Start a The UPS Store Franchise in 2024

2024 Franchise 500 Rank: #4 Ranked #4 last year

Initial investment: $101K - $496K

Units as of 2024: 5,693 6.2% over 3 years

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.

Stable and innovative business model
Outstanding customer service reputation
Known as a leader in the industry
Established operations system with 40 years of franchising experience
Training and ongoing support
Recognized brand with 5000 franchise locations and counting
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.

Inquiry: Attend a webinar and complete the application
Apply: Initial interview, complete franchise disclosure, background check, submit financials, executive interview
Funding: Letter of intent, initial application fee, approval letter
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.

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.

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:

Web-Based Training: 45 modules include 40-45 hours of initial training on store operations and foundational business acumen
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
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
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.

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:

Taco Bell
Popeyes Louisiana Kitchen
Jersey Mike’s Subs
The UPS Store
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.

Company Overview

About The UPS Store

Industry	Services (Other)
Related Categories	Postal & Business Centers, Miscellaneous Retail Businesses, Shipping Services
Founded	1980
Parent Company	United Parcel Service
Leadership	Sarah Casalan Bittle, President
Corporate Address	6060 Cornerstone Ct. W. San Diego, CA 92121
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, TikTok

Jump to Franchise Overview

Be In Business For Yourself, Not By Yourself

First-hand feedback from our franchise owners throughout the country has revealed that opening a franchise with The UPS Store was one of their most rewarding business decisions. Owning a franchise with an industry leading brand like The UPS Store offers aspiring entrepreneurs the opportunity to chase their dreams of small-business ownership and management with the trusted support of an experienced national brand behind you every step of the way.

Opening a franchise allows you to enjoy the freedom and flexibility of making your own business decisions and being your own boss, while working towards your goals of personal and financial independence and your own pace.

Having helped thousands of first-time business owners just like you during our 40 years of experience in the franchise industry, and with more than 5,200 locations across the U.S., The UPS Store is your trusted source for everything you need to know about owning a franchise. Count on the superior support and training of The UPS Store to get you started towards opening a franchise and channeling your dreams of entrepreneurship like never before! With The UPS Store you’re in business for yourself, not by yourself – and we’re here to help every step of the way.

Franchise Benefits

The UPS Store offers a variety of franchise opportunities. Our franchisees provide essential business products & services and enjoy the backing of award-winning training, and nationwide national support.

The UPS Store franchise benefits include:

Brand Strength – The UPS Store is recognized as a top retail brand by The Business Journals’ American Brand Excellence Awards and has been ranked #1 in the business services industry for over 30 consecutive years by Entrepreneur Magazine’s Franchise 500.
National Advertising and Marketing - Our national advertising campaigns build brand awareness while regional efforts and local store marketing builds excitement in your neighborhood.
World-Class Training – As part of our training program, new franchisees spend a total of ten days at The UPS Store University at our corporate campus in San Diego.
Dedicated Support and Tools – The UPS Store is committed to providing you with the tools and support to operate and grow your business.
Corporate Retail Solutions – Program designed to foster long-term relationships between The UPS Store franchised locations in the U.S., corporate and other clients by offering viable business solutions to help improve a client’s operations and enhance the customer service experience.
Multi-Unit Opportunities - Approximately 52% of our franchisee network owns more than one center. For qualified franchisees, we may offer reduced franchise fees and specialized training to help you expand.

Franchisee Support

As an aspiring entrepreneur, choosing the franchise that fits your unique personality and professional goals is a tough task. Afterwards, choosing the right location for your franchise can be equally challenging. With The UPS Store, you're confidently backed by a dedicated support staff that works to identify the best franchise opportunities at the desired location for you.

How it Works

Own a The UPS Store® Center

Whether you're a seasoned entrepreneur or just exploring a new path to financial growth, you'll find unmatched franchise opportunities when you purchase a The UPS Store® franchise.

Packaged for Growth

When you purchase a The UPS Store® franchise, you’re purchasing a lot more than a brick-and-mortar location. You also get the support, name recognition and reputation of The UPS Store® brand.

Ongoing Support:

We provide support from day one that continues throughout the franchise term. This includes a comprehensive training program, advertising and marketing campaigns and a network of knowledgeable and dedicated franchisees.

Name Recognition:

The UPS Store, Inc. has been franchising for over four decades now and has a substantial footprint of over 5,200 franchise locations.

Reputation:

The UPS Store® franchise is in the top five for best franchise system in the country, according to Entrepreneur Magazine’s 2024 Franchise 500® list; and we’re ranked #1 brand in their Postal & Business Centers category for the 34th consecutive year.

Purchase Options

Traditional: Non-Rural Locations

A standalone center located in retail shopping locations with high visibility

Traditional: Rural Locations

A standalone center located in areas of less population density within tight knit communities

Non-Traditional

A center located inside a retail business, hotel, convention center, college campus or military base.

Business Overview

Franchising Since	1980 (44 years)
# of employees at HQ	452
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Canada
# of Units	5,693 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a The UPS Store franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$9,950 - $29,950
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$100,890 - $495,945
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$75,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	$15,000 off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	3.5%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	The UPS Store offers in-house financing to cover the following: startup costs, equipment, inventory
Third Party Financing	The UPS Store has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	105.5 hours
Classroom Training	53.5 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	3-5
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No

Franchise 500 Ranking History

Compare where The UPS Store landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where The UPS Store ranked on other franchise lists? Find out below.

Ranked #1 in Postal & Business Centers in 2024

Best of the Best

Ranked #4 in 2024

Franchise 500

Ranked #23 in 2024

Fastest-Growing Franchises

Ranked #13 in 2024

Top Global Franchises

Ranked #91 in 2024

Top Franchises for Diversity, Equity, & Inclusion

Ranked #1 in 2024

Top Franchises for Less Than $150,000

Ranked #9 in 2024

Top Brands for Multi-Unit Owners

Ranked #2 in 2024

Top Franchises For Veterans

Stay up to date on the latest news and trends affecting the franchise industry.

The UPS Store