How much does it cost to open a The UPS Store franchise?

The total initial investment for a The UPS Store franchise ranges from $138,000 to $567,000. This includes the franchise fee of $29,950, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a The UPS Store franchise?

The UPS Store franchisees pay a 5.0% royalty fee and a 2.5% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a The UPS Store franchise?

Based on Item 19 financial performance data, the median The UPS Store franchise generates $579,101 in annual revenue. Estimated owner profit is approximately $159,253.

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Business Services 5,350 Units

The UPS Store Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$138,000 – $567,000

Franchise Fee

$29,950

Royalty Rate

5.0%

Initial Investment Range

Low: $138,000 High: $567,000

The total initial investment to open a The UPS Store franchise ranges from $138,000 to $567,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $29,950.

Midpoint estimate: $352,500

Franchise Fee

$29,950

One-time initial fee

The The UPS Store franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the The UPS Store brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

2.5%

of gross revenue

Total Ongoing Fee Burden: 7.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty	5.0	PCT	Payable via EFT by the 20th day of next calendar month or other interval established by franchisor. Area Franchisees receive 50% of royalties paid by franchisees in their territory.
The UPS Store Marketing Fee	1.0	PCT	Same due date as Royalty
National Advertising Fee	2.5	PCT	NAF Cap applies: $2,135/month Jan-Nov, $4,249 in Dec, annual cap $27,734 as of May 1, 2025. Franchisor reserves right to change formula or eliminate cap.
The Collaborative Dues	300.0	VARIABLE	Varies by Collaborative, range $100-$500. Access Model Center franchisee need not pay. Majority vote of DMA franchisees determines amount. May be 0.5% of STR if more than fixed amount, up to 3% of STR if 51%+ vote for increase. Cannot change more than once per year.
Annual Technology Development and Support Fee	2418.0	FIXED	$2,418 for new Center franchise and transfers; $2,304 per Center if purchasing 2nd or greater franchise or Access Model Center. Subject to change.
Transfer Fee	6000.0	FIXED	Current fee is $6,000, may increase periodically. Due before transfer. Amount will be set forth in buyer's disclosure document.
Processing Fee	6000.0	VARIABLE	$6,000 if no Finder's Fee paid; $1,500 if Finder's Fee is paid. Access Model Center franchisee need not pay. May increase periodically.
Renewal Fee	25.0	PCT	Due 3 or 6 months (depending on venue) before end of franchise term. See Franchise Agreement for Pro-Rated Renewal Fee for Transfers definition.
Insurance	N/A	VARIABLE	Payable only if franchisee fails to maintain required insurance coverage and franchisor elects to obtain coverage. Due upon demand.
Audit	475.0	VARIABLE	Minimum $475 plus 18% interest or highest rate allowed by law on underpayment, plus $25/week late fee. Payable only if audit shows 5%+ understatement of STR or history of under-reporting. Due upon demand.
Audit Non-Prepared Fee	500.0	VARIABLE	$500 per document type not supplied, max $2,500 per occurrence, plus cost of audit if rescheduled. Payable if required documentation unavailable on audit date or upon request. Due upon demand.
Non-Transfer Ownership Change Fee	500.0	FIXED	If seeking consent to change less than controlling ownership interest in franchise. Due upon demand.
Incorporation Fee	500.0	FIXED	If individual seeks consent to assign franchise to legal entity. Currently $500 but may be more in future. Due upon demand.
Family Transfer Fee	1750.0	FIXED	If seeking consent to assign controlling ownership to immediate family member. Due upon demand.
Entity Name Change Fee	500.0	FIXED	If legal entity seeks consent to change entity name. Due upon demand.
Late Payment Fee	10.0	VARIABLE	$35 per month or 10% of amount due, whichever is greater. Continues to accrue until paid. Payable if any sums not paid when due.
iShip Processing Fee	0.22	FIXED	$0.22 per transaction. Subject to periodic increase during franchise term by affiliate iShip, Inc.
Upgrade Evaluation Fee	625.0	VARIABLE	$500-$750. Paid by existing franchisees selling Centers or wanting to know required upgrades. Credited against monies owed if transfer occurs within 12 months. Due upon demand before review of work.
Finder's Fee	10.0	VARIABLE	Greater of $11,980 or 10% of Center's sales price (depending on venue). Optional service when selling Center. May be Broker's Fee in some circumstances. Due upon sale of Center.
Finance Charges	N/A	VARIABLE	Highest annual rate allowed under applicable law. Billed on all items that exceed 42 days or later. Interest begins from date of underpayment. Due upon demand.
Design Fee	3000.0	VARIABLE	Laser Lite: $3,000 or $900 (plus $450 for changes); Blue Horizon: $900 (plus $450 for changes); TUPSS 2000: $800 (plus $350 for changes). Non-refundable. Due upon demand, always prior to commencement of Center Design.
Site Survey Fee	2700.0	VARIABLE	$1,900-$3,500. Required for new or existing Center remodeling to Laser Lite design. Paid directly to vendor. CA/TX may require additional surveys with additional fees. Due upon demand.
Site Survey Re-visit Fee	2050.0	VARIABLE	$1,250-$2,850. Payable directly to vendor when completed survey doesn't capture all leased space requiring re-visit. Does not apply in event of vendor error. Due upon demand.
Optional Post-Construction Site Survey Fee	2650.0	VARIABLE	$2,050-$3,250. Payable directly to vendor when franchisee requests post-construction survey to verify conditions following Center construction. Due upon demand.
Non-Compliance Fee	250.0	VARIABLE	Currently $250, may charge up to $1,000. Due if franchisee deviates from requirements. Compensates for administrative and management costs, not damages. Due when billed.
Tax Reimbursement	N/A	VARIABLE	Franchisee must reimburse for taxes franchisor pays to state taxing authority on account of franchisee's operation or payments (except franchisor income taxes). Due as incurred.
Customer Concern Reimbursement	N/A	VARIABLE	Franchisee must reimburse if franchisor resolves customer concern because franchisee does not. Amount depends on extent of non-compliance. Due as incurred.
Indemnification	N/A	VARIABLE	Franchisee must indemnify franchisor, affiliates, officers, agents and employees against all losses from Franchise Agreement violations and third-party claims from Center operation. Amount varies under circumstances. Due as incurred.

What You Get

Financial Performance (Item 19)

Median Revenue

$579,101

per year, per location

Profitability Estimate

Estimated Owner Profit

$159,253

per year

Profit Margin

27.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 2.2 years

Based on midpoint investment of $352,500 and estimated annual owner profit of $159,253.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.2%

Low risk — below industry average

Net Unit Growth

+313 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	5037	+144	-8	—	5138
2023	5138	+141	-11	—	5232
2024	5232	+192	-11	—	5350

Is a The UPS Store Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the The UPS Store franchise opportunity:

Overall Score

92/100

Strong opportunity

Est. Payback Period

2.2 yrs

Fast payback

Risk Level

Low

0.2% annual closure rate

The UPS Store scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $579,101 and a combined fee burden of 7.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.