Franchise: The UPS Store
Franchising Since: 1980
Headquarters: San Diego, Calif.
Number of Units: 4,856
About the Franchise
With more than 30 years of franchising experience and the foundation of a globally recognized and award-winning brand, The UPS Store has helped thousands open franchises and become their own boss. Franchise owners are backed by a proven franchise model and a globally recognized brand that has grown to more than 4,400 locations in the U.S.
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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 25 consecutive years by Entrepreneur Magazine’s Franchise 500.
The UPS Store offers a variety of franchise opportunities across the country, including non-traditional franchise opportunities available for specialized areas and opportunities in rural communities.
Financial Assistance
The franchisor occasionally provides financing for qualifying prospective The UPS Store franchisees or prospective multiple franchisees under their guidelines. The franchisor reserves the right to add, change or delete any financing programs at any time.
Term of Agreement and Renewal
The term of The UPS Store franchise agreement is 10 years with an option to renew for additional terms of 10 years so long as the franchisee is in good standing.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of The UPS Store (2015). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a UPS Store franchise.
Initial Franchise Fee: $29,950
These fees pertain to Traditional Centers Not Operating Under “Rural Program.”
Initial Marketing Plan Fee: $7,500
You must pay the franchisor’s then-current Initial Marketing Plan Fee when you sign your Franchise Agreement (applicable for newly constructed and conversion of Traditional Centers; not applicable to renewing franchisees; optional for purchasers of existing franchised Centers).
Design Fee: $1,050
Center Development Fee: $5,000
The franchisor, an Area Franchisee, or a third party the franchisor designates (“Center Development Coordinator”) must provide and manage a general contractor to construct your new Center and provide site selection and lease negotiation assistance.
Initial Training Fees: $5,700
The franchisor offers a multi-phased The UPS Store Franchisee Training Program that focuses on developing the business management, technical, conceptual and diagnostic skills necessary to grow the franchised business.
Travel and Living Expenses While Training (per person): $3,000 to $4,000
Site Rent and Security Deposit: $4,500 to $18,000
The figures on this line item represent the cost of the first 3 months’ rent for most Centers ($1,500 to $6,000 per month) and the cost of a security deposit equal to one month’s rent ($1,500 to $6,000). Some landlords require a security deposit equal to 2 or more months’ rent. Some urban markets — especially Manhattan Borough, NY — can have Center rents of $5,000 to $11,000 per month for a smaller than usual site.
Leasehold Improvements, Construction Costs, Signage, Furniture and Décor Items: $40,856to $167,089
All construction work done in a Center build-out must be performed by a franchisor-approved state trade licensed and bonded company in the required area, e.g. fixtures, installations, exterior signage, electrical, etc.
Computer Hardware/Installation/Freight: $9,006 to $10,170
A one-time technology installation fee ranging from $1,140 to $2,440 is payable to the franchisor. This fee covers in-center networking and the set-up and networking of the POS System (2 units), Back Office computers and Print Production Computer.
Annual Technology Development and Support Fee: $1,150
Software: $4,864 to $6,864
Copiers and Printer: $2,076 to $3,966
Other Equipment: $5,093 to $5,986
You must purchase or lease certain items of equipment. The franchisor offers financing for equipment and fixtures. The estimates in the chart are for lease (3 months) of equipment.
Startup Supplies: $6,180 to $9,155
The franchisor estimates that the range given will be sufficient to cover initial supplies of running your business for 3 months following the opening of the franchise business.
Utility Deposits: $900 to $3,000
The franchisor estimates that you will need to provide deposits for utilities. Deposits depend on the practices of the utility company.
Insurance: $1,000 to $5,000
The figures in the chart are expenses calculated on a yearly, per Center basis for a small business-owners package policy (property and liability) premium.
Additional Funds (3 months): $40,000 to $70,000
ESTIMATED TOTAL: $167,825 to $353,580
These figures are estimates in setting up a UPS Store franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
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