- 2023 Franchise 500 Rank
#4 Ranked #2 last year
- Initial investment
$122K - $508K
- Units as of 2023
5,572 5.8% over 3 years
Start a UPS Store Franchise | Costs and Requirements
Ready to jump into the franchising business? Franchise opportunities are growing year after year.
In fact, the “Franchise Market” Insights 2023 projects a CAGR increase of 9.73% in the franchise market, with an estimated increase from 100,797.4 million in 2021 to 175,955 million by 2027.
Want to add to that growth? If you’re considering a UPS Store franchise, keep reading to discover the most critical information you should know before you begin your journey.
Reasons To Franchise with UPS
As an established business, becoming a franchise owner of a UPS Store has many potential benefits.
- Stable and innovative business model
- Outstanding customer service reputation
- Known as a leader in the industry
- Established operations system with 40 years of franchising experience
- Training and ongoing support
- Recognized brand with 5000 franchise locations and counting
- Ranked on Entrepreneur’s Franchise 500 list for 30 consecutive years
The History of UPS
When researching a franchise business, knowing it’s historyis always good.
In a classic from-the-ground-up story, UPS began in 1907 in a basement with two teenagers, $100, and a dream.
Claude Ryan and Jim Casey founded what was then called the American Messenger Company. 12 years later, after they decided to expand shipping services outside of Seattle and into California, they changed the name to United Parcel Service.
During this rebrand, they also chose their modern iconic brown palette.
Over the next several decades, UPS expanded across the country, moved its headquarters to New York City, and began serving commercial and residential shippers. By 1953, UPS could offer air service and two-day delivery to major cities on the east and west coasts.
By 1975, UPS was the first package delivery service to serve every address in the continental United States. Within the next decade, it expanded its service and introduced Next Day Air to Canada, Hawaii, Puerto Rico, and Europe.
Today, UPS is a public company, it owns its own fleet of airplanes, continues to acquire new businesses under its name, focuses on greener energy options, and boasts the first female CEO in company history.
Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.
How To Open a UPS Franchise
If you’re interested in becoming a part of the history of UPS, then opening a franchise storefront could be the right move for you. Take a look below at the step-by-step process.
1. Financial Research
This should always be your first step, no matter what business you’re looking into in the franchise industry. A financial deep-dive is one of the most significant pieces of research you’ll need to complete.
Cost of opening a UPS Store franchise based on Franchise Disclosure Document (FDD):
- Traditional Locations: $240,959 - $508,472
- Rural Locations: $206,423 - $459,136
- Store-in-Store Locations: $80,357 - $216,148+
Financial requirements of the franchisee:
- Liquid capital: $75,000-$125,000
- Initial franchise fee: $29,950
- Initial investment: $185,000 - $508,000
- Royalty fee: 5%
- Ad Royalty fee: 2.5%
Curious about financing assistance? Keep reading — this article will get into that a little later.
2. Find Your Market
UPS has stores and business service centers all over the country. Its store locator makes finding a business opportunity and location easy.
UPS is a household name, but you’ll still need to research the brand and your market to see if it fits your community. Does it have the necessary zoning? Is there real estate inventory to make it possible? Is the location easily accessible to customers? Consider the needs of your area.
Another aspect you’ll need to consider is the competition in the area. There’s generally no need to shy away from a little friendly competition, but you do need to make sure there is room for the growth of your UPS Store.
3. Application Process
UPS has a four-stage application process to vet its prospective franchisees.
- Inquiry: Attend a webinar and complete the application
- Apply: Initial interview, complete franchise disclosure, background check, submit financials, executive interview
- Funding: Letter of intent, initial application fee, approval letter
- Booking: Secure financing, approve site and sign lease, 5-week training, sign franchise agreement
4. Select a Site and Lock Down the Lease
UPS has a Franchise Development team to guide small business owners through this process, including helping with negotiations, designing the store, and everything else that comes with starting a business.
When negotiating your lease, your UPS franchise consultant can help you with the following:
- Evaluate the length of the lease
- Research comparable prices
- Identify hidden costs
- Ask for beneficial modifications
- Understand your termination clause
5. Secure Financing
When getting into the financing, your options vary with different franchisors. When working with UPS, they provide options through their partner, Guidant Financial. Those options include:
- 401(k) business funding
- Small Business Association (SBA) loans
- Portfolio loans
- Unsecured loans
- Veteran incentive: $10,000 off the franchise fee, 50% off the initial application fee
- Minority incentive: $15,000 off franchise fee
Note that you do not have to work with UPS’ financial partner, but they are there to help if you need it.
One of the most significant benefits of UPS store franchise opportunities is that you do not have to create your own system of operations for everything. UPS is a well-oiled machine with proven success. As a future store owner, you’ll go through training to prepare you for everything you’ll need to know.
UPS has a four-step comprehensive training program, which includes:
- Web-Based Training: 45 modules include 40-45 hours of initial training on store operations and foundational business acumen
- In-Store Experience I: In-person five-day training at a local UPS store focused on store operations, technical systems, and more lessons in business services
- University Business Course and Print Services Training: 10-day interactive workshop in San Diego, CA, to learn marketing, operations, sales, financial management, and print services
- In-Store Experience II: In-person five-day training at a local UPS store focused on reviewing store operations, technical systems, and print services
7. Open Your UPS Store
After 225 hours of extensive training, you’ll be ready to open your own UPS store center. UPS has a dedicated and reliable support system for you, so use your franchisee benefits and lean on them as you continue to learn and grow.
8. Grow Your Network
UPS prides itself on building community, so it’s worth it to take advantage of the professional opportunities they offer, including:
- Area meetings
- Regional conferences
- National convention
UPS aims to keep its franchisees up-to-date on the hottest industry trends, the most innovative tools, and helpful resources, all while growing relationships within the network.
9. Continuous Management
Even though the most grueling part of the franchise process might be over, the work never ceases. UPS prides itself in supporting its franchise store owners with the following:
- Public relations support
- Advertising and marketing
- Product development
This is the final step of the journey. Now that you know what it looks like take a look below to find answers for some frequently asked questions.
UPS Franchising FAQs
UPS’s nine-step process is comprehensive, but that doesn’t mean you won’t have some questions.
How Does Investing With The UPS Store, Inc. Compare to Other Brands?
UPS is what’s called a high-end franchise. So how does it compare to other high-end franchises?
Entrepreneur’s 2023 Franchise 500 Ranking includes UPS at #4:
- Taco Bell
- Popeyes Louisiana Kitchen
- Jersey Mike’s Subs
- The UPS Store
Are There Any Other Royalty Fees To Know About?
UPS will take 8.5 percent of its franchise owners’ adjusted monthly gross sales. That percentage breaks down to:
- Royalties: 5 percent
- Advertising fee: 3.5 percent
Do You Get To Pick Your Location?
One thing you’ll need to be prepared for as a new franchise owner is that the corporation will always have the final say. This goes for UPS Store locations, as well. The UPS Store, Inc. allows you to explore the community, location, and site and provides as much flexibility as possible for your choice.
They will consider the following:
- Your preferences
- Available markets
- Company’s franchise system
- Expansion goals
- Business strategy
- Site selection criteria
You will also be able to work with a local UPS representative to find the right fit for your new business.
UPS is a popular option when it comes to companies to work with. As a prospective franchise owner, UPS advertises safe, structured, and supportive hands when you choose to franchise a store with them.
Looking for more franchise-related resources? Explore Entrepreneur’s Franchise Center here.
About The UPS Store
|Related Categories||Postal & Business Centers, Miscellaneous Retail Businesses, Shipping Services|
|Parent Company||United Parcel Service|
|Leadership||Sarah Casalan Bittle, President|
6060 Cornerstone Ct. W.
San Diego, CA 92121
|Social||Facebook, Twitter, LinkedIn, Instagram, YouTube|
More from The UPS Store
Be In Business For Yourself, Not By Yourself
First-hand feedback from our franchise owners throughout the country has revealed that opening a franchise with The UPS Store was one of their most rewarding business decisions. Owning a franchise with an industry leading brand like The UPS Store offers aspiring entrepreneurs the opportunity to chase their dreams of small-business ownership and management with the trusted support of an experienced national brand behind you every step of the way.
Opening a franchise allows you to enjoy the freedom and flexibility of making your own business decisions and being your own boss, while working towards your goals of personal and financial independence and your own pace.
Having helped thousands of first-time business owners just like you during our 40 years of experience in the franchise industry, and with more than 5,000 locations across the U.S., The UPS Store is your trusted source for everything you need to know about owning a franchise. Count on the superior support and training of The UPS Store to get you started towards opening a franchise and channeling your dreams of entrepreneurship like never before! With The UPS Store you’re in business for yourself, not by yourself – and we’re here to help every step of the way.
Take advantage of our exciting franchise opportunities by learning more about owning a franchise with The UPS Store, today!
The UPS Store ofers a variety of franchise opportunities. Our franchisees provides essential business products & services and enjoy the backing of award-winning traning, nationwide national support, and the respect that comes with a world class brand.
The UPS Store franchise benefits include:
- Brand Strength – 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 over 30 consecutive years by Entrepreneur Magazine’s Franchise 500.
- National Advertising and Marketing - Our national advertising campaigns build brand awareness while regional efforts and local store marketing build excitement in your neighborhood.
- World-Class Training – As part of our training program, new franchisees spend a total of ten days at The UPS Store University at our corporate campus in San Diego.
- Dedicated Support and Tools – The UPS Store is committed to providing you the tools and support to operate and grow your business.
- Corporate Retail Solutions – We work with major UPS customers and other national brands to bring shipping and printing business to our franchise locations.
- Multi-Unit Opportunities - Approximately 52% of our franchisee network owns more than one center. For qualified franchisees, we may offer reduced franchise fees and specialized training to help you expand.
As an aspiring entrepreneur, choosing the franchise that fits your unique personality and professional goals are a tough task. Afterwards, choosing the right location for your franchise can be equally challenging. With The UPS Store, you're confidently backed by a dedicated support staff that works to identify the best franchise opportunities at the desired location for you.
|Franchising Since||1980 (43 years)|
|# of employees at HQ||395|
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Canada
|# of Units||5,572 (as of 2023)|
Information for Franchisees
Here's what you need to know if you're interested in opening a The UPS Store franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
|$9,500 - $29,950|
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$122,227 - $508,472|
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
|$75,000 - $150,000|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|$10,000 off franchise fee, including 50% off initial application fee|
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|In-House Financing||The UPS Store offers in-house financing to cover the following: startup costs, equipment, inventory|
|Third Party Financing||The UPS Store has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||92 hours|
|Classroom Training||77.5 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||Yes|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||3-5|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where The UPS Store landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where The UPS Store ranked on other franchise lists? Find out below.
Ranked #1 in Postal & Business Centers in 2023
Best of the Best
Ranked #4 in 2023
Ranked #20 in 2023
Ranked #13 in 2023
Top Global Franchises
Ranked #1 in 2023
Top Franchises for Less Than $150,000
Ranked #7 in 2023
Top Brands for Multi-Unit Owners
Ranked #7 in 2022
Top Franchises For Veterans
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