How to Start a UPS Store Franchise in 2022
Here's what you need to know if you're ready to franchise by aligning yourself with a major shipping brand.
The UPS Store Franchise Information
Headquartered in San Diego, The UPS Store (United Parcel Service) brand is a locally owned franchise offering a range of products and services designed specifically to help and support small business owners in the local community. Since beginning their franchising program in 1980, the brand has served the small business community for more than four decades as the world's largest franchise brand of retail shipping, postal, printing, and business service centers. All The UPS Store franchise centers remain locally owned and operated, and continue to offer a variety of shipping, freight, postal, digital online printing, document, and business services, with convenient locations and world-class service.
Here are the primary services provided by franchise owners of The UPS Store:
• Professional Printing Services: The UPS Store locations offer a wide range of small business services, from business cards, letterhead, posters, flyers, to direct mail postcards and more
• Direct Mail Services: When it comes to advertising for small businesses, there's nothing quite as effective as direct mail promotion. The UPS Store helps get the word out with Direct Mail Solution
• Mailbox Services: The UPS Store accepts shipments from any carrier, providing customers with notifications when their mail or packages arrive
• The UPS Store Certified Packing Experts: The UPS Store can pack and ship everything from letters to bread boxes to surfboards
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The brand's executive team provides the leadership and direction for The UPS Store franchising brand. Sarah Casalan Bittle serves as the president, Randy Bennett is the vice president of customer experience, and Steve Chambers is the vice president of retail and business development. Tim Davis retired as President of The UPS Store Inc. in 2021.
The UPS Store ranks No. 2 on the 2022 Franchise 500 list from Entrepreneur Magazine, has been in the top-five since 2017, and has held the No. 1 brand ranking in the postal and business centers category for 32 consecutive years.
How much does a UPS Store franchise cost?
To start a UPS Store franchise of your own, here are the financial requirements and ongoing fees associated with business ownership:
Initial franchise fee: $29,950
Initial investment: $185,000 - $508,000
Cash requirement: $75,000
Veteran incentives: $10,000 off franchise fee, 50% off initial application fee
Royalty fee: 5%
Ad Royalty fee: 2.5%
The UPS Store franchise system size and composition.
The UPS Store comprises 5,000 independently owned locations in the U.S., Puerto Rico, and Canada. Since their franchise opportunity began in 1980, there are now UPS Store centers within 10 miles of 85% of the U.S. population.
The UPS Store has open territories or resale opportunities in almost every state in the lower 48. The brand is also backing a major initiative to recruit franchise owners in rural markets and small towns far off the mainstream path, areas with less competition from other brands like Mail Boxes Etc. This "Main Street" UPS Store franchise model offers franchisees a lower level of investment, with initial costs estimated between $138,433 - $397,514. New unit sales of The UPS Store have risen 5.3% over the past three years.
What makes owning a UPS Store franchise location so appealing?
Interested in opening a The UPS Store location of your own? Franchising your way to business ownership with The UPS Store is appealing because owners can experience freedom and flexibility over supervision and constraint - all at their own pace. After four decades of fine-tuning their franchise systems, The UPS Store brand has become a world-class organization with a top-notch The UPS Store network and has become a household name among top U.S. retailers for small business services. For training, the brand offers new franchisees more than 77 classroom hours of instruction at the UPS Store University, and 92 hours of on-the-job training.
As for specific examples of brand-based support, the franchisor's support team helps owners succeed by helping with site selection, lease negotiations, intranet training with proprietary software systems, security and safety procedures, grand openings, purchasing co-ops, and franchisee assistance in the form of a toll-free call center, online support, and even field operations. And franchisees can feel secure in leaving the marketing and promotions work for Buddy's Home Furnishings, who handle co-op, regional, and national advertising (including ad templates), website development, email marketing, SEO, and even loyalty programs/mobile apps.
The UPS Store offers multiple flexible financing options for new franchisees. The brand's in-house financing covers startup costs, equipment, inventory. And The UPS Store maintains relationships with third-party funding sources, with financing that covers the initial franchise fee, startup costs, equipment, and inventory for The UPS Store franchises.
How much does a UPS Store franchise make?
According to The UPS Store franchise disclosure document (FDD), the average adjusted gross sales for a single unit in 2020 were $607,750 (FDD 2021). For a more detailed look at the financial performance and other disclosures, please refer to Item 19 of the brand's FDD.
What would you do as a franchisee?
As a franchise owner with The UPS Store, your business center will serve the local small business community with a variety of day-to-day services, including shipping, freight, postal, digital online printing, document, and related business services. As a The UPS Store franchise owner, the business model is heavily reliant upon world-class customer service and a hassle-free consumer experience, reflecting the value and convenience synonymous with The UPS Store brand.
Is the UPS Store franchise opportunity for you?
Franchise ownership can be an exciting endeavor. There are several ideal traits and characteristics of associated with a prospective franchisee of The UPS Store. Candidates with superior networking and relationship-building skills, coupled with a customer service-mindset, should have little difficulty in establishing a successful operation. Entrepreneurial-minded community focused leaders are a desirable target market for this popular brand, as well as those who demonstrate an above average dedication level.
The typical The UPS Store franchisee is a proud owner who strives to make a difference in his or her community. And strong leadership skills, flexibility, empathy, and a willingness to collaborate are essential to operating a community focused business.
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