The UPS Store Franchise Cost, Revenue & Review 2026
- Investment
- $222K – $606K
- Disclosed sales
- $724K
- gross sales, not profit
- SBA charge-off
- 9.9%
- on 3,051 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The UPS Store is a retail shipping and business-services franchise offering packing, multi-carrier shipping, mailboxes, printing, and notary. Franchisees run storefront centers serving consumers and small businesses.
FranchiseVerdict summary · 2026
A The UPS Store franchise requires a total initial investment of $222K – $606K, including a $20K – $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $724K[2]. SBA 7(a) loans show a 9.9% charge-off rate across 3,051 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $222K – $606K
- 25th pct Retail
- Avg gross sales
- $724K
- 8th pct Retail
- Royalty
- 5.0%
- 6th pct Retail
- Units
- 5,503
- 45th pct Retail
- SBA charge-off
- 9.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $222K – $606K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $724K/year (median $693K).
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). 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, 2010–2025).
- GROWTHPositive: net +137 franchised outlets in the latest year (187 opened, 50 closed) (Item 20).
- SCALEEstablished system with 5,503 units across 46 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The UPS Store, Inc.
- Parent company
- United Parcel Service, Inc. (UPS)
- FDD Item 1, page 7 of the 2026 FDD
- Ultimate parent
- United Parcel Service, Inc.
- FDD Item 1, page 7 of the 2026 FDD
- Predecessor
- Mail Boxes Etc., Inc.
- Prior franchisor entity
- CEO title
- President
- Sarah Casalan-Bittle
- Incorporated in
- Delaware
- HQ
- 9350 Waxie Way, Suite 520, San Diego, California 92123
- 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
- CEO
- Sarah Casalan-Bittle
- Headquarters
- California
- Founded
- 1980
- FDD year
- 2026
- States available
- 51
Can you afford it, and what does the money buy?
Entry cost runs 23% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Initial Marketing Plan Fee | $8K | $8K | |
| Design Fee | $3K | $3K | |
| Site Survey | $2K | $4K | |
| Center Development Fee | $8K | $8K | |
| Initial Training Fees | $7K | $9K | |
| Travel and Living Expenses While Training | $3K | $4K | |
| Site Rent and Security Deposit | $5K | $18K | |
| Leasehold Improvements; Construction Costs; Signage; Furniture and Decor Items | $68K | $362K | |
| Computer Hardware/ Installation/Freight | $17K | $23K | |
| Digital Media | $3K | $3K | |
| Optional Keyless Entry | $0 | $2K | |
| Annual Technology Development and Support Fee | $3K | $3K | |
| Software | $3K | $5K | |
| Printer Lease | $399 | $1K | |
| Time-Saving Kiosk | $2K | $2K | |
| Other Equipment | $3K | $16K | |
| Start-Up Supplies | $6K | $9K | |
| Utility Deposits | $900 | $3K | |
| Insurance | $1K | $15K | |
| Total initial investment | $222K | $606K |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $222K – $606K
- Top 40% of category vs category
- Liquid capital req'd
- $40K – $70K
- Top 40% of category vs category
- Franchise fee
- $20K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% |
| Technology fee | $3K |
| Training fee | $7K |
| Transfer fee | $6K |
| Renewal fee | $8K |
| Inventory (initial) | $6K – $9K |
What do units actually make?
Average unit sales run 10% below the retail norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for The UPS Store until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$469K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one The UPS Store unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $724K
- Per unit, per year
- Median gross sales
- $693K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 5,058 outlets
- vs category median 46 · large
- Quartile band
- $346K→$1.2M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 278 Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $724K/year in gross sales. Revenue-to-investment ratio: 1.7x.
Fee burden
5.0% royalty + 2.5% ad fund.
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units.
Operator retention
System roughly stable (+4.9% 3-year CAGR) with 5,503 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How The UPS Store Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,503
- Opened
- 187
- Last reporting year
- Closed
- 50
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 16
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +4.9%
- Net unit change over 3 years
- 3-yr CAGR
- +4.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Not renewed
- 0
- Reacquired
- 1
- 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.
Where the owners are · Item 20 owner list
5,338 current owners across 50 states; 217 former (terminated, transferred or not renewed) listed separately.
- CA 878
- FL 558
- TX 433
- NY 257
- GA 243
- IL 193
- NJ 191
- NC 175
- AZ 163
- PA 148
- OH 141
- VA 135
- +38 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 3,051 loans · 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
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 11.5%
- brand beats franchise avg ↓
- Jobs supported
- 12,330
- 1.9 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 48% went to startups / new businesses, 52% to established operators
Franchise vs independent — in private mail centers, franchised businesses charge off at 11.5% vs 23.9% for independents — franchising is associated with 52% lower SBA default risk in this category.
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.
Top lenders financing The UPS Store franchisees
Showing 3 of 463 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The UPS Store from SBA 7(a) FOIA data.
- Principal loss rate
- 3.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.32%
- Avg chargeoff amount
- $90K
- Lender concentration
- 5.7%
- Job velocity
- 1.9 per $100K
- Startup risk premium
- +4.1pp
- NAICS benchmark
- 10.0%
- NAICS 561431
- Jobs supported
- 12,330
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 174 | $28.1M | 8.5% |
| 2 | The Huntington National Bank | 174 | $34.0M | 5.9% |
| 3 | Readycap Lending, LLC | 150 | $29.4M | 26.0% |
| 4 | Bank of America, National Association | 109 | $30.4M | 6.0% |
| 5 | PNC Bank, National Association | 103 | $13.5M | 5.3% |
| 6 | GE Capital Small Business Finance Corporation | 98 | $13.2M | 20.4% |
| 7 | JPMorgan Chase Bank, National Association | 91 | $14.1M | 11.0% |
| 8 | Business Lenders, LLC | 80 | $12.6M | 8.8% |
| 9 | U.S. Bank, National Association | 75 | $19.5M | 10.3% |
| 10 | TD Bank, National Association | 69 | $17.0M | 6.1% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 382 | 30 | 10.9% |
| TXTexas | 282 | 34 | 15.0% |
| FLFlorida | 240 | 14 | 9.0% |
| GAGeorgia | 171 | 11 | 9.8% |
| OHOhio | 135 | 11 | 11.0% |
| PAPennsylvania | 116 | 5 | 7.7% |
| ILIllinois | 111 | 5 | 7.9% |
| AZArizona | 106 | 13 | 13.3% |
| NCNorth Carolina | 105 | 6 | 9.8% |
| NYNew York | 100 | 5 | 6.8% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 9.9% — 38% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
9 disclosed cases against a very large 5,234-unit system, primarily routine franchisee/notary-fee class actions (a 2013 re-branding class action settled for $4.2M). Litigation count is low relative to system size and not alarming. Strong financials: net worth $290.4M, net income $90.0M, no bankruptcy or going-concern.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Nine active or recently-settled cases, predominantly putative class actions alleging franchisees (and TUPSS) overcharged state-regulated notary fees (Kentucky, Massachusetts, New Jersey x2, Illinois), plus a legacy 2003 class action re: Mail Boxes Etc. rebranding (settled $4.2M for 143 centers plus $112,500 individual settlement), a receiver's suit alleging notary-related aiding of a Ponzi scheme (settlement being finalized), a former franchisee's territory/non-compete dispute (Newlite), and a franchisee-vs-franchisee social media dispute where TUPSS settled for $28,900.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINOR9 suits across 5,234 units (low relative to size)
- 02MINOR$4.2M class-action settlement (2013), routine matters
- 03MINORStrong financials: net worth $290.4M, net income $90.0M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Mapped area around the Center set by market factors; no minimum territory size |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Governing law | California |
| Litigation count | 9 |
View Item 3 litigation summary
Nine active or recently-settled cases, predominantly putative class actions alleging franchisees (and TUPSS) overcharged state-regulated notary fees (Kentucky, Massachusetts, New Jersey x2, Illinois), plus a legacy 2003 class action re: Mail Boxes Etc. rebranding (settled $4.2M for 143 centers plus $112,500 individual settlement), a receiver's suit alleging notary-related aiding of a Ponzi scheme (settlement being finalized), a former franchisee's territory/non-compete dispute (Newlite), and a franchisee-vs-franchisee social media dispute where TUPSS settled for $28,900.
Items 10, 11
Training & Operations
- Classroom training
- 53 hrs
- On-the-job training
- 105 hrs
- Training location
- Certified Training Centers (local/regional) and The UPS Store regional training locations (or virtual)
- Ongoing training
- Required
- Field support
- 105 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
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 $222K – $606K, with an initial franchise fee of $40K. 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 $724K. The median is $693K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns The UPS Store?
The UPS Store is franchised by The UPS Store, Inc.. Its parent company is United Parcel Service, Inc. (UPS). The ultimate parent named in the FDD is United Parcel Service, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the The UPS Store FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the The UPS Store FDD and qualifies whose outlets they describe.
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 5,503 total units in the United States, including 5,487 franchised units and 16 company-owned units. 187 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 verdict score of 79 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.