FDD Talk: Performance of Top 5%, 10%, and 20% of All The UPS Store Centers in 2011, 2010, and 2009

Highlights of The UPS Store’s Item 19 Financial Performance Representations (2012 FDD) – Part 2

• Mail Boxes Etc., Inc. grants The UPS Store franchises for Centers featuring shipping, packaging, postal, print services, and similar business and communication services to be operated at traditional and non-traditional locations.

• The total investment necessary to begin operation of a traditional (non-Rural and non-Veterans) Center is $176,066 to $331,353. This includes $34,250 to $53,750 that must be paid to the franchisor or affiliate.

A Non-Exclusive List of the Types of Expenses a Franchisee of The UPS Store Might Incur

• The adjusted gross sales numbers reported below do not reflect costs of sales, operating expenses, or other costs or expenses that you must deduct from gross sales to obtain your net income or profit.

• A non-exclusive list of the types of expenses a franchisee might incur includes: (1) labor costs, including taxes and benefits; (2) shipping costs; (3) cost of goods sold; (4) advertising and marketing expenses; (5) rent, utilities, and common area maintenance and other charges to occupy the Center’s premises; (6) training costs; (7) costs of maintenance, insurance, security, and supplies; (8) royalties and other payments due to the franchisor; (9) debt service; (10) professional fees; and (11) taxes.

• You might incur other costs, which will vary from Center to Center and in different market areas.

Performance of Top 5% of All The UPS Store Centers During 2011, 2010, and 2009

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