In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for The UPS Store franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The UPS Store franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned The UPS Store outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on The UPS Store franchise opportunity

Section V – Presentation and analysis of The UPS Store’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022, 2021, and 2020 average, median, high, and low adjusted gross sales for the top-performing 10%, bottom-performing 10%, and all traditional UPS Store Centers in the United States that were in operation during the entire 2022, 2021, or 2020 calendar years, and reported their gross sales during the entire year

• 2022, 2021, and 2020 average, median, high, and low adjusted gross sales from the Corporate Retail Solutions Program for the top-performing 10%, bottom-performing 10%, and all traditional UPS Store Centers in the United States that were in operation during the entire 2022, 2021, or 2020 calendar years, and reported their gross sales during the entire year

Section VI – Key ratios, comparables, computations, and analyses for The UPS Store franchise opportunity (exclusive content for Platinum subscribers)

Section I – The UPS Store Franchise Costs

• The UPS Store (traditional, Laser Light design) franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $29,950
• Initial Marketing Plan Fee:  $7,500
• Design Fee:  $2,100
• Site Survey:  $1,500
• Center Development Fee:  $5,000
• Initial Training Fees:  $6,000 to $6,800
• Travel and Living Expenses While Training:  $3,000 to $4,000 per person
• Site Rent and Security Deposit:  $4,500 to $18,000
• Leasehold Improvements, Construction Costs, Signage, Furniture, and Decor Items:  $103,555 to $231,247 (the high cost includes $77,424 in vanilla shell preparation)
• Computer Hardware/Installation/Freight:  $12,648 to $15,299
• Digital Media:  $3,744 to $4,074
• Optional Keyless Entry:  $0 to $944
• Annual Technology Development and Support Fee:  $2,304
• Software:  $3,489 to $5,489
• Printer Lease:  $1,351 to $3,012
• Other Equipment:  $12,585 to $42,619
• Start-Up Supplies:  $6,180 to $9,155
• Utility Deposits:  $900 to $3,000
• Insurance:  $1,000 to $15,000
• Additional Funds – 3 Months:  $40,000 to $70,000
• Total Estimated The UPS Store Franchise Costs:  $247,306 to $476,993

Section II – The UPS Store’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• The UPS Store’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $19,950 to $29,950
• Royalty:  5% of Subject to Royalty (“STR”)
• The UPS Store Marketing Fee:  1% of STR
• National Advertising Fee:  2.5% of STR
• Advertising Co-op Dues:  varies from Co-op to Co-op. Range is $100 to $500.

Section III – Number of Franchised and Company-Owned The UPS Store Outlets

Franchised

2020

• Outlets at the Start of the Year:  4,866
• Outlets at the End of the Year:  4,958
• Net Change:  +92

2021

• Outlets at the Start of the Year:  4,958
• Outlets at the End of the Year:  5,037
• Net Change:  +79

2022

• Outlets at the Start of the Year:  5,037
• Outlets at the End of the Year:  5,138
• Net Change:  +101

Company-Owned

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

Section IV – News Updates on The UPS Store Franchise

• The UPS Store, Inc. Celebrates 2023 Small Biz Challenge Winner

• The UPS Store, Inc. Invites Unstoppable Small Business Owners to Compete for $25,000

• The UPS Store Network Surpasses $1.6 Million Donation Milestone to Junior Achievement to Support Future Small Business Owners

• The UPS Store Helps Consumers Be Unstoppable Amid Holiday Shopping and Shipping Season

• The UPS Store, Inc. Opens Its Doors in the Metaverse with the Launch of “The Helping You Be Unstoppable Store”

• The UPS Store, Inc. Introduces Start Small, Grow Big Program Benefiting Junior Achievement

• The UPS Store Ranked No. 4 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The UPS Store Franchise (Item 19, 2023 FDD)

Part 1 – The UPS Store’s Financial Performance Representations (Average and Median Adjusted Gross Sales of All Centers, Top 10% and Bottom 10% of Centers)

This historical financial performance representation contains:

1.  the actual, average, annual adjusted gross sales and the actual, median, annual adjusted gross sales during each of the 2022, 2021, and 2020 full calendar years of all The UPS Store Centers in the United States that:

• (i) operated at “Traditional” sites;

• (i) were in operation during the entire 2022, 2021, or 2020 calendar years, and reported their gross sales during the entire year;

• (iii) were in operation as of January 1 of the 2022, 2021, or 2020 calendar years, and then operated until at least sometime in December of that calendar year, and reported their gross sales for the entire timeframe during which they operated; and

• (iv) opened sometime during January of the 2022, 2021, or 2020 calendar years, and then operated until at least sometime in December of that calendar year, and reported their gross sales for the entire timeframe during which they operated.

2.  as a component of that system-wide adjusted gross sales information, the actual, average, annual adjusted gross sales and the actual, median, annual adjusted gross sales during each of the 2022, 2021, and 2020 full calendar years of the top-performing and bottom-performing (in terms of adjusted gross sales) 10% of the franchised The UPS Store Centers in the United States that:

• (i) operated at “Traditional” sites;

• (ii) were in operation during the entire 2022, 2021, or 2020 calendar years, and reported their gross sales during the entire year;

• (iii) were in operation as of January 1 of the 2022, 2021, or 2020 calendar years, and then operated until at least sometime in December of that calendar year, and reported their gross sales for the entire timeframe during which they operated; and

• (iv) opened sometime during January of the 2022, 2021, or 2020 calendar years, and then operated until at least sometime in December of that calendar year, and reported their gross sales for the entire timeframe during which they operated.

3.  A UPS Store Center’s adjusted gross sales in a particular year are included in the calculation of the system-wide average adjusted gross sales during the 2022, 2021, or 2020 calendar years (subject to the qualifiers above) even if:

• (i) that Center’s ownership changed during the calendar year; or

• (ii) the Center did not operate during one or both of the other calendar years represented in this historical financial performance representation.

4.  The UPS Store Centers whose annual average adjusted gross sales and annual median adjusted gross sales are included in the calculation reported below are located only at “Traditional” sites.

• Traditional sites are highly visible locations in strip shopping centers or high foot-traffic downtown areas in urban, suburban, and rural markets.

• The UPS Store offers franchises for Centers at Non-Traditional sites under its Non-Traditional FDD. The characteristics of Non-Traditional sites vary significantly. The UPS Store included in this financial performance representation the results of only Traditional The UPS Store Centers because the Traditional site model is the only Center model it offers under this disclosure document.

5.  The UPS Store has not independently audited the financial information reported by franchisees.

Definition of Terms

1.  “Adjusted Gross Sales” are defined as a franchisee’s total gross sales (not including sales taxes collected from customers), plus “gross commissions earned” less certain permitted “exclusions.”

2.  “Gross Sales” is 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.

3.  “Gross Commissions” is 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.

4.  Examples of permitted “exclusions” are Counter Manifest System Processing Fees and deposits toward products to be sold or services to be rendered.

Year 2022

• Total Number of Centers:  4,733
• Average Adjusted Gross Sales (“AGS”) for All Centers:  $709,713
• Median AGS for All Centers:  $676,569
• Average AGS for Top 10% of Centers:  $1,216,162
• Average AGS for Bottom 10% of Centers:  $358,227
• Highest AGS for Top 10% of Centers:  $2,932,748
• Lowest AGS for Top 10% of Centers:  $1,022,868
• Median AGS for Top 10% of Centers:  $1,155,745
• Highest AGS for Bottom 10% of Centers:  $432,122
• Lowest AGS for Bottom 10% of Centers:  $146,580
• Median AGS for Bottom 10% of Centers:  $375,380

Year 2021

• Total Number of Centers:  4,678
• Average Adjusted Gross Sales (“AGS”) for All Centers:  $677,538
• Median AGS for All Centers:  $643,447
• Average AGS for Top 10% of Centers:  $1,155,920
• Average AGS for Bottom 10% of Centers:  $343,036
• Highest AGS for Top 10% of Centers:  $2,225,849
• Lowest AGS for Top 10% of Centers:  $976,708
• Median AGS for Top 10% of Centers:  $1,094,082
• Highest AGS for Bottom 10% of Centers:  $414,831
• Lowest AGS for Bottom 10% of Centers:  $128,086
• Median AGS for Bottom 10% of Centers:  $358,558

Year 2020

• Total Number of Centers:  4,642
• Average Adjusted Gross Sales (“AGS”) for All Centers:  $607,750
• Median AGS for All Centers:  $579,101
• Average AGS for Top 10% of Centers:  $1,044,417
• Average AGS for Bottom 10% of Centers:  $299,467
• Highest AGS for Top 10% of Centers:  $3,741,902
• Lowest AGS for Top 10% of Centers:  $885,126
• Median AGS for Top 10% of Centers:  $995,081
• Highest AGS for Bottom 10% of Centers:  $365,191
• Lowest AGS for Bottom 10% of Centers:  $293,129
• Median AGS for Bottom 10% of Centers:  $311,057

Part 2 – Corporate Retail Solutions Program Component of Centers’ Adjusted Gross Sales

• Franchised Centers must participate in all services and programs The UPS Store makes available to every client in the Corporate Retail Solutions (“CRS”) Program and follow all CRS Program workflows and instructions, which may differ among individual clients.

• The CRS Program component of a Center’s adjusted gross sales includes transactions for distinctive (1) products, services, and business term processes and (2) discount card programs.

• The historical financial performance representation below contains the system-wide actual, average, annual adjusted gross sales and the actual, median, annual adjusted gross sales derived from the CRS Program by the traditional The UPS Store Centers whose performance is described above during each of the 2022, 2021, and 2020 full calendar years, as well as by the top-performing and bottom-performing 10% of those Traditional The UPS Store Centers during the same timeframe.

• Adjusted gross sales from the CRS Program are encompassed in these Traditional UPS Store Centers’ total annual adjusted gross sales.

• The franchisor has not independently audited this information.

Year 2022

• Total Number of Centers:  4,733
• Average Adjusted Gross Sales (“AGS”) from CRS Program:  $55,495
• Median AGS for All Centers:  $42,087
• Average AGS for Top 10% of Centers:  $166,886
• Average AGS for Bottom 10% of Centers:  $12,758
• Highest AGS for Top 10% of Centers:  $917,732
• Lowest AGS for Top 10% of Centers:  $105,242
• Median AGS for Top 10% of Centers:  $140,807
• Highest AGS for Bottom 10% of Centers:  $17,767
• Lowest AGS for Bottom 10% of Centers:  $2,385
• Median AGS for Bottom 10% of Centers:  $13,453

Year 2021

• Total Number of Centers:  4,678
• Average Adjusted Gross Sales (“AGS”) from CRS Program:  $48,685
• Median AGS for All Centers:  $35,482
• Average AGS for Top 10% of Centers:  $153,467
• Average AGS for Bottom 10% of Centers:  $10,723
• Highest AGS for Top 10% of Centers:  $927,487
• Lowest AGS for Top 10% of Centers:  $92,518
• Median AGS for Top 10% of Centers:  $126,482
• Highest AGS for Bottom 10% of Centers:  $14,659
• Lowest AGS for Bottom 10% of Centers:  $2,014
• Median AGS for Bottom 10% of Centers:  $11,252

Year 2020

• Total Number of Centers:  4,642
• Average Adjusted Gross Sales (“AGS”) from CRS Program:  $47,334
• Median AGS for All Centers:  $35,559
• Average AGS for Top 10% of Centers:  $144,317
• Average AGS for Bottom 10% of Centers:  $10,333
• Highest AGS for Top 10% of Centers:  $678,113
• Lowest AGS for Top 10% of Centers:  $89,384
• Median AGS for Top 10% of Centers:  $121,884
• Highest AGS for Bottom 10% of Centers:  $14,661
• Lowest AGS for Bottom 10% of Centers:  $220
• Median AGS for Bottom 10% of Centers:  $11,016

Section VI – The UPS Store Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️