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I'm a current owner. Your figures for sales prices of existing stores is way off. The typical price is closer to 80% of STR. When you inquire about opening a store, you are sent an FDD. All current owners and owners who have sold in the past year are listed with contact information. I did my research very carefully and called owners who had sold. Many sales are people like me that are ready to retire. Most stores are bought up by other owners in the area or what we call MCO's. Corporate wants MCO's they net more per store off of them. They will even finance the purchase of additional stores. There is good potential if you are willing to work in your store and build your business. I started out with a $170,000 investment, with a brand new store and had to build it from the bottom up. By year 6 I am a gold level store with over $750,000 in gross receipts. It's truly what you put into it. If you find a store that is not profitable enough, it will not qualify for SBA financing. The first thing you would be asked is how you could pay the loan and still have living expenses.
Thanks for your insights! We recently recorded a second video on UPS Store. Are most people opening for sub $200k? The latest item 7 shows a very wide investment range.
@@Vettedbiz Opening cost depends greatly on location, local contractor cost and equipment chosen. My contractor bids were 60k apart. A good example could be current condition of a build out location. If the location isn’t vanilla shell already, the contractor has to make it so. Another factor is how much ti or allowance they are willing to pay towards construction in exchange for a lease. I don’t think UPS stores knows current costs to build out. They had gone to the blue horizon concept which was so expensive a lot of stores would of closed rather than spend $250 k to remodel. They have since rolled out a scaled back version called laser light with cost now estimated at $110 k. Those haven’t been built yet, so it’s hard for them to have an accurate cost for the fdd. In answer to your question, I don’t think a new store could open for under $200 now with increased material and labor cost for contractors. I also got a hefty discount on my franchise fee because they participate in Vetfran.
@@Vettedbiz starting from scratch is harder but less money upfront. You have to be able to survive until you can build enough business to get past break even. I lost close to 30k my first year and did not take a paycheck till close to the end of my second. I had another business to live off. Buying an existing store means immediate income but more debt. If it’s a well run store there’s far less risk. I only went new because there was none available where I wanted to live.
@@cicpro1959 thanks! let me know if you'd ever be open to a 20 minute interview for our RU-vid channel. You could add a ton of insights for prospective UPS store franchisee or franchisees of other brands for the matter.
I wonder if these stores are making much money from Amazon returns. It's what I use the UPS Store for and that's what I notice w/ other customers while I am there.
We do but it’s not a lot of money, just a small portion… but we also work with many other corporations not just Amazon! Apple, comcast, even 7/11 lol, and tons of others
