The UPS Store Franchise Costs, Fees & FDD

Year Business Began: 1980

Franchising Since: 1980

Headquarters: San Diego, California

Estimated Number of Units: 5,700

Franchise Description: The UPS Store, Inc. is the franchisor. UPS is the parent entity. The UPS Store centers are retail service businesses which offer mail and parcel receiving, packaging and shipping services through various carriers and provide a wide range of other authorized products and services, including notary, printing, copying, office supplies and communications (such as fax) services. Centers are targeted to the needs of businesses of all size, small office/home office workers and busy consumers who are looking for timesaving services. The franchisor grants The UPS Store franchises for centers to be operated at traditional and non-traditional locations. Traditional locations are located in highly visible locations in strip shopping centers or in high foot-traffic downtown areas. Non-traditional locations include colleges, universities, hotels, resorts, military bases, convention centers, airports, self-storage facilities, inside other retailers, office buildings, bus or train stations, and outlet or regional malls. The franchisor also offers a Rural Program (to be marketed as the “Main Street” franchise model) for certain small town markets.
Training Overview: The franchisor offers a multi-phased New Franchisee Training Program that focuses on developing the business management, technical, conceptual and diagnostic skills necessary to grow the franchised business. Following an introductory web-based training, there are three basic parts to the New Franchisee Training Program: (1) the In Store Experience (ISE) Parts I and II, each of which is five days at a local/regional Certified Training Center and taught by a Certified Trainer; (2) the University Business Course (UBC), which is five days at a The UPS Store regional training location, or conducted virtually in the franchisor’s sole discretion; and (3) Print Services Training, which is three days, conducted at a local/regional Certified Training Center and taught by a Certified Trainer. The designated primary operator must also attend, and successfully complete (if he or she has not already done so), a Financial Management Training Program offered by an approved financial management training vendor no later than six months after the Franchise Agreement’s effective date. In its discretion, the franchisor will present periodic supplemental or additional training programs and refresher courses for all franchisees and their supervisory employees (mandatory or optional, in its discretion).

Territory Granted: Franchisees will be permitted to operate their center at a specific location acceptable to the franchisor. The Franchise Agreement will have an attached map and written description that will describe a geographic area surrounding the center. There is no minimum territory size the franchisor will grant a franchisee. The territory size depends on market factors in the area. Franchisees will not receive an exclusive territory.

Obligations and Restrictions: The franchisor typically does not require franchisees to participate personally as the center’s direct, “on-premises” operator or supervisor of operations. However, each center's day-to-day operations must at all times be directly supervised by an on-premises “primary operator.” All primary operators must first successfully complete the new franchisee training program and a financial management training program. At least one supervisory employee who works full-time at the center must attend and successfully complete all parts of the print services training program, and the designated primary operator must attend and successfully complete the financial management training program. Franchisees must use the premises solely for the operation of the center; must keep the center open and in normal operation for such minimal hours and days as may be specified by the franchisor; must refrain from using or permitting the use of the premises for any other purpose or activity at any time without first obtaining the franchisor’s written consent; and must operate the center in strict conformity with such methods, standards and specifications as the franchisor may from time to time require in the operations manual or otherwise in writing.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew for successive periods of 10 years each on the then-current version of the Franchise Agreement.

Financial Assistance: The franchisor does not offer direct or indirect financing and does not guarantee a franchisee’s note, lease, or obligation. Under certain incentive programs, the franchisor will provide an approximately 50% discount off the otherwise applicable initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$9,950	$29,950
Initial Marketing Plan Fee	$4,000	$7,500
Design Fee	$3,000	$3,000
Site Survey	$1,900	$3,500
Center Development Fee	$7,500	$7,500
Initial Training Fees	$5,400	$8,500
Travel and Living Expenses While Training (per person)	$3,000	$4,000
Site Rent and Security Deposit	$1,000	$18,000
Leasehold Improvements; Construction Costs; Signage; Furniture and Decor Items	$69,520	$356,934
Computer Hardware/Installation/ Freight	$18,365	$20,196
Digital Media	$2,325	$2,325
Optional Keyless Entry	$0	$944
Annual Technology Development and Support Fee	$2,304	$2,418
Software	$3,489	$5,489
Printer Lease	$544	$1,749
Other Equipment	$5,566	$38,031
Start-Up Supplies	$6,180	$9,155
Utility Deposits	$200	$3,000
Insurance	$1,000	$15,000
Additional Funds - 3 months	$40,000	$70,000
ESTIMATED TOTAL*	$185,243	$608,975

* The estimated initial investment range covers new traditional centers (from the rural program up thru a regular franchise). Please see the FDD for more details. Non-traditional center investment costs are covered in a separate FDD.

Other Fees

Type of Fee	Amount
Royalty	5% of STR (STR includes all gross sales plus gross commissions from the center, less allowable exclusions).
The UPS Store Marketing Fee	1% of STR.
National Advertising Fee (NAF)	2.5% of STR.
The Collaborative Dues	Varies from collaborative to collaborative. Range is $100 - $500.
Annual Technology Development and Support Fee	$2,418 (new center franchise and transfers); $2,304 (rural center); $2,304 per center if franchisees are purchasing their 2nd or greater franchise.
Transfer Fee	The current transfer fee is $6,000 (the franchisor may periodically increase this fee).
Processing Fee	The current processing fee is $6,000 if no finder's fee is paid to the franchisor; $1,500 if a finder's fee is paid (the franchisor may periodically increase this fee).
Renewal Fee	25% of the then-current initial franchise fee.
Insurance	Amount of unpaid premiums.
Audit	Cost of audit ($475 minimum) plus 18% interest or the highest rate allowed by law on underpayment. In addition, the franchisee must pay a late fee of $25 per week.
Audit Non-Prepared Fee	$500 per type of document (as specified in operations manual) not supplied upon auditor’s request but in no event greater than $2,500 per occurrence, and cost of audit (including reasonable expenses incurred by auditor) if rescheduled.
Non-Transfer Ownership Change Fee	$500
Incorporation Fee	$500
Family Transfer Fee	$1,750
Entity Name Change Fee	$500
Indemnification	Will vary under circumstances.
Late Payment Fee	$35 per month or 10%, whichever is greater.
Equipment or Equipment Lease and Computer Hardware/Software Maintenance	Varies.
iShip Processing Fee	$0.22 per transaction.
Upgrade Evaluation Fee	$500 to $750
Finder's Fee	The greater of $11,980 or 10% of the center's sales price.
Finance Charges	Highest annual rate allowed under applicable law.
Design Fee	Laser Lite - $3,000 or $900 (plus $350 in the event of a change) Blue Horizon - $900 (plus $450 in the event of a change) TUPSS 2000 - $800 (plus $350 in the event of a change)
Site Survey Fee	$1,900 to $3,500
Site Survey Re-visit Fee	$1,250 to $2,850
Optional Post-Construction Site Survey Fee	$2,050 to $3,250
Non-Compliance Fee	Currently $250, but the franchisor may charge up to $1,000.
Tax Reimbursement	Out-of-pocket cost reimbursement.
Customer Concern Reimbursement	Out-of-pocket cost reimbursement.

The above information has been compiled from the FDD of The UPS Store. Year of FDD: 2025.
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