Verified — real FDD extraction
Not found in the SBA Franchise Directory — SBA financing may be unavailable; verify with your lender
THE UPS STORE (TRADITIONAL)
Retail & Products · independent · est. —
The UPS Store (traditional) is a retail shipping and business-services storefront offering package shipping, packing, printing and copying, mailbox rentals, and notary services. A franchisee operates a neighborhood store serving walk-in consumers and small businesses, managing staff and the retail counter.
THE UPS STORE (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 & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. 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
$222K–$606K
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
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 |
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 $222K–$606K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$222K–$606K
all-in investment range
Franchise fee (Item 5)
$40K
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
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 (TRADITIONAL) with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for THE UPS STORE (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 (TRADITIONAL)'s numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →THE UPS STORE (TRADITIONAL) franchise questions, answered from the filings
What percentage of THE UPS STORE (TRADITIONAL) franchises closed last year?
In THE UPS STORE (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 (TRADITIONAL) franchise cost?
Per THE UPS STORE (TRADITIONAL)'s 2026 FDD, buying in requires an initial franchise fee of $40K (Item 5) and a total initial investment of $222K–$606K (Item 7).
What royalty does THE UPS STORE (TRADITIONAL) charge?
THE UPS STORE (TRADITIONAL) charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does THE UPS STORE (TRADITIONAL) disclose earnings (Item 19)?
Yes — THE UPS STORE (TRADITIONAL) makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $693K. Read it closely: franchisors choose which units and which metrics to include.