How to Start a Franchise: A Step-by-Step Guide for Aspiring Entrepreneurs
Learning how to start a franchise can be a life-changing experience. Aspiring entrepreneurs are often drawn to franchise opportunities because these businesses operate under an already established brand that can offer support to entrepreneurs looking to build their dream and contribute to their local communities.
As you’ll see in our guide, The UPS Store® franchise opportunities center around providing you with the tools for helping you become a valuable part of your local community.
While this guide focuses on The UPS Store franchise as the opportunity, the information provided is general enough for those exploring a deeper understanding of the franchise journey.
What Is a Franchise?
Let’s begin with the basics.
A franchise is a business model where a company (the franchisor) grants an individual or group (the franchisee) the right to operate a business under the established brand, often with additional support. In our case, The UPS Store, Inc., is the franchisor, and given your interest, you could potentially become a franchisee.
For potential entrepreneurs like yourself, there are numerous benefits to becoming a franchisee, especially with an established brand such as The UPS Store that offers built-in support and is synonymous with community service and diversity. Franchises are tested business models that help entrepreneurs enhance their opportunities.
Franchises often bring immediate trust and visibility in the local community because they operate under well-known brands. Most people in the United States are familiar with The UPS Store brand, for example.
More importantly, opportunities like The UPS Store franchise offer a comprehensive support system, including marketing, training and operational guidance. Leveraging the infrastructure and brand recognition of a franchise can help you minimize many of the challenges faced by independent startups.
Why Start a Franchise?
Going beyond brand recognition and support systems, there are numerous reasons why starting a franchise can be a powerful way to pursue positive change for yourself, your team and your community.
Community Impact
Franchises often have a direct impact on the communities where they are built. A franchise like The UPS Store allows entrepreneurs to engage and serve their local communities, becoming trusted service providers in the area by leveraging a national brand.
Franchises create jobs, offer services where gaps may have existed and foster community connections.
The UPS Store franchise, in particular, has a strong commitment to promoting diversity in franchise ownership, including opportunities for minorities, veterans and first responders.
This diverse business ownership positively contributes to the growth and evolution of communities.
Growth Potential
Franchising provides quicker market entry than starting an independent business.
Franchises are often highly scalable due to support from the main brand. While it's up to the franchisee to deliver results, a strong brand like The UPS Store can help franchisees expand into new locations with the backing of extensive training programs, marketing support and ongoing operational guidance.
How to Evaluate Franchise Opportunities
Now that we understand the basics, it’s time to dive into how to evaluate franchise opportunities. Many brands, including The UPS Store, offer franchise options. When choosing a franchise, consider the following components:
Aligning with Your Core Values
It’s important to choose a business that aligns with your personal values. While expertise in a sector is beneficial, a strong training infrastructure should support your learning. For example, The UPS Store franchise focuses on community service and diversity. If you're looking to make a meaningful impact on your community, choosing a franchise with similar values is crucial.
Support Systems
The level of support offered by the franchisor can make or break the franchisee’s experience. Evaluate the brand’s support infrastructure by speaking to other franchisees or reading reviews.
The UPS Store franchise provides a robust support system that includes training, marketing and operational assistance, helping franchisees in their businesses. With over 5,300 locations and four decades of experience, The UPS Store franchisee support infrastructure is top-notch. Make sure you visit our How It Works page.
Growth Potential
It’s equally important to understand the franchise’s growth potential. Can you open multiple locations or expand into more communities? The UPS Store franchise has a proven track record of helping franchisees scale their businesses, offering multi-unit ownership opportunities.
Understanding Franchise Startup Costs
One of the most important aspects of starting a franchise is understanding the startup costs.
Initial Investment
Typically, a franchise requires an upfront investment, including franchise fees, setup costs and other initial expenses to get the business off the ground. The UPS Store franchise has a clear structure for franchise fees, and prospective franchisees should refer to item 7 in the Franchise Disclosure Document for a complete description of costs.
Choosing the Right Location
Selecting the right franchise location is central to your strategy. The location impacts visibility, walk-ins and revenue potential.
Foot Traffic and Accessibility
High foot traffic areas, such as shopping centers, can bring immediate visibility to The UPS Store locations. These locations should be easily accessible so customers can quickly drop off packages or access other services.
Competition
Understanding where competitors are located is essential. Being too close to other businesses offering similar services can make a difference. Look for locations with plenty of opportunities and limited direct competition.
Building Your Team
Hiring is one of the most important aspects of running a franchise. Building a reliable, customer-focused team is critical for The UPS Store franchisees. Since many services are customer-facing, a well-trained, friendly team enhances customer loyalty and the store’s reputation.
Consider recruiting for key roles such as managers, customer service representatives and sales/marketing personnel. Platforms like Indeed and LinkedIn are excellent for posting job ads.
Conclusion: Ongoing Support and Additional Tips
Ongoing support provided by The UPS Store franchise can help franchisees grow their businesses and achieve their goals.
Opening a franchise, whether The UPS Store or another brand, can be a life-changing opportunity. Interested in becoming a The UPS Store franchisee? Contact us today to start your entrepreneurial journey.
Tips:
- Legal Considerations - Always review the Franchise Disclosure Document (FDD), which outlines the franchisor’s financial health, legal obligations and operational requirements. Having an attorney guide you through this process is recommended.
Types of Locations - Definitions
- Traditional Locations: Standalone stores in shopping centers or commercial areas with high visibility.
- Rural Locations: Found in less densely populated areas but serve as essential hubs for local communities.
- Non-Traditional Locations: Located in airports, universities or military bases, benefiting from a constantly moving customer base.
- Store-in-Store Locations: Operated within other retailers, such as grocery stores, offering convenient access to shipping or printing services.
Additional Location Resources:
- There are several online resources that might help you better understand things like foot traffic and other community demographics.
- Esri’s Business Analyst provides a comprehensive toolset for geographic and demographic analysis. It allows users to study foot traffic patterns, population data and other demographics to identify ideal franchise locations.
- Placer.ai specializes in foot traffic analytics using anonymized mobile location data. It offers real-time insights into where people are spending their time, how frequently they visit certain areas and how those trends are evolving.
This communication is not an offer to sell a franchise. Any franchise offer is made only after The UPS Store Franchise Disclosure Document has been provided.