The UPS Store

Start a The UPS Store Franchise: Costs, Requirements, and How to Get Started

Thinking about opening your own business? A franchise can be a great way to get started. The UPS Store is a popular franchise option, known for its strong brand recognition and established business model.

Why Choose a The UPS Store Franchise?

There are many reasons why someone might choose to open a The UPS Store franchise:

• Stable and Proven Business Model: The UPS Store has a long history of success and a well-defined system for running a franchise.
• Strong Brand Reputation: The UPS Store is a trusted name in the shipping and business services industry.
• Industry Leadership: The UPS Store is recognized as a leader in its field.
• Comprehensive Training and Support: Franchise owners receive extensive training and ongoing support from The UPS Store.
• Extensive Network: There are thousands of The UPS Store locations across the country, providing a strong network of support.

How to Open a The UPS Store Franchise: A Step-by-Step Guide

Here's a breakdown of the steps involved in opening a The UPS Store franchise:

1. Financial Research

Before you start the application process, it's essential to understand the financial investment required. Here's a look at the costs associated with opening a The UPS Store franchise:

• Traditional Locations: $240,959 - $508,472
• Rural Locations: $206,423 - $459,136
• Store-in-Store Locations: $80,357 - $216,148+

You'll also need to meet certain financial requirements, such as:

• 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%

The UPS Store offers financing options through its partner, Guidant Financial. This includes options like 401(k) business funding, SBA loans, and more.

2. Find Your Market

The UPS Store has locations across the country, but it's important to research your local market to determine if it's a good fit for a new franchise. Consider factors like:

• Zoning Regulations: Ensure that your chosen location is zoned for a business like The UPS Store.
• Real Estate Availability: Is there suitable real estate available for your store?
• Accessibility: Will the location be easily accessible to customers?
• Competition: Assess the level of competition in your area.

3. Application Process

The UPS Store has a four-stage application process to evaluate potential franchisees.

1. Inquiry: Attend a webinar and complete the application.
2. Apply: Initial interview, complete franchise disclosure, background check, submit financials, executive interview.
3. Funding: Letter of intent, initial application fee, approval letter.
4. Booking: Secure financing, approve site and sign lease, 5-week training, sign franchise agreement.

4. Select a Site and Secure the Lease

The UPS Store has a franchise development team to guide you through the site selection process and lease negotiation. They can help you:

• Evaluate the lease terms: Length of the lease, comparable prices, hidden costs, termination clause.
• Negotiate beneficial modifications: Secure favorable lease terms.

5. Secure Financing

The UPS Store offers financing options through its partner, Guidant Financial. This can help you cover the initial investment costs.

6. Training

The UPS Store provides comprehensive training to prepare you for running your franchise. The training program includes:

• Web-Based Training: 45 modules covering store operations and business fundamentals.
• In-Store Experience I: Five-day in-person training at a local The UPS Store.
• University Business Course and Print Services Training: 10-day interactive workshop covering marketing, operations, sales, and print services.
• In-Store Experience II: Five-day in-person training at a local The UPS Store.

7. Open Your The UPS Store

After completing the training program, you'll be ready to open your own The UPS Store. The UPS Store offers ongoing support to help you succeed.

8. Grow Your Network

The UPS Store encourages franchise owners to build relationships within the network through:

• Area meetings: Networking with other franchisees in your area.
• Regional conferences: Connecting with franchisees from across the region.
• National convention: Attending the annual national franchisee meeting.

9. Continuous Management

The UPS Store provides ongoing support to help you manage your franchise, including:

• Public relations support: Building your brand in the community.
• Advertising and marketing: Promoting your business.
• Product development: Keeping up with the latest trends and services.

The UPS Store Franchising FAQs

Here are answers to some frequently asked questions about The UPS Store franchise opportunity:

How Does Investing with The UPS Store Compare to Other Brands?

The UPS Store is considered a high-end franchise. Based on Entrepreneur's 2023 Franchise 500 Ranking, it ranks among the top franchises:

• Taco Bell
• Popeyes Louisiana Kitchen
• Jersey Mike's Subs
• The UPS Store
• Dunkin'

Are There Any Other Royalty Fees to Know About?

In addition to the initial franchise fee, The UPS Store charges a royalty fee of 5% and an advertising fee of 3.5% of your adjusted monthly gross sales.

Do You Get to Pick Your Location?

While you have input into the location selection process, the final decision rests with The UPS Store. The company considers factors like:

• Your preferences
• Available markets
• Company's franchise system
• Expansion goals
• Business strategy
• Site selection criteria

Conclusion

The UPS Store offers a well-established and supported franchise opportunity. If you're considering starting your own business, a The UPS Store franchise could be a great option.

For more information about franchise opportunities, visit Entrepreneur's Franchise Center.