The UPS Store Franchise FDD, Profits, Costs & Fees (2024)
The UPS Store franchise began in 1980 as Mail Boxes Etc., with a mission to serve small businesses and individuals with shipping and business services. Rebranded as The UPS Store in 2003, it quickly became a leading franchise in North America. Headquartered in San Diego, California, it provides services like shipping, printing, mailboxes, notary, and more.
Currently, there are over 5,100 locations across the U.S., making it the largest franchise in its category. Franchisees benefit from the strong UPS brand recognition and diverse service offerings, supporting entrepreneurs and businesses nationwide.
The UPS Store network remains actively franchising in the U.S., targeting entrepreneurs interested in offering essential business and shipping services. The franchise’s strong market presence, coupled with comprehensive training and support, makes it an appealing opportunity for potential franchise owners.
With independently owned and operated locations, The UPS Store emphasizes providing tailored solutions for local community needs while maintaining high standards for service and quality. The franchise’s goal is to help businesses grow by providing essential tools and services to thrive in today’s competitive market.
Initial Investment
How much does it cost to start a UPS Store franchise? It costs on average between $209,000 – $496,000 to start a UPS Store franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of store you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $29,950 |
| Initial Marketing Plan Fee | $7,500 |
| Design Fee | $3,000 |
| Site Survey | $1,700 |
| Center Development Fee | $7,000 |
| Initial Training Fees | $7,000 to $8,500 |
| Travel and Living Expenses While Training | $3,000 to $4,000 per person |
| Site Rent and Security Deposit | $4,500 to $18,000 |
| Leasehold Improvements; Construction Costs; Signage; Furniture and Décor Items | $64,480 to $249,283 |
| Computer Hardware/Installation/Freight | $11,385 to $15,475 |
| Digital Media | $4,081 |
| Optional Keyless Entry | $0 to $944 |
| Annual Technology Development and Support Fee | $2,304 |
| Software | $3,489 to $5,489 |
| Printer Lease | $544 to $1,749 |
| Time-Saving Kiosk | $1,760 to $1,784 |
| Other Equipment | $9,422 to $38,031 |
| Start-Up Supplies | $6,180 to $9,155 |
| Utility Deposits | $900 to $3,000 |
| Insurance | $1,000 to $15,000 |
| Additional Funds – 3 months | $40,000 to $70,000 |
| Total | $209,195 to $495,945 |
Average Revenue (AUV)
How much revenue can you make with a The UPS Store franchise? A The UPS Store franchised center makes on average $692,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $689,000 yearly revenue for similar shipping franchises. Below are 10 The UPS Store competitors as a comparison:
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The UPS Store Franchise Disclosure Document
Frequently Asked Questions
How many The UPS Store locations are there?
As of the latest data, The UPS Store has a total of 5,234 locations, with 5,232 of these being franchise-owned and only 2 company-owned. This demonstrates the predominance of franchise ownership within the network of The UPS Store locations.
What is the total investment required to open a The UPS Store franchise?
The total investment required to open a The UPS Store franchise ranges from $209,000 to $496,000.
What are the ongoing fees for a The UPS Store franchise?
The UPS Store franchise requires ongoing fees that include a royalty fee of 5% of gross sales. Additionally, there are marketing fees, which consist of a 1% fee for local advertising and a 2.5% fee for national advertising efforts.
What are the financial requirements to become a The UPS Store franchisee?
To become a The UPS Store franchisee, you need a minimum net worth of $150,000 and at least $75,000 in liquid capital. These financial requirements are necessary to support the initial investment and operations of the franchise.
How much can a The UPS Store franchise owner expect to earn?
The average gross sales for a The UPS Store franchise are approximately $0.69 million per location. Assuming a 15% operating profit margin, $0.69 million yearly revenue can result in $103,500 operating profit annually.
Who owns The UPS Store?
The UPS Store is owned by United Parcel Service (UPS), which acquired Mail Boxes Etc. in 2001. Following the acquisition, the brand was rebranded as The UPS Store in 2003, operating as a subsidiary of UPS.
Disclaimer
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