How Much Does It Cost to Open a The UPS Store?: The UPS Store was founded in the 1980s as Mail Boxes Etc. The UPS Store branding was introduced in 2003, two years after UPS acquired Mail Boxes Etc., Inc. In 2012, franchisor Mail Boxes Etc., Inc., which had been operating under UPS since the acquisition, changed its name to The UPS Store, Inc. All former Mail Boxes Etc. stores were also rebranded at the same time. How Much Does It Cost to Open a The UPS Store?
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The estimated financial range to set up and operate a traditional UPS Store location in the United States for the first month is $154,745 to $508,472. The data in the information below is from The UPS Store Franchise Disclosure Document (FDD), dated 2022. Estimates are provided by The UPS Store and are based on its years of experience franchising its system. How Much Does It Cost to Open a The UPS Store?
How Much Does It Cost to Open a The UPS Store?
| Name of Fee | Low | High |
| Initial Franchise Fee | $9,950 | $29,950 |
| Initial Marketing Plan Fee | $4,000 | $7,500 |
| Design Fee | $1,075 | $2,100 |
| Site Survey | $0 | $1,500 |
| Center Development Fee | $5,000 | $5,000 |
| Initial Training Fees | $4,650 | $6,800 |
| Travel and Living Expenses While Training (per person) | $3,000 | $4,000 |
| Site Rent and Security Deposit | $1,000 | $18,000 |
| Leasehold Improvements; Construction Costs; Signage; Furniture and Decor Items | $56,178 | $265,838 |
| Computer Hardware/ Installation/ Freight | $5,692 | $11,163 |
| Optional Locker Fixture(s) | $0 | $12,616 |
| Optional Locker Annual Subscription Agreement | $0 | $1,428 |
| Digital Media | $0 | $6,452 |
| Keyless Entry | $0 | $845 |
| Annual Technology Development and Support Fee | $2,196 | $2,304 |
| Software | $3,489 | $5,489 |
| Printer Lease | $1,248 | $3,096 |
| Other Equipment | $9,887 | $37,236 |
| Start-Up Supplies | $6,180 | $9,155 |
| Utility Deposits | $200 | $3,000 |
| Insurance | $1,000 | $5,000 |
| Additional Funds – 3 months | $40,000 | $70,000 |
| ESTIMATED TOTAL* | $154,745 | $508,472 |
Other Fees
| Type of Fee | Amount |
| Royalty | 5% of STR (STR includes all gross sales plus gross commissions from the center, less allowable exclusions). |
| The UPS Store Marketing Fee | 1% of STR. |
| National Advertising Fee (NAF) | 2.5% of STR. |
| Advertising Co-op Dues | Varies from Co-op to Co-op. Range is $100 – $500. |
| Annual Technology Development and Support Fee | $2,304 (new center franchise and transfers); $2,196 (rural center); $2,196 per center if franchisees are purchasing their 2nd or greater franchise. |
| Transfer Fee | The current transfer fee is $5,000 (the franchisor may periodically increase this fee). |
| Processing Fee | The current processing fee is $4,000 if no finder’s fee is paid to the franchisor; $1,000 if a finder’s fee is paid (the franchisor may periodically increase this fee). |
| Renewal Fee | 25% of the then-current initial franchise fee. |
| Sales Fee | 25% of the then-current initial franchise fee. |
| Insurance | Amount of unpaid premiums. |
| Audit | Cost of audit ($475 minimum) plus 18% interest or the highest rate allowed by law on underpayment. In addition, the franchisee must pay a late fee of $25 per week. |
| Audit Non-Prepared Fee | $500 per type of document (as specified in operations manual) not supplied upon auditor’s request but in no event greater than $2,500 per occurrence, and cost of audit (including reasonable expenses incurred by auditor) if rescheduled. |
| Non-Transfer Ownership Change Fee | $500 |
| Incorporation Fee | $500 |
| Family Transfer Fee | $1,750 |
| Entity Name Change Fee | $500 |
| Indemnification | Will vary under circumstances. |
| Interest on Financing Offered by Franchisor | Financing of initial equipment: prime rate plus 4%. Financing for the purchase of a second center: prime rate plus 2%. Financing for the TUPSS 2000 remodel of the center: prime rate plus 1%. |
| Late Payment Fee | $35 per month or 10%, whichever is greater. |
| Equipment or Equipment Lease and Computer Hardware/Software Maintenance | Varies. |
| iShip Processing Fee | $0.22 per transaction. |
| Upgrade Evaluation Fee | $500 |
| Finder’s Fee | The greater of $11,980 or 10% of the center’s sales price. |
| Finance Charges | Highest annual rate allowed under applicable law. |
| Design Fee | Laser Lite – $2,100 or $800 (plus $350 in the event of a change) Blue Horizon – $800 (plus $350 in the event of a change) TUPSS 2000 – $660 (plus $250 in the event of a change) |
| Site Survey Fee | $1,500 |
| Non-Compliance Fee | Currently $250, but the franchisor may charge up to $1,000. |
| Tax Reimbursement | Out-of-pocket cost reimbursement. |
| Customer Concern Reimbursement | Out-of-pocket cost reimbursement. |