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UPS Store Franchise Cost, Earnings and Review

UPS Store Franchise Cost, Earnings and Review



Wonderful 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 http://www.franchise.city/ups-franchise-review

www.theupsstorefranchise.com

THE UPS STORE: How Much Do UPS Store Franchise Owners Make?



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24 thoughts on “UPS Store Franchise Cost, Earnings and Review

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

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

  3. Really good content thanks ‼️

  4. 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.

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

  6. 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.

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

  8. 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

  9. 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.

  10. 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.

  11. I had to put my UPS store in my wifes name then divorce her to get rid of the debt. Do NOT invest into one. I would rather buy a whorehouse motel.

  12. UPS = shreds your UnderPantS 🙂

  13. 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.

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

  15. What can big brown do to you ?

  16. Franchise ownership is for people who can afford to purchase multiple stores. It's a scam, they turn you into an owner/manager with you and your wallet taking all the risk.

  17. ups store franchisees are super lazy and barely do any work at all. They just need an employee to stand around all day but they cant afford an employee.

  18. I was a ups driver when they bought out mail boxes etc. Most of the mailboxes owners dropped ups and went independent or sold out.

  19. Do a vid about owning an NFL franchise!

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

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

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

  23. This sounds like UPS is essentially the airline industry of franchises

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