Simpson and Bascetta's names stamped onto mail revolution

Two businessmen who own the Scottish franchise of American postal company Mail Boxes Etc (MBE) are keen to acquire some of the sub-post offices that the loss-making Royal Mail wants to close.

Steve Simpson and Pepe Bascetta, who hold MBE's master licence for Scotland and the north of England, believe they could keep many of the offices open by offering a wider range of services.

MBE is a specialist postal, communications and business services franchise, the world's biggest non-food franchise.

It is a big player in the US, Canada and Italy but is barely known in the UK and Ireland where it has only 63 centres, including 10 in Scotland.

Simpson and Bascetta's proposal could offer a lifeline to some of the 3000 sub-post offices targeted for closure across the UK. Royal Mail says it will close an undisclosed number of its 700 urban post offices in Scotland.

Observers reckon between 100 and 150 will shut. None of Royal Mail's 1200 rural offices will close.

MBE promotes itself as a one-stop shop that offers digital printing, parcel packaging, mail box rental, online communications, and world-wide delivery.

It can tailor services to the needs of small businesses and people who work from home.

One of its most recent innovations has been a successful collaboration with the easyGroup to establish centres in its internet cafes.

Two operate in London, with plans to open a centre in the cafe in St Vincent Street, Glasgow – next door to the Post Office.

"We would like to run a pilot programme in Scotland and if it proves successful we could roll it out across Britain," said Simpson.

Bascetta, former chief executive of whisky company Chivas Brothers, is believed to be putting together a proposal but he declined to discuss details, saying it was too early in the plan.

Simpson said: "It is a serious idea and we would like to see it happen. We see it as a win-win situation for everyone – Royal Mail would keep offices open, the government would save money and we would get a large network of offices."

Royal Mail said it was not aware of any interest in its sub-post offices.

They are targeted for closure because they are not economically viable, said a spokeswoman. She confirmed that the government has a fund to support the closure programme and will help sub-postmasters move from uneconomic premises to viable locations where possible.

Simpson and Bascetta have ambitious plans for their business which will draw on the expertise and financial backing of the MBE organisation.

Franchising is an attractive option for start-up businesses as it provides an off-the-shelf package of financial support, brand identity, training and other back-up services, such as sharing experiences with fellow franchisees.

It can, therefore, be less of a risk and provide a quicker route to market than attempting to build a business from scratch.

An MBE franchisee needs £35,000 to leverage a total investment of £100,000 in order to get started. Among those buying into the concept in Scotland are an investment banker, an ex-army tank officer, and a former pancake salesman.

The downside to franchising is that there is less personal identity and freedom of choice in the business because of the need to comply with operating systems and regulations to protect the brand. Part of the turnover must also be surrendered.

However, the safety of following a well-trodden path gives some assurance that the business will succeed and some of Britain's best-known high-street businesses are franchises, including McDonald's, Bally Shoes and Kall-Kwik.

Simpson sold two MBE Glasgow franchises to acquire the area franchise for Scotland and the north of England. Initially he went into partnership with Jonathan Dykes, who formerly worked in his family's furniture business. Simpson and Bascetta subsequently bought out Dykes and from their head office in Paisley the pair are planning to open a further 35 centres in the next two years, rising to 150 by 2007.

The combined turnover of franchises in the area is £1.2m, which they expect to rise to £15m over the next five years.

Simpson and Bascetta will take a percentage of that figure.

Simpson, 33, spent five years in Arabia, but is delighted to be back in Scotland building a business that he believes has huge potential.

"Franchising is a great way to do business and this company will become better known and will provide people with tremendous opportunities," he said.