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 2024 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 2024 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.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 2021, 2022, and 2023, based on Item 20 of the company’s 2024 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 2024 FDD, including information on the:
- 2023, 2022, and 2021 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 2023, 2022, or 2021 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 2024 FDD:
- Initial Franchise Fee: $29,950
- Initial Marketing Plan Fee: $7,500
- Design Fee: $3,000
- Site Survey: $1,700
- Center Development Fee: $7,000
- Initial Training Fees: $7,000 to $8,500
- 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: $64,480 to $249,283 (the high cost includes $86,400 in vanilla shell preparation)
- Computer Hardware/Installation/Freight: $11,385 to $15,475
- Digital Media: $4,081
- Optional Keyless Entry: $0 to $944
- Annual Technology Development and Support Fee: $2,304
- Software: $3,489 to $5,489
- Printer Lease: $544 to $1,749
- Time-Saving Kiosk: $1,760 to $1,784
- Other Equipment: $9,422 to $38,031
- 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: $209,195 to $495,945
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 2024 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
2021
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- 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
2023
- Outlets at the Start of the Year: 5,138
- Outlets at the End of the Year: 5,232
- Net Change: +94
Company-Owned
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
2023
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
Section IV – News Updates on The UPS Store Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for The UPS Store Franchise (Item 19, 2024 FDD)
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 2023, 2022, and 2021 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 2023, 2022, and 2021 calendar years, and reported their gross sales during the entire year;
- (iii) were in operation as of January 1 of the 2023, 2022, and 2021 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 2023, 2022, and 2021 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 2023, 2022, and 2021 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 2023, 2022, and 2021 calendar years, and reported their gross sales during the entire year;
- (iii) were in operation as of January 1 of the 2023, 2022, and 2021 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 2023, 2022, and 2021 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 2023, 2022, and 2021 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 the 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 2023
- Total Number of Centers: 4,827
- Average Adjusted Gross Sales (“AGS”) for All Centers: $721,274
- Median AGS for All Centers: $691,869
- Average AGS for Top 10% of Centers: $1,224,355
- Average AGS for Bottom 10% of Centers: $357,306
- Highest AGS for Top 10% of Centers: $2,599,032
- Lowest AGS for Top 10% of Centers: $1,039,146
- Median AGS for Top 10% of Centers: $1,166,349
- Highest AGS for Bottom 10% of Centers: $435,904
- Lowest AGS for Bottom 10% of Centers: $68,027
- Median AGS for Bottom 10% of Centers: $371,853
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
Section VI – The UPS Store Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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