The Ups Store

Latest FDD: 2025-05-14Business ServicesRetail
Franchisor
The UPS Store, Inc.
Investment Range
$216,417 - $608,975
The UPS Store franchises Center locations that provide shipping, packaging, postal, print, and related business and communication services, with this disclosure focusing on Traditional location operations.
#Shipping#Packaging#Postal#Print#Business Communication

Sector comparison snapshots
See sector analysis data
Outlet growth scatter plot
Sector growth and unit size
Outlet growth churn scoreboard
Outlet growth and churn scoreboard by sector
Outlet growth and churn bar chart
Outlet growth and churn by sector
FAQs

Many people start by asking, "Is The Ups Store a good franchise?" There is no single answer because it depends on your goals, your local market, and the agreements you are signing.

Start by zooming out. Evaluate the sector and your local market context: demand drivers, customer acquisition costs, competitive intensity, pricing power, labor constraints, and how similar operators perform outside of franchising. A useful baseline question is whether you would pursue the same business without a franchise.

If the underlying business case still makes sense, then use the rest of this page as a diligence checklist. Review investment assumptions, ongoing fees, revenue disclosures (if any), outlet growth and churn trends, litigation or enforcement disclosures, and contract terms that affect transfer and exit.

Diligence should extend beyond documents. Understand the incentives of each person you speak with. Speak with multiple franchisees (including operators not selected or referred by the franchisor) and talk with other owners in the same industry to understand real-world performance, day-to-day challenges, and local market dynamics.

This page is not an exhaustive diligence review. Use sector benchmarking and additional research to test the brand narrative against market reality, and confirm details with the latest FDD and qualified advisors.

This page summarizes selected franchise disclosure data to support screening and comparison.

The estimated initial investment range is $216,417 - $608,975. It may also highlight fee structures, revenue disclosures when available, outlet growth history, litigation matters, and other diligence considerations.

Franchise Signal is a research and analysis tool. It is not legal, accounting, or financial advice, and it is not a complete representation of all franchise disclosures. Not every item is captured, some brands do not disclose certain information, and data can contain errors.

For a framework on how to read Franchise Disclosure Documents, including item-by-item explanations and diligence questions to discuss with counsel and advisors, see the Franchise Signal FDD Guide.

Before making any decision, read the full FDD, validate assumptions with franchisees and local operators, and consider independent market research.

Franchise brands operate inside broader market categories (for example: home services, maintenance, retail, QSR, fitness). Comparing a brand in isolation can be misleading because sector economics often drive outcomes.

Use the sector comparison snapshots and the Analytics Dashboard to benchmark The Ups Store against similar systems: outlet growth and contraction, churn patterns, unit size and density, and growth projections. The goal is to understand whether the brand's trajectory looks typical for its sector, or whether it is diverging in a way that warrants deeper diligence.

Sector context helps prioritize what to investigate next and which follow-up questions to bring to franchisees, lenders, and advisors.

Yes. Some decisions require more than a single-year snapshot. It can be helpful to review multiple years of disclosures and surface changes that are easy to miss when documents are reviewed one at a time.

A deeper review may include multi-year trends (growth, churn, and projections), litigation or enforcement disclosures over time, investment and fee changes year-over-year, and other signals that help focus diligence.

If you are evaluating The Ups Store for an acquisition, expansion, financing decision, or legal or advisory diligence, you can request a sample analysis and discuss a structured research workflow. This is designed to augment your work with attorneys and advisors, not replace it.

These are high-level research questions. Section-specific FAQs appear within each section.
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Used by advisors, investors, and operators for screening, benchmarking, and multi-year disclosure review.
Disclosure
Franchise Signal is an independent research platform and is not affiliated with or endorsed by any franchisor or franchise system.

We do not provide lead generation and we are not brokers, agents, or investment or legal advisors.

If data looks incorrect or you have questions, please contact info@franchisesignal.com.

Investment

Estimated initial investment ranges from the Franchise Disclosure Document

Upfront Investment (Item 7)

Estimated initial investment ranges by category, shown across available years.
Category Breakdown
$216,417$608,975
Category2025
Leasehold Improvements; Construction Costs; Signage; Furniture and Décor Items$69,520 - $356,934
Additional Funds - 3 months$40,000 - $70,000
Other Equipment$5,566 - $38,031
Initial Franchise Fee$29,950 - $29,950
Computer Hardware/Installation/Freight$18,365 - $20,196
Site Rent and Security Deposit$4,500 - $18,000
Insurance$1,000 - $15,000
Start-Up Supplies$6,180 - $9,155
Initial Training Fees$7,000 - $8,500
Center Development Fee$7,500 - $7,500
Initial Marketing Plan Fee$7,500 - $7,500
Software$3,489 - $5,489
Travel and Living Expenses While Training$3,000 - $4,000
Site Survey$1,900 - $3,500
Design Fee$3,000 - $3,000
Utility Deposits$900 - $3,000
Annual Technology Development and Support Fee$2,418 - $2,418
Digital Media$2,325 - $2,325
Time-Saving Kiosk$1,760 - $1,784
Printer Lease$544 - $1,749
Optional Keyless Entry$0 - $944
Total$216,417 - $608,975
FAQs

Treat Item 7 as a documented starting point, not a guaranteed budget.

Use it to build scenarios and identify where assumptions matter. Separate required costs from optional choices, and note which costs vary by location.

Then confirm the assumptions by reading the Item 7 footnotes and asking operators how their real spend differed and why.

Ask what operating model the estimate assumes and what is included versus excluded.

Confirm timing assumptions. Identify what must be paid before opening, what is paid after opening, and what depends on local requirements.

Ask for common surprise costs during the first 6 to 12 months and whether they are required by the system or driven by local conditions.

Franchise Signal can make mistakes. Always verify figures against the latest FDD.
Key Insights
  • Estimated initial investment range: $216,417 - $608,975.
  • Largest line items (by max): Leasehold Improvements; Construction Costs; Signage; Furniture and Décor Items, Additional Funds - 3 months, Other Equipment.
  • Item 7 ranges reflect assumptions and footnotes. Read the notes before comparing brands.
  • Totals can change without category detail changing if the franchisor updates grouping or definitions.
  • Use the ranges to build scenarios, then validate assumptions with operators and local research.

Fees

Fees

Royalty and ad fund contributions to the franchisor, shown across available years.
Fee20242025
Royalty5% of Gross Sales35% of Gross Sales
Ad Fund1% of Gross Sales2.5% of Gross Sales
Values shown here are simplified for readability and may not be the exact fee for your situation. Tier schedules, minimums, and special rules may apply. Always confirm the exact fee definitions, bases, and rules in the FDD.
This is not an exhaustive list of fees. For a full list of fees and YoY delta analysis, please get in touch or refer to the FDD.
FAQs

This section surfaces only two common franchisor fees when they are available and parsed: royalty and ad fund.

Many brands have additional fees and requirements that are not shown here, including technology fees, training fees, transfer fees, audit fees, supplier requirements, and other charges.

Please refer to Items 5 and 6 in the FDD for the complete fee table and the exact definitions.

Some fees have minimum payments even when sales are low, and some use tier schedules where the percentage changes at specific thresholds.

Verify the basis, such as "gross sales," "gross revenue," or "net sales." Two brands can list the same headline percentage but apply it differently.

Always confirm when the fee starts, whether any temporary reductions apply, and how the fee is calculated in the FDD.

Franchise Signal can make mistakes. Always verify presented figures against the latest FDD.
Key Insights
  • Royalty (latest): 35% of Gross Sales.
  • Ad fund (latest): 2.5% of Gross Sales.
  • These are franchisor fees only. They do not represent a full operating budget or pro forma.
  • Always confirm the exact fee definitions and rules in Items 5 and 6 of the FDD.

Revenue and Financial Performance

Item 19 representations and disclosures (if provided) and how to interpret the sample.
Revenue (Item 19)
Median: $686,743$68,027$2,932,748
Over Time (Where Disclosed)
Values below show min, median, average, and max by year when available. YoY percentages reflect 2023 to 2024 only.
Metric (based on reporting outlets)
2023
2024
Minimum Revenue$68,027
$68,0270.0% YoY
Median Revenue$691,869
$686,743-0.7% YoY
Average Revenue$721,274
$719,842-0.2% YoY
Max Revenue$2,932,748
$2,932,7480.0% YoY

FAQs

Item 19 tables often assume a specific unit definition, such as a single outlet, a protected territory, a trade area, or a defined service region.

Before comparing numbers, confirm what a unit represents for this brand and whether results are segmented by territory size, market type, or maturity.

Also check whether the disclosure mixes franchised and company-owned units, or separates them into different tables.

Item 19 disclosures rarely include every unit. Many franchisors limit the sample to outlets open for a minimum period, units with complete reporting, or a specific subset of locations.

Units may be excluded due to being newly opened, temporarily closed, transferred mid-year, non-traditional formats, or because the franchisor does not collect uniform data from all operators.

When a sample is smaller than expected, treat the figures as directional and focus on the inclusion rules, the time period covered, and how revenue is defined.

Key Insights
  • Reported range: $68,027 to $2,932,748.
  • Median reported revenue: $686,743.
  • Average reported revenue: $719,842.
  • Multi-year view: 2023 to 2024 (where disclosed).
  • Latest YoY change (2023 to 2024): median -0.7%, average -0.2%.
  • Item 19 is optional and often selective. Verify definitions and sample rules in the FDD.

System Growth and Stability

Outlet openings, closures, and churn signals (Item 20 Table 3).
Outlet Growth (Item 20)
Outlet counts shown here reflect franchised outlets only, not affiliate or company-owned locations. Some FDDs report these categories separately; always review the Item 20 tables and footnotes to confirm how each type of outlet is classified.
Outlets (latest): 5.3k
Net Growth:
+7.9%(4-year period)
Calculated as (5350 latest-year ending outlets - 4958 earliest-year starting outlets) / 4958. This measures overall franchised outlet growth from 2021 through 2024.
Churn:
+3.4%(4-year period)
Calculated as (39 total terminations + 131 total ceased operations) / 4958 earliest-year starting outlets. This measures cumulative exit activity relative to the starting system size from 2021 through 2024.
YearStartOpenedTerminationsNonrenewalsReacquiredCeasedEndNet
2021495811292022503779
20225037144832305138101
20235138141114032523294
2024523219211313475350118

FAQs

Churn is the rate of operator exits over time. It can reflect unit economics, operational difficulty, market saturation, or franchisor enforcement, depending on the system.

Even when net outlet counts grow, elevated churn can mean more operators are cycling in and out. That can affect brand stability, support load, and the predictability of outcomes.

Use churn as a signal to investigate, not as a verdict. Confirm definitions in the Item 20 footnotes before comparing brands.

Key Insights
  • Terminations and nonrenewals are not the same. Terminations are forced exits. Nonrenewals are an end-of-term outcome.
  • Ceased operations can include closures, transfers out, or other status changes. Read the footnotes for definitions.
  • Reacquired and transfers can make net growth look healthy while hiding churn. Track openings vs exits, not just net.

Litigation Matters

Litigation disclosures, presented neutrally.
Litigation Matters (Item 3)
This section summarizes Item 3 matters disclosed in the FDD. Summaries are simplified for readability and may omit context. Always confirm details in the full Item 3 disclosure and underlying filings when possible.
Latest year
2025
Matters (latest year)
8
Open vs resolved
5 open, 3 resolved
Counts are a starting point. Expand a matter to review allegations, outcomes, and parties.
2025 Disclosures
Morgate LLC, et al. vs. Mail Boxes Etc., Inc.; BSG Holdings Inc.; BSG Holdings Subsidiary Inc.; United Parcel Service, Inc., et al.
litigationCaliforniadismissed
Teresa Long v. The UPS Store, Inc. and The Britt-Tiff Company d/b/a The UPS Store #3152
litigationKentuckysettled
Kevin Richardson II v. The UPS Store, Inc. and J&V Logistics LLC d/b/a The UPS Store
litigationFederaldismissed
Alysson Mills, Receiver v. The UPS Store, Inc. et al.
litigationFederalpending
Barbara McLaren v. The UPS Store, Inc. et al.
litigationFederalpending
Reba Shavers v. The UPS Store, Inc. and Rex & Monica Ingram d/b/a The UPS Store #7181
litigationIllinoispending
Vincent Tripicchio v. The UPS Store, Inc. and JB & A Enterprises, Inc.
litigationFederalpending
Newlite Holdings Inc. v. The UPS Store, Inc.
litigationCaliforniapending
2024 Disclosures
Morgate LLC, et al. vs. Mail Boxes Etc., Inc.; BSG Holdings Inc.; BSG Holdings Subsidiary Inc.; United Parcel Service, Inc., a Delaware Corporation; United Parcel Service, Inc., an Ohio Corporation; United Parcel Service, Inc., a New York Corporation; Garcher Enterprises, Inc.; Gary and Cheryl Williams; and Rocky Romanella
litigationCaliforniadismissed
Liping Luo a/k/a Kelly Luo, Global Access Enterprises, Inc., and David Hang v. The UPS Store, Inc.
litigationFederaldismissed
Teresa Long, on behalf of herself and a class of similarly situated persons v. The UPS Store, Inc. and The Britt-Tiff Company d/b/a The UPS Store #3152
litigationKentuckysettled
Kevin Richardson II, on behalf of himself and a class of similarly situated persons v. The UPS Store, Inc. and J&V Logistics LLC d/b/a The UPS Store
litigationMassachusettsdismissed
Alysson Mills, in Her Capacity as Receiver for Arthur Lamar Adams and Madison Timber Properties, LLC v. The UPS Store, Inc. et al.
litigationFederalpending
Barbara McLaren, on behalf of herself and others similarly situated v. The UPS Store, Inc., Turquoise Terrapin LLC formerly d/b/a The UPS Store #4122, RK & SP Services LLC formerly d/b/a The UPS Store #4122, and Hamilton Pack N’ Ship LLC
litigationNew Jerseypending
Reba Shavers, on behalf of herself and others similarly situated v. The UPS Store, Inc. and Rex & Monica Ingram d/b/a The UPS Store #7181
litigationIllinoispending
Vincent Tripicchio, on behalf of himself and others similarly situated v. The UPS Store, Inc., JB & A Enterprises, Inc.
litigationNew Jerseypending
Newlite Holdings Inc. v. The UPS Store, Inc.
litigationCaliforniapending
FAQs

Item 3 lists certain legal actions involving the franchisor and related parties, as defined by the franchise disclosure rules.

A listing can be a diligence signal about dispute types or regulatory attention, but it does not establish liability or wrongdoing by itself.

Interpret each matter by reading the allegations, outcome, parties, and the underlying definitions and footnotes in the FDD.

Litigation listings are not proof of wrongdoing. Use them to guide diligence and verify details.
Key Insights
  • Matters in latest FDD year (2025): 8.
  • Latest year mix: 5 open, 3 resolved.
  • Item 3 disclosures are summarized and may omit context. Read underlying filings and FDD footnotes.
  • Do not assume liability or wrongdoing from a matter listing. Treat as a diligence signal.

FAQs

Additional questions to consider in diligence.
Other Key Items

These questions highlight common diligence topics beyond financial performance. Exact terms vary by brand and can change by agreement version. Always confirm details in the latest FDD and the full franchise agreement.

FAQs

Some agreements require payments after termination, nonrenewal, or closure, such as a fixed damages amount or royalties for a future period.

Confirm what triggers the obligation, how the amount is calculated, and whether it varies by cause. Review any cure periods, offsets, or exceptions.

Always verify the exact language in the franchise agreement and related exhibits.

Territory definitions vary. They may use zip codes, a radius, population, or a list of approved sites. Some systems provide limited or no exclusivity.

Confirm whether the franchisor or other franchisees can sell into your area through alternative channels, online leads, national accounts, or new formats.

Ask what happens if the brand adds new products or services that overlap your market.

Use this page for screening, then read the full FDD and the franchise agreement end to end.

Talk to multiple current and former franchisees, including operators not selected by the franchisor, and speak with other owners in the same industry to compare unit economics and operational realities.

Bring questions to independent advisors, including a franchise attorney and an accountant, and confirm assumptions with local market research.

These are general diligence questions. Verify all terms in the latest FDD and the franchise agreement.
Key Insights
  • Every franchise system is different. Do not assume terms are standard across brands.
  • Talk to multiple current and former franchisees, not just referrals provided by the franchisor.
  • Compare agreement terms to other operators in the same industry to calibrate what is normal.
  • Verify everything in the latest FDD and the full franchise agreement. Summaries can omit context.
  • Ask for plain language explanations of renewal, termination, transfer, and dispute resolution before signing.