Verified — real FDD extraction
SBA-eligible · directory code S1788 since 2017
THE UPS STORE NON-TRADITIONAL
Retail & Products · independent · est. —
The UPS Store (non-traditional) places UPS Store services inside host locations such as universities, airports, hotels, or large stores rather than in a standalone retail center. It offers shipping, packing, printing, and mailbox services to that location's traffic. A franchisee runs the service counter within the host site.
THE UPS STORE NON-TRADITIONAL net unit count grew +9.3% from 2021–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The standout in the record: owners who leave mostly sell rather than fail.
Exit rate · latest year
0.9%
vs 1.9% across 15 retail & products systems
Cost to open
$114K–$413K
Item 7 total investment range
SBA loan defaults
7.2%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 49 of 5,350 franchised outlets left the system — a 0.9% annualized exit rate, vs 1.9% across 15 retail & products systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Outlets at start | 4,958 | 5,037 | 5,140 | 5,234 | 5,365 |
| Opened | 112 | 144 | 141 | 192 | 187 |
| Transfers | 356 | 404 | 340 | 268 | 237 |
| Terminations | 9 | 8 | 11 | 11 | 5 |
| Non-renewals | 2 | 3 | 4 | 3 | 0 |
| Reacquired by franchisor | 0 | 2 | 0 | 13 | 1 |
| Ceased — other reasons | 22 | 30 | 32 | 47 | 44 |
| Outlets at end | 5,037 | 5,140 | 5,234 | 5,365 | 5,503 |
| Net change | +79 | +103 | +94 | +131 | +138 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 2,287 SBA-backed loans to THE UPS STORE NON-TRADITIONAL franchisees since 2003. Of the 1,146 that have resolved, 7.2% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
7.2%
83 of 1146 resolved defaulted
68.0%
avg. charged-off $ ÷ approved $
4.9%
default rate × loss severity
$375,628
what recent franchisees borrowed
58 mo
approval → charge-off, defaulted loans
198 vs 111
distinct banks still lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO THE UPS STORE NON-TRADITIONAL BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
the Huntington National Bank
10.3% of this brand's loans
That lender charges off 10.2% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
66.3%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
+0.6pp
multi-unit vs single-unit owners
Owners of multiple units default at 7.5%; single-unit owners at 6.9%.
Computed from 2,287 SBA 7(a)/504 loans to THE UPS STORE NON-TRADITIONAL franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $40K franchise fee (Item 5) and a total investment of $114K–$413K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$114K–$413K
all-in investment range
Franchise fee (Item 5)
$40K
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$50K
5% of sales, before profit
Over a 10-yr term
$500K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for THE UPS STORE NON-TRADITIONAL with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 91% of systems we score.
Risk percentile
9 / 100
Measured
Modeled SBA charge-off
7.1%
Observed SBA charge-off
7.2%
Top drivers: System size (log units) (lowers) · Single-lender dependence (raises) · Item 3 litigation (log) (lowers) · Item 20 exit rate (lowers). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for THE UPS STORE NON-TRADITIONAL. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing THE UPS STORE NON-TRADITIONAL's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →THE UPS STORE NON-TRADITIONAL franchise questions, answered from the filings
What percentage of THE UPS STORE NON-TRADITIONAL franchises closed last year?
In THE UPS STORE NON-TRADITIONAL's latest FDD Item 20 (fiscal 2025), 49 of 5,350 franchised outlets left the system — an annualized exit rate of 0.9% — compared with 1.9% across 15 retail & products systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a THE UPS STORE NON-TRADITIONAL franchise cost?
Per THE UPS STORE NON-TRADITIONAL's 2026 FDD, buying in requires an initial franchise fee of $40K (Item 5) and a total initial investment of $114K–$413K (Item 7).
What royalty does THE UPS STORE NON-TRADITIONAL charge?
THE UPS STORE NON-TRADITIONAL charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does THE UPS STORE NON-TRADITIONAL disclose earnings (Item 19)?
No — THE UPS STORE NON-TRADITIONAL's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.
How often do SBA loans for THE UPS STORE NON-TRADITIONAL franchises default?
Across 2,287 SBA-backed loans to THE UPS STORE NON-TRADITIONAL franchisees since 2003, 83 of the 1,146 that have resolved were charged off — a 7.2% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.