How to Open a UPS Store Franchise. UPS was founded in 1980 and the first franchise opened the same year. UPS/Mail Boxes Etc. can be found not only in the US but also in more than 40 other countries. With proper training and support opening a UPS Store franchise can be a profitable endeavor.
Consider your initial and total franchise investment costs. The minimum financial qualification to purchase a franchise is between $60,000 and $100,000 of non-borrowed liquid capital. You must also be proficient in English.
Plan to have from $150,000 to $280,000 to open your UPS Store. You must also pay a 5% royalty fee, a 1% marketing fee, a 2.5% national advertising fee and a $29,950 standard franchise fee.
Find a local representative to assist you in choosing the best location for your new UPS Store franchise. There is also territorial protection, which means that no other UPS Store can be opened in your territory.
Attend training. The UPS Store franchise training program is offered to all new owners. This is a two-week hands on training program which includes information on operating procedures, services and systems as well as business management, sales and marketing.
Research how many franchises are successful in 1, 5 and 10 year intervals. Find out how many employees are required to operate a successful store and how you can meet payroll costs and accounts receivable in those early years.
Research owner satisfaction and franchise turnover before making the final decision. Go to the five closest UPS Stores and talk with the owners and management. Find out if they are comfortable with their profits and if they have the support of the company.