How to Get The UPS Store Franchise? – Cost, Fee, & Profit

Are you an aspiring entrepreneur seeking a trusted and established brand to kickstart your business venture, dealing in shipping and postal services? Or perhaps you already own or run a local postal shipping business but are unsatisfied with its margins?

Look no further! We at FranchiseGoal, welcomes you to an exciting series of franchise businesses that has history of repetitive success and owning it will only create wealth for you.

In the rapidly growing world of franchising, few names carry the weight and global recognition as The UPS Store. The Chain certainly position itself as a beacon of excellence in the shipping industry.

In this all-inclusive piece, we will further explore about the UPS Store Franchise, including its cost, fees, profits, and address some frequently asked questions about the chain.

• Brand: The UPS Store
• Founded: 1980
• Key People: James Casey and Claude Ryan
• Industry: Retail and Shipping
• No. of Franchise: 5500+
• Area served: Worldwide
• Franchise Fee: $9,500 – $29,950
• Royalty Fee: 5%
• Ad Royalty Fee: 3.5%
• Model: Franchise
• Est. Initial Investment: $101,818 – $476,993

Overview of The UPS Store Franchise

Founded in 1980 in San Diego, California as a Mail Boxes Etc. (MBE) by Gerald Aul, Pat Senn and Robert Diaz, The UPS Store has emerged as a leading, well-established, and rapidly growing chain of retail shipping and postal service centers.

The chain is renowned for operating independently as a neighborhood business hub, offering mailbox rentals and shipping services to local communities. In 2001, The UPS (United Parcel Services) acquired over 3000 Mail Boxes Etc. locations and rebranded them as the UPS store.

Having already known for being a reputed retail shipping centers, The UPS Stores experienced enormous growth and expanded its presence across the several states in the United States and the International market.

The chain takes pride to offer a variety of services, including packaging, shipping, printing, document services, mailbox solutions, and more at an affordable pricing that allowed them to generate consistent revenue stream for its every outlet.

With its exceptional tech innovations, quick services, best-in-class customer experience, the UPS Stores are all set to foray into the unpenetrated market across the globe. It can ultimately help the aspiring entrepreneur to partner with leading chain and embark on their entrepreneurial journey.

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The Journey of The UPS Store

Their humble beginning started in 1907, when two entrepreneurs James Casey and Claude Ryan came together to create the American Messenger Company. It was later renamed to United Parcel Service.

The United Parcel Services, also went on the acquire the complete location of Mail Boxes Etc., and renamed all of them as The UPS Store.

At present, the chain has grown into a leading package delivery brand that employs over 540,000 people across the globe, spanning over 5,500 locations, including its home country – the U.S.

The immense expertise of over 40+ years in the industry and a consistent placement in Entrepreneur Magazine’s annual Franchise 500 list for the last 28+ years is truly remarkable and commendable, making it a highly demanding franchise businesses across the world.

Key Facts on The UPS Store

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Why Consider Owning The UPS Store Franchise?

There could be multiple reasons for owning a UPS Store location and some of the are listed below for your reference;

1. Established Brand Value:
   • The UPS Store is a subsidiary unit of America’s leading parcel giant, which is globally recognized as a trusted brand.
     • It can help you as a franchisee to leverage the brand’s reputation and extensive customer base.
2. History of repetitive success and proven business concept:
   • As mentioned earlier, the chain carries a deep expertise of over 40+ years in the industry and has always provided consistent return to its investors and franchisee.
     • The brand has been featured multiple times in Entrepreneur Magazine’s Franchise 500 list, consistently securing a position in the Top 10 for the last few years.
3. Extensive range of Retail services:
   • As a franchisee, you’ll leverage its range of services, including packaging, shipping, printing, and more, which ultimately allows you to cater to the wider audience and generate consistent revenue streams.
4. Global Network:
   • With over 5,100 locations worldwide, The UPS Store provides franchisees with a vast network and the potential for both local and international business opportunities.
5. Leading Tech Innovation clubbed with ongoing support:
   • As a Franchisee, you’ll be provided and guided with immense support systems that includes professional training programs and marketing support.
     • The chain is continuously focused on using latest tech innovations, ensuring efficient operations and exceptional customer experiences.
6. Flexible business setup and extensive target clientele:
   • The UPS Store franchise presents a network that caters to small-office/home-office (SOHO) businesses, corporate “road warriors,” and consumers, providing them with convenient and value-added business services.

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How much does The UPS Store Franchise Cost?

The initial cost of setting up The UPS Store location may vary depending on the outlet’s geographical location, available space, market potential, and more.

Usually, the UPS Store offers a variety of location-types, and the average initial cost could range between the given numbers;

• Traditional Locations: $247,306- $476,993*
• Rural Locations: $218,148 – $419,226*
• Store in Store Locations: $101,818 – $310,779*+

Nevertheless, To start The UPS Store Franchise(for a Traditional location), one may at least require an initial investment of minimum of US $247,306- $476,993. This initial investment of The UPS Store does cover the franchise fee, marketing fee, and other necessary expenses.

How much is the UPS Store Franchise Fee?

The franchise fee for The UPS Store may range between $9,500 – $29,950. Furthermore, to become an approved outlet owner, one may need to have a minimum available liquidity of $75,000 to $150,000.

Additional Cost for The UPS Store

The on-going royalty fee for The UPS Store of 5% and ad royalty fee is 3.5%, which will be calculated based on the monthly gross sales.

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How much is The UPS Store Franchise Profit Margin?

Irrefutably, United Parcel Services, Inc. generates a significant sum of dollars every years in revenue.

According to the latest annual report, The UPS posted a significant growth in its revenue from $84.62 billion in 2020 to $100.3 billion in 2022, exhibiting a CAGR growth of approximately 19%, during a period of 2020-2022.

Moreover, Considering its expertise of over 40+ years, affordable and flexible business setup, growing customer base, leading and well-established brand image, globe presence with vast array of franchise network, high profit potential, and diverse service offering, one may anticipate a healthy profit margin.

Full-Year 2022 Consolidated Results

• Revenue increased 3.1% to $100.3 billion.
• Operating profit of $13.1 billion; adjusted operating profit of $13.9 billion, up 5.4%.
• Operating margin was 13.0%; adjusted operating margin was 13.8%.

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How to Get The UPS Store Franchise?

Owning a UPS Store location requires a relatively moderate investment and in return may offers an impressive profit. Nevertheless, The UPS Store chain may offer several benefits, and interested candidates can take up franchise outlet locally through their endless support systems.

One can avail this franchise using below mentioned steps;

1. To get an hold of The UPS Store location, you can either opt for a fresh location or buy an existing one;
   • Nevertheless, to proceed further, you may require to submit your personal details at their official website, where you may need to fill in the details like Name, Email ID, Phone Number, County, State and more.

Or, you can directly contact them at – (877) 623-7253

Final Takeaway – Conclusion

There is no doubt that The UPS Store stands as a prominent franchise opportunities for the aspiring entrepreneur seeking a lucrative and stable business venture. The chain has already marked and acquired a significant market share in the Industry.

Currently, it has a vast franchise network of over 5500+ locations, out of which 5138 are from the U.S. and remaining of the franchise owner belongs to Canada.

The company has shown consistent growth in its revenue as well as its operating profit margin.

To become an authorized The UPS Store owner, one should buckle up to make an investment of at least US $101,818 – $476,993 with a floor area of minimum of 500 -1000 square feet.

The Bottom line – Overall, owning the UPS Store franchise can be a rewarding venture for those looking to serve a diverse range of shipping services under one roof and with its innovative concept and widespread popularity, it can certainly help the new franchisee to generate a positive margin.

Want to explore more? Then check out below franchising opportunities.

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