The UPS Store Traditional Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$25,167 - $415,927
Franchise Fee
$9,950
Total US Locations
5,365
Business Summary
The UPS Store Centers are retail service businesses offering mail and parcel receiving, packaging, and shipping services through various carriers. The UPS Store also provides a wide range of other authorized products and services, including notary, printing, copying, office supplies, and communication services like faxing. These Centers are designed to meet the needs of businesses of all sizes, small business owners, home office workers, and consumers seeking convenient services.
Corporate History
The UPS Store's predecessor, Mail Boxes Etc. and Mail Boxes Etc. USA, Inc., began offering franchises for similar businesses in June 1980. On April 30, 2001, a subsidiary of UPS acquired Mail Boxes Etc., Inc., which later formally changed its corporate name to The UPS Store, Inc. on October 1, 2012. The brand has evolved its center designs over the years, introducing 'Blue Horizon' in August 2020 and 'Laser Lite' in April 2023, with expectations that all The UPS Store Centers will operate under one of these newer designs by 2032 or earlier. As of the 2024 fiscal year end, The UPS Store owns and operates 15 Centers.
Financial Overview
Investment Range
$25,167 - $415,927
Franchise Fee (Low)
$9,950
Franchise Fee (High)
$29,950
Royalty %
5%
Marketing %
3.5%
Equipment Costs (Low)
$16,008
Equipment Costs (High)
$210,897
Working Capital
$38,750
Audited Financials
Yes
Offers Financing
No
Financial Health Notes
Item 21 of the FDD notes that audited consolidated financial statements for The UPS Store, Inc. and its parent company, United Parcel Service, Inc. (UPS), are attached as Exhibit 6. However, it explicitly states that UPS has not guaranteed and does not guarantee The UPS Store's performance of obligations under the franchise agreement. The FDD does not provide a narrative or summary of the financial health beyond these statements and their components.
Financing Details
The UPS Store does not offer any direct or indirect financing to franchisees. Additionally, The UPS Store does not guarantee a franchisee's note, lease, or any other financial obligation. Franchisees are responsible for arranging their own funding.
Performance Metrics
Total US Locations
5,365
Franchised Units
5,350
Corporate Units
15
Avg Square Footage
1,300
Franchising Since
1980
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
8
Litigation Summary
The UPS Store has been involved in several litigations. Past cases included class action lawsuits filed between 2003 and 2016 related to rebranding and alleged excessive notary fees in Kentucky and Massachusetts. These cases were either settled or dismissed by 2021. More recently, The UPS Store is involved in multiple ongoing litigations filed between 2019 and 2023. These include a case alleging civil conspiracy and aiding and abetting related to fraudulent notary services, with a trial scheduled for April 2026. Additionally, there are ongoing class action lawsuits in New Jersey and Illinois regarding alleged excessive notary fees, which have seen recent activity and appeals in 2023-2025. Another ongoing case, filed in 2023, involves a former franchisee alleging misrepresentation and fraud concerning operating a competing business.
Bankruptcy History
The UPS Store has no bankruptcy history to report for itself or its management. Item 4 of the FDD states that no bankruptcy is required to be disclosed for the franchisor, noting that any relevant information regarding Area Franchisee bankruptcies would be found in Exhibit 9.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, The UPS Store franchisees must provide written notice of their intent to renew between six and thirteen months before the agreement's expiration. They must pay a renewal fee equal to 25% of the then-current initial franchise fee for new Centers and sign The UPS Store's then-current franchise agreement, which may have different terms. Franchisees must also be in full compliance with all existing agreements and financial obligations to The UPS Store and third parties. A key condition for renewal is to upgrade, remodel, and refurbish the Center's interior and exterior image to The UPS Store's then-current standards and specifications by a specified deadline. Additionally, they must execute a general release (if permitted by state law), provide written confirmation of their right to possess the location for the renewal term, and complete any required Renewal Refresher Training. Franchisees must also not be subject to any legal determination of joint employment with The UPS Store and must not have contested any findings that they are not joint employers.
Training & Support Program
Franchisor Assistance
The UPS Store provides franchisees with comprehensive assistance both before and after their Center opens. Pre-opening support includes reviewing and accepting a proposed site, providing a Laser Lite Center design, and coordinating construction through a designated Center Development Coordinator. Franchisees receive electronic access to confidential Operations Manuals and a license for The UPS Store's proprietary software. The franchisor also develops an Initial Marketing Plan and provides a multi-phased New Franchisee Training Program, which includes Web-Based Training, In Store Experience (I & II), the University Business Course, and Print Services Training. Post-opening, The UPS Store offers continuing consultation and advice via telephone, The UPS Store Hub, or other electronic means, with on-site visits at its discretion. Franchisees receive periodic supplemental or additional training programs and refresher courses, as well as advertising and promotional materials for local and regional marketing. The UPS Store also provides each Center with a website and submits directory listings to various online platforms like Google and Bing.
Initial Training Hours
197
Training Location
The UPS Store regional training locations, local/regional Certified Training Centers, and web-based/e-learning platforms
Ongoing Support
The UPS Store offers several ongoing support services to its franchisees after a Center opens. This includes making available software licenses and periodic upgrades for computer systems used for accounting, administration, financial reporting, and manifesting. Franchisees can request reasonable continuing consultation and advice via telephone, The UPS Store Hub, or other electronic means, and The UPS Store may send a representative for on-site assistance at its discretion. Supplemental and refresher training programs are provided periodically, which may be mandatory or optional, and are offered through online learning, regional workshops, and networking meetings. The UPS Store also develops and provides advertising and promotional materials for local and regional marketing, manages a website for each Center, and submits directory listings to online platforms.
Franchise Requirements
Ideal Candidate Profile
The UPS Store seeks candidates whose controlling owner can proficiently read, write, and converse in English. For first-time franchisees, they must meet financial qualifications and other guidelines for incentive programs, often requiring at least a 51% ownership interest in the franchise. The Center's day-to-day operations must be supervised full-time by an on-premises Primary Operator, who can be the franchisee or a supervisory employee. Even if the owner is not the Primary Operator, they must monitor the Center's operations and be aware of the Primary Operator's and other employees' actions and activities. For Multiple Center Owners, each Center must be overseen by a full-time, on-premises Certified Operator, with at least one Primary Operator for every five Centers.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
The UPS Store territories for Non-Traditional Centers are generally limited to the address and site of the specific venue, such as hotels, military bases, universities, convention centers, self-storage facilities, or airports, and do not extend beyond the Center's address. The UPS Store does not grant a minimum territory size, as territory size depends on market factors in the area. The UPS Store reserves the right to modify the territory boundaries upon transfer or renewal of a franchise agreement or if the Center is relocated.
Staffing Notes
The UPS Store requires that each franchised Center be supervised full-time by an on-premises Primary Operator. This operator can be the franchisee or a trained supervisory employee. If the franchisee owns multiple centers (Multiple Center Owners), each Center must be overseen by a full-time, on-premises Certified Operator. A Multiple Center Owner is also required to have at least one Primary Operator for every five Centers they own, with specific ratios detailed (e.g., 1 Primary Operator for 1-5 Centers, 2 for 6-10 Centers, etc.). Additionally, at least one full-time supervisory employee at each Center must attend and successfully complete all parts of the Print Services Training program, with a replacement required within 60 days if that employee leaves. The overall number of employees to be employed is at the franchisee's discretion, but they must be competent and trained.