Joining a franchise network and building up the franchise business to bring in profits can be both quite challenging and rewarding too.
If you are among those who dream of opening a UPS store then we have got you covered with all the information required about the application process, franchisee opportunities, fees, and rewards. Let’s take a look at some of the critical things you need to know before you open a UPS franchise.
Opening a UPS Store: Franchise Fees And Opportunities
Investors and entrepreneurs planning to invest in the UPS store franchise amid the existing pandemic situation would not have to worry much. The store is involved in more than just shipping services. It also handles posters, business cards, flyers, and other general services. It is also responsible for shipping the United States domestic and international shipping packages to more than 220 countries worldwide.
Franchising with an internationally recognized company that is also the largest franchise system for retail shipping, postal, print, and business services centers in the packaging services industry offers franchisors many beneficial opportunities.
Why is owning a UPS store franchise location a beneficial business plan?
UPS Store is considered the one-stop-shop for small business owners across the globe for meeting their business service needs. There is more than one reason to put one’s hard-earned money into owning a franchise UPS store.
Being a recognized brand name in the industry for more than 30 years UPS Store brand recognition can help owners take on the new franchisee opportunities and offers comprehensive support and training.
Recently, the UPS Store was acknowledged by Entrepreneur to provide the best franchise opportunity that could be set up in less than $150,000. This award was based on the information provided in the brand’s Franchise Disclosure Document and scores from the 2020 Franchise 500.
Moreover, the UPS store franchisees are outfitted with highly advanced technology that helps the franchisees deliver millions of packages, documents, and pieces of mail daily. This feat is accomplished by engaging with the most developed digital information systems in the world. A state-of-the-art tracking system also lets customers track their package locations without any hassle. The same technology suite also offers various store setting options to allow franchisees greater flexibility to deliver services in line with the needs of their customer communities.
Along with technology, brand and support, the established model places the UPS store among the most rewarding franchise opportunities. The UPS store brand has helped thousands of entrepreneurs own thriving franchises, and is supporting consumers who count on them for essential services during times of crisis – like contending with covid-19.
UPS Store Franchise Costs
Franchising can be a critical investment decision for entrepreneurs as it involves both time and money.
Assessing the franchise costs can be a significant factor when finding the best franchise fit. It is important to learn about the franchise costs as well as financing options provided by the UPS store for their franchisees. Also, the brand has put in place some unique programs to help set up veteran-backed franchisees and stores in non-traditional locations.
Cost to Open a UPS Store franchise –
Franchise owners of a UPS Store are offered a variety of location-types to meet their needs. Startup franchise costs differ, depending upon the type of center one is planning to set up and also the size of the location and where the center is located. Costs of setting up UPS Store centers in rural areas are typically less than those involved in opening up traditional locations in larger metro areas. Rural areas present greater opportunities for finding a perfect location to set up store and they are more affordable to run than in larger cities. Less competition from other businesses in the area and the opportunity to build strong ties with close-knit communities also make rural areas more favorable locations for the UPS store franchise opening.
The franchise fees for the UPS store as compared to other brands such as McDonald’s, Dunkin’ Donuts, 7-Eleven Inc, Sonic Drive-In Restaurants, and so on are very competitive. Moreover, it comes backed with a world-class support system and training models, thereby making the UPS store as one of the best values among top franchise brands.
What are Store-in-Store Locations?
A store-in-store location is when the UPS Store is set up inside another business. This concept was first launched in the 1980s and these locations were mainly seen in businesses like hotels and convention centers. However, during later years the store-to-store locations also came to include the UPS store set up inside smaller businesses like pharmacies and hardware stores. For those who already own a store and are interested in adding the UPS Store location to provide additional services to their existing customers, you can learn more about the non-traditional franchise opportunities.
Financial Requirements for The UPS Store Franchisees
The prospective candidates looking to become UPS store franchisees need to have at least $60,000 in liquid assets. The financial requirements can be met through any combination of bonds, cash, stocks, mutual funds, retirement accounts, and also other forms of non-borrowed funding sources.
Financing Options Offered by the UPS Store to Help with Franchise Costs
The prospective franchisee owners can find a variety of financing options provided by the UPS store to ensure that every franchisee within their growing network can begin their franchisee journey on the right track. There are special financing programs for veterans and non-traditional locations. Finding the right funding choices can help an individual to get started on their journey to becoming successful franchise owners.
Franchise approval process For the UPS store
There are four easy steps involved with getting the franchisee approved for the UPS store. Below are the steps:
1. Inquiry – Interested UPS store franchisee owners can keep a close tab on the brand’s weekly webinars to know if it is the right fit for them and also learn more about the nationwide franchise opportunities available. Live events are often hosted on the platforms to talk about opportunities in specific areas. Register to attend the events.
2. Application – Complete an application process once you have learned about the franchisee opportunities by The UPS Store. Provide details such as professional experience, educational degrees, background, interests, and financial status when applying. All the information in the application forms is kept confidential and is non-binding. An interview is set up after a review of the application to assess if the potential candidates’ goals are aligned with the brand’s goals. The prospective candidate also needs to review the Franchise Disclosure Document before buying a franchise to understand their responsibilities as a franchisee and the brand’s responsibilities as a franchisor. Validating the information provided in the FDD will help an interested applicant to gain insight into what franchise ownership holds forth. Also, submit financial documents to help concerned authorities review if you meet their financial requirements to set up a store.
3. Funding – After due diligence has been conducted and all application processes are completed and both parties are satisfied with interviews, a letter of intent is signed. After this signing, an initial application fee will be collected, which serves as an upfront, one-time fee to give you the right to use The UPS Store trademarks, name, and related business systems. Once the brand receives the letter of intent and initial application fee, an approval letter stating is sent to the approved applicant and they would be awarded The UPS Store franchise location.
4. Booking – The last step of the franchise approval process is signing the franchise agreement and any additional relevant forms. Financing requested for franchisee setting up is secured after signing the agreement. Franchisee owners can now select a site from the existing UPS centers that are up for sale and ready for business under new ownership or they can also go for new centers for development in open markets. The final step of the application culminates with the completion of the training program needed to successfully run the franchisee business.
Rewards of Investing in the UPS Store
Investing in the UPS Store franchise entails owing a lot more than just a brick-and-mortar location. There is name, recognition, access to an award-winning training program, and reputation of The UPS Store.
Constant Support: The UPS Store, inc. offers a strong franchisee support system from the day one signs the agreement until the relationship lasts. Franchise owners are provided with an all-inclusive training program, access to smart strategies, tools, advertising, and marketing campaigns and also provided the chance to network with other knowledgeable franchisees.
Name & recognition: Being associated with The UPS Store that has been leading in the franchising game for 40 years now and has a significant market share with franchisee locations spread over more than 4,800 areas is an accomplishment.
Despite the pros of being a part of the UPS Store that is being counted among the top five for best franchise systems in the country by the Entrepreneur Magazine’s 2018 Franchise 500 list, there are some downsides that a franchisee must review before applying. As with all franchise opportunities, there is no guarantee for securing profits and getting success with the UPS store franchisee too. While some franchise owners can vouch for the substantial enormous profits made from owning the brand’s franchisee but some were forced to close doors within a few years of setting up a store. Making the right franchisee decision involves reviewing all factors, including fees, application process, and rewards before taking on the UPS store franchisee.