RSVP Franchise FDD, Profits & Costs (2025)

RSVP Direct Mail Advertising, established in 1985, is a prominent player in the direct mail marketing industry. The company began franchising in 1998 and operates under its parent company, Alliance Franchise Brands LLC.
Headquartered in Plymouth, Michigan, RSVP specializes in delivering high-quality direct mail solutions that connect local businesses with affluent homeowners.
The franchise offers targeted marketing services, focusing on luxury card packs that promote home and lifestyle products and services.
These mailings are designed to reach the wealthiest 20% of homeowners, providing businesses with a cost-effective method to attract high-spending consumers. RSVP’s approach has proven effective, boasting an average client renewal rate of 70-80% annually.
Initial Investment
How much does it cost to start a RSVP franchise? It costs on average between $114,000 – $373,000 to start a RSVP franchised facility.
This includes costs for marketing materials, technology, licensing fees, and initial operating expenses. The exact amount depends on various factors, including the territory size, local market conditions, and whether the franchisee operates from a home office or leases commercial space.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $15,000 |
Territory Fee | $30,000 to $120,000 |
Training Expenses | $0 to $4,500 |
Rent Deposit | $0 to $1,500 |
Utility Deposits | $0 to $500 |
Office Furniture and Supplies | $0 to $3,500 |
Software and Computer Equipment | $5,067 to $9,481 |
Transportation | $0 to $7,500 |
Marketing and Brand Identification | $0 to $9,450 |
KickStart Initial Marketing Deposit | $7,500 |
Telephone | $500 to $2,500 |
Insurance (for 12 months) | $2,695 to $10,000 |
Professional Fees (lawyer, accountant, etc.) | $3,500 to $8,000 |
Additional Funds (for 12 months) | $50,000 to $174,000 |
ESTIMATED INITIAL INVESTMENT | $114,262 to $373,431 |
Average Revenue (AUV)
How much revenue can you make with a RSVP franchise? A RSVP franchised location makes on average $378,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $248,000 yearly revenue for similar marketing franchises. Below are a few RSVP competitors as a comparison:
RSVP Franchise Disclosure Document
Frequently Asked Questions
How many RSVP locations are there?
As of the latest data, RSVP Direct Mail Advertising operates 57 franchised locations across the United States.
What is the total investment required to open a RSVP franchise?
The total investment required to open a RSVP franchise ranges from $114,000 to $373,000.
What are the ongoing fees for a RSVP franchise?
RSVP Direct Mail Advertising requires franchisees to pay a royalty fee of 7% of gross sales, which grants continued access to the RSVP brand and support services. Additionally, there is a marketing fee of 1% of gross sales, allocated to national and regional advertising efforts to promote brand recognition and drive customer engagement.
What are the financial requirements to become a RSVP franchisee?
To become an RSVP Direct Mail Advertising franchisee, candidates are required to have a minimum net worth of $250,000 and liquid capital of at least $100,000. These financial prerequisites ensure that franchisees possess the necessary resources to establish and sustain their business operations effectively.
How much can a RSVP franchise owner expect to earn?
The average gross sales for a RSVP franchise are approximately $0.38 million per location. Assuming a 15% operating profit margin, $0.38 million yearly revenue can result in $57,000 EBITDA annually.
Who owns RSVP?
RSVP Direct Mail Advertising is owned by Alliance Franchise Brands LLC, a global leader in marketing and visual communications. Alliance Franchise Brands serves as the parent company for nine franchise concepts, including RSVP, Allegra Marketing Print Mail, and Image360, collectively encompassing nearly 550 locations across North America and the United Kingdom.
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