How much are franchise royalties with The UPS Store?
As indicated in our current Franchise Disclosure Document, The UPS Store, Inc. collects 8.5 percent of franchise owners’ adjusted gross monthly sales, five percent of which covers royalties and 3.5 percent of which goes to local and national marketing efforts.
In franchising, the initial franchise fee covers the franchisor’s upfront support, training and related services designed to help ensure that the franchisee gets off to a successful start. The franchise royalty fees and marketing/advertising fees are payments for the ongoing support and availability of guidance and other franchise system benefits designed to make sure that opportunities for success continue. Essentially, franchise royalty and marketing/advertising fees are ongoing fees that are paid by a franchisee during the term of the franchise agreement.
Franchise royalties and marketing/advertising fees help franchise brands like The UPS Store, Inc. provide valuable ongoing support and related services to their franchisees as well as other benefits of being part of the franchise system, such as:
- Expanding the network and brand recognition
- Researching, developing and testing new products and services to be offered by franchised businesses
- Developing and executing marketing and advertising programs and campaigns designed to enhance brand recognition and reputation
- Providing extensive ongoing training, consultation and education to franchisees
For The UPS Store franchise owners, royalty and marketing/advertising fees are usually calculated as a percentage of gross sales. Here’s how the math works with The UPS Store® franchise opportunity, as set forth in our current Franchise Disclosure Document:
- The UPS Store, Inc. collects a total of 8.5 percent of franchise owners’ adjusted gross monthly sales, which is applied as follows:
- 5 percent of that fee covers royalties; and
- 3.5 percent of that fee goes to local and national marketing and advertising efforts.
Request more information about franchise royalties
Please complete the Information Request form above, and one of our business development managers will reach out to schedule a time to speak with you about franchise royalty fees after you receive our current Franchise Disclosure Document.
Want to learn more?
Find out more about franchising with The UPS Store, Inc. by checking out our available franchise locations; or by learning more about the different types of franchise opportunities and programs we have available.
