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The UPS Store
The UPS Store is the world's largest package, shipping, printing, and business services franchise. Franchisees own 100 percent of the company’s locations across the United States, Puerto Rico, and Canada. Franchisees of The UPS Store primarily serve small businesses and corporate "road warriors" traveling away from their home office. More about the cost of owning a UPS Store franchise is below.
Facts & figures
The UPS Store Franchise Location Formats Offered
The UPS Store offers three location formats:
- Traditional Locations: a standard, standalone print, packaging, and business services store.
- Rural Locations: Allows for the development and operation of The UPS Store in smaller communities that may not otherwise have access to such services. This format is particularly advantageous for those with strong local ties.
- Store-in-Store Locations: a UPS Store positioned within the premises of another business. Originally placed in hotels and convention centers, these Store-in-Store locations are increasingly placed in smaller businesses such as pharmacies and hardware stores. This format is particularly well-suited to existing business owners who have customers or foot traffic to whom they would like to also offer convenient print, postal, or packaging services.
The UPS Store Franchise Opportunities - History
The UPS Store brand was introduced in 2003 as a result of the Mail Boxes Etc. and United Parcel Service company merger. Pre-existing store locations operated by the companies were rebranded as The UPS Store, and within the following year, 500 locations were sold to franchisees. The UPS Store now has over 5,000 operating North American locations, 100 percent of which are franchised.
How Much Does It Cost To Own A UPS Store Franchise?
Initial Investment
The startup costs of opening a UPS Store location depend on the format chosen. The Traditional Locations format requires an investment of $168,885 - $398,323. The Rural Locations format requires an investment of $166,659 - $309,045. Opening a Store-in-Store format location requires $58,248 - $230,160 in startup investment.
Prospective The UPS Store franchisees should have at least $60,000 in liquid assets (alone or in conjunction with a partner).
Royalties and Advertising Program Contributions
Franchisees of The UPS Store must pay a monthly royalty of 5% of gross revenue and an ongoing monthly advertising fund contribution of 2.5% of gross revenue.
The UPS Store Franchise System Size and Composition
As of year-end 2018, there were approximately 5,071 units in the UPS brand's franchise system, all of which are franchised (as opposed to company-owned). Of those, 4,720 are based in the U.S. and 351 are in international markets. Systemwide, The UPS Store locations generate approximately $2.3 billion in aggregate sales.
FAQs
- Business shipping, marketing and printing shop
- Provides all logistical and practical marketing needs for businesses
- Scope of services includes packing and shipping, printing, bookkeeping and accounting, and much more
- In-store sales of wide range of business services
- Sales of business products
- Hiring of notary service and rental of in-store mailboxes
- Franchisees who want to invest in a well-recognized brand
- Someone who enjoys a high-traffic business environment with multiple employees
- Business owners who can manage numerous customers and points of service
- Set up and oversee a business-oriented store
- Hire staffing for printing, packaging and other services
- Promote the UPS brand and maintain a positive store profile
