbouring post Offices.
  • Continuation or otherwise of these franchisees would be decided on the basis of a final review. The first review will be conducted 6 months after the opening of the ou{let and the final decision regarding its continuation or otherwise will be taken 6 months thereafter i.e. one year after the opening of the outlet concerned.

India Post Franchise Cost:

  • So, India Post Office has clearly mentioned this, the applicant should be willing to make the necessary investments for the conduct of the business and provide details on how the premises will be run, what the opening hours would be, investments proposed, market conditions, proposals for marketing products, awareness of customer base, role in the local community, etc. One reference from a respectable person in the locality where the franchise is proposed to be located would also be required to establish the character and antecedents of the applicant.
  • Security Deposit: The security deposit in the form of NSC, is to be provided by the franchise, and would be based on the maximum possible level of financial transactions likely to be undertaken by the franchise in a day. The minimum security deposit would be ₹5,000/-. Further, it would be increased on the basis of average daily revenue.
  • Selection would be made by the concerned Divisional Head based on a report from the ASP/SDl within 14 days from the date of receipt of the application. lt will be ensured that permission for opening Franchise Outlets will not be granted in such Gram Panchayats where Panchayat Sanchar Sewa Kendras (PSSKs) is functioning under the Panchayat Sanchar SewaYojana Scheme.

Read More: How To Get Ekart Franchise

Post Office Franchise Schedule of Commission:

Sl No.ServicesCommission Per Transaction
1.Booking of Registered Articles₹3.00
2.Booking of Speed Post Articles₹5.00
3.Booking of Money Orders:

a.) With a minimum value from ₹100 to ₹200
b.) With a value of above ₹200
Commission:

₹3.50
₹5.00
4.Booking of Registered Articles and Speed Post Articles beyond 1000 articles (total of all two categories) per month.20% additional commission for respective articles i.e. Registered or Speed Post.
5.Sale of postage stamps and postal stationery (including philatelic items) and money order forms5% of the sale amount
6.Retail Services including the sale of revenue stamps, central recruitment fee stamps, etc.4040% of the commission earned by DoP (rounded off in rupees to be % or less)

Post Office Franchise Profit:

  • The franchisees will earn remuneration/commission on services provided, as set out in the Schedule of Memorandum of Agreement.
  • The operating manual and accounting procedure for remuneration, for franchise
    outlets are available in all Head Post Offices and Sub-Post Offices of the
    concerned area.
  • Post Offices are an integral part of our lives. It not only lets us stay in touch with people but also offers great investment opportunities that are safe as well as secure. Depending on the sales of the goods and services the applicant may begin receiving commission from the department. And depending on the number of customers, the initial earnings can start around ₹20,000 and go up to ₹50,000.

Post Office Franchise Online Apply:

  • As we have researched there is no online facility to apply for the Post Office Franchise. Interested candidates can get the Application form through your nearby Post office or else you can download it online on page no. 9/25 through the official website link India Post Office Franchise Online Apply.
  • Application cum Franchise Agreement Form is also available at the concerned postal Divisional Office and duly filled-up Application Forms & other documents are to be submitted to the Sr./Superintendent of Post Offices of the concerned Postal Divisional Office, the competent authority for grant of license under the Scheme. For more details about the scheme may contact the Sr./Superintendent of Post Offices of the concerned Postal Divisional Office.
  • Applicants for the franchise would need to submit an application in a prescribed proforma (Annex-l). The selected franchise will sign a Memorandum of Agreement with the Department (Annex-ll).

India Post Franchise

In Case You Missed It: How To Get Blue Dart Franchise

In (Annex-l) From:

Now on Page no. 9, you have an Application cum Franchise Outlet Asregment Form. And that will be in 2 part but you as a franchise has to fill only Part-A, And Part-is for office purpose only.

  • Fill in your Name, Nationality & Age (Only 18/18+)
  • Whether Department of Posts (DoP) pensioner (Yes/No): ………… (lf yes, attach a copy of the PPO).
  • Income Tax PAN / GIR No: ………… (ln case Pan / GIR No is not provided, declaration in form 60 to be provided).
  • Present Address, Permanent Address, Location For Business, Proposed Timings for Business.
  • Premises Details: Rented/Owned, Leased Agreement (If Rented), Premises Distance from nearest Post Office.
  • Present Business/Occupation OR Considering Postal Franchise from same Premises/Address.
  • Indicate previous experience in retailing service.
  • Name, Address and Telephone number of a respectable person in the locality who can be contacted for a reference.
  • Details of Security required: Here you will fill in a Declaration Form. And put the Date and your Signature.

In (Annex-ll) From:

Now on Page no. 11, you have a Memorandum Of Agreement. But only the selected franchise will sign a Memorandum of Agreement with the Department. Here you get to know about:

  • Granted Rights
  • Term & Renewal
  • Franchiser’s Initial Obligations
  • Franchiser’s Continuing Obligations
  • Franchisee’s Obligations
  • Initial Training
  • Continuous Training
  • Fees, Remuneration & Security
  • Promotion & Advertising
  • The Marks
  • Audit
  • Sale Of Business
  • Termination & Its Consiquences
  • Waiver, Severability, Assignment by DOP, Arbitration, Insurance, Notice, Application Law & Jurisdiction, and Force Majeure.

Post Office Franchise Contact Number:

If you have any queries related to the India Post Franchise, you can contact them via the available contact details on this official contact us:

  • Contact Number: Customer Care Toll-Free Number 1800 266 6868 [Call centre agent- 09.00 am to 06.00 pm (except Sunday and gazetted holidays)]
  • For Lodging Complaint on the CRM Portal of Indiapost: Follow this official complaint form link.

Growth Tips For India Post Franchise:

So, there is a very famous quote by Arthur C Nielsen;

“Give your clients the earliest delivery consistent with quality – whatever the inconvenience to us.”

Here we share 9 effective ways to grow your Post Office franchise business:

  1. Branding of Franchise Outlets and Postal Agents: Standard Signages for India Post franchise would be provided to give a uniform look to all franchised outlets and postal agents. The Signage will be made available in all Head Post offices and sub-post offices of the areas concerned.
  2. Optimize your online presence
  3. Choose your location wisely
  4. Plan your transportation & vehicles
  5. Leverage technology for automation
  6. Hire well-skilled employees
  7. On-time Delivery
  8. Make your customers delightful
  9. Advertisement and Publicity: The concerned Divisional Head will make proper and appropriate arrangements for the advertisement & publicity of the scheme to create awareness/ interest among the prospective public and ensure more number of new franchisees every year.

Conclusion:-

By considering all these above points, I guess you got all the answers for the How to Get Post Office franchise. Becoming an India Post franchise partner can be profitable yet tricky. A Post Office franchisee needs to do research, put in the effort and have the patience to identify the full potential of their franchise hub connected to the platform India Post Office. And undoubtedly it will be a robust way to grow in this fast-growing online market. And if you work with all the hard work and dedication and take care of every aspect, from parcel management to staff management to cash handling, you definitely will succeed. Good luck!

FAQs:-

Q. What is the income of post office franchise?

Ans. Well, it completely depends on your area type, market size, customer base, etc. But initially, you can earn from ₹20,000 to ₹25,000 per month. As the business grows, you may be able to earn ₹ 50,000 per month or more than that.

Q. How do I start a post office agency?

Ans. Application cum Postal Agent Agreement Form is also available at the concerned postal Divisional Office and duly filled up Application Form & other documents are to be submitted to the Sr./Superintendent of Post Offices of the concerned Postal Divisional Office, the competent authority for grant of license under the Scheme. For more details about the scheme may contact the Sr./Superintendent of Post offices of the concerned Postal Divisional Office.

Q. How can I start a post office franchise in India?

Ans. Interested candidates can get the Application form through your nearby Post office or else you can download it online on page no. 9/25 through the official website link India Post Office Franchise Online Apply. Applicants for the franchise would need to submit an application in a prescribed proforma (Annex-l). The selected franchise will sign a Memorandum of Agreement with the Department (Annex-ll).

Q. Is Post Office franchise profitable?

Ans. Of course Yes! And it completely depends on your area type, market size, customer base, etc. But initially, you can earn from ₹20,000 to ₹25,000 per month. As the business grows, you may be able to earn ₹ 50,000 per month or more than that.

Q. Post Office franchise profit

Ans. The franchisees will earn remuneration/commission on services provided, as set out in the Schedule of Memorandum of Agreement. Depending on the sales of the goods and services the applicant may begin receiving commission from the department. And depending on the number of customers, the initial earnings can start around ₹20,000 and go up to ₹50,000.

Leave a Comment