The UPS StoreFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The UPS Store franchise requires a total initial investment of $88K – $497K, including a $30K franchise fee. Per the 2024 FDD, average unit revenue was $687K[2]. SBA 7(a) loans show a 9.9% charge-off rate across 3,051 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $88K – $497K
- 7th pct Retail
- Avg gross sales
- $687K
- 8th pct Retail
- Royalty
- N/A
- Units
- 5,365
- 41st pct Retail
- SBA default
- 9.9%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1980. Systems this mature have refined operations and brand recognition.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $88K – $497K including a $30K franchise fee.
- Average unit revenue of $687K/year (median $720K).
- Verdict A (Top Quintile) with a risk score of 27/100. SBA loan charge-off rate of 9.9% across 3051 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The UPS Store, Inc.
- Parent company
- United Parcel Service, Inc. (UPS)
- Incorporated in
- DE
- HQ
- 6060 Cornerstone Court West, San Diego, California 92121
- Franchisor revenue
- $321.5M
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
The UPS Store franchisees operate retail shipping and business service centers, offering UPS/FedEx shipping, mailbox rentals, printing services, and business support (faxing, notary, etc.). Daily operations involve managing customer transactions, processing shipments, handling account reconciliation, and staffing retail locations.
- CEO
- Sarah Casalan-Bittle
- Headquarters
- CA
- Founded
- 1980
- FDD year
- 2024
- States available
- 51
FDD Item 7 · 2024 filing · 41 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (New/Relocation Traditional)not refundable | $30K | $30K | |
| Initial Marketing Plan Feenot refundable | $8K | $8K | |
| Design Feenot refundable | $3K | $3K | |
| Site Surveynot refundable | $2K | $2K | |
| Center Development Feenot refundable | $8K | $8K | |
| Initial Training Feesnot refundable | $7K | $9K | |
| Travel and Living Expenses While Trainingnot refundable | $3K | $4K | |
| Site Rent and Security Deposit | $5K | $18K | |
| Leasehold Improvements; Construction; Signage; Furniture and Decornot refundable | $67K | $249K | |
| Computer Hardware/Installation/Freightnot refundable | $11K | $15K | |
| Digital Medianot refundable | $4K | $4K | |
| Optional Keyless Entrynot refundable | $0 | $944 | |
| Annual Technology Development and Support Feenot refundable | $2K | $2K | |
| Softwarenot refundable | $3K | $5K | |
| Printer Leasenot refundable | $544 | $2K | |
| Time-Saving Kiosknot refundable | $2K | $2K | |
| Other Equipmentnot refundable | $9K | $38K | |
| Start-Up Suppliesnot refundable | $6K | $9K | |
| Utility Deposits | $900 | $3K | |
| Insurancenot refundable | $1K | $15K | |
| Total initial investment | $421K | $1.0M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$38K
5.5% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $88K – $497K
- Better than avg vs category
- Liquid capital req'd
- $8K – $70K
- Better than avg vs category
- Franchise fee
- $10K – $30K
- Better than avg vs category
- Royalty
- Not disclosed in provided text
- Ad fund
- 3.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $2K |
| Training fee | $7K |
| Transfer fee | $8K |
| Renewal fee | $8K |
| Inventory (initial) | $6K – $9K |
Financial Performance
- Avg gross sales
- $687K
- Per unit, per year
- Median gross sales
- $720K
- Item 19 type
- gross_sales
- Sample size
- 4931 units
- vs category median 49 · large
- Range (low → high)
- $85K→$2.5M
- Cohort dispersion (min → max)
- Quartile band
- $357K→$1.2M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 0 / 5
- vs category median 2 / 5 · below
Compared against 304 Retail brands
vs Retail averages
How The UPS Store Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,365
- Opened
- 192
- Last reporting year
- Closed
- 74
- Terminated
- 11
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.4%
- Company-owned
- 15
- Corporate units in the system
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 95.5%
- Owners selling to other franchisees
- Continuity rate
- 99.1%
- Units that stayed open
- Termination rate
- 4.2%
- Franchisor-initiated terminations
- Ceased ops
- 9.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 3,051
- Loan volume
- $654.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 9.9%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 90.1%
- 5-yr charge-off
- 2.3%
- Loans approved 2021+
- Active lenders
- 463
- Defaults
- 218
Vintage analysis
The UPS Store charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The UPS Store's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 35-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Material data gaps (no Item 19, undisclosed royalties) combined with a wide investment range and mature market headwinds create significant uncertainty around unit economics and franchise viability.
Litigation (Item 3)
13 case reference(s): 2 pending, 6 settled.
Largest disclosed settlement: $4
Bankruptcy (Item 4)
Disclosed in last 7 years
Area Franchisee bankruptcies disclosed in Exhibit 9
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 27 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — cannot validate revenue or profitability claims
- 02MINORWide investment range ($87,703–$496,745) suggests inconsistent unit economics or hidden costs
- 03MEDRoyalty structure not disclosed — potential for unexpected ongoing fee burden
- 04MINORNo unit growth data provided — unclear if system is expanding, stable, or contracting
- 05MINORHigh franchise fee ($29,950) relative to low-end investment suggests aggressive front-loaded costs
- 06MINORUPS Store operates in mature shipping/logistics market with declining mail volumes and increasing competition from digital alternatives
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Governing law | California |
| Litigation count | 9 |
View Item 3 litigation summary
13 case reference(s): 2 pending, 6 settled.
Items 10, 11
Training & Operations
- Classroom training
- 53 hrs
- On-the-job training
- 105 hrs
- Training location
- San Diego
- Field support
- 54 hrs/yr
- On-site visits per year
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Microsoft® Dynamics 365® Modern POS (MPOS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Microsoft® Dynamics 365® Modern POS (MPOS)
Item 20 · call current owners
Franchisee Contacts
5,555 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The UPS Store · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The UPS Store franchise?
The total investment to open a The UPS Store franchise ranges from $88K – $497K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The UPS Store franchise owners earn?
According to Item 19 of the The UPS Store FDD, the average gross sales per unit is $687K. The median is $720K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The UPS Store's franchise failure rate?
Based on SBA 7(a) loan data, The UPS Store has a charge-off rate of 9.9% across 3,051 loans, meaning 9.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many The UPS Store franchise locations are there?
As of their most recent FDD filing, The UPS Store has 5,365 total units in the United States, including 5,138 franchised units and 15 company-owned units. 192 new units were opened in the latest reporting year.
Is The UPS Store a good franchise to buy?
FranchiseVerdict rates The UPS Store as a A-grade franchise with a risk score of 27 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.