How profitable is The UPS store? How much will it cost to open?
Updated: Apr 20
How profitable is The UPS store?
How much will it cost to open?
Can The UPS Store franchise be a profitable business venture?
Are you looking to invest in a franchise and wondering if opening a UPS Store is worth it? If so, then you’re in the right place! A UPS Store franchise can be an incredibly profitable business venture. However, it’s important to understand the costs associated with opening one up.
Let’s dive into the details and explore just how profitable a
UPS Store franchise can be.
Owning a UPS Store comes with many advantages compared to owning other types of businesses. For instance, you don’t need any previous experience in running a business since all staff members will be trained by UPS beforehand. Additionally, you benefit from established brand recognition which means customers already trust your service before they even try it out! Finally, you get access to networks of other successful businesses in similar industries which can help you grow your own success even further down the line.
The payoffs of owning a UPS store franchise
The payoffs of owning a UPS store franchise can be decent to great, depending upon how many franchise units you own. With this type of model, it is best to own at least three to five units to achieve a worthy annual net and high business valuation.
But it is important to remember that not all stores are profitable. To be successful, a UPS Store franchise requires a suitable site and efficient management.
How much does a UPS Store franchise owner make?
Based upon the numbers above, a The UPS Store franchise owner can expect to make a profit of only around $60,000 - $120,000
Questionable Profitability –
According to a very reliable source, it takes "about $365,000 in annual gross sales" to produce a modest "$35,000/yr income for the owner" and "about 60% of all US stores do not break even."
The average cost to open a store is around $350,000.
The minimum investment amount required to open a The UPS Store franchise is $138,433. It can go all the way up to $470,031.
The average adjusted gross sales for a UPS Store in 2020 was $607,750 according to their 2021 Item 19.
Net profit between $60,000 - $120,000 and 3-5 years to recoup investment.
We dive this franchise a D in terms of investment/return ratio.
Learn the franchises that get an A.
Advantages of a UPS Store Franchise
When you own a UPS Store franchise, you are essentially in the business of retail shipping. This means that your customers will be both individuals and businesses.
The UPS Store offers a wide variety of services that your customers can take advantage of, such as:
- Printing
- Packing and shipping
- Mailbox services
- Notary services
- Freight services
- Marketing and design services
You can expect your customers to use your services for both personal and business purposes. This provides you with a great opportunity to build relationships with your customers and become a trusted resource for them.
As a UPS Store franchise owner, you will have the support of the UPS brand behind you. This can be a great advantage when it comes to attracting customers and building your business.
The UPS Store franchise offers a proven business model that can be profitable for the right owner. If you are looking for an opportunity to be your own boss and build a business with potential for growth, a UPS Store offers nice advantages with the right unit strategy.
UPS Store Franchise Costs
Opening a UPS Store franchise will cost you between $138,433 and $470,031. These costs include the initial franchise fee of $29,000 as well as other startup costs such as equipment, signage, leasehold improvements, and working capital.
You will also need to pay a monthly royalty fee of 5%, which is based on your gross sales.
The UPS Store has a franchise term of 10 years, with the option to renew for an additional 10 years.
Is a UPS Store Franchise a Good Investment?
If you are looking for a business opportunity with potential for growth and profitability, a UPS Store franchise can be a good investment. The key to success with this franchise is to choose a good location and manage your business efficiently.
With the right strategy in place, a UPS Store franchise can be a profitable addition to your portfolio.
The UPS Store Average sales / revenue per year
Total Investment: $350,000
The UPS Store Owner's profit per year: Approximately: $100,000
Estimated time to profitability/ROI: 3.5 - 4 years
Number of UPS Stores in the US: 4,326 (as of December 2020)
UPS Store Franchise Cost: $138,433 - $470,031 Franchise Fee: $29,000
UPS Store Franchise Term: 10 years, renewable
Monthly Royalty Fee: 5% of gross sales
Financial requirements and fees
UPS Store Franchise Requirements: You must have a net worth of at least $350,000 and liquid assets of at least $100,000 to qualify for a UPS Store franchise. You will also need to have prior business experience and be able to pass a background check.
Monthly Royalty Fee: 5% of gross sales
Marketing Fee: 2.5% of gross sales
Learn how The UPS Store franchise owners compare to a gym franchise owner salary.
Are The UPS Store top earning franchises amongst the most lucrative franchise?
Is the postal and business services franchise segment growing?
Learn if a The UPS Store business services franchise is worth it as you explore the ups store network.
Learn the franchises that cost much less than
The UPS Store and can make you MUCH MORE!
Click Here to learn more.
Advantages of a The UPS Store Franchise
Instant brand recognition and trust from businesses and consumers alike.
Wide variety of services that your customers can take advantage of, such as:
- Printing
- Packing and shipping
- Mailbox services
- Notary services
- Freight services
- Marketing and design services
You can expect your customers to use your services for both personal and business purposes. This provides you with a great opportunity for multiple revenue streams and repeat, high value customers you can depend on for steady revenue.
How much does a UPS Store franchise owner make?
The UPS Store Owner's average profit per year is approximately $100,000. It takes "about $365,000 in annual gross sales" to produce a modest "$35,000/yr income for the owner" and "about 60% of all US stores do not break even."
Is The UPS Store a good investment?
The UPS Store offers a proven business model that can be profitable for the right owner. If you are looking for an opportunity to be your own boss and build a business with potential for growth, a UPS Store offers nice advantages with the right unit strategy. We recommend 3 -5 units for a properly capitalized investor.
What is the most profitable franchise to own?
There are hundreds of top franchise investments out there that can be grown to be very profitable businesses. But not all of them are right for you. Want help figuring out your best franchise investment or investment strategy?
Get a free franchise consultation from experts!
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