Question: Is A UPS Store Profitable?

How does a UPS franchise make money?

Franchises usually have more up front cost than starting your own independent business.

Plus there are ongoing royalties that have to be paid to the franchisor.

In the case of the UPS Store the royalties (comprised of both the standard 8.5% fee and another 2.5% for ad royalties) add up to 11% of your revenue..

How much does it cost to start a UPS store?

The start-up costs, including the franchise fee, for a The UPS Store franchise are approximately $150,000 (less for veterans). Our franchisees have a successful track record that has prompted more than one-third of our franchisees to open multiple locations.

What are the most profitable franchises?

Most Profitable FranchisesDunkin’7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items…•

Is owning a franchise a good idea?

If you want to own a business, but don’t have an idea to build from scratch and you have the resources to make it work, a franchise can be a good choice. … Make sure you are prepared to pay the costs associated with the franchise and that the corporate headquarters is likely to provide the support you need.

How much is it to buy a McDonald’s franchise?

The total investment necessary to begin operation of a traditional McDonald’s franchise ranges from $1,008,000 to $2,214,080. This includes an initial franchise fee of $45,000.00 that must be paid to the franchisor.

How do I become a UPS drop off?

You don’t need an online store to become a UPS Access Point. Contact UPS directly with any questions about the application process….Contact UPS directly with any questions about the application process.Download the UPS Scanning APP. … Receive training and support from UPS. … Accept packages from UPS customers and drivers.

How much does it cost to open a Fedex store?

Franchisees must make an initial investment of $64,000 – $164,000. Three employees are required to run each franchise.

Is a UPS Store franchise a good investment?

Down Sides to the UPS Store Franchise It has been reported by The Balance, that it takes a UPS Store franchise “$365,000 in annual gross sales” for a franchise owner to yield a “$35,000 a year income.” The same report states that “about 60% of all US stores do not break even.”

What is the cheapest franchise to start?

12 Best Low-Cost Franchises for Aspiring Business OwnersStratus Building Solutions. … SuperGlass Windshield Repair. … Mosquito Squad. … Pillar to Post Home Inspectors. … Property Management Inc. … Soccer Shots. Franchise Fee: $34,500. … Dream Vacations. Franchise Fee: $495 to $9,800. … Lil’ Kickers. Franchise Fee: $15,000.More items…•

Does UPS store charge more than ups?

The base shipping rate at The UPS Store® and ups.com are equal; however, there are accessorial charges that UPS imposes for services such as delivery area surcharge or declared value for which franchisees might charge an additional service fee to cover their costs.

What franchise owners make the most money?

Here are the top five in Entrepreneur Magazine’s Annual Franchise 500 rankings for 2018, and the initial investment required:McDonald’s: $1 million to $2.2 million.7-Eleven: $38,000 to $1.1 million.Dunkin’ Donuts: $229,000 to $1.7 million.The UPS Store: $178,000 to $403,000.RE/MAX LLC:: $38,000 to $225,000.

Does the UPS Store make money on drop offs?

The local UPS gets 25 cents per package if you just drop off a prepaid… … yes, it’s an UPS store. I’m in a competitive area with one UPS store just going out of business not long ago (about a month or so) and another 3 UPS stores in 3 -4 miles radius.