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What Happens When You Buy a Franchise?

Before Buying a Franchise

Before you buy a franchise, a multitude of considerations must be weighed. You want to ensure you’re making the right decision for your business and personal goals, that the franchise brand is strong and that you’ve thoroughly researched all the factors that would and could possibly affect your potential for growth in the future.

The first step in becoming a franchise owner is deciding to embrace your entrepreneurial spirit. Becoming a business owner has significant benefits and advantages, but it’s not without challenges. While it may seem like a dream to become your own boss, have a flexible schedule and manage a team of employees, owning a business can also have potential risks that should also be considered before ultimately making a decision to buy a franchise.

When you buy a franchise, you’re entering into a legal contract to conduct business under a brand name and operate as an extension of the brand. One of the many benefits of owning a franchise is brand awareness, which you’re buying into and benefiting from as a franchise owner. Brand awareness is vital for entrepreneurs as it attracts customers and franchisees alike, it’s a differentiator in the competitive marketplace and it increases the value of the franchise through loyalty and demand.

Evaluating a franchise opportunity can be challenging, but it’s helpful to have resources available to aid potential franchisees throughout the process, such as educational events and webinars. When you’re beginning your journey to becoming a business owner, you first want to start with a thorough research process, known as due diligence, to fully understand the risks and potential advantages of a particular business opportunity. Enlisting the help of an accountant to review financial records, as well as an attorney for legal matters, will help you analyze the franchise opportunity and determine if it’s a sound investment.

A major consideration before buying a franchise is the investment cost. There typically is an initial franchise investment fee plus additional fixed and variable costs associated with starting the business and keeping it operational. All the costs including the franchise fee, equipment, lease costs, training, advertising, inventory, royalties, working capital and potentially several more costs should all be outlined in the Franchise Disclosure Document (FDD).

Potential franchisees also need to consider how they will fund the investment. Whether it’s through a bank loan secured by collateral, partially funded through leasing certain equipment or financed through preferred partners of the brand, it’s part of the franchising process.

Before buying a franchise, these are simply a few of the considerations to factor into your decision. Familiarize yourself with the process, what’s required on both sides of the franchise agreement and do more research on questions to ask when buying a franchise business.

After Buying a Franchise

When you’ve finalized the franchise agreement and are officially a franchise owner, there’s still a lot of work to do before opening your business. New franchisees with The UPS Store complete a comprehensive four-phase training program which includes 40+ hours of web-based training, 45 hours of in-store training focused on operations, technical systems and business acumen, 90 hours in a university business course and print services training, followed by 40+ more hours of in-store training to ensure retail owners are prepared when they open their doors.

Wondering what to expect in your first year owning a franchise? Prepare for long hours as you find your groove and adjust to the responsibility of being your own boss and know that building a local customer base takes time. Being associated with a strong brand name like The UPS Store certainly helps as it gives consumers an idea of what to expect when they do business with you.

When you become part of The UPS Store, you receive support and guidance every step of the way. When you have a question, need troubleshooting help or want expert advice, a support team is available to help. You also have access to call upon a vast network of other franchisees with similar experiences. The chances are likely that another retail owner has gone through a similar challenge or situation and would be glad to share their advice with a fellow owner.

Opening a business also allows entrepreneurs to connect with their local communities. In addition to building up a loyal customer base through offering products and services to the community, being a business owner also affords the opportunity to give back to those in need through philanthropy, fundraisers and supporting other local small business owners.

The opportunity to build your own team within your operation is another advantage of owning a franchise business. By hiring and developing talent within their teams, franchise owners can maximize productivity and employee retention. Those with a focus on mentoring have found that it has a significant impact on their business as it dramatically increases employee satisfaction and helps retain talented, valued employees.

Franchising with The UPS Store

When you choose a franchise opportunity with The UPS Store, you’re backed by a nationally renowned brand name that’s widely recognized and has over 40 years of franchise experience to build upon. Having won many industry awards and having been recognized as a leader in the postal and business services category for over 30 years, The UPS Store continues to evolve and innovate, offering potential owners one of the best investment choices available.

The UPS Store proudly supports veterans, minorities and women owners through special programs and incentives, which is among the many reasons why retail owners continue to grow with additional locations to better serve other small business owners and their communities.


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