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Apr
9
2014
INDUSTRY NEWS

What You Need to Know About Franchise Costs

What You Need to Know About Franchise Costs

While cost is a key factor when choosing a franchise, it's not the only one. Consider these points.

Nothing is free. We wish it were true, but we know it’s not. And you know if you want to start a business and make money, you have to spend money first. Determining how much a franchise costs and how much you willing to invest are the real questions you should ask.

In franchising, your investment choices can vary greatly, anywhere from a low-cost franchise for less than $10,000 to concepts that are $5 million or more. The amount of money you have available to invest towards the franchise costs will help you determine what industry is the right fit for you.

When looking at franchise fees, it’s important to look deeper than just the cost. Consider the industry and the potential within that industry. How strong is the brand among its competitors? And how much support is “built in” to the low franchise costs? Some franchisors simply charge for brand equity and do little to support a franchisee. That’s a hidden factor that can become a real problem down the line, which is why it’s critical to carefully weigh the pros and cons of each opportunity when making a decision.

Consider this about The UPS Store:

Small Businesses Count on Us—There are 23 million small businesses in America, an increase of 49% since 1982, according to the U.S. Small Business Administration. Small businesses are what we serve and that’s why both the high and the low-cost franchise models have been so lucrative for four decades. In 2012, the adjusted gross sales of our top 20 percent performing centers was $642,842, an 11% increase from 2010.1

#1 in the Market

The UPS Store is recognized as a top retail brand by The Business Journals’ American Brand Excellence Awards and has been ranked #1 in the business services industry for 31 consecutive years by Entrepreneur Magazine’s Franchise 500.

Ongoing Franchise Support

The UPS Store provides its franchisees with ongoing national advertising campaigns to help build brand awareness for their stores, world-class training and operational support and tools to help sustain a healthy bottom line.

Modest Investment Gets You Maximum Return

The start-up costs, including the franchise fee, for a The UPS Store franchise are approximately $150,000 (less for veterans). Our franchisees have a successful track record that has prompted more than one-third of our franchisees to open multiple locations.1

Whether you are looking at low-cost franchises or have your eyes on a franchise sporting a higher price tag, it’s important to look beyond the franchise cost to really see what you are getting for your hard-earned dollar.

This is not an offer to sell a franchise. The average adjusted gross sales for each center and of the top 20 centers are published in Item 19 of The UPS Store 2013 Franchise Disclosure Document.

Entrepreneur's Franchise Top Rated for Veterans in 2020 badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $10,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #3 in 2021 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 fifth 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.

See the Full Testimonial

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.

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.