How to buy an existing UPS Store (franchise resale)
Short answer
Buying an existing UPS Store location is a franchise resale: the franchisor must approve you, you'll sign the then-current franchise agreement or take an assignment, and you'll pay a transfer fee and any required upgrades set out in the franchise documents. Verify the store's revenue by category (shipping, mailboxes, printing, packing and retail) from POS and franchisor reports, since margins differ by category, and review the lease, staffing and the remaining franchise term.
OKtoBuy is independent and not affiliated with UPS or any franchisor. This guide covers what to check when buying any existing shipping and print franchise location.
Revenue by category
| Category | What to check |
|---|---|
| Shipping | Volume trend, margin per package, carrier terms set by franchisor |
| Mailboxes | Number rented, renewal rates, prices |
| Printing | Commercial accounts, equipment leases |
| Packing and retail | Margin, inventory |
| Notary and other services | Who's licensed |
Worked example: gross profit by category
Illustrative example, not real franchise economics or any brand's figures
A store sells $600,000 a year. Shipping is $330,000 (55% of sales) at a 25% margin after carrier charges: $82,500 of gross profit. Printing is $120,000 at 55%: $66,000. Mailboxes are $45,000 at nearly 100% since the cost is the space you already rent: say $44,000. Packing and retail are $90,000 at 45%: $40,500. Notary and other services are $15,000 at 90%: $13,500. Total gross profit: $82,500 + $66,000 + $44,000 + $40,500 + $13,500 = $246,500. Shipping is more than half of sales but a third of gross profit ($82,500 ÷ $246,500). Mailboxes are 7.5% of sales and 18% of gross profit. Before royalties and marketing fees (usually calculated on sales, so they fall heaviest on thin-margin lines), rent, payroll and the owner, the store's health depends on printing accounts and mailbox renewals as much as package counts.
Franchise and location checks
- Current FDD: fees, transfer terms, renewal, required upgrades. See franchise due diligence.
- Remaining franchise term and what renewal requires.
- Transfer fee and who pays it. See transfer fees.
- Lease term vs loan term and assignment. See lease assignment.
- Staff, hours and the owner's own labor.
- Equipment leases (printers, copiers) and who takes them over.
Read the FDD even though it's a resale
When you buy an existing franchise location, you usually sign the franchisor's current franchise agreement or take an assignment of the seller's, and the franchisor approves you first. Ask for the current Franchise Disclosure Document, required under the FTC Franchise Rule (16 CFR Part 436). Items 5 through 7 cover fees and the initial investment, Item 17 covers renewal, transfer and termination, Item 19 any financial performance representations the franchisor makes, and Item 20 lists outlets opened, transferred and closed, with contact information for current and former franchisees. Call several. Ask what the franchisor required at transfer (training, technology upgrades, a remodel), how long approval took, and what they wish they'd checked.
Red flags specific to shipping and print stores
- Revenue from one or two large print or shipping accounts, such as a local business shipping through the store. Ask who they are and whether they have alternatives.
- Mailbox counts that are falling or many boxes rented at old prices.
- Copier and printer leases with large remaining payments or buyout terms you'd inherit.
- Little time left on the franchise agreement or the lease.
- An owner who works every open hour. Price the staff you'd need.
- A planned new location nearby under the same brand or a competitor.
What moves the value of a shipping and print store
We don't value deals or publish multiples we can't verify. These are the factors buyers, appraisers and lenders weigh:
| Factor | Supports a higher value | Pulls it lower |
|---|---|---|
| Category mix | Strong printing accounts and mailbox base | Mostly shipping at thin margins |
| Customers | Many small business accounts | One or two large accounts |
| Franchise term | Many years left, clear renewal | Little term left |
| Location | Good parking, visible, long lease | Short lease, poor access |
| Staffing | Trained staff run the counter | Owner works every shift |
| Equipment | Current, leases manageable | Old printers, expensive leases |
Worked example: what royalties do to thin-margin revenue
Illustrative example, not any franchisor's actual fees
Say royalties and marketing fees total 8% of sales in this example. On $330,000 of shipping sales at a 25% margin, the gross profit is $82,500 and the fees are $26,400, leaving $56,100, so the fees take about a third of shipping's gross profit. On $120,000 of printing at a 55% margin, gross profit is $66,000 and fees are $9,600, leaving $56,400, under a sixth. That's why growing printing and mailboxes usually does more for an owner's income than growing package counts, and why you should model fees by category rather than as one line.
Documents to request
- Three years of tax returns, P&Ls and bank statements.
- POS reports by category and month; franchisor royalty reports.
- Mailbox roster with rental terms and renewal dates.
- Top customer list for printing and shipping accounts.
- Franchise agreement, current FDD, and the franchisor's transfer requirements in writing.
- Lease, equipment leases, payroll records and staff schedules.
The first 90 days after you buy
Most franchisors require training before or soon after transfer, so you'll arrive knowing the systems. What training won't give you is the store's regulars. Meet the business customers who print and ship with the store, keep the staff and hours the same, and learn the mailbox renewal cycle. Then look at printing: it's often where a new owner can add the most, by selling to local businesses that don't know the store does it.
What an SBA lender will check
SBA lenders finance many franchise resales. They review the franchise agreement and the brand's eligibility, verify tax returns against IRS transcripts, and test debt coverage after royalties and marketing fees. They'll require the lease to cover the loan term including options you control, and they'll count the transfer fee and any required upgrades in the total project cost.
Mailbox rentals: recurring revenue with obligations
Private mailbox rentals are often one of the steadier revenue lines in a shipping and print store. Ask for the mailbox count by size, the occupancy rate, renewal dates and how many boxes are prepaid. Prepaid rental terms are income the seller has already collected for service you will provide, so ask for a credit at closing for the unexpired portion. Mailbox customers also come with record-keeping duties: commercial mail receiving agencies must collect USPS Form 1583 from each customer with identification. Check that the files are complete, because gaps are a compliance problem you take over.
Questions to ask the seller
- What are sales and gross profit by category for three years?
- How many mailboxes are rented, at what prices, and what's the renewal rate?
- Who are the top ten print and shipping customers by revenue?
- What has the franchisor said it will require at transfer?
- Which equipment is leased, and what are the remaining payments?
- How many hours a week do you work, and in which roles?
Before closing, work a few shifts at the counter, including a peak shipping day. You'll see which services customers actually come in for, how long the line gets, and how much of the day goes to tasks that don't make money.
Frequently asked questions
Does the franchisor have to approve the sale?
Yes. Franchise agreements typically require franchisor approval of the buyer, training, and sometimes a remodel or technology upgrade. Read the current FDD and the transfer provisions.
Where does a shipping store make money?
Revenue comes from shipping, mailbox rentals, printing, packing services and retail. Check gross margin by category, because shipping revenue can be large with a thinner margin.
How do I verify the numbers?
POS category reports and franchisor royalty reports matched to bank deposits and tax returns.
Is this guide affiliated with UPS?
No. OKtoBuy is independent and not affiliated with any franchisor. This is general guidance for evaluating any shipping and print franchise resale.
How do I check a shipping store's margins by category?
Ask for POS sales by category and the cost side for each: carrier charges for shipping, paper, toner and equipment lease costs for printing, and product cost for packing supplies and retail. Shipping revenue can be large with a thinner margin, while mailboxes and printing often carry more of the profit. Rank categories by gross profit before judging the store.
What does a franchise transfer typically cost the buyer?
Beyond the purchase price, often a transfer fee (sometimes paid by the seller, depending on the agreement and negotiation), training costs, any required equipment or technology upgrades, a remodel if the franchisor requires one, and legal and accounting fees. The FDD and the franchisor's written transfer conditions set the specifics; get them before you make an offer.
Sources
- eCFR 16 CFR Part 436 (FTC Franchise Rule)
- FTC Franchise Rule, 16 CFR Part 436
- FTC Franchise Rule: disclosure items, 16 CFR 436.5
- SBA: Buy an existing business or franchise
- SBA SOP 50 10 8.1
- USPS: PS Form 1583, Application for Delivery of Mail Through Agent
Related guides
General information, not legal, tax, financial or investment advice. Rules and lender practices change; check the linked sources and talk to your attorney, CPA and lender about your deal. Examples with named numbers are illustrations, not real businesses. OKtoBuy's Deal Check does not value businesses or give price opinions.