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FDD Talk: Average, Annual Adjusted Gross Sales of The UPS Store Centers in 2011, 2010, and 2009

by Franchise Chatter on November 16, 2012

in Franchise Earnings, Shipping Franchise



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Highlights of The UPS Store’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

Description of The UPS Stores Included in the Sample

1.  This historical financial performance representation contains the average, annual adjusted gross sales during each of the 2011, 2010, and 2009 full calendar years of all The UPS Store Centers in the United States and Puerto Rico that were:

  • in operation during the entire 2011, 2010, or 2009 calendar years (and reported their gross sales during the entire year),
  • were in operation as of January 1 of the 2011, 2010, or 2009 calendar years and then operated until at least sometime in December of that calendar year (and reported their gross sales for the entire time frame during which they operated), and
  • opened sometime during January of the 2011, 2010, or 2009 calendar years and then operated until at least sometime in December of that calendar year (and reported their gross sales for the entire time frame during which they operated).

The UPS Store Photo by KT of Lake Orion2.  As a component of that system-wide adjusted gross sales information, this historical financial performance representation also contains the average, annual adjusted gross sales during each of the 2011, 2010, and 2009 full calendar years of the top-performing (in terms of adjusted gross sales) 5%, 10%, and 20% of the franchised The UPS Store Centers in the United States and Puerto Rico that were:

  • in operation during the entire 2011, 2010, or 2009 calendar years (and reported their gross sales during the entire year),
  • were in operation as of January 1 of the 2011, 2010, or 2009 calendar years and then operated until at least sometime in December of that calendar year (and reported their gross sales for the entire time frame during which they operated), and
  • opened sometime during January of the 2011, 2010, or 2009 calendar years and then operated until at least sometime in December of that calendar year (and reported their gross sales for the entire time frame during which they operated).

3.  A The UPS Store Center’s adjusted gross sales in a particular year was included in the calculation of the system-wide average adjusted gross sales even if:

  • that Center’s ownership changed during the calendar year, or
  • the Center did not operate during one or both of the other calendar years represented in this historical financial performance representation.

4.  The averages do not include the adjusted gross sales of 137, 146, and 208 The UPS Store Centers that were in operation in the United States and Puerto Rico but did not operate during the specified portions of the 2011, 2010, and 2009 calendar years, respectively (and/or who did not report their gross sales for the entire time frame during which they operated).

5.  The averages also do not include the adjusted gross sales of any of the 39, 71, and 103 Mail Boxes Etc. Centers that operated during all or part of the 2011, 2010, and 2009 calendar years, respectively.



Definition of Adjusted Gross Sales

  • “Adjusted Gross Sales” is defined as a franchisee’s total “Gross Sales” (not including sales taxes collected from customers), plus “Gross Commissions” earned, less certain permitted “Exclusions”.
  • The term “Gross Sales” is defined as the total of all revenue derived from products and/or services sold by or through a Center during the franchise term, whether evidenced by cash, services, credit, property, barter, electronic funds transfer, or other means of exchange, and whether or not the products and/or services are sold in any other Center. “Gross Sales” includes UPS shipping costs that a franchisee receives from its customers.
  • The term “Gross Commission” is defined as the total amount of all commissions actually earned by a franchisee during the franchise term on account of those transactions occurring at the Center in which the franchisee acts as agent for certain vendors or service providers specified in the Manuals, for example, UPS Drop-Off Program Compensation.
  • Examples of permitted “Exclusions” are Counter Manifest System Processing Fees and deposits toward products to be sold or services to be rendered.

Traditional Versus Non-Traditional Centers

  • The UPS Store Centers whose annual, average adjusted gross sales are included in the calculation reported below are located at both “traditional” and “non-traditional” sites.
  • Traditional sites are highly visible locations in strip shopping centers or high foot-traffic downtown areas in urban, suburban, and rural markets.
  • On the other hand, non-traditional sites are colleges, universities, hotels, convention centers, airports, resorts, military bases, self-storage facilities, inside other retailers (“store-within-store”), office buildings, regional or outlet malls, bus or train stations, and other similar facilities in urban, suburban, and rural markets.
  • Of the 4,254 total The UPS Store Centers counted for the 2011 calendar year, 4,128 were at “traditional” sites and 126 were at “non-traditional” sites.
  • Of the 4,266 total The UPS Store Centers counted for the 2010 calendar year, 4,142 were at “traditional” sites and 124 were at “non-traditional” sites.
  • Of the 4,239 total The UPS Store Centers counted for the 2009 calendar year, 4,124 were at “traditional” sites and 115 were at “non-traditional” sites.

System-Wide Average, Annual Adjusted Gross Sales in 2011, 2010, and 2009



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