UPS Store Franchise – Costs, Fees & Earnings Statistics
Net Worth Requirement:
Units in Operation:
$137,849 - $566,585
What we now know as The UPS Store was founded in 1980. It started as Mail Boxes Etc. in 2001, UPS (or United Parcel Service) bought it and formed The UPS Store which is currently headquartered in San Diego, California.
The UPS Store franchise has grown steadily over the years and now has more than 5,000 units nationwide and offers a variety of services such as shipping, printing, and packing.
Is the UPS Store a franchise?
Yes, the UPS Store is a franchise. The UPS Store is a franchise opportunity that has been around for over 40 years. It was also named one of the top 25 fastest-growing franchise brands in 2019 by Entrepreneur Magazine.
UPS Stores are independently owned and operated. Franchises offer many benefits, including the ability to use a well-known name and established reputation to attract customers. Franchisees also have access to proven business systems and support from the franchisor. However, franchises come with some drawbacks as well.
For example, franchisees must adhere to strict guidelines set by the franchisor, and they may have to pay a high fee for the privilege of using the brand name. Overall, the UPS Store offers a good option within franchise opportunities for those who want to start their small business ownership with some built-in advantages already in place.
How many UPS Stores exist?
The UPS Store is one of the most ubiquitous franchise businesses in the United States. With over 5,268 units nationwide as of 2021. It’s easy to find a UPS Store no matter where you are.
While the company is best known for its shipping and packaging services, The UPS store brand also offers a wide range of other services, from printing and copying to rentals of mailboxes and notary public services.
With the addition of business service centers in the business services category, The UPS Store has come to be known as a one-stop shop for all your small business needs, and its convenient location makes it a popular choice for customers looking for quick and easy service.
How much does a UPS Store franchise cost?
UPS Stores are a familiar sight in many neighborhoods, but have you ever wondered how much it would cost to open your own UPS Store? Since UPS Stores are franchises, the initial investment will vary depending on the UPS store location and size of the store.
Generally speaking, the initial investment for traditional outlets will run between $137,849 – $566,585. In addition to the initial investment, franchisees can expect to pay an ongoing royalty fee of 5% of gross sales.
There are also a number of other costs associated with opening and running a UPS Store, such as rent, and insurance. However, for those who are looking for a trusted brand with a proven business model, a UPS Store franchise could be a wise investment.
What is the UPS Store franchise fee?
Considering a UPS Store franchise? The initial franchise fee is $29,950 and over the last three years, The UPS Store has had a growth rate of 5.8%.
There are UPS store franchise costs the franchisee is expected to pay to the franchise itself. These include the 5% royalty fee, 1% marketing fee, and a 2.5% national advertising fee on gross sales for a total of 8.5%. Considering a good rule of thumb for franchises is a 6% royalty, 3% national brand fund, and 3% in miscellaneous fees, 8.5% is low.
UPS Stores are individually owned and operated. If you’re looking for a proven business model with strong brand name recognition, a UPS Store franchise could be a good fit for you.
Anytime a potential franchisee is considering buying a franchise, the franchisor will provide the contact info to all existing UPS store franchisees and can review a franchise disclosure document before signing the franchise agreement.
How much does a UPS Store franchise owner make?
If you’re thinking about opening a UPS Store franchise, you’re probably wondering how much money you can make. Unfortunately, there’s no simple answer to this question.
Franchise owners’ incomes vary greatly depending on a number of factors, including the location of their store, the size of their store, and the number of services they offer.
In traditional locations in 2019, the average gross sales of a single UPS Store was $521,316. The average top 10% of stores grossed $916,057 while the bottom 10% grossed $252,427 according to 4561 reporting locations.
The Wolf’s Take
For franchises, The UPS Store has a very palatable initial investment, as well as royalties and marketing fees being charged. 8.5% in total fees is outstanding given the popularity of the brand. A good rule of thumb for franchises for fees is “6, 3, & 3”:
- 6% royalty
- 3% national brand fund
- 3% miscellaneous fees
With that said, the revenue isn’t super high with an average of about $520k, and The UPS Store doesn’t share any EBITDA data. However, they too have tons of franchisees operating who would provide would-be buyers with their profitability (anytime a candidate is considering buying a franchise, the franchisor provides contact info to all existing franchisees).
The UPS Store is a great franchise opportunity for those looking to start their own business. The company has been around for over 40 years and has a proven profitability and growth track record. With over 5,000 locations, the UPS Store is a well-known and trusted brand.
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