UPS Store Franchise Cost, Earnings and Review

UPS IS CURRENTLY RANKED #4 IN THE FRANCHISE 500 - ARE YOU CERTAIN YOU CAN TRUST INDUSTRY REVIEWS?
Lately we have had several requests to review the UPS franchise, is it a good franchise to own? Let's take a look.
Taken from their 2017 FDD the Cost to open a UPS Store franchise ranges from $177,955 to $402,595. Royalties are 5% marketing is 1% national ad fee is 2.5%. We'll get into some more fees a bit later on.
To clarify the business relationship - The UPS Store, Inc. is the franchisor and UPS is the parent entity. UPS franchised stores are retail storefronts which offer mail and parcel services as well as other assorted services like notary,copying, office supplies, printing and others.
UPS is a very well known brand name - and like we have said in other videos with franchises like Subway or Quiznos, a big name does not necessarily mean security and wealth for its franchisees. Please don't think just because a franchise is well known that you don't need to perform due diligence.
The UPS Store franchise has been no stranger to Litigation over the years. when MailBoxes etc switched to UPS way back in 2003 they were sued class action style based on the assertion that this rebranding violated California, New York and Illinois franchise laws. Many, many franchisees were very unhappy when this change took place and the consensus seemed to be that their potential for profits were severely undermined and that UPS had essentially cheated them. As a result of that suit ultimately 10 years later 143 franchisees were awarded $4.2 million. The claims of the class action suit were not part of the settlement and remain pending.
If you take a close look within the pages of the UPS franchise 550 page franchise disclosure documents, there are almost 10 pages of lawsuits concerning in legal terms things like breach of contract, fraud, negligent misrepresentation and similar. In non legal terms a lot of franchisees felt they were royally screwed by UPS.
Not to be outdone UPS of America then sued a bunch of their own franchise owners in 2014 for things like trademark infringement, breach of contract, unfair competition, and failure to comply with post termination provisions of their franchise agreements. The franchise owner defendants denied all claims and filed a counter suit against UPS. Last I heard the franchise owners and their 11 stores had been ordered to pay UPS franchising 1 million dollars.
There are other lawsuits against the UPS franchise including allegations of overcharging for notary services, civil theft, slander, fraudulent use of personal identification without consent, even some RICO act (Racketeer Influenced and Corrupt Organizations). In defense of UPS they do state they intend to vigorously defend against these allegations. (continued at www.franchise.c...
www.theupsstorefranchise.com
www.unhappyfran...

[@FranchiseCityOnline]

Need help finding the best franchise for your market? Visit Franchise City Brokers: www.franchise.city/our-services

[@johncrandall5782]

I've never seen a UPS Store be busy. I've always wondered how they stay in business

[@dangda-ww7de]

Some store in good location do make it, but majority of them just die.

[@FlyRunwayHeading]

All depends on location

[@MuffinMan0521]

I have no interest in investing in a franchise, but for some reason I find these video's interesting. Before I starting watching I thought it was as simple as just opening a franchise and it would just make a profit. Good to know it's not as black and white as people think.

[@FranchiseCityOnline]

Thanks for the comment!

[@MrMopeake]

MuffinMan0521 I don’t plan on investing but I find these videos very interesting as well.

[@georgejones1485]

Same here MuffinMan. I do like these videos though as far as what to look out for and consider. I think it's good to have as kind of a general base of knowledge about business. I am surprised many of the mailbox franchises net maybe 40k a year with the owner working it full time. Ouch talk about buying yourself a job. I thought the got junk episode was really interesting, I had seen them a few times in my area but had no idea how profitable that can be. I guess it's one of those '1st world' problems, the more affluent a society I guess the more what we call 'junk' needs getting rid of! This man knows how to analyze businesses, that's obvious. Reading a 550 page UPS Store franchising agreement? Yikes talk about some light bedtime reading lol.

[@thequake180]

the franchise model works like this - you do all the work while the franchisor sits back and gets all the money.

[@mtadams2009]

I worked in field service for 30 years and I used to ship a lot of parts back for repair. My company used UPS for about 10 years and I frequented the UPS stores a lot. The only one that the owner did not cry about not making it was on the edge of our state university, it was always busy and seemed to do well. The other three were dead and all went out of business or were sold within a few years. One of the owners was selling crafts he made on his free time just to get by, and when ai mean free time it was at his business that was dead. I would say location is everything. It seems nickel dime to me.

[@Leslie34565]

Your company used UPS or the UPS store? If you used UPS, the UPS Store did not make any monet on servicing your "so call used UPS"

[@mtadams2009]

@@Leslie34565We use UPS. They sent us pre made labels. I just needed to find a UPS business to send them back. I never spent a dime at these UPS stores, so of course they did not love me.

[@The4Crawler]

The owner of the store my mailbox is at used to be a UPS store. They ended that affiliation a few years ago and went independent. It's now called the Fed Up Store. My business used to ship a lot of items via UPS, but that dimensional weight issue was killing us. The biggest issue was when they went to the automated side/top view cameras on the conveyor belt to determine that. We would pack our items in a 12"x12" box of a certain length and if you took the circumference+length it was below the dim.weight limit. However, if that box landed on a corner when imaged, it would show up as 16" wide and wall (since it was a diagonal measurement) and that would push us into the dimensional weight rates. What was a $70 package, was now $200 or more. We gave up on UPS shipping and dropped products that required that shipping method.

[@FranchiseCityOnline]

Thanks for the comment!

[@Mark.Watson]

I had to look - there really is a former UPS Store called the Fed Up Store!

[@Lengsel7]

Every time I've ever been in a UPS store, I've wondered how they can possibly make any money at all.

[@james64468]

I am going to add something to that. They don't really make that much. If someone does accesspoint they only making .50 per package.

[@bobbluefield557]

it is like a S1.10

[@bobbluefield557]

@NYTom60 ups sets the prices in the UPS stores......they aint ripping no one off.......

[@thequake180]

you make more money being a UPS driver than owning a UPS store.

[@afridgetoofar1818]

@@thequake180I know UPS drivers who make over 100k per year.

[@nunyabizness3866]

Mail Stores have been a bad idea in general for over a decade. Its like opening a Horse and buggy whip store next to the Ford Motor company assembly plant.

[@localguy6547]

This is an old video : I used to own a independently non franchised postal store. They make money, if you have it in a good location, however, it will need work and dedication. Packaging services are money makers if you have the skills and training. Printing business is also a great way to make great profits. The UPS Stores are also money makers but LOCATION, LOCATION, LOCATION is key. Just remember be nice to your local pack and send store, they are there to make a living too. Personally I would never buy a franchise store of this kind, I would however buy if they had a the Mailboxes, etc model.

[@Mark.Watson]

I have a mailbox at a UPS store. It's usually busy when I'm in there, but I've noticed a lot of the customers are there for two reasons: drop off Amazon returns or drop off satellite receivers. I'm guessing they get nothing for the Amazon returns and a small handling fee for the satellite receivers. They do copy/print services as well so maybe that's where the money is.

[@FranchiseCityOnline]

Interesting points! Thanks for the comment.

[@thomasbreiling5551]

They get around 25 cents for a package drop off and 2 dollars for Amazon returns I believe

[@shuzhenyan4458]

@@thomasbreiling5551 $1 for package drop off.

[@clallen2000]

The owner of a UPS store near me tried to sell me her location after she had worked at it daily from open to close. I knew that this was just buying a job. She finally sold her shop and the guy that bought it is stuck at the location all the time and never has any other workers.

[@meraiahconde]

My friends have a UPS store and they are still at a loss after 4 years of ownership.

[@FranchiseCityOnline]

Sorry to hear that - thank you for the comment

[@sitdowndogbreath]

I've had many mailboxes throughout the years and out of all of them only two were successful the rest were trash

[@aintdatsnipes177]

lol

[@dangda-ww7de]

If a business make money the owner would never sell, they only sell when they lose $ and the people that buy in will end up loosing as well.

[@voland4513]

This is a fact, if some one makes money with a franchise why will they sell the money making machine?

[@Leslie34565]

Best insight about the THE UPS STORE.

[@clutchcargo2419]

I remember some years ago franchisees of subways losing money- allot of them from other countries coming to the US.

[@okwtme]

I just recently subscribed to your channel and find it very interesting and educational. I have looked at some of your videos and was wondering if you had one on buying a FedEx route(s).

[@FranchiseCityOnline]

Thanks for the question. I think Fed-Ex is more of an independent contractor gig. Sorry I don't know much about it.

[@1300mikehoward]

buying fedex route, I retired from fedex ground 2010, Fedex grd was sued/class action suit. Now you must have at least 3 routes, you must provide health ins for your drivers, as the owner you can't be a permanent driver you can only fill in when a driver is out, at a stop you make about $2 for the first package and 25 cents for each additional box.EX if a stop has 6 packages, the first box is $2 and the last 5 boxes are worth $1.25 bring the stop total to $3.25 while fedex get about $30-60. you pay for your truck with has to be a certain year unless you buy it from an existing truck in use with another contractor, maintenance, fuel, equipment rental, terrible loads which are done by fedex employees, late departures dues loaders and late arrivals of tractors, Management constantly working against contractors, both dishonest management and customers, Fedex determines whether the weather is bad or not which determines whether you will go out or return early, I worked for 10 years in MD and never been dispatched to come back early and they always sent us out. the weather could be against your best judgement but they make the final cal to my knowledge and of course if you get in an accident, you are liable. I probably had a say but management always treated to send your contract up for breach of contract or whatever else. You must operate at 98% delivery of freight daily and they would try to load other contractors boxes on you. I operated four different zips and was doing an area that wasn't even mines for a couple years until i challenged management only to find out the stops that caused my late times wasn't even on my route, my point is management was aware the whole time but would treating me if I made a late stop. I could go on an on about Fedex it wasn't all bad i loved mount of my customers minus the dog attacks lol Get a good accountant from day one and stay on top of the business side too! i hope this helps

[@clallen2000]

Several years ago I had a a business where I would regularly pickup packages and mail at the UPS store. I noticed that anytime I went in from 7am-6pm the owner was always working. One day she asked me if I wanted to buy a UPS franchise because she was selling it. I declined because the business violated my personal rule that an owner should never have to work more than 10-20 hours per week at a business. If I am running multiple businesses my time is extremely valuable. She did finally sell the business to a foreigner and that guy now works about 12 hours a day there with no employees or vacation ever.

[@FranchiseCityOnline]

Dodged a bullet! Thanks for the comment.

[@Lucas-ct8zk]

good point

[@SEEKERONE1]

That is the difference from being self employed and owning a business. Lol

[@glennmiller9768]

Thank you! Although I have no interest in investing in a franchise you present so much information causing eyes to be opened.

[@FranchiseCityOnline]

Thank you for the comment!

[@AQuietNight]

UPS itself is getting pricey to ship with. I can only imagine the cost using a UPS store since they have to get their percentage.

[@parkercrossjr9389]

Do a vid about owning an NFL franchise!

[@shawnvanderdoes9823]

That I think would be a great idea.

[@AB-pr4uc]

so limited in availability and entry cost that I'm not surprised he won't bother.

[@ARon82]

Cost of entry, $150,000,000....lol

[@saltyapostle44]

Only time I ever used a UPS store the shipping fees and cost to pack were outrageous. Another time I needed a box to ship a guitar with - and they charged me $24 - for a cardboard box. Never went back.

[@GainingDespair]

"Anyone can be a mechanic some may just need a special tool box" essentially you can be successful in anything as long as you do well. The two biggest things I've learned by becoming an adult was "Only children make excuses for their actions/failure of actions" and "Look where everyone is going in life, turn around and run in the opposite direction".

[@shodemmainman9871]

This is a marvelous quote, I thought I was the only one thinking this way

[@dallasryder8125]

Don't do it. Every UPS store, I've seen since growing up in the 90's closed. One just opened, near my shop. An I've never seen anyone go in, other than myself to drop off "returns" or pre labeled items. The "new" one by me. Had sat vacant after, being made for a year. Until a single owner, now runs it. It's depressing in there, that he even locks the door most times. When he's working in the back

[@macrolosses]

Do a review of owning and operating a crack house. I feel like its easier money than most main stream franchises.

[@Iconoclasher]

I've watched a few of your videos and in some you said a good business to get into is a printing shop. That's puzzling because people today can do a substantial amount of printing at home with practically zero investment. (they already have a computer and printer) Please clarify.

[@FranchiseCityOnline]

It can be, depending on the person and location. The cost to color print at home actually will be more (based on cartridge cost) and the quality lower than having it professionally done. Business printing is completely different than at home printing. Also lots of business printing involves binding, wide format, plotter, special graphics etc. The fact a micro business owner prints 100 flyers in his basement and tapes them to a telephone pole isn't impacting the industry. Thanks for the question!!

[@juanbolanos2217]

Printing can be a great business and very profitable if you know how to compete. here in houston especially where our shop is located we have a lot of competition We also make signs and print T-shirts we have a well train sales team and we go directly to businesses. pros: Very profitable and customers will need you again. cons: Competitive (depending on location) it is very delicate you have to be very very careful because even with the best printers mistakes happen and is very easy to mess up and you have to re-check for human error we had times where 10,000 invoices where send back because of one dot. and if you are asking yourself no I don't do the typing job we have well train workers doing what they love😀

[@FranchiseCityOnline]

Thanks for that information!

[@robertoaranda6455]

I live in New Orleans and the ups uptown location is busy all day... no matter what time it is the place is packed !

[@FranchiseCityOnline]

Thanks for the comment. Google maps at 6221 S Claiborne Ave shows an empty parking spot right in front of the store during peak hours - so while it might often be busy, its not "always" busy :-) Looks like they have great customer service based on their reviews - so kudos for them for running a solid local business.

[@Leslie34565]

Don't get confused it's all free service demending self procramed as "customer" Have you ever seen any customers who claim them self as customer but fight with paying Doller?

[@Taurineg]

i’ve always wonder do they get paid for amazon returns and other prelabelled items. it seems like that’s half or more of their traffic and we don’t pay a penny for those.

[@mobutterbeats8646]

They get 1 dollar for those

[@Leslie34565]

One dollar but 25 cent for royalty and packaging material they pay I heared. To compare the demends of ppl on top of extreamly high paying employees these days! it doesn't make sence all all.

[@spineventz7947]

what about opening an independent mailboxes, packing and printing with services like notary, fingerprints, western union and more....

[@kaykaykr386]

Good going. Please review 7-Eleven business also. Why SBA and other govt agencies do not allow loans for buying 7-eleven business.

[@geoffdearth8575]

I haven't seen many franchises that would seem promising for a young person with an extra million laying around. But then if you have that, just get a job and put that money into index mutual funds.

[@KeithMarvK]

I’m strongly considering starting a delivery business in the new Amazon offer. This is a new endeavor all around, franchisor and franchisee. What kind of research should I do to know if this would be a good fit for me? Risk is welcomed and expected. I just want to minimize them of course. The math doesn’t appear to seem all that great when it comes down to cost and liability vs profit. But getting rich fast isn’t necessarily what I’m after. Having a viable and sustainable future in business is. I’m positive your reply will be helpful. Perhaps determining the best franchise opportunity for me may be accomplished with dedicated help from Franchise City.

[@FranchiseCityOnline]

Hey Keith - thanks for the comment. I had no idea this opportunity even existed so thanks for bringing it to my attention. Give me a few days to look it over and consult our business connections in logistics to get their feedback.

[@KeithMarvK]

Franchise City I’m anxious to learn what your outlook is on Amazon’s new idea. Your channel has already been helpful and you’ve gained another subscriber. I’ll stay tuned!

[@paqueteriahrexpress]

I heard UPS had trouble exporting their small shipping to Mexico from the US. I wanted to offer my service to UPS and help them better their image

[@reremoore6029]

Really good content thanks ‼️

[@mattp4079]

If they're getting $2 for each Amazon return, they're rolling in cash. The UPS store in my town is stacked with people ,sometimes out the door returning Amazon junk.

[@FranchiseCityOnline]

Old video :-) The average numbers and overall performance have improved since then.

[@LeonMortgage]

​@@FranchiseCityOnlineIs there a newer video?

[@FranchiseCityOnline]

@@LeonMortgage No, but if you are comparing franchises you can get custom reviews (and more) kzbin.info/www/bejne/fnXVd5idirKGkKs

[@kellybyrd9772]

Hello, have you ever looked at a Snap On tools franchise?

[@FranchiseCityOnline]

Yes. Not very impressed. We'll do a review in the future

[@kellybyrd9772]

Franchise City thanks. That's one I'm almost signed up with now. I appreciate your honesty.

[@billybob-hv5hl]

Run for the hills better of being a mechanic buying the tools

[@kellybyrd9772]

@@billybob-hv5hl thanks the advice

[@kellybyrd9772]

@Mike G thanks.

[@1096arvind]

Awesome content! please do Great Clips!

[@FranchiseCityOnline]

Thanks! You can get reviews in 24 hours just contact us! kzbin.info/www/bejne/fnXVd5idirKGkKs

[@Oregon696969]

What can big brown do to you ?

[@TommyTomTompkins]

UPS knocking they socks off

[@JA-wp6cj]

I own a 3900sqft c2 commercial building was considering creating a ups unit until I saw this and read several articles saying the exact same thing. Seems like the royalties/fees suck you dry with this franchise.

[@FranchiseCityOnline]

Thanks for the comment. Some UPS locations do well, and there have been improvements made after the making of this video. Every situation is unique so be sure to consider local market demand/demographics etc. If you need help researching feel free to contact Franchise City brokers: www.franchise.city/our-services

[@bobdadruma]

I wanted to ship a 10Lb box from the USA to France. I brought the box to my local UPS Store. I was quoted $200 in shipping costs. The value of the item that I was shipping was $200! The USPS shipped the item for $70 with insurance and tracking.

[@Pernection]

Why didn't ups just buy the stores instead of just keeping the franchise model?

[@georgejones1485]

I"m sure for one because not all the stores are all that profitable. If some are barely making 40k with the owner working the store it probably wouldn't be profitable for corporate ownership with the overhead of managing it. An owner working their own store for 40k/yr is going to be a lot more invested and hard working than some outside manager making that much.

[@Pernection]

@@georgejones1485 UPS can maintain that much better than an outside owner with all their rules

[@dallasryder8125]

It's cheaper, to make an indy one. An just use online printing apps, similar to whats on ebay. An do multi printing off companies like Fedex, UPS, USPS etc. An just charging an extra 20-30% on the top. Also maybe get some photo development machines, if in a hipster area. Where folks are using the film cameras more now. Also add in phone and computer repair too.

[@JK-cn5fy]

Dallas Ryder what do you think about also selling corn dogs and shampoo in the store?

[@nonsensechannel182]

@@JK-cn5fy And now you have a CVS drugstore ;)

[@dallasryder8125]

@@JK-cn5fy How about pickles and bathroom supplies?

[@JK-cn5fy]

Dallas Ryder Hell, why stop there. Maybe sparklers and lawn mower blade sharpening

[@Leslie34565]

Thus is the most close to fact.

[@Blakpepa]

Probably the biggest scam out there. A kiosk in a mall or a desk/shelf in a complimentary store should suffice as opposed to an entire storefront. I don't believe there is any way to make money from this

[@EnligUlv]

You’d be better off becoming a union represented employee of UPS.

[@KenTheMan407]

Did he just say rico

[@jeanalexandre1105]

Avoid all this start a business from scratch. Either way you taking a risk

[@shuzhenyan4458]

If you don’t ever take any risks, there is no way you would be successful.

[@lisawalker4399]

It's a white franchise, very few black owners.

[@davidfarb1469]

Go ahead and buy a UPS store and become bankrupt in a few years