The UPS Store Franchise
Cost, fees, owner earnings, closure rate and litigation for a The UPS Store franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
The UPS Store discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No Item 19 Financial Performance Representation found in excerpts provided. No revenue, profit, or earnings data disclosed. Significant omission for prospective franchisees evaluating returns.
What a The UPS Store franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $29,950 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
Ad fee = 1% marketing + 2.5% NAF (capped ~$27,734/yr); collaborative dues extra up to $500/month.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Is The UPS Store worth it? — how it compares to 59 similar franchises
| Ongoing fees | 8.5% of sales | steeper than 65% of retail & business services franchises |
| Disclosure honesty | Grade F | less honest than most of the category |
| Disclosed lawsuits | 8 | more litigious than 93% of peers |
Benchmarked against every retail & business services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a The UPS Store
The franchisor's framing: No Item 19 Financial Performance Representation found in excerpts provided. No revenue, pr… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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The UPS Store franchise — frequently asked
- How much does a The UPS Store franchise cost?
- The UPS Store's current FDD excerpt doesn't clearly state a total investment range — ask for Item 7 directly.
- How much do The UPS Store franchise owners make?
- The UPS Store discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the The UPS Store franchise fees?
- The UPS Store's FDD discloses a $29,950 initial franchise fee, a 5% royalty on gross sales, a 3.5% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. Ad fee = 1% marketing + 2.5% NAF (capped ~$27,734/yr); collaborative dues extra up to $500/month.
- What is the The UPS Store franchise profit margin?
- The UPS Store discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the The UPS Store franchise failure rate?
- Item 20 outlet counts, terminations, and cessations not included in provided excerpts.
- How many The UPS Store locations are there?
- The UPS Store's Item 20 outlet table isn't clearly stated in the filing excerpt — request the full Item 20 before relying on any unit count.
- Does The UPS Store have complaints or lawsuits?
- The UPS Store discloses 8 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a The UPS Store franchise worth it?
- It depends on the numbers, not the pitch. The UPS Store scores F on disclosure honesty, carries about 8.5% of sales in ongoing fees, and discloses 8 legal matters. Get the real owner take-home before you sign.
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Compare The UPS Store to similar franchises
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Source: MN CARDS 34096-202505-01 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with The UPS Store or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.