The UPS Store Franchise Location Formats Offered

The UPS Store offers three location formats:

• Traditional Locations: a standard, standalone print, packaging, and business services store.
• Rural Locations: Allows for the development and operation of The UPS Store in smaller communities that may not otherwise have access to such services. This format is particularly advantageous for those with strong local ties.
• Store-in-Store Locations: a UPS Store positioned within the premises of another business. Originally placed in hotels and convention centers, these Store-in-Store locations are increasingly placed in smaller businesses such as pharmacies and hardware stores. This format is particularly well-suited to existing business owners who have customers or foot traffic to whom they would like to also offer convenient print, postal, or packaging services.

The UPS Store Franchise Opportunities - History

The UPS Store brand was introduced in 2003 as a result of the Mail Boxes Etc. and United Parcel Service company merger. Pre-existing store locations operated by the companies were rebranded as The UPS Store, and within the following year, 500 locations were sold to franchisees. The UPS Store now has over 5,000 operating North American locations, 100 percent of which are franchised.

How Much Does It Cost To Own A UPS Store Franchise?

Initial Investment

The startup costs of opening a UPS Store location depend on the format chosen. The Traditional Locations format requires an investment of $168,885 - $398,323. The Rural Locations format requires an investment of $166,659 - $309,045. Opening a Store-in-Store format location requires $58,248 - $230,160 in startup investment.

Prospective The UPS Store franchisees should have at least $60,000 in liquid assets (alone or in conjunction with a partner).

Royalties and Advertising Program Contributions

Franchisees of The UPS Store must pay a monthly royalty of 5% of gross revenue and an ongoing monthly advertising fund contribution of 2.5% of gross revenue.

The UPS Store Franchise System Size and Composition

As of year-end 2018, there were approximately 5,071 units in the UPS brand's franchise system, all of which are franchised (as opposed to company-owned). Of those, 4,720 are based in the U.S. and 351 are in international markets. Systemwide, The UPS Store locations generate approximately $2.3 billion in aggregate sales.