UPS Store Franchise Cost: Is it worth it?

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Patrick Findaro, Co-founder of Vetted Biz, reviews his analyst research on UPS Store Franchise Costs.

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What to know about The UPS Store Traditional franchise?
UPS Stores offers franchises for centers featuring business and communication services to be operated at Traditional locations. The UPS Store Traditional is a franchise concept in the Business Services industry.

UPS Store Background
The UPS Store was originally founded as Mail Boxes Etc. – which is still around today as a completely separate entity – in 1980 by Gerald Aul, Pat Senn, and Robert Diaz in Carlsbad, California. Aul, Senn, and Diaz started Mail Boxes Etc. to provide consumers with an alternative to the U.S. Post Office. Over the next few decades, Mail Boxes Etc. continued to grow and in 2001, UPS acquired Mail Boxes Etc., Inc.

In 2003, UPS rebranded around 3,000 Mail Boxes Etc. stores. Over the next year, UPS sold more than 500 new The UPS Store franchise locations in the United States. Today, The UPS Store has become the world’s largest franchisor of retail shipping, postal, printing, and business service centers. There are UPS Store locations all across the United States, Canada, and Puerto Rico.

UPS Store Franchise Costs
Based on Item 7 (Estimated Initial Investment) of The UPS Store’s 2020 Franchise Disclosure Document

These UPS franchise costs are for traditional centers not operating under the “Rural Program”

Initial Franchise Fee: $29,950
Initial Marketing Plan Fee: $7,500
You must pay the then-current Initial Marketing Plan Fee when you sign your Franchise Agreement (applicable for newly-constructed Centers and conversions; not applicable to renewing franchises; optional for purchasers of existing franchised Centers).

You must pay the Initial Marketing Plan Fee for re-opened Centers unless the franchisor waives this requirement.

Design Fee: $1,075
You must pay the franchisor’s then current Design Fee to prepare a general Center design.

Center Development Fee: $5,000
The franchisor, an Area Franchisee, or a third party the franchisor designates (“Center Development Coordinator”) must provide and manage a general contractor to construct your new Center and provide site selection and lease negotiation assistance.

You must pay the Center Development Coordinator the Center Development Fee.

Initial Training Fees: $6,000 to $6,800
Travel and Living Expenses While Training: $3,000 to $4,000 per person
You will incur expenses associated with The UPS Store University Training programs, including transportation, lodging and food. The cost will depend on the distance the trainee must travel and type of accommodations you choose and will increase if you send more than one trainee.

However, the franchisor may substitute virtual learning and “e-learning” training modules (through video and/or other electronic means) for any training that you, your designated Primary Operator, or your supervisory employee otherwise would attend in person at the company’s Headquarters which, if the franchisor does so, will lower your training costs.

Interested in receiving a deeper analysis about UPS Store?

UPS Store Franchise Cost Too High? (2022)

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