Quick Summary

The UPS Store Franchise Costs & Profits: The UPS Store, a subsidiary of the United Parcel Service (UPS), is a top franchisor in the retail service industry. Established in 1980 as Mail Boxes Etc. and later rebranded by UPS in 2001, the franchise provides comprehensive services to businesses and consumers, including shipping, packing, printing, and mailbox rentals.

With over 5,570 locations in both traditional and non-traditional settings, The UPS Store has become a trusted name for convenience and business solutions.

Is The UPS Store a Franchise?

Yes, The UPS Store is a franchise and has been a prominent option for entrepreneurs for over 40 years. Ranked #4 on Entrepreneur’s 2024 “Franchise 500” list, the franchise offers the strength of a globally recognized brand and an established business model.

Franchisees operate independently but benefit from the branding and support provided by The UPS Store.

How Many UPS Store Locations Are There?

The UPS Store boasts over 5,570 locations across the United States. Locations are strategically placed in high-traffic areas such as:

• Traditional Locations: Strip malls and downtown areas.

• Non-Traditional Spaces: Universities, military bases, and airports.

These locations cater to both businesses and consumers, providing a wide range of essential services.

What Training Is Required to Open a UPS Store?

The UPS Store offers a multi-phased training program to ensure franchisee success:

• Web-Based Training: Covers foundational business concepts.

• In-Store Experience: Two five-day sessions at a Certified Training Center.

• University Business Course: Eight days of training at The UPS Store University in San Diego, focusing on operations and print services.

• Ongoing Training: Periodic refresher courses and supplemental training.

These programs equip franchisees with the skills and knowledge needed to manage their stores effectively.

How Much Does It Cost to Open a UPS Store?

The cost of opening a UPS Store varies depending on the location type:

• Traditional Locations: $247,306 to $476,993.

• Rural Locations: $218,148 to $419,226.

• Non-Traditional Venues: $110,049 to $448,918.

• Store-in-Store Models: $101,818 to $310,779.

Franchisees also pay ongoing fees, including a 5% royalty on gross sales and marketing fees.

What Is The UPS Store Franchise Fee?

The initial franchise fee for The UPS Store is $29,950. Additional fees include:

• Royalty Fee: 5% of gross sales.

• Marketing Fee: 1% of gross sales.

• National Advertising Fee: 2.5% of gross sales.

These fees provide access to comprehensive training, marketing support, and the strength of The UPS Store’s brand.

How Much Does a UPS Franchise Owner Make a Year?

Annual earnings vary based on location, operational strategy, and services offered:

• Average Gross Sales (2019): $521,316 per store.

• Top 10% Locations: $916,057 in gross sales.

• Bottom 10% Locations: $252,427 in gross sales.

Net profit ranges from $60,000 to $120,000 annually, with multi-location ownership often yielding higher earnings. Franchisees typically recover their investment in 3 to 5 years.

Franchise Empire’s Thoughts

The UPS Store is a strong franchise opportunity for entrepreneurs seeking a recognizable brand with diverse service offerings. However, success requires active management and strategic marketing, especially in areas with significant competition.

To maximize profitability, franchisees should explore local business partnerships for high-value printing and shipping contracts while leveraging the brand’s established reputation.

Interested in exploring more franchise opportunities? Check out our guide to 5 Low-Cost Franchises That Make $1,000,000 and discover how to maximize your investment potential!