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Aug242021
OWNERSHIP

Four Things You Need to Know Before Owning a The UPS Store Center

Owning a The UPS Store can be a great way to go into business for yourself but not by yourself. When you buy a franchise, you get all the advantages of being your own boss plus the support and experience of a well-established brand. However, not all franchise opportunities are created equally and there are many factors to consider when determining which franchise business is right for you. Although not a replacement for thorough due diligence, here are a few things you need to know about owning a The UPS Store to jump start your research process.

Selecting a Location

When you buy a franchise, one of the first decisions you will need to make is whether to choose a new or existing business. The UPS Store has existing centers for sale across the country with an established customer base. Alternatively, if you prefer to start your own franchise, we have many open markets available for development as well.

While the final decision and responsibility of selecting a franchise site rests with the franchisee, our franchise development team will help find an acceptable location that aligns with your preferences and our overall business strategy. We will work closely with you to evaluate a location in terms of visibility, accessibility, parking availability, foot traffic, competition, and other factors that impact business potential. Once the proposed location has been approved, we will assist with center design and development to ensure it adheres to brand guidelines for design, equipment, and other specifications.

We are committed to helping franchisees develop locations that make a positive impact in the local community, regardless of its size. That’s why we encourage development in rural markets as well as larger metro areas. Although smaller markets may have fewer customers, there are many advantages of building a franchise in a rural market including less competition and more affordable real estate.

Variety of Location Types

Our retail owners all support their local communities by providing a range of shipping, postal, and business services, but all of our stores are not the same. Traditional locations are typically 1,200-1,400 square feet standalone stores located in busy shopping and dining areas in densely populated communities. However, we also offer a variety of non-traditional store options that provide greater flexibility to meet the needs of customers in unique ways.

Our store in store concept allows retail owners to set up a The UPS Store center inside a smaller, existing business such as a pharmacy or hardware store. This store in store model requires 300-550 square feet of dedicated space. It allows business owners to bring in new customers while capitalizing on their existing customer base by expanding the range of services available, making them a convenient, one-stop shop.

In addition to small retail businesses, non-traditional locations can also be established within hotels and convention centers, on college campuses, and military bases. Each are a convenient and valuable resource, bringing vital services to areas that need them most.

Cost and Funding

To help ensure adequate capital to maximize your franchise investment, a potential franchise owner will need at least $75,000 in liquid assets. This can be met through any combination of cash, bonds, stocks, mutual funds, retirement accounts, or other non-borrowed sources. If you don’t meet the financial requirements yourself, a qualified co-applicant can assist.

When you buy a franchise, you’ll also need startup funds to cover the franchise fee and other expenses. Compared to other top-ranked franchise brands, The UPS Store has a very competitive pricing model, making it one of the best values available. Initial startup costs to open a The UPS Store franchise vary based on the size and type of center as well as its location. 

  • Traditional location centers: $247,523 - $474,193
  • Rural location centers: $163,139 - $274,722
  • Store in store non-traditional location centers:  $120,929 - $250,540+

Please refer to our FDD for more detailed information regarding estimated startup costs including any qualifications and limitations that apply.

Initial startup fees cover training, upfront support, and services to help you get your retail center up and running. In addition to these fees, you will also be responsible for franchise royalties and advertising fees throughout the term of the franchise agreement. These cover the cost of ongoing education, consultation, and the research and development of new products and services, as well as enhanced brand awareness initiatives. The UPS Store currently collects 8.5 percent of adjusted gross monthly sales from each retail store owner. Of that, 5 percent goes towards royalties and 3.5 percent is used to support local and national marketing and advertising efforts.

Proper financing is the key to long-term success and profitability. We’ve teamed up with Guidant Financial to offer an array of funding options specifically suited for our business, models, and operating systems. Qualified candidates can choose from a full suite of financing options to find the most optimal opportunity based on your needs and business objectives. We also offer special discounts to Veterans and recently expanded our Diversity Ownership Program to help minorities and LGBTQ+ franchise candidates become business owners.

Comprehensive Training

We’re committed to providing new retail owners the knowledge, tools, and resources needed to be successful.  Our comprehensive four-phase training program covers business fundamentals as well as store operations and technical systems.

  • Phase 1:  Over 45 web-based trainings to build a strong foundation of store operations and business acumen. 
  • Phase 2:  Five-day in-store experience at a The UPS Store Certified Training Center focused on store operations, technical systems, and business acumen.
  • Phase 3:  Ten-day interactive workshop at The UPS Store University at our corporate campus in San Diego covering business acumen like human resources, marketing, operations, sales, and financial management. Intensive hands-on training for the printing services offered at each store is included as well.
  • Phase 4:  Training concludes with a five-day review of store operations, technical systems, and print services at a Certified Training Center.

Upon completion of our training program, you will have the skills and knowledge to confidently open your doors and provide cutting edge business solutions to your local community.

At The UPS Store, we’ve worked diligently for over 40 years to build a reputable and financially viable franchise network and look forward to continued growth. If you’re interested in owning a The UPS Store and joining the world’s largest network of retail shipping, postal, printing, and business service centers, contact our franchise development team or visit our website for more information.