The UPS Store

Non-Traditional UPS Store franchise fees vary by format: - Standard first center: $29,950 - Second or subsequent center (same owner): $19,950 - Store-in-store without exterior entrance / self-storage format: $9,950 - Access Model Center: $9,950 - Believe Program / VetFran / First Responder (first center): approximately $14,950 (50% discount)

Beyond the franchise fee, the initial cost stack includes: a $7,500 center development fee (for newly constructed centers), a $3,000 design fee, a site survey fee of $1,900–$3,500, training fees of $7,000 minimum, and a one-time proprietary software license of $2,750–$4,750. An Initial Marketing Plan (IMP) fee of $0–$7,500 applies to non-traditional centers.

Item 7 total investment data was not fully extracted for non-traditional centers — the FDD structure for non-traditional locations varies significantly by venue type (a hotel-based center has very different buildout costs than a campus center). Based on fee structures alone, upfront cash commitment before buildout starts at roughly $30K–$60K. Traditional UPS Store buildouts typically run $150K–$350K, but non-traditional formats can be substantially lower depending on the host venue providing the space.

Ongoing fees: 5% royalty on Subject to Royalty (STR) revenue monthly, plus 2.5% national advertising fee and 1% The UPS Store marketing fee (3.5% total advertising), plus approximately $202/month in technology fees. Collaborative dues run $100–$500/month depending on your market association.

The UPS Store explicitly makes no financial performance representations in Item 19. The FDD states directly: 'We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets.'

This is one of the most recognized franchise brands in the United States with 5,365 locations and 50+ years of operating history. The decision not to disclose revenue data is unusual for a system of this size and maturity — most large systems with strong unit economics use Item 19 as a sales tool.

For Non-Traditional locations specifically, revenues vary enormously by venue type. A transportation-hub location (airport, train station) has very different foot traffic than a store-in-store inside a grocery or office building. Prospective investors should request to speak with existing franchisees operating in similar non-traditional formats as their target location. The Item 20 franchisee contact list covers operators in all formats.

Note that this FDD covers only Non-Traditional Centers. If you're evaluating a standard retail UPS Store, you'll need to review the Traditional FDD, which is a separate filing.

The UPS Store is one of the largest and most established franchise systems in the United States. The system has grown from 5,140 total units in 2022 to 5,234 in 2023 to 5,365 in 2024 — adding 94–131 net units per year over three consecutive years. This is a stable, growing system with extremely low closure rates.

Of the 5,365 total centers, 266 are non-traditional locations (the type covered by this FDD): 48 in hotels, 8 in convention centers, 28 on college/university campuses, 25 on military bases, 122 store-in-store, 9 self-storage, and 26 other formats.

The UPS Store benefits from strong brand recognition, UPS corporate backing, and diversified revenue streams (shipping, printing, mailbox services, notary, packaging). The core business model has demonstrated resilience through economic cycles, as small business shipping and document services remain relatively demand-inelastic. Company-owned locations grew from 2 in 2022 to 15 in 2024, suggesting the franchisor is testing or investing in corporate operations.

The non-traditional format introduces a dependency risk not present in traditional retail UPS Stores: your location's revenue is tied to your host venue's traffic. A hotel-based center is vulnerable to the hotel's occupancy rate and flag changes; a campus center depends on enrollment; a store-in-store depends on the host retailer's foot traffic and lease stability. Your UPS Store franchise term may outlast the host venue relationship.

The absence of Item 19 disclosure for a system of 5,365 locations is the single most notable disclosure gap. Request franchisee revenue data through your own validation process — the FDD includes a list of all current franchisees with contact information.

The finder's fee structure is unusual: if you sell your franchise, The UPS Store charges the greater of $11,980 or 10% of the sale price as a finder's fee — this significantly reduces your net proceeds on exit and should be factored into any investment return calculation.

The $29,950 franchise fee (standard non-traditional first center) must be validated against the traditional center fee and the revenue potential of your specific venue type. Not all non-traditional formats generate comparable revenue.