The UPS Store franchise
A franchisee operates a retail The UPS Store Center offering pack-and-ship services through UPS and other carriers, private mailbox rental, printing and copying, notary, office supplies and related business and communication services.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers)
- Document
- FDD 2026, issued 2026-04-23
- Item
- Item 15 — Item 15
- Page
- PDF p. 70
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641224
We typically do not require you to participate personally as the Center's direct, "on-premises" operator or supervisor of operations.
Item 15 says the franchisor typically does not require the owner to be the on-premises operator. The Center must be supervised full-time on premises by a trained Primary Operator, who may be the owner or a supervisory employee. Even when the owner is not the Primary Operator, the owner must monitor operations, and the franchisor reserves the right to require an owner to serve as Primary Operator. Multiple Center Owners must staff each Center with a full-time on-premises Certified Operator and keep at least one Primary Operator for every five Centers.
What stands out
- Item 7 estimates $222,368 to $606,081 for a new or relocated Traditional Center under the required Laser Lite design, including a $39,950 initial franchise fee and three months of additional funds; premises are leased, not purchased.
- Recurring fees on sales total 8.5% before advertising collaborative dues: a 5% royalty, a 1% marketing fee and a 2.5% national advertising fee capped at $27,734 a year, plus a $2,868 annual technology fee.
- Item 19 discloses average 2025 adjusted gross sales of $724,293 across 5,058 franchised U.S. Traditional Centers, with only 45% of Centers exceeding that average and no cost or profit information of any kind.
7 more observations
- Performance varies widely: the top 10% of Centers averaged $1,248,208 in 2025 and the bottom 10% averaged $345,790.
- Franchised outlets grew from 5,138 to 5,487 over 2023 to 2025 — 520 openings against 171 exits — while transfers between franchisees ran 340, 268 and 237 a year.
- The franchisor now owns 16 Centers, up from 2 in 2023, largely by reacquiring 13 Texas Centers in 2024, and says it expects to own more.
- There is no exclusive territory; the franchisor may place Non-Traditional Centers inside a franchisee's territory and sell through UPS counters, drop boxes and other authorized shipping outlets.
- The franchise is tied to a separate UPS Contract Carrier Agreement whose termination automatically ends the franchise without notice or cure.
- Item 3 lists nine matters, mostly consumer class actions over notary fees; Item 4 discloses no bankruptcy. Disputes are litigated in San Diego, California with no arbitration.
- Item 8 states that required purchases are about 66% of the cost to open and about 95% of purchases during operation, and that 13% of the franchisor's $337,559,050 in revenue came from selling to franchisees.
Things to verify
- Ask for the median annual adjusted gross sales figures from the Item 19 summary table; the FDD says it reports medians but the table did not extract as text from the source PDF.
- Ask what a Center at the site under consideration would generate relative to the $724,293 average, and note that 55% of Centers fell below it in each of the three reported years.
- Build a full expense model. Item 19 shows sales only; labor, occupancy, cost of goods, shipping, fees to the franchisor and debt service all come out of that number.
7 more questions
- Confirm the franchisor's minimum liquid capital and net worth requirements, which are not stated in the reviewed FDD.
- Check how much of a target Center's sales come from Commerce Ready Services corporate clients, given that Item 19 says client volumes and compensation rates can change at the client's discretion and one large client cut its rate in May 2024.
- Review the UPS Contract Carrier Agreement closely, including UPS's designated maximum retail prices, since a default there terminates the franchise automatically.
- Price the Laser Lite remodel that will fall due at renewal or on certain transfers — Item 7 puts a Traditional remodel at $97,047 to $281,271.
- Ask how the territory will be drawn, whether an Area Franchisee serves the market, and what happens if that Area Franchisee stops serving during the term.
- Confirm the resale economics: a transfer costs a $6,000 transfer fee plus a $6,000 processing fee (or $1,500 with a Finder's Fee), a pro-rated renewal fee, and an optional Finder's Fee of at least $15,980, and the franchisor holds a right of first refusal.
- Read Exhibit 9 for Area Franchisee litigation and bankruptcy, which Items 3 and 4 cross-reference but do not describe.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A The UPS Store franchisee runs a retail Center offering pack-and-ship through UPS and other carriers, private mailboxes, printing and copying, notary and related business services. This record covers the Traditional-site FDD issued April 23, 2026; Centers at Non-Traditional sites such as campuses, hotels and airports are offered under a separate document that was not reviewed. All new Centers must be built to the Laser Lite design, and Item 7 estimates a new or relocated Traditional Center at $222,368 to $606,081, including a $39,950 initial franchise fee, a $7,500 initial marketing plan fee, a $3,275 design fee, a $7,700 center development fee and three months of additional funds. Premises are leased, so no real estate purchase is included. Reduced fees are offered for Rural Centers ($14,950) and under veteran, first responder and first-time-buyer programs. Ongoing fees run 5% of sales in royalty, 1% marketing fee and 2.5% national advertising (capped at $27,734 a year), plus a $2,868 annual technology fee and collaborative dues that members can vote up to 3% of sales.
Item 19 reports average annual adjusted gross sales of $724,293 for calendar 2025 across the 5,058 franchised U.S. Traditional Centers that reported a full year, against $719,842 in 2024 and $721,245 in 2023. Only 45% of Centers exceeded the average in each year, and the spread is wide: the top 10% averaged $1,248,208 in 2025 while the bottom 10% averaged $345,790. These are unaudited sales taken from royalty reports and include the UPS shipping charges collected from customers. Item 19 discloses no costs, margins or profit. It says it also reports medians, but that table appears only as an image in the reviewed PDF and could not be read.
Item 20 shows a growing system. Franchised outlets went from 5,138 at the start of 2023 to 5,487 at the end of 2025, a net gain of 349, with 520 openings against 27 terminations, 7 non-renewals, 14 reacquisitions and 123 closures for other reasons. Company-owned Centers rose from 2 to 16, mostly by reacquiring 13 Texas Centers in 2024. Transfers between franchisees are heavy but declining: 340, 268 and 237 over the three years. The franchisor projects 206 new franchised openings in the next year and had 162 signed agreements without an open outlet at year-end 2025.
On risk, Item 3 lists nine matters, most of them consumer class actions over notary fees charged at franchised Centers, two of which remain active, plus a Mississippi receiver's action nearing settlement and two disputes with current or former franchisees. No bankruptcy is disclosed in Item 4. Buyers do not get an exclusive territory, disputes are litigated in San Diego under California law with no arbitration, owners must sign a continuing personal guarantee, and the franchise terminates automatically if the separate UPS Contract Carrier Agreement ends. Liquid capital and net worth requirements are not disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 5138 → 5487 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $724,293 (disclosed) ÷ midpoint investment $414,225 = 1.75×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 92% of franchised units, clearly described (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 46 years (since 1980) · 5,503 outlets · Item 3: 9 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- The initial franchise fee falls from $39,950 to $19,950 for a second or later Center where the buyer holds at least a 50% interest in an existing franchise a… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: New or Relocation Traditional Center, Laser Lite design, not under the Rural Program
$222,368–$606,081 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $39,950 Disclosed
Discount/incentive programs reduce the fee (Rural $14,950; Believe $29,950; VetFran $19,950; First Responder $19,950); the $19,950 rate for a 2nd/subsequent Center requires existing 50% ownership, not applicable to a first-time franchisee. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $70,175 Derived
|
| Total initial investment — low | $222,368 Disclosed
|
| Total initial investment — high | $606,081 Disclosed
|
| Midpoint of range | $414,225 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers); we do not fill gaps with estimates or third-party figures. No minimum liquid capital figure appears on the cover pages or in Items 1, 5, 7, 11 or 15 of the reviewed document. Item 7 states only that a franchisee must have additional sums available beyond the Additional Funds line, without quantifying them. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers); we do not fill gaps with estimates or third-party figures. No minimum net worth figure appears in the reviewed document. |
Figures are for a new or relocated Traditional Center built to the Laser Lite design outside the Rural Program; all new Centers must use the Laser Lite design. The table assumes leased premises — it includes three months' rent and a security deposit but no real estate purchase. Additional funds cover three months. The line items foot exactly to the stated totals of $222,368 and $606,081. Item 7 notes that costs may be higher in markets such as Manhattan, and that minimally required Black and Tan upgrades on certain transfers run about $0 to $50,400. Item 7 also states that the estimates cover the initial cash investment to opening only and do not include financing costs or royalties, and that reserves may need to exceed the Additional Funds line. Costs for Non-Traditional sites are covered in a separate FDD that was not reviewed.
Item 7 line items (21)
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,950 | $39,950 |
| Initial Marketing Plan Fee | $7,500 | $7,500 |
| Design Fee | $3,275 | $3,275 |
| Site Survey — Paid directly to the vendor. | $2,400 | $3,500 |
| Center Development Fee — Paid to the franchisor or the Area Franchisee. | $7,700 | $7,700 |
| Initial Training Fees | $7,000 | $8,500 |
| Travel and living expenses while training — Stated per person. | $3,000 | $4,000 |
| Site rent and security deposit — First three months' rent of $1,500 to $6,000 per month plus a one-month security deposit. | $4,500 | $18,000 |
| Leasehold improvements, construction, signage, furniture and decor — Average cost stated as $161,614; the high figure includes $186,600 of vanilla shell preparation. | $68,146 | $361,729 |
| Computer hardware, installation and freight | $17,032 | $22,568 |
| Digital media | $3,069 | $3,069 |
| Optional keyless entry | $0 | $1,881 |
| Annual Technology Development and Support Fee — First year of a recurring annual fee billed monthly. | $2,868 | $2,868 |
| Software — One-time proprietary software license fee. | $2,750 | $4,750 |
| Printer lease | $399 | $1,405 |
| Time-saving kiosk | $1,760 | $1,784 |
| Other equipment | $2,939 | $16,447 |
| Start-up supplies | $6,180 | $9,155 |
| Utility deposits | $900 | $3,000 |
| Insurance | $1,000 | $15,000 |
| Additional funds — 3 months | $40,000 | $70,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers) (table begins PDF p. 37) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (3)
| Format | Low | High | Fee |
|---|---|---|---|
| Remodel Traditional Center (Laser Lite, non-Rural) | $97,047 | $281,271 | — |
| New or Relocation Center under the Rural Program (Laser Lite) | $175,266 | $546,655 | $14,950 |
| Remodel Center under the Rural Program (Laser Lite) | $85,925 | $270,149 | — |
Ongoing fees
FDD Item 6Royalty
5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers)
- Document
- FDD 2026, issued 2026-04-23
- Item
- Item 6 — Item 6 chart — Royalty
- Page
- PDF p. 28
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641224
5% of Subject to Royalty (STR), defined as all Gross Sales plus Gross Commissions from the Center less allowable exclusions that the franchisor specifies and may change. Gross Sales includes UPS shipping charges collected from customers. Paid monthly by EFT. Where an Area Franchisee serves the market, it receives 50% of the royalties the franchisor collects.
Brand advertising fund
2.5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers)
- Document
- FDD 2026, issued 2026-04-23
- Item
- Item 6 — Item 6 chart — National Advertising Fee; Footnote 10
- Page
- PDF p. 29
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641224
National Advertising Fund contribution of 2.5% of STR, currently subject to a cap of $2,135 per month January through November and $4,249 in December, an annual cap of $27,734. The franchisor may change the cap formula or eliminate the cap on written notice.
Local marketing
Not disclosed in the reviewed source Not disclosed
Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers); we do not fill gaps with estimates or third-party figures.
The reviewed document does not state a required minimum local advertising spend. Marketing obligations disclosed are the 1% The UPS Store Marketing Fee, the 2.5% National Advertising Fee, DMA Advertising Collaborative dues, and a one-time Initial Marketing Plan Fee of $7,500 at signing.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 5% of gross sales Disclosed
5% of Subject to Royalty (STR), defined as all Gross Sales plus Gross Commissions from the Center less allowable exclusions that the franchisor specifies and may change. Gross Sales includes UPS shipping charges collected from customers. Paid monthly by EFT. Where an Area Franchisee serves the market, it receives 50% of the royalties the franchisor collects. 5% of Subject to Royalty (STR), defined as all Gross Sales plus Gross Commissions from the Center less allowable exclusions that the franchisor specifies and may change. Gross Sales includes UPS shipping charges collected from customers. Paid monthly by EFT. Where an Area Franchisee serves the market, it receives 50% of the royalties the franchisor collects. |
|---|---|
| Advertising / brand fund | 2.5% of gross sales Disclosed
National Advertising Fund contribution of 2.5% of STR, currently subject to a cap of $2,135 per month January through November and $4,249 in December, an annual cap of $27,734. The franchisor may change the cap formula or eliminate the cap on written notice. National Advertising Fund contribution of 2.5% of STR, currently subject to a cap of $2,135 per month January through November and $4,249 in December, an annual cap of $27,734. The franchisor may change the cap formula or eliminate the cap on written notice. |
| Required local marketing | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers); we do not fill gaps with estimates or third-party figures. The reviewed document does not state a required minimum local advertising spend. Marketing obligations disclosed are the 1% The UPS Store Marketing Fee, the 2.5% National Advertising Fee, DMA Advertising Collaborative dues, and a one-time Initial Marketing Plan Fee of $7,500 at signing. |
| Technology / software | $2,868/year Disclosed
Annual Technology Development and Support Fee, billed monthly; $2,748 per Center for a second or later franchise or a Rural Center. The franchisor states the fee is subject to change and anticipates increases. Separate one-time proprietary software license fee of $4,750 for a first franchise ($3,750 second, $2,750 third or more and for Rural), plus a $100 iShip set-up fee. Annual Technology Development and Support Fee, billed monthly; $2,748 per Center for a second or later franchise or a Rural Center. The franchisor states the fee is subject to change and anticipates increases. Separate one-time proprietary software license fee of $4,750 for a first franchise ($3,750 second, $2,750 third or more and for Rural), plus a $100 iShip set-up fee. |
| Advertising cooperative | $100–$500/month Disclosed
DMA Advertising Collaborative dues are set by majority vote of franchisee members and currently range from $100 to $500 per month. The franchisor may instead require 0.5% of STR if that is more than the fixed amount, and franchisees voting 51% or more may raise the levy up to 3% of STR. Dues may change no more than once a year. DMA Advertising Collaborative dues are set by majority vote of franchisee members and currently range from $100 to $500 per month. The franchisor may instead require 0.5% of STR if that is more than the fixed amount, and franchisees voting 51% or more may raise the levy up to 3% of STR. Dues may change no more than once a year. |
| Transfer fee | $6,000 one-time Disclosed
Transfer Fee is $6,000 and the franchisor may raise it. A separate Processing Fee of $6,000 also applies, reduced to $1,500 if a Finder's Fee is paid to the franchisor, and a pro-rated renewal fee is due on transfer. A Family Transfer Fee of $1,750 applies to transfers to an immediate family member. An optional Finder's Fee, if the seller uses the franchisor's resale services, is the greater of 10% of the sale price or 40% of the then-current initial franchise fee ($15,980 as of this FDD). Transfer Fee is $6,000 and the franchisor may raise it. A separate Processing Fee of $6,000 also applies, reduced to $1,500 if a Finder's Fee is paid to the franchisor, and a pro-rated renewal fee is due on transfer. A Family Transfer Fee of $1,750 applies to transfers to an immediate family member. An optional Finder's Fee, if the seller uses the franchisor's resale services, is the greater of 10% of the sale price or 40% of the then-current initial franchise fee ($15,980 as of this FDD). |
| Renewal fee | 25% (see basis) Disclosed
25% of the franchisor's then-current initial franchise fee, due no later than six months before the end of the term. At the $39,950 fee current in this FDD that equals $9,987.50, but the fee applied at renewal will be whatever the initial franchise fee is at that time. 25% of the franchisor's then-current initial franchise fee, due no later than six months before the end of the term. At the $39,950 fee current in this FDD that equals $9,987.50, but the fee applied at renewal will be whatever the initial franchise fee is at that time. |
| Royalty + ad fund (% of sales) | 7.5% Derived
|
Fee schedule (27 fees; 23 verified against the source, 4 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 5% of adjusted gross revenue | monthly | Yes | verified (2-pass) | Item 6, p. 28 | |
| The UPS Store Marketing Fee | 1% of adjusted gross revenue | monthly | Yes | verified (2-pass) | Item 6, p. 29 | Used for public relations, R&D/pilot programs, promotional support, and franchise sales promotion; separate from the National Advertising Fee. |
| National Advertising Fee (NAF) | 2.5% of adjusted gross revenue | monthly | Yes | verified (2-pass) | Item 6, p. 29 | |
| The Collaborative (DMA Advertising Collaborative) Dues | $100–$500 (min $100/monthly) | monthly | Yes | verified (2-pass) | Item 6, p. 29 | Applies to franchisees in a DMA with an active Collaborative; franchisee automatically becomes a member on signing (Item 11). |
| Annual Technology Development and Support Fee | $2,868 | annual | Yes | verified (2-pass) | Item 6, p. 29 | Reduced to $2,748/Center for 2nd-or-later franchise or Rural Center. |
| iShip Processing Fee | $0 | varies | Yes | verified (2-pass) | Item 6, p. 31 | |
| Equipment and Computer Hardware/Software Maintenance | Not stated | varies | Conditional | verified (2-pass) | Item 6, p. 31 | Item 6 chart cross-references Items 7 and 11 without a stated recurring amount; see the specific Item 7/11 subscription fees itemized separately below. |
| Transfer Fee | $6,000 | per event | No | verified (tie-break) | Item 6, p. 29 | Payable to the franchisor in connection with any transfer of the franchise, by the seller (transferor) and/or the buyer (transferee); the franchisor may periodically increase it to its then-current amount. Footnote 9 (PDF p.33-34) confirms the Transfer Fee, Processing Fee and Pro-Rated Renewal Fee for Transfers must all be paid on a transfer, by seller and/or buyer. |
| Processing Fee | Tiered (base $6,000) | per event | No | verified (tie-break) | Item 6, p. 29 | Payable on a transfer of the franchise; the amount depends on whether a Finder's Fee is paid to the franchisor or its designee. Footnote 9 restates both amounts: '$1,500' where a Finder's Fee is paid by the transferor, '$6,000' where it is not. |
| Renewal Fee | 25% of other | per event | Yes | verified (tie-break) | Item 6, p. 29 | Due not later than 6 months before the end of the 10-year franchise term, as a condition of renewal; a separate 'Pro-Rated Renewal Fee for Transfers' applies on transfers. The $39,950 initial franchise fee is confirmed in Item 6 Footnote 8 ('40% of the $39,950 Initial Franchise Fee is $15,980'); the 10-year term is confirmed in Item 17 ('Length of the franchise term ... 10 years'). |
| Insurance | Not stated | per event | No | verified (tie-break) | Item 6, p. 29 | Payable only if you fail to maintain the required insurance coverage and the franchisor elects to obtain coverage for you. Footnote 4 sets the coverage obligation but states no amount. Item 7 separately estimates a franchisee's own annual small-business package premium at $1,000-$15,000; that is a different cost, not this fee. |
| Audit Fee | $475 (min $475) | per event | No | verified (2-pass) | Item 6, p. 29 | Payable only if an audit shows understatement of at least 5% of STR for any accounting period, or a history of similar underreporting. |
| Audit Non-Prepared Fee | $500 (min $500) | per event | No | verified (tie-break) | Item 6, p. 30 | Payable if required documentation is not available on the audit date or upon request. Separate from the Audit Fee (cost of audit, $475 minimum, plus interest), which is charged only where an audit shows a 5%+ understatement of STR. |
| Late Payment Fee | $35 | monthly | No | verified (tie-break) | Item 6, p. 30 | Payable if any sums due to the franchisor are not paid when due; continues to accrue until paid. |
| Finance Charges | Not stated | varies | No | verified (tie-break) | Item 6, p. 31 | Billed on all items outstanding 42 days or later; payable on demand. Interest runs from the date of the underpayment (Footnote 3). |
| Non-Compliance Fee | $250–$1,000 | per event | No | verified (tie-break) | Item 6, p. 32 | Due if you deviate from the franchisor's requirements; compensates the franchisor for administrative and management costs, not for damages caused by the default. |
| PIN Pad Monthly Maintenance Fee | $15 | monthly | Yes | verified (2-pass) | Item 7, p. 45 | |
| Digital Media Monthly Subscription | $31 | monthly | Yes | verified (2-pass) | Item 7, p. 46 | Digital media is a standard feature of the Laser Lite design. |
| Keyless Entry Monthly Subscription | $96 | monthly | No | verified (2-pass) | Item 7, p. 46 | Only if the franchisee selects the optional keyless entry feature. |
| Postage Meter (must be Impb compliant) or Endicia | $76–$113 (min $40/monthly) | monthly | Yes | verified (tie-break) | Item 7, p. 46 | A postage meter must be leased or rented, or you may instead use the approved online postage system (Endicia) with a postage printer. Item 7 footnote (v), PDF p.47: 'Postage Meter must be leased or rented or you have the option to use an approved online postage system, Endicia, with postage printer at approximately $40 to $113 per month.' |
| Time-Saving Kiosk (TSK) Managed Fee | $125 | monthly | Yes | verified (2-pass) | Item 7, p. 48 | Required for Laser Lite Centers (subject to a grandfathering date); optional for Rural Centers and Centers under 800 sq ft. |
| Required commercial software (QuickBooks Pro, Microsoft Office Professional, Adobe Creative Cloud) | Not stated | varies | Yes | verified (tie-break) | Item 11, p. 64 | Required commercially available software, bought separately from local vendors or the franchisor's approved vendor (Autymate); Adobe Creative Cloud is subscription-based and therefore recurring. Distinct from the franchisor's own proprietary software licence fee and the Annual Technology Development and Support Fee — no overlap. |
| In-Center Network (ICN) broadband service | Not stated | monthly | Yes | verified (tie-break) | Item 7, p. 47 | Participation in and connection to the franchisor's proprietary ICN is mandatory, and requires a dedicated broadband connection with a static public IP address from an approved vendor. Item 7 footnote (iv) adds that the ISP may levy additional ordering/installation and circuit-termination charges, and that the TUPSS-approved Fortinet ICN equipment (approximately $2,411) requires purchased support throughout the term and may require replacement. |
| Indemnification | Not stated | per event | No | single-pass | Item 6, p. 30 | Losses from your violation of the Franchise Agreement and third-party claims arising from your Center's operation. [Listed by one verification pass only (B); not independently confirmed.] |
| Tax Reimbursement | Not stated | per event | No | single-pass | Item 6, p. 32 | Taxes the franchisor must pay to a state taxing authority on account of your operation or your payments to it (excluding its income taxes). [Listed by one verification pass only (B); not independently confirmed.] |
| Customer Concern Reimbursement | Not stated | per event | No | single-pass | Item 6, p. 32 | Payable if the franchisor resolves a customer concern because you do not. [Listed by one verification pass only (B); not independently confirmed.] |
| Fixture Fee (stocking and staging) | 2% of other | per event | No | single-pass | Item 7, p. 45 | Charged if you fail to confirm in writing a construction start timeline allowing the fixture order to ship within 45 days of permit issuance and GC bid. [Listed by one verification pass only (B); not independently confirmed.] |
Recurring fees payable on sales total 8.5% of STR before Collaborative dues: 5% royalty, 1% The UPS Store Marketing Fee and 2.5% National Advertising Fee (the last capped at $27,734 a year under the current NAF Cap). Item 6 also lists numerous event-driven charges including a $500 non-transfer ownership change fee, $500 incorporation and entity name change fees, $500 to $750 upgrade evaluation fee, $500 per document audit non-prepared fee, design fees of $925 to $3,275 plus change fees, site survey fees of $2,400 to $3,500, site survey re-visit fees of $1,250 to $2,850, indemnification, tax reimbursement and customer concern reimbursement.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: All franchised The UPS Store Centers in the United States at Traditional sites that operated and reported gross sales for the full calendar year (or from January through at least some part of December of that year). Company-owned Centers are excluded. Non-Traditional Centers are excluded — 267 of them for 2025, 266 for 2024 and 250 for 2023. Also excluded are franchised Traditional Centers that did not operate for the specified portion of the year or did not report full-period sales — 183 for 2025, 199 for 2024 and 195 for 2023. A Center is counted even if its ownership changed during the year. The 2025 population is 5,058 Centers.
Qualifications: The figures are sales only. Item 19 states plainly that they do not reflect cost of sales, operating expenses or any other costs, and it lists labor, shipping, cost of goods, marketing, rent and occupancy, training, maintenance, insurance and supplies, royalties and other payments to the franchisor, debt service, professional fees and taxes as expenses a franchisee would deduct. No cost, margin or profit data is disclosed. The data comes from franchisees' monthly royalty reports and the franchisor states it has not audited it and that no accountant has reviewed it. Company-owned Centers and all Non-Traditional Centers are excluded, as are franchised Traditional Centers that did not report a full qualifying period. In each of the three years only about 45% of the included Centers exceeded the system average, so the average sits above the typical Center. The gap between deciles is wide: in 2025 the top 10% averaged $1,248,208 and the bottom 10% averaged $345,790. Item 19 also notes that the Commerce Ready Services program is a component of these sales, that CRS client transaction volumes and compensation rates can change at the client's discretion, and that one large CRS client cut its compensation rate for certain transactions effective May 2024. The median figures the Item says it reports were in a table that could not be read as text from the source PDF.
View full Item 19 disclosure and tables
Item 19 is a historical sales representation covering three calendar years. For 2025 it reports average annual adjusted gross sales of $724,293 across the 5,058 franchised U.S. Traditional Centers that operated and reported for the full year, close to the $719,842 reported for 2024 and $721,245 for 2023 — essentially flat over three years in nominal terms. Adjusted gross sales combine gross sales and gross commissions less permitted exclusions, and include the UPS shipping charges collected from customers. The disclosure adds top-decile and bottom-decile averages for each year, which show a roughly 3.6x spread between the strongest and weakest tenth of the system in 2025. Nothing in Item 19 addresses costs, margins or owner earnings, and the figures are unaudited franchisee-reported data.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Average annual adjusted gross sales — all franchised U.S. Traditional Centers reporting a full year 45% of units met or exceeded 2,263 of the 5,058 Centers (45%) exceeded this average. | System (Traditional franchised) Average | $724,293 | 5,058 | CY2025 | FDD p.80 |
| Average annual adjusted gross sales — all franchised U.S. Traditional Centers reporting a full year 45% of units met or exceeded 2,199 of the 4,931 Centers (45%) exceeded this average. | System (Traditional franchised) Average | $719,842 | 4,931 | CY2024 | FDD p.80 |
| Average annual adjusted gross sales — all franchised U.S. Traditional Centers reporting a full year 45% of units met or exceeded 2,161 of the 4,825 Centers (45%) exceeded this average. | System (Traditional franchised) Average | $721,245 | 4,825 | CY2023 | FDD p.80 |
| Average annual adjusted gross sales — top-performing 10% of franchised U.S. Traditional Centers 37% of units met or exceeded 189 of the 506 Centers in this decile (37%) exceeded the decile average. | Top-performing 10% Average | $1,248,208 | 506 | CY2025 | FDD p.81 |
| Average annual adjusted gross sales — bottom-performing 10% of franchised U.S. Traditional Centers 59% of units met or exceeded 298 of the 506 Centers in this decile (59%) exceeded the decile average. | Bottom-performing 10% Average | $345,790 | 506 | CY2025 | FDD p.81 |
| Average annual adjusted gross sales — top-performing 10% of franchised U.S. Traditional Centers 38% of units met or exceeded 187 of the 493 Centers in this decile (38%) exceeded the decile average. | Top-performing 10% Average | $1,225,942 | 493 | CY2024 | FDD p.81 |
| Average annual adjusted gross sales — bottom-performing 10% of franchised U.S. Traditional Centers 60% of units met or exceeded 297 of the 493 Centers in this decile (60%) exceeded the decile average. | Bottom-performing 10% Average | $353,236 | 493 | CY2024 | FDD p.81 |
| Average annual adjusted gross sales — top-performing 10% of franchised U.S. Traditional Centers 37% of units met or exceeded 179 of the 483 Centers in this decile (37%) exceeded the decile average. | Top-performing 10% Average | $1,224,355 | 483 | CY2023 | FDD p.81 |
| Average annual adjusted gross sales — bottom-performing 10% of franchised U.S. Traditional Centers 58% of units met or exceeded 282 of the 483 Centers in this decile (58%) exceeded the decile average. | Bottom-performing 10% Average | $357,306 | 483 | CY2023 | FDD p.81 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 5,138 | 141 | 11 | 4 | 0 | 32 | 5,232 | 340 | 2 |
| 2024 | 5,232 | 192 | 11 | 3 | 13 | 47 | 5,350 | 268 | 15 |
| 2025 | 5,350 | 187 | 5 | 0 | 1 | 44 | 5,487 | 237 | 16 |
Disclosed 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers), Item 20, Tables 1–3 (PDF p. 83). All year-end figures are as of December 31. Franchised outlets grew each year: +94 in 2023, +118 in 2024 and +137 in 2025, a net gain of 349 franchised Centers over three years, with 520 openings against 27 terminations, 7 non-renewals, 14 reacquisitions and 123 closures for other reasons. Every Table No. 3 total row foots. Company-owned Centers rose from 2 to 16, almost entirely through the reacquisition of 13 Texas Centers in 2024 and 1 more in 2025; Item 1 says the franchisor expects to own and operate more Centers in the coming years. Transfers between franchisees are numerous but declining: 340 in 2023, 268 in 2024 and 237 in 2025, equal to about 4.3% of the franchised base in 2025. The tables cover Centers at both Traditional and Non-Traditional sites, while the Item 19 sales data covers Traditional Centers only.
Source data notes (10) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [D/minor] Tables No. 1-5: Pass B observed that every Item 20 table foots exactly: Table No. 3's state rows sum to the Total row in all seven columns for all three years, and each Total row reconciles internally. — No discrepancy. Re-verified against the source: Table No. 3's printed Total rows on PDF p.91 read 5,138 / 141 / 11 / 4 / 0 / 32 / 5,232 (2023), 5,232 / 192 / 11 / 3 / 13 / 47 / 5,350 (2024) and 5,350 / 187 / 5 / 0 / 1 / 44 / 5,487 (2025). Each reconciles exactly (5,138+141-11-4-0-32=5,232; 5,232+192-11-3-13-47=5,350; 5,350+187-5-0-1-44=5,487). Table No. 4's Totals on PDF p.92 read 2/0/0/0/0/2, 2/0/13/0/0/15 and 15/0/1/0/0/16, all reconciling. Table No. 2's Total rows on PDF p.87 read 340 / 268 / 237.
- [D/minor] Table No. 1 vs Table No. 3 and Table No. 4: Pass B observed that Table No. 1 and Table No. 3 agree on franchised year-end counts and that Total Outlets equals franchised plus company-owned in every year. — No discrepancy, and this is the corroboration that makes every other Item 20 finding minor. Table No. 1 (PDF p.83) gives franchised end-of-year 5,232 / 5,350 / 5,487 and company-owned 2 / 15 / 16, matching the Table No. 3 Total rows (PDF p.91) and Table No. 4 Totals (PDF p.92) exactly. Total Outlets 5,234 / 5,365 / 5,503 equals franchised plus company-owned each year, and Table No. 1's own Net Change column (+94 / +131 / +138) reconciles to the franchised and company-owned changes. The site's TOTAL-row figures are therefore independently corroborated in two places.
- [D/minor] Tables No. 1, No. 3 and No. 4: Pass B observed that carry-forward is clean: each year's opening balance equals the prior year's closing balance, with no unexplained restatement. — No discrepancy. Confirmed from the printed Total rows: franchised 5,138 -> 5,232 -> 5,350 -> 5,487 and company-owned 2 -> 2 -> 15 -> 16 chain without restatement across Tables No. 1, No. 3 and No. 4.
- [D/minor] Table No. 3 vs Table No. 4: Pass B observed that all company-owned growth came from reacquisitions rather than openings: Table No. 4 shows 0 outlets opened in every year, 13 reacquired in Texas in 2024 and 1 in 2025, matching Table No. 3's 'Reacquired by Franchisor' column. — No discrepancy, and it is a cross-table corroboration. Table No. 4 (PDF p.92) shows Texas going 0 -> 13 -> 14 entirely through the 'Reacquired From Franchisee' column, with the Opened column zero in all three years; Table No. 3's Total rows show 13 reacquired in 2024 and 1 in 2025, an exact match. Item 1's count of 16 company-owned Centers independently confirms the 2025 total.
- [D/minor] Item 20 header note vs Item 19: Item 20 covers all Centers in the system regardless of site type (Traditional and Non-Traditional) and is not limited to the franchise offered by this FDD, while Item 19 covers only franchised U.S. Traditional Centers. The populations are therefore not comparable: 5,058 Centers in the Item 19 CY2025 figure against 5,487 franchised outlets at 2025 year end. — Legitimate definitional difference, stated on the face of the document. The Item 20 preamble on PDF p.83 reads: 'The tables below list all Centers in our system, regardless of the type of site at which they operate.' Item 19 restricts itself to franchised Centers that 'operated at Traditional sites' and reported a full year. Neither total is wrong; they simply count different populations, and the Item 20 totals are unaffected.
- [D/minor] Item 19 exclusions vs Table No. 1: The Item 19 population plus its stated exclusions does not reconcile to Table No. 1's franchised year-end count: 5,058 reporting + 267 Non-Traditional + 183 Traditional not reporting a full year = 5,508 against 5,487 franchised outlets at 2025 year end (2024: 4,931+266+199 = 5,396 against 5,350; 2023: 4,825+250+195 = 5,270 against 5,232). Gaps of 21 / 46 / 38 outlets are not reconciled in the FDD. — Definitional, not an error, and it does not put any Item 20 total in doubt. Item 19's counts are of Centers that operated at some point during the calendar year; Table No. 1's figure is a 31 December snapshot, so Centers that operated part of the year and then closed are inside the Item 19 base but outside the year-end count. In every year the gap is smaller than that year's total exits from Table No. 3 (2023: 38 against 47 exits; 2024: 46 against 74; 2025: 21 against 50), which is exactly the pattern that explanation predicts. The FDD does not spell the reconciliation out, but the Item 20 totals themselves are corroborated by Table No. 1 / Table No. 3 / Table No. 4 agreement, so the discrepancy touches only the framing of the Item 19 population.
- [D/minor] Table No. 3: Pass B observed that attrition fell sharply in the most recent year: terminations 11 / 11 / 5 and non-renewals 4 / 3 / 0 for 2023 / 2024 / 2025, while 'ceased operations - other reasons' stayed elevated at 32 / 47 / 44 and is the largest source of closures. — No discrepancy. These are the printed Table No. 3 Total-row figures on PDF p.91, re-read and confirmed, and they match the record exactly. A genuine trend in the source, not an extraction or calculation problem. Worth surfacing editorially only because 'ceased operations - other reasons' dominates closures in all three years.
- [D/minor] Table No. 5 2025: Table No. 5 projects 206 new franchised openings in the next fiscal year against 187 actual 2025 openings and only 162 franchise agreements signed but not yet opened, so projected openings exceed the signed pipeline by 44 units. — Legitimate difference in what the columns measure, not an inconsistency. Table No. 5 Column 2 counts agreements already signed as of 31 December 2025; Column 3 is a forward projection that necessarily includes agreements the franchisor expects to sign and open within the same year. The FDD makes no representation that the two must agree, and 206 projected against 187 actually opened in 2025 is consistent with recent run-rate. Both figures (162 and 206) match the record and Table No. 5 on PDF p.93.
- [D/minor] Table No. 2 vs Table No. 3: Table No. 2 omits Delaware and Rhode Island, which do appear as state rows in Table No. 3. — Table-definition difference, not a missing row. Table No. 2 lists only states in which transfers occurred; a state with zero transfers in all three years simply does not appear. The printed Total rows on PDF p.87 read 340 / 268 / 237, matching the record, so no transfer count is affected by the omission. Transfer volume declined 340 -> 268 -> 237 over the period.
- [D/minor] Item 20 franchisee lists: Several franchisee names appear two, three or four times in the Item 20 termination and transfer lists (for example David Anderson x3, Anthony Zolin x3, Sunil Pathak x4, Beth Gordinier x3), and several rows note that the affected Center was in a different state from the franchisee. — Not duplicate entries. These lists carry one line per Center, so a multi-unit franchisee who transferred or exited several Centers appears once per Center; the franchisee's own address may differ from the Center's state. This affects only the narrative franchisee lists appended to Item 20, not any table figure, so no derived metric on the site changes.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 2 | 0 | 0 | 0 | 0 | 2 |
| 2024 | 2 | 0 | 13 | 0 | 0 | 15 |
| 2025 | 15 | 0 | 1 | 0 | 0 | 16 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers)
- Document
- FDD 2026, issued 2026-04-23
- Item
- Item 15 — Item 15
- Page
- PDF p. 70
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641224
We typically do not require you to participate personally as the Center's direct, "on-premises" operator or supervisor of operations.
Item 15 says the franchisor typically does not require the owner to be the on-premises operator. The Center must be supervised full-time on premises by a trained Primary Operator, who may be the owner or a supervisory employee. Even when the owner is not the Primary Operator, the owner must monitor operations, and the franchisor reserves the right to require an owner to serve as Primary Operator. Multiple Center Owners must staff each Center with a full-time on-premises Certified Operator and keep at least one Primary Operator for every five Centers.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
Item 15 says the franchisor typically does not require the owner to be the on-premises operator. The Center must be supervised full-time on premises by a trained Primary Operator, who may be the owner or a supervisory employee. Even when the owner is not the Primary Operator, the owner must monitor operations, and the franchisor reserves the right to require an owner to serve as Primary Operator. Multiple Center Owners must staff each Center with a full-time on-premises Certified Operator and keep at least one Primary Operator for every five Centers. Item 15 says the franchisor typically does not require the owner to be the on-premises operator. The Center must be supervised full-time on premises by a trained Primary Operator, who may be the owner or a supervisory employee. Even when the owner is not the Primary Operator, the owner must monitor operations, and the franchisor reserves the right to require an owner to serve as Primary Operator. Multiple Center Owners must staff each Center with a full-time on-premises Certified Operator and keep at least one Primary Operator for every five Centers. |
|---|---|
| Initial training | The New Franchisee Training Program totals 197 hours: 53.5 classroom hours, 105.5 in-Center on-the-job hours and 38 web-based hours, covering financial management, sales and customer experience, POS, marketing, mailbox and USPS services, UPS shipping, packaging, print services, Commerce Ready Services and freight. It is delivered as web-based modules, two five-day In Store Experience weeks at a Certified Training Center, Print Services Training and a five-day University Business Course held at a regional training location, virtually, or by a certified trainer. The program runs roughly 12 times a year in person and 6 times virtually. Every new franchisee's designated Primary Operator must complete all parts, and the Primary Operator must also complete a third-party Financial Management Training Program within six months of the agreement's effective date. Each Center must have at least one full-time supervisory employee who completes Print Services Training. Training fees are $1,500 for ISE I, $3,000 for the University Business Course, $1,500 for ISE II and $1,000 for Print Services Training for the first trainee, and franchisees pay their own travel and living costs. Disclosed
|
| Multi-unit / development options | The initial franchise fee falls from $39,950 to $19,950 for a second or later Center where the buyer holds at least a 50% interest in an existing franchise and in the new one, and the software license and technology fees are also reduced. A Multiple Center Owner is anyone holding an interest in at least two Centers with control of one; first-time Multiple Center Owners must complete a four-day Multiple Center Owner Workshop. A non-mandatory Center Option Agreement can give an option holder a conditional right to secure real estate and franchise rights in a defined option territory, though the eventual franchise territory is likely to be significantly smaller than the option territory and not all option holders become franchisees. The reviewed document describes no area development agreement. Disclosed
|
| Territory (Item 12) | No exclusive territory. The Franchise Agreement attaches a map and description of a Territory around the Center, but Item 12 states there is no minimum territory size and that the franchisee will not receive an exclusive territory. Within the Territory the franchisor and its affiliates will not own or license a Traditional Center, but they may open or license Centers at Non-Traditional sites anywhere in the Territory regardless of proximity, subject to the franchisee's right of first refusal on certain Non-Traditional sites. The franchisor also reserves the right to sell through the internet, mail order, direct mail, telemarketing, UPS customer counters, drop boxes and independent authorized shipping outlets, inside or outside the Territory, without compensating the franchisee. Territory boundaries may be modified on transfer, renewal or relocation. Keeping territorial rights does not depend on hitting a sales volume or market penetration target. Disclosed
|
| Initial term | 10 years Disclosed
The premises lease must run at least 10 years, with or without tenant options. |
| Renewal | A franchisee in good standing may renew for successive 10-year terms on the franchisor's then-current form of franchise agreement, which may differ materially from the current form. Renewal requires compliance with all agreements, being current with the franchisor, landlord and vendors, signing the then-current agreement and a general release where state law allows, paying a renewal fee equal to 25% of the then-current initial franchise fee, completing Renewal Refresher Training, accepting territory boundaries as the franchisor determines them, and completing a Center upgrade and remodel to the then-current image and equipment standards by the deadline in the Upgrade Agreement. Franchisees whose agreements expire on or after May 1, 2022 must remodel to the Laser Lite design, initiating the design within 3 months and completing the buildout within 11 months of the renewal effective date. Disclosed
|
| Staffing | A typical new Center occupies 800 to 1,800 square feet of interior space. Day-to-day operations must be supervised full-time on premises by a trained Primary Operator, and each Center needs at least one full-time supervisory employee who has completed Print Services Training. The reviewed document does not state a typical headcount or required operating hours. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 9 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 9 matter(s) disclosed Disclosed Item 3 lists nine matters. Five are consumer class or putative class actions alleging that the franchisor and its franchisees charged notary fees above statutory caps, brought in Kentucky, Massachusetts, New Jersey (two, since consolidated) and Illinois. Of those, the Massachusetts case was dismissed with prejudice in 2020 after the state's high court held there was no fee cap; the Kentucky case settled in 2021 with franchisee defendants funding vouchers and $250,000 of administrative costs; the consolidated New Jersey cases and the Illinois case remain pending, with an Illinois appellate court affirming certification of a narrow class of one Center's customers in August 2025. A sixth matter is a receiver's action in Mississippi alleging that a franchisee's employees notarized fraudulent deeds used in a securities fraud; the parties reached an agreement in principle at an October 2025 settlement conference and expect to finalize it in 2026. A seventh, a long-running franchisee class action over the Mail Boxes Etc. conversion, ended in 2018 after class decertification and a $112,500 settlement with the individual plaintiff, following an earlier $4,200,000 settlement covering 143 centers in 2013. Two matters involve current or former franchisees: a former franchisee's California suit alleging the franchisor threatened termination after he acquired a competing business, in which the franchisor filed a cross-complaint for breach of the franchise agreement and personal guarantee and has a summary judgment hearing and July 2026 trial date; and an Illinois dispute arising from a franchisee's confrontation with a customer, in which the franchisor settled the customer's claim for $28,900 and the franchisee has since filed federal claims under the Illinois Franchise Disclosure Act and consumer fraud statute. Litigation involving Area Franchisees is disclosed separately in Exhibit 9, which was not reviewed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed, other than any bankruptcy involving Area Franchisees, which the franchisor says is disclosed in Exhibit 9. Exhibit 9 was not reviewed. |
| Personal guaranty | Required Disclosed
If the franchisee is a corporation, LLC or partnership, every individual owner and every individual owning an interest in an owning entity must sign a Continuing Personal Guarantee and be bound personally by all contractual provisions, including the non-competition covenant. Trustees and beneficiaries of a trust owner may also be required to sign. |
| Non-compete | During the term, the franchisee may not be involved in any business that is the same as, competitive with, substantially similar to, or that provides any service also provided by a The UPS Store Center or an affiliate's business, with no geographic limit. After termination or expiration, the same restriction applies for 2 years within the Center's former protected territory. Some states impose lesser restrictions. The covenants sit in a separate Non-Competition Agreement and are also binding on individual owners through the Continuing Personal Guarantee. Disclosed
|
| Transfer restrictions | All transfers need the franchisor's prior written consent. Conditions include the buyer qualifying and completing training, signing the then-current franchise agreement, the franchisor's right to modify the territory boundaries, upgrading the Center to current image, equipment and data security standards, a general release where state law permits, and landlord consent to lease assignment or a new lease with the franchisor's addendum. Fees on transfer are a $6,000 transfer fee, a processing fee of $6,000 (or $1,500 where a Finder's Fee is paid) and a pro-rated renewal fee. The franchisor holds a right of first refusal to match any offer for the business. Design remodel obligations pass to the buyer, with a full Laser Lite remodel generally required within 11 months of transfer. Changes of less than a controlling interest require consent and a $500 fee; family transfers carry a $1,750 fee. Disclosed
|
| Termination / non-renewal | The franchisor may terminate only for cause. Monetary defaults carry a 5-day cure period and other curable defaults 30 days. Non-curable defaults include bankruptcy or insolvency, abandonment or failure to actively operate the Center, unauthorized transfer, repeated defaults even if cured, felony conviction, trademark misuse, an unsatisfied judgment over $25,000, expiration or termination of the premises lease, recurring customer complaints, breach of the in-term non-compete and failure to meet data security requirements. A notable linkage: termination of the separate UPS Contract Carrier Agreement is treated as an uncured, incurable default that automatically and immediately terminates the Franchise Agreement without notice, and grounds for that include materially violating UPS's designated maximum retail prices. A franchisee may terminate only if the franchisor is in material default and fails to cure within 60 days. On termination the franchisee may owe liquidated damages, must de-identify and transfer telephone numbers, and the franchisor may assume the lease and buy usable inventory and equipment at fair market value. Disclosed
|
| Supplier restrictions (Item 8) | The franchisor is the only approved supplier of fixtures, graphics, mailboxes, tablets, computers and peripherals, window signs, acrylics, technology installations, security gates, storefront signage and some packaging materials, and it is the sole source of the proprietary software, POS systems and Back Office Machine. Franchisees must buy fixtures, furnishings, equipment, decor and signs from the franchisor or approved vendors, must use approved vendors for print services equipment, must sign an agreement with the single approved shredding vendor, and must participate in the Commerce Ready Services, E-Commerce and Customer Loyalty programs the franchisor designates as mandatory. Each franchisee also signs a UPS Incentive Program Contract Carrier Agreement with UPS. The franchisor states that purchases under its specifications are about 66% of the cost to establish the business and about 95% of purchases during operation. In its last fiscal year the franchisor had revenues of $337,559,050, of which about $44,130,920 (13%) came from selling or leasing equipment, supplies and software rights to franchisees and about $4,871,911 (1.4%) came from vendor and supplier administrative fees, typically 0% to 5% of franchisee purchases. In fiscal 2025 UPS earned $936,564,087 in net revenues from selling shipping services to the U.S. franchise network, iShip $11,063,813 and UPS Capital $26,442,841. Disclosed
|
| Dispute resolution | No arbitration. A franchisee must offer to mediate before starting any suit against the franchisor, and the franchisor may accept or decline. Disputes under the Franchise Agreement, Option Agreement and iShip Subscription Agreement that are not mediated must be litigated in San Diego, California under California law; the FDD cover page carries a state-required risk warning that out-of-state litigation may cost more and may force a less favorable settlement. Disputes under the separate Non-Competition Agreement are litigated in the state where the Center is located under that state's law. State-specific addenda may override these terms. Disclosed
|
- Mandatory remodel: all new Centers must be built to the Laser Lite design, and franchisees renewing on or after May 1, 2022 must remodel to it, initiating the design within 3 months and completing buildout within 11 months of the renewal date. Item 7 puts a Laser Lite remodel of a Traditional Center at $97,047 to $281,271.
- The Franchise Agreement is tied to a separate UPS Contract Carrier Agreement; termination of that agreement automatically and immediately terminates the franchise without notice or cure.
- The franchisee does not receive an exclusive territory, and the franchisor may place Non-Traditional Centers anywhere inside the territory as well as sell through UPS counters, drop boxes and other authorized shipping outlets.
- DMA Advertising Collaborative dues can be raised to as much as 3% of sales by a 51% vote of the collaborative's franchisee members, on top of the 5% royalty, 1% marketing fee and 2.5% national advertising fee.
- Company-owned Centers rose from 2 to 16 over the three reported years, mainly through reacquiring 13 Texas Centers in 2024, and Item 1 says the franchisor expects to own and operate additional Centers in the next several years.
- The lease term must be at least 10 years, matching the franchise term; lease expiration or an uncured lease default is a non-curable default under the Franchise Agreement.
- The in-term non-competition covenant has no geographic limit and binds individual owners personally through the Continuing Personal Guarantee.
- Item 19 notes that Commerce Ready Services volumes and compensation rates are set by corporate clients and can change; one large client cut its rate for certain transactions effective May 2024.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $345,790 | $724,293 | $832,937 |
| − Cost of goods / supplies assumption | $103,737 | $217,288 | $249,881 |
| − Payroll (excl. owner) assumption | $103,737 | $217,288 | $249,881 |
| − Occupancy assumption | $24,205 | $50,701 | $58,306 |
| − Other operating expenses assumption | $34,579 | $72,429 | $83,294 |
| − Royalty disclosed 5% of adjusted gross revenue = $36,215 |
$17,290 | $36,215 | $41,647 |
| − The UPS Store Marketing Fee disclosed 1% of adjusted gross revenue = $7,243 |
$3,458 | $7,243 | $8,329 |
| − National Advertising Fee (NAF) disclosed 2.5% of adjusted gross revenue = $18,107 |
$8,645 | $18,107 | $20,823 |
| − The Collaborative (DMA Advertising Collaborative) Dues assumption $1,200/yr (seeded from the disclosed floor) |
$1,200 | $1,200 | $1,200 |
| − Annual Technology Development and Support Fee disclosed $2,868 per year |
$2,868 | $2,868 | $2,868 |
| − PIN Pad Monthly Maintenance Fee disclosed $15/month × 12 = $180 |
$180 | $180 | $180 |
| − Digital Media Monthly Subscription disclosed $31/month × 12 = $372 |
$372 | $372 | $372 |
| − Postage Meter (must be Impb compliant) or Endicia assumption $480/yr (seeded from the disclosed floor) |
$480 | $480 | $480 |
| − Time-Saving Kiosk (TSK) Managed Fee disclosed $125/month × 12 = $1,500 |
$1,500 | $1,500 | $1,500 |
| = Modeled operating result before the items below (EBITDA-style) | $43,540 | $98,422 | $114,176 |
| − Manager compensation assumption | $65,000 | $65,000 | $65,000 |
| = Modeled result after manager compensation | −$21,460 | $33,422 | $49,176 |
| − Illustrative debt service assumption | $46,950 | $46,950 | $46,950 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$68,411 | −$13,528 | $2,225 |
| Modeled operating margin | 12.6% | 13.6% | 13.7% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 4 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- iShip Processing Fee (Item 6, p. 31) — Per-transaction fee; modeling requires an assumed iShip transaction volume. Subject to periodic increase by affiliate iShip, Inc.
- Equipment and Computer Hardware/Software Maintenance (Item 6, p. 31) — amount not stated in the FDD (e.g. “then-current fee”)
- Required commercial software (QuickBooks Pro, Microsoft Office Professional, Adobe Creative Cloud) (Item 11, p. 64) — amount not stated in the FDD (e.g. “then-current fee”)
- In-Center Network (ICN) broadband service (Item 7, p. 47) — amount not stated in the FDD (e.g. “then-current fee”)
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers) · issued 2026-04-23. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — The UPS Store, Inc. (Traditional Centers) Registry file 641224 · 598 pages Cover reads 'Issuance Date of this Franchise Disclosure Document: April 23, 2026'; running footer reads 'TRAD. FDD 04/23/2026'. Wisconsin registration effective 4/23/2026, status Registered. This document covers Centers at Traditional sites only; the franchisor uses a separate FDD for Non-Traditional sites, which was not reviewed. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-23 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 70 of 74 material fields confirmed (66 with the exact page citation re-confirmed), 1 corrected, 0 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (5)
- item19.headline_median — Item 19 states it reports median annual adjusted gross sales for each year and for the top and bottom deciles, but the summary table holding those figures (FDD page 73, PDF page 79) is an image and produced no text under pdftotext. No median value was recorded rather than guessing one.
- item19.population_share_of_system — left null because the Item 19 population counts franchised U.S. Traditional Centers only (5,058 for 2025) while the Item 20 franchised total of 5,487 includes Non-Traditional Centers, so a simple ratio of the two would be misleading.
- investment.liquidity_required and investment.net_worth_required — no liquid capital or net worth threshold appears anywhere in the cover pages or Items 1, 5, 7, 11 or 15.
- fees.local_marketing — no required minimum local advertising spend is stated; recorded as not disclosed rather than inferring one from the national fund or collaborative dues.
- risk.litigation.franchisee_initiated_count — counted as 3 (the Morgate franchisee class action, the Newlite former-franchisee suit and the Lee Parties' federal complaint). The Lee matter began as a franchisee's suit against a customer and later produced claims against the franchisor, so the classification involves judgment.
Extraction notes (7)
- This is the Traditional-site FDD. The franchisor uses a separate FDD for Non-Traditional sites (campuses, hotels, airports, malls and similar) that was not reviewed, so nothing here describes that offering.
- Item 7 line items foot exactly to the disclosed totals of $222,368 low and $606,081 high, and every Item 20 Table No. 1, No. 3 and No. 4 total row reconciles.
- investment.franchise_fee_low and franchise_fee_high are both $39,950, the standard first-Center fee. The $19,950 second-Center price, the $14,950 Rural fee and the Believe, VetFran and First Responder discounts are described in the fee note rather than used to widen the range.
- fees.renewal_fee is expressed as a percentage (25% of the then-current initial franchise fee) because the FDD states it that way; at the current $39,950 fee that would be $9,987.50.
- Item 20 counts cover Centers at both Traditional and Non-Traditional sites, while Item 19 covers Traditional Centers only. The two populations are not directly comparable.
- Item 1 states the franchisor and its predecessor have offered franchises for this type of business since June 11, 1980, and that the core business has been franchised for approximately 46 years; business_since and franchising_since are both recorded as 1980. The franchisor itself became the franchisor in April 2001 through UPS's acquisition of Mail Boxes Etc.
- Verification 2026-09-02: correct /item19/headline_median None → 692858
We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.
Compare The UPS Store
Other business services franchises: Express Employment Professionals, FASTSIGNS, Minuteman Press. See all →