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Do you value freedom and flexibility over being supervised? Is the thought of being your own boss appealing to you? Would you like to run your own business without having to start a brand from scratch? Do you like the idea of managing the day-to-day operations of your business with the support of a successful brand?
If you answered yes to these questions, then buying a franchise may be the ideal career path for you. The advantages of owning a United Parcel Service franchise, better known as “UPS”, is that you get to be your own boss while enjoying the support system of a well-established brand.
UPS was founded in 1907 and has grown into a multi-billion dollar company. The UPS store offers package delivery to several countries and a variety of transportation and logistics services. It is one of the largest package delivery companies and with the demand for convenient delivery services across the globe, it is expected that this company will continue to grow in the coming years.
The UPS Store is the global leader in its marketplace, with over 6,000 locations in more than 75 countries. The UPS Store franchisees are entitled to numerous products and services such as shipping and packing, mailbox and postal services, copying, finishing and printing, packaging and moving supplies, and business services including fax, notary and office supplies.
The growth and size of UPS can be promising for franchisees. Because The UPS Store brand is a globally respected market leader and has a good track record in the industry, customers are already well-aware of the brand and the services it provides.
Franchisees will have the support of local field representatives along with HQ’s valuable corporate staff. National, regional and local marketing campaigns have been developed to increase UPS Store brand awareness that serves to drive customers into the store. Proven floor plans and established fixture systems can be adjusted to suit any chosen site. The UPS Store franchise team will implement standardized design applications to keep the franchise consistent with UPS Stores brand.
The UPS Store leverages corporate relationships to grow businesses at the local level. The HQ team works with major UPS customers and other national brands to bring shipping and printing business to the franchise locations.
There is no doubt that franchisees will benefit from the public trust and established familiarity of a nationally recognized brand. However, before you invest in a UPS franchise, you should consider its cost analysis and, more importantly, you should be able to weigh its pros and cons.
Potential UPS franchisees must have a minimum of $60,000 of liquid capital in cash, savings, stocks, bonds, mutual funds, retirement accounts, gifts from family members or friends, or any other non-borrowed sources. This amount is based upon the franchisee's area of interest and, depending on market conditions, it could go as high as $100,000. The net worth requirement is $150,000.
The investment ranges from $167,825 - $353,580. The initial franchise fee is $29,950. This includes a two-week in-store training session and a two-week course at the corporate campus in San Diego, CA.
The UPS Store brand franchise also offers a lease program, for qualified franchisees, that provides financing. This program includes SBA lenders and assists with the purchase of fixtures and equipment.
For more details - The UPS Store Franchise Review
When you decide to become a UPS Store franchisee, you can expect to enjoy the following pros:
Although The UPS Store can provide several opportunities, it also comes with some setbacks such as:
When buying a franchise, consider the pros and cons of choosing a new or existing business.
Once you have decided to buy a UPS Store franchise, the question is which type of franchise location should you buy – new or existing? Opening a new franchise business and assuming ownership of an existing location both have pros and cons. You may already have an idea of which path you’d like to take, however it is important to research the advantages and disadvantages of each option before locking yourself in. Here are some considerations to keep in mind to make sure you are getting the best possible deal and potential return on investment.
One of the biggest advantages of buying a franchise is the name brand recognition you get from the moment you open your doors. This can go a long way in getting a head start on a loyal customer base. Purchasing an existing franchise location takes that a step further, as you will be buying a fully operational business complete with an established cash flow and trained staff.
This approach allows you to bypass all of the headaches of finding a site, negotiating a lease, building out the property, creating vendor relationships and securing inventory. Aside from any changes that you want to make, the business is already up and running, saving you time and possibly money. If you purchase an existing business directly from a franchisee, rather than the franchisor, it can provide more leeway to negotiate price, fee structure and terms.
You should keep in mind that you must still perform due diligence and thoroughly research before you buy a franchise to ensure that it is a profitable business with a track record of success. Having a good customer base and a solid bottom line are essential.
Do not assume that a struggling franchise is a business that you can turn around. There are many things that can cause the business to be struggling. A downturn in the industry, competition, a less than good location, or a host of other possible issues beyond your control could be the cause. A business with a tarnished reputation is another uphill battle. Ownership always has its own challenges. Struggling from the beginning is not the best path forward to achieving success.
Research why the current franchisee is looking to move on. Find out how many franchisees have owned the location that you are considering. If there is a constant revolving door of owners, this could be a red flag.
Opening a brand new franchise business does carry some risk, but it could also lead to bigger profits and greater rewards. You will be responsible for obtaining financing, finding a location, purchasing equipment, hiring employees, and implementing a marketing strategy. Even with the recognized brand name, it will take time to cultivate a loyal customer base. This will involve a lot of hard work at the beginning but will allow you to start your business with a clean slate free of any negative impressions created by a former owner that could deter customers and make earning a profit more difficult.
Existing franchise costs can be more flexible, whereas buying a new franchise may turn out to be less expensive. An existing successful business can come at a higher price because of the value of the existing cash flow and customer base. A new franchise business location will require more work upfront, however the money you may save and the opportunity to build your business yourself from the start could be worth it.
With an existing franchise location, you may have to buy the store as-is and you may not be able to make improvements to it for a while. In some industries, it is imperative to the success of the business to have state-of-the-art, highly efficient equipment. When buying a new franchise location, there’s a greater probability of being able to secure new or at least newer equipment and facilities.
Buying a franchise is a big investment. It requires a significant amount of research to ensure you are selecting not only a profitable franchise, but the right choice for you. Your personality, preferences and business goals will help to determine whether to buy a new or existing franchise business. If you feel like it is important to start a business from the beginning and you have a higher risk tolerance, a new franchise location may be the best option for you. If you are looking for an established location where you can keep an already good thing going, an existing franchise could be the best fit for you. The correct choice depends on you – there is no right or wrong answer.
For more information - The UPS Store
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