The UPS Store

Start a The UPS Store Franchise: Costs, Requirements, and Everything You Need to Know

Thinking about owning your own business? Franchising can be a great option, and The UPS Store offers a well-established model with a strong track record.

Why Choose The UPS Store?

Here are some of the key benefits of owning a The UPS Store franchise:

• Proven Business Model: The UPS Store has been successful for over 40 years, offering a reliable system to follow.
• Strong Brand Recognition: The UPS Store is a well-known name with thousands of locations across the country.
• Excellent Customer Service: The UPS Store is known for its high-quality customer service, which can be a valuable asset for your business.
• Training and Support: You'll receive ongoing training and support from The UPS Store team to help you succeed.

Steps to Open a The UPS Store Franchise

Here's a breakdown of the process to get you started:

1. Financial Research

Before you take any steps, it's crucial to understand the financial requirements. Here's a summary of costs:

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

Here are some of the financial requirements you'll need to meet:

• Liquid Capital: $75,000 - $125,000
• Initial Franchise Fee: $29,950
• Initial Investment: $185,000 - $508,000
• Royalty Fee: 5% of gross sales
• Advertising Royalty Fee: 2.5% of gross sales

The UPS Store offers financing options through their partner, Guidant Financial.

2. Find Your Market

The UPS Store has locations all over the country. Use their store locator to see if there are opportunities in your area. It's important to consider the following:

• Zoning: Is your chosen location zoned for a business like The UPS Store?
• Real Estate: Are there suitable spaces available?
• Accessibility: Is the location easy for customers to get to?
• Competition: How much competition is there in the area? While some competition is normal, it's important to ensure there's enough demand.

3. Application Process

The application process for The UPS Store has four stages:

• Inquiry: Attend a webinar and submit an initial application.
• Application: Complete an interview, background check, financial disclosures, and an executive interview.
• Funding: Submit a letter of intent, pay the initial application fee, and receive an approval letter.
• Booking: Secure financing, finalize your chosen location, sign a lease, complete 5 weeks of training, and sign the franchise agreement.

4. Selecting a Location and Lease Negotiations

The UPS Store has a dedicated franchise development team to help you find the perfect location and negotiate a favorable lease. They'll assist you with:

• Lease Length: Evaluate the length of the lease.
• Market Research: Research comparable lease prices in the area.
• Hidden Costs: Identify any hidden costs in the lease.
• Modifications: Negotiate beneficial modifications to the lease.
• Termination Clause: Understand the termination clause in your lease agreement.

5. Securing Financing

The UPS Store offers financing options through their partner, Guidant Financial, including:

• 401(k) Business Funding
• Small Business Administration (SBA) Loans
• Portfolio Loans
• Unsecured Loans

They also offer incentives for veterans and minorities, with potential discounts on franchise fees.

6. Training

The UPS Store's comprehensive training program is one of the benefits of choosing this franchise. It's designed to equip you with the knowledge and skills needed to run your business. The training program includes four stages:

• Web-Based Training: Online modules covering initial training on store operations, business principles, and more (approximately 45 hours).
• In-Store Experience I: Five days of in-person training at a local The UPS Store, focusing on store operations, technical systems, and business services.
• University Business Course and Print Services Training: Ten-day interactive workshop in San Diego, CA, covering marketing, operations, sales, financial management, and print services.
• In-Store Experience II: Five days of in-person training at a local The UPS Store, reviewing store operations, technical systems, and print services.

7. Opening Your Store

After completing 225 hours of training, you'll be ready to open your own The UPS Store. You'll have a support system in place to help you succeed as you grow and manage your business.

8. Growing Your Network

The UPS Store emphasizes building community among its franchisees. Take advantage of the opportunities available to connect with other franchise owners and learn from their experiences. This includes:

• Area Meetings
• Regional Conferences
• National Convention

These events are great opportunities to stay up-to-date on industry trends, learn about new tools, and build valuable relationships.

9. Ongoing Management

Even after your store opens, The UPS Store provides ongoing support, including:

• Public Relations Support
• Advertising and Marketing
• Product Development

Frequently Asked Questions (FAQs)

How Does The UPS Store Compare to Other Franchises?

The UPS Store is considered a high-end franchise. It ranked #4 on Entrepreneur's 2023 Franchise 500 list, behind Taco Bell, Popeyes Louisiana Kitchen, and Jersey Mike's Subs.

Are There Other Royalty Fees?

Yes, The UPS Store takes 8.5% of franchise owners' adjusted monthly gross sales. This breaks down to:

• Royalty Fees: 5%
• Advertising Fee: 3.5%

Can I Choose My Location?

While you have the opportunity to explore potential locations and work with a local The UPS Store representative, the final decision rests with The UPS Store. They consider factors such as:

• Your Preferences
• Available Markets
• The UPS Store's Franchise System
• Expansion Goals
• Business Strategy
• Site Selection Criteria

Conclusion

The UPS Store offers a solid franchise opportunity for individuals looking for a structured and supported business model. Their proven track record, strong brand recognition, and comprehensive training program can help you launch and manage your own successful business.

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