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How to Evaluate a Franchise Opportunity

How to Evaluate a Franchise Opportunity

Once you’ve decided to become an entrepreneur, there are numerous considerations before you open your business. Learn about how to evaluate a franchise opportunity.

Opening a small business comes with certain risks, whether you choose to start from scratch with your own business concept or become part of an established franchise system with a strong brand name and reliable corporate support. Taking the first step toward becoming an entrepreneur is making the informed decision to pursue becoming your own boss, which brings with it many benefits and advantages.

There are many reasons why a person chooses to pursue entrepreneurship: the freedom it allows in your schedule and in making business decisions, the better work/life balance it affords and the potential financial advantages it may bring. Some individuals simply want to create something for themselves and not be employed by anyone else. Whatever the reason for becoming an entrepreneur, the risks and benefits must be considered thoroughly before making such a potentially life-changing business decision.

Entrepreneurs typically share common traits—they’re motivated, innovative, diligent, dedicated, ambitious and independent, but simply having these traits are not enough. Finding the right business opportunity that suits your interests and lifestyle are also important. If you’re determined to start something for yourself and are beginning to consider your options, opening a franchise should be at the top of your list.

Evaluating a Franchise Opportunity

When you’ve decided to embrace your entrepreneurial spirit and pursue franchise ownership, there are several considerations that should be taken into account. Factors like brand reputation, financial performance, franchise cost, corporate support, franchise community and how well the opportunity fits into your own life and values should all be weighed, among many other factors.

Brand Reputation

One of the major advantages of franchising is investing in an already-established, strong brand name. Everything from a consumer’s perception of the brand to their experiences in a physical location and beyond all factor into a brand’s reputation. When you’re evaluating a franchise opportunity, look at how the brand ranks overall, how the franchise opportunity stacks up compared to others and how it ranks within its own industry or area of expertise.

The UPS Store has consistently ranked among the very best in Entrepreneur Magazine’s Franchise 500 list, leading the business services category in 2021 and ranking as the No. 3 brand overall.

Due Diligence

Due diligence is a broad term that means researching the risks and potential advantages of a particular business opportunity to help ensure you’re making a sound investment and ease any doubts you may have in pursuing it further. Carefully review finances, legal documents, and operational specifics that could help uncover any deal-breakers that may not be initially evident.

Franchise Agreement

While you’re evaluating franchise opportunities, it’s also important to review the franchise agreement, which includes conditions related to franchise ownership like the grant of franchise and term length, franchise cost including initial and ongoing fees and operation requirements such as territory specifics, training and operations requirements.

Corporate Support

Evaluating a franchise opportunity should also include learning what type of support is available to franchisees. Does the brand provide hands-on training and other resources to help retail owners get started? Is there financial support available? What type of advertising and marketing support is provided with franchise ownership? Are there additional services or discounts available to potential owners?

The UPS Store is proud to offer corporate support to its franchise system from day one, which continues throughout your journey as a The UPS Store owner. Programs focused on veteran ownership and diverse retail ownership are also available.

Franchise Owner Network

After you’ve reviewed the franchise opportunity on paper, it’s a great idea to speak to other franchise owners within the brand network. Ask them questions like why they enjoy franchising with that particular brand, how their experience has materialized versus what they initially expected, what challenges they have encountered and what kind of flexibility is involved in owning a franchise. Those questions and conversations will help any prospective owner get a feel for the aspects of running the franchise business that may not otherwise be apparent.

For many retail owners with The UPS Store, the ability to make a difference in the community is one of the major advantages of franchising. Not only do owners hire locally and develop talent from within their store locations, but they also help other small business owners with services like professional printing, shipping, direct mail services, mailbox services and expert packing. 

Retail owners are also heavily involved in giving back through charitable efforts. Retail owner Ted Phillips is very active within his local community and with local charities, teaming up with an AHL team to auction off hockey sticks to benefit a children’s organization, as well as advocating for childhood literacy and sponsoring a scholarship program for a local high school. 

The vast network of current The UPS Store retail owners can also serve as inspiration to an aspiring retail owner. Maya Warrier owns a retail store while also working part-time as a lawyer, real estate investor and a mom to four children. Leanne Dobard Alvarez lends her support and leadership to several organizations and charities in her community and believes in the value of a positive, can-do attitude.

Speaking with some of the other franchise owners within a network can have valuable results, which certainly factor into a decision to pursue a franchise opportunity. You may also want to get a feel for their level of personal fulfillment, their typical schedule and other areas such as mentorship opportunities and team development.

Personal Fit

When evaluating the advantages and potential disadvantages of a franchise opportunity, you’ll also want to determine if it’s a fit for your own personal values and lifestyle. Can you see yourself as part of the franchise system? Are you aligned with the mission and values of the brand? Do you want to make a difference in the lives of your team and in your community? What are your goals for work/life balance? 

Retail owners at The UPS Store come from all walks of life with varied backgrounds, careers and lifestyles. There is no “typical owner” per se, but all share the same determination and passion for entrepreneurship that contributes to their franchise experience. Their drive and desire to serve continue to make a difference to their families and their communities.


Learn more about opportunities with The UPS Store and contact our franchise development team to discuss the possibility of owning your own franchise location.

2023 Entrepreneur's Franchise 500 Top Rated for Veterans badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $15,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #4 in 2023 badge

Ranked for over 30 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for over 30 years and remains in the top 5 overall for the seventh consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

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Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

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Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.