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Franchise Financing Options

Franchise Financing Options

When you decide to go into business for yourself and become your own boss, embracing your entrepreneurial spirit and the prospect of securing your future, there are a lot of decisions that come along with it. What type of business to open, how thoroughly to review and analyze the opportunity and how you’ll finance the business are just some of the questions to answer before making an investment.

Continue reading to learn more about buying a franchise, key considerations in making a franchise investment and franchise financing options that may be available to help you along the path to owning a business.

What Happens When I Buy a Franchise?

When you buy a franchise, you’re investing in a brand and business model that’s already been established. A lot of the guesswork and trial and error that you’d have in building a brand from scratch are eliminated, allowing you to focus more on operations, serving the community and building up a loyal customer base.

Before investing in a franchise, you’ll need to conduct thorough research of the opportunity, including a detailed review of the financial and legal landscape and terms of commitment, with which an accountant and/or attorney can help. You’ll also need to review the Franchise Disclosure Document (FDD) which provides a vast amount of information to help you, as a prospective franchisee, make an informed decision about the franchise opportunity. While the FDD can vary among franchisors, there are 23 required sections or “items” ranging from business experience, litigation and bankruptcy, fees, product sourcing, financing and much more.

It’s also important to have an idea of what the first year in business will look like, to help set your expectations, prepare you to open and to continue growing within the community.

What Costs are Involved in Buying a Franchise?

Understanding the initial costs and any ongoing fees like rent, mortgage, equipment and royalties involved in buying a franchise is a crucial step in the path to becoming a business owner. Franchise costs are likely one of the first considerations when looking at viable franchise opportunities.

The UPS Store offers a variety of location types to fit the needs of potential retail owners, such as traditional locations, rural locations and store-in-store concepts. Startup costs vary based on the type of center, the size of the location and where the store is located, but below is the average range for the three types of The UPS Store locations.

  • Traditional Locations: $240,959 - $508,472*
  • Rural Locations: $206,423 - $459,136*
  • Store-in-Store Locations: $80,357 - $216,148*+

*Subject to change. See Franchise Disclosure Document for current amounts.
+Based on the Store-in-Store without an exterior entrance model.


Franchise Financing Options

Choosing the best franchise financing option is a key component of long-term profitability. As a business owner, you want to be able to achieve a better work-life balance and build a better financial future for yourself and your family, so make sure to research lending options carefully. Some lenders specialize in franchise financing, whereas others may have more generalized lending programs. Either way, you want to ensure you’re choosing the best financing option to suit your individual needs when opening a franchise.

To support potential retail owners, The UPS Store has teamed up with leading financial institution Guidant Financial to provide several financing options. Guidant Financial knows The UPS Store franchise business model and its operating systems and can help prospective franchisees determine the best franchise financing options for each of their unique situations.

The types of financing options available from Guidant Financial include 401(k) business funding, SBA loans, portfolio loans and unsecured loans. Below is a brief explanation of each.

401(k) Business Funding

If you have a 401(k) plan from a previous or existing employer, you may be able to buy a franchise with this money without having to pay tax penalties. The Employee Retirement Income Security Act (ERISA) protects the money from additional taxes when it’s used to start a business, which makes this financing option popular with franchises.

SBA Loan

Partially guaranteed by the government through the Small Business Administration (SBA), SBA loans are issued through a network of financial institutions that frequently work with small businesses. Since they are partially secured, they have less risk and better terms for small business owners.

Portfolio Loan

A portfolio loan is one that is retained by a lender as part of their investment portfolio as opposed to being sold off to another institution. Portfolio loans are advantageous to small business owners because they’re serviced directly by the lender, and often have more flexible terms.

Unsecured Loan

An unsecured loan is approved based on the creditworthiness of the borrower as opposed to being secured by collateral such as a piece of property. Terms of the loan are usually determined by the potential franchisee’s credit score.

Ways in Which The UPS Store Supports Financing

In addition to working with potential franchise owners to provide partner financing options, The UPS Store also has special discounts for veterans and minorities.


Close to 90 percent of veterans expect to start a second career after leaving the military. To honor and support veterans as they pursue business ownership, The UPS Store is waiving the $29,950 franchise fee for the first 10 eligible veterans to qualify between April 29, 2022 and November 11, 2022. Veterans and active service members have helped keep the American dream alive, and this financing support is designed to serve veterans in return, help achieve their dreams of business ownership.


In 2018, 31 percent of franchised businesses were minority owned, a 10 percent increase from the previous research from five years prior. The UPS Store supports and actively contributes to this growth in minority business ownership by offering first time buyers who are minorities a $15,000 discount off the franchise fee. The UPS Store strives to ensure that all groups, especially those who have been historically underrepresented, can pursue the dream of entrepreneurship.


Learn more about franchising with The UPS Store by contacting our franchise development team to discuss the possibility of owning your own retail 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.