Should You Invest in a UPS Store Franchise?

The UPS Store has grown to be known as the place to go for any “-ing” you may need. Whether it’s packing and shipping, printing, laminating or shredding, The UPS Store has got you covered. As such, the brand has become a go-to for many people, making it a phenomenal investment choice.

In 2022, The UPS Store was ranked second on Entrepreneur’s Franchise 500 list and first for postal and business centers. With over 5,000 locations, The UPS Store continues to grow, servicing neighborhoods nationwide.

So, Should You Invest in The UPS Store? 

The concept is clearly a strong one, but is it right for you? Here are a few things to consider.

Brand recognition: 

There is something to be said for brand recognition. Not only does The UPS Store continue to rank at the top of franchise lists but it is truly a favorite of many customers. With a strong brand identity already built, franchisees are able to buy into a concept that offers them a strong foundation.

Rather than working tirelessly to make a name for your business, you’re able to maintain the strong name the company has already established and dedicate more focus to providing a great customer experience and scaling your individual location.

Franchisor support: 

Like many franchisors, The UPS Store offers training and expertise. The brand also offers its commitment to advancement. In our ever-changing world, The UPS Store sits in a unique middle ground. Packing and shipping are long-established businesses, yet, they aren’t concepts that are necessarily on their way to extinction.

By continuing to offer a great experience in the more traditional areas while also embracing advancement, The UPS Store’s corporate team empowers franchisees to continue to grow in new ways, offering unique and innovative services and products to local communities.

High margins: 

Due to the nature of the business, there is great potential for franchisees to secure high profit margins. Though the initial investment is not especially low, the nature of The UPS Store’s business positions franchisees well to bring in a wide range of consistent, repeat business. With this, owners are able to secure a remarkable return on investment.

Initial and ongoing costs: 

According to The UPS Store website, startup costs can range from $80,357 to $508,472. Prospective franchisees are expected to have $75,000 in liquid assets and are able to borrow the remainder of the required funds.

Franchisees should also expect to pay ongoing royalties and fees over the course of their business ownership.

Franchisee discounts: 

Some prospective franchisees can receive a discount on their initial investment, making The UPS Store a strong contender for veterans and minorities. The concept also encourages women and retirees to invest, promoting its support systems and larger business ideology as a great, welcoming fit for a diverse group of entrepreneurs.

Though all of these factors are important to consider, there is never a one-size-fits-all answer to whether a certain concept is a good investment or not. For prospective franchisees, one of the most powerful choices to make is to speak with previous and current franchisees to garner a better understanding of what a “day in the life” can look like in addition to independent research. 

Compiling all of the data and anecdotal information will empower you to make the decision that is best for your unique circumstances, needs and aspirations.