The UPS Store Franchise

The UPS Store, a UPS franchise, has been franchising since 1980 , currently with 5,600 total locations in the retail sector, headquartered in CA. The 2024 FDD lists a total initial investment between $138K and $470K, with the 240% low-to-high spread driven mainly by site size, market, and how extensive the buildout runs. This figure includes the franchise fee of $30K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.0% of gross sales; add the 1.0% advertising-fund contribution and the combined ongoing draw reaches 6.0% of gross sales. The UPS Store does provide Item 19 financial performance data -- a voluntary disclosure that most U.S. franchisors (roughly two-thirds) skip. The reported average gross revenue per location is $600K, meaning the typical unit pays roughly $30K per year in royalty alone. Remember that revenue is not profit -- what a franchisee actually takes home hinges on rent, labor, cost of goods, and local demand.

The unit count trend here is positive -- The UPS Store posted 1.8% net growth year-over-year (200 openings, 100 closures). Consistent expansion usually means the unit model pencils out for new owners, but a late-cycle growth spike can also come from an aggressive sales push rather than genuinely strong store-level economics.