The UPS Store

Start a The UPS Store Franchise | Costs and Requirements

Ready to jump into the franchising business? Franchise opportunities are growing year after year.

In fact, the “Franchise Market” Insights 2023 projects a CAGR increase of 9.73% in the franchise market, with an estimated increase from 100,797.4 million in 2021 to 175,955 million by 2027. 

Want to add to that growth? If you’re considering a The UPS Store franchise, keep reading to discover the most critical information you should know before you begin your journey.

Reasons To Franchise with The UPS Store

As an established business, becoming a franchise owner of The UPS Store has many potential benefits. 

1. Stable and innovative business model
2. Outstanding customer service reputation
3. Known as a leader in the industry
4. Established operations system with 40 years of franchising experience
5. Training and ongoing support
6. Recognized brand with 5000 franchise locations and counting
7. Ranked on Entrepreneur’s Franchise 500 list for 30+ consecutive years

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

How To Open a The UPS Store Franchise

If you’re interested in becoming a part of The UPS Store, take a look below at the step-by-step process. 

1. Financial Research

This should always be your first step, no matter what business you’re looking into in the franchise industry. A financial deep-dive is one of the most significant pieces of research you’ll need to complete. 

Cost of opening a The UPS Store franchise based on Franchise Disclosure Document (FDD):

• Traditional Locations: $240,959 - $508,472
• Rural Locations: $206,423 - $459,136
• Store-in-Store Locations: $80,357 - $216,148+

Financial requirements of the franchisee:

• Liquid capital: $75,000-$125,000
• Initial franchise fee: $29,950
• Initial investment: $185,000 - $508,000
• Royalty fee: 5%
• Ad Royalty fee: 2.5%

Curious about financing assistance? Keep reading — this article will get into that a little later. 

2. Find Your Market

The UPS Store has stores and business service centers all over the country. Its store locator makes finding a business opportunity and location easy. 

The UPS Store is a household name, but you’ll still need to research the brand and your market to see if it fits your community. Does it have the necessary zoning? Is there real estate inventory to make it possible? Is the location easily accessible to customers? Consider the needs of your area.

Another aspect you’ll need to consider is the competition in the area. There’s generally no need to shy away from a little friendly competition, but you do need to make sure there is room for the growth of your The UPS Store.

3. Application Process

The UPS Store has a four-stage application process to vet its prospective franchisees. 

1. Inquiry: Attend a webinar and complete the application
2. Apply: Initial interview, complete franchise disclosure, background check, submit financials, executive interview
3. Funding: Letter of intent, initial application fee, approval letter
4. Booking: Secure financing, approve site and sign lease, 5-week training, sign franchise agreement

4. Select a Site and Lock Down the Lease

The UPS Store has a franchise development team to guide small business owners through this process, including helping with negotiations, designing the store, and everything else that comes with starting a business. 

Related: The 10 Commandments of Franchise Ownership

When negotiating your lease, your The UPS Store franchise consultant can help you with the following:

• Evaluate the length of the lease
• Research comparable prices
• Identify hidden costs
• Ask for beneficial modifications
• Understand your termination clause

5. Secure Financing

When getting into the financing, your options vary with different franchisors. When working with The UPS Store, they provide options through their partner, Guidant Financial. Those options include:

• 401(k) business funding
• Small Business Association (SBA) loans
• Portfolio loans
• Unsecured loans
• Veteran incentive: $10,000 off the franchise fee, 50% off the initial application fee
• Minority incentive: $15,000 off franchise fee

Note that you do not have to work with The UPS Store's financial partner, but they are there to help if you need it.

Related: What is an SBA Loan? Everything You Need to Know

6. Training

One of the most significant benefits of The UPS store franchise opportunities is that you do not have to create your own system of operations for everything. The UPS Store is a well-oiled machine with proven success. As a future store owner, you’ll go through training to prepare you for everything you’ll need to know. 

The UPS Store has a four-step comprehensive training program, which includes:

1. Web-Based Training: 45 modules include 40-45 hours of initial training on store operations and foundational business acumen 
2. In-Store Experience I: In-person five-day training at a local The UPS Store focused on store operations, technical systems, and more lessons in business services
3. University Business Course and Print Services Training: 10-day interactive workshop in San Diego, CA, to learn marketing, operations, sales, financial management, and print services 
4. In-Store Experience II: In-person five-day training at a local The UPS Store focused on reviewing store operations, technical systems, and print services

7. Open Your The UPS Store

After 225 hours of extensive training, you’ll be ready to open your own The UPS Store center. The UPS Store has a dedicated and reliable support system for you, so use your franchisee benefits and lean on them as you continue to learn and grow. 

8. Grow Your Network

The UPS Store prides itself on building community, so it’s worth it to take advantage of the professional opportunities they offer, including:

• Area meetings
• Regional conferences
• National convention

The UPS Store aims to keep its franchisees up-to-date on the hottest industry trends, the most innovative tools, and helpful resources, all while growing relationships within the network.

9. Continuous Management

Even though the most grueling part of the franchise process might be over, the work never ceases. The UPS Store prides itself in supporting its franchise store owners with the following:

• Public relations support
• Advertising and marketing
• Product development

This is the final step of the journey. Now that you know what it looks like take a look below to find answers for some frequently asked questions. 

Related: 7 Things You Need to Know Before Becoming a Franchise Owner

The UPS Store Franchising FAQs

The UPS Store's nine-step process is comprehensive, but that doesn’t mean you won’t have some questions.  

How Does Investing With The UPS Store Compare to Other Brands?

The UPS Store is what’s called a high-end franchise. So how does it compare to other high-end franchises? 

Entrepreneur’s 2023 Franchise 500 Ranking includes UPS at #4:

1. Taco Bell
2. Popeyes Louisiana Kitchen
3. Jersey Mike’s Subs
4. The UPS Store
5. Dunkin’

Are There Any Other Royalty Fees To Know About?

The UPS Store will take 8.5 percent of its franchise owners’ adjusted monthly gross sales. That percentage breaks down to:

• Royalties: 5 percent 
• Advertising fee: 3.5 percent  

Do You Get To Pick Your Location?

One thing you’ll need to be prepared for as a new franchise owner is that the corporation will always have the final say. This goes for The UPS Store locations, as well. The UPS Store allows you to explore the community, location, and site, and provides as much flexibility as possible for your choice. 

They will consider the following:

• Your preferences
• Available markets
• Company’s franchise system 
• Expansion goals
• Business strategy
• Site selection criteria

You will also be able to work with a local The UPS Store representative to find the right fit for your new business. 

Conclusion

The UPS Store is a popular option when it comes to companies to work with. As a prospective franchise owner, The UPS Store advertises safe, structured, and supportive hands when you choose to franchise a store with them. 

Looking for more franchise-related resources? Explore Entrepreneur’s Franchise Center here.