FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for The UPS Store.
Based on 2025 FDD · 3 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a The UPS Store franchise shows an estimated initial investment of $216K – $609K. Reported owner economics show $31K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $8K franchise fee · 7.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
10-brand free summary pilot · report unlocked
Use this as a source-document screening summary: FDD investment range, royalty/ad burden, Item 19 economics, SBA repayment outcomes, unit movement, and comparable-brand context. Treat missing or low-confidence fields as diligence flags — not as blanks to ignore.
The UPS Store requires a total initial investment of $216K to $609K (midpoint approximately $413K), with an initial franchise fee of $8K. The ongoing fee burden is 7.5% (5% royalty plus 2.5% advertising fund). This is below the industry average of approximately 11.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for The UPS Store locations is $687K. The implied franchisee EBITDA is approximately $31K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 7.5% with a payback period of approximately 13.4 years.
The UPS Store operates approximately 94 franchised units. The SBA 7(a) loan default rate of 0.3% is well below the industry average of approximately 8.1%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2018). 432 loans across 42 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about The UPS Store, answered from FDD and SBA data.
The total initial investment for a The UPS Store franchise ranges from $216K to $609K, according to their Franchise Disclosure Document.
The UPS Store charges a 5% royalty fee on gross sales.
The initial franchise fee for The UPS Store is $7,500.
There are approximately 94 The UPS Store franchise locations as of 2023.
The median revenue for a The UPS Store franchise is $687K, with a cash-on-cash return of 7.5%, according to FDD Item 19 data.
The UPS Store has an SBA loan default rate of 0.3% based on SBA 7(a) loan data.
Whether a The UPS Store franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
The UPS Store franchise costs $57,120-$415,927 to open with a $7,500 franchise fee. 5% royalties.
SBA 7(a) franchise loans explained, including the October 2026 SOP 50 10 8.1 update, eligibility,...
Data-driven analysis of the highest-risk franchise investments: SBA default rates, declining unit...
How to analyze FDD Item 8 - approved supplier requirements, supplier markups, franchisor rebate...
Franchise fee structure guide: royalties are just the start. Item 6 marketing funds, technology f...
5 data-driven questions every The UPS Store franchise buyer should ask.