UPS highlights retail franchise opportunities in US
The UPS franchise retail network The UPS Store is holding more than 50 free seminars across the United States next week for individuals interested in franchise opportunities. The seminars coincide with National Small Business Week, which runs from May 16 in the US, and will highlight funding options that could help entrepeneurs to set up UPS Store branches.
The UPS Store network is currently getting on for 4,400 locations in the US providing domestic and international shipping services, printing and copying, mailbox services, stationary and packaging supplies.
Seminars are being held in 29 states from Monday, from Alabama to Wyoming.
“What better week to educate men and women interested in joining the nation’s more than 27 million small businesses than National Small Business Week,” said Chris Adkins, who oversees franchise development for The UPS Store network.
“Our franchise opportunities seminars can help individuals learn more about the opportunity of becoming their own boss.”
Start-up costs for a new UPS Store franchise vary based on size and location but require an initial investment of around $150,000 to $300,000. For qualifying franchisees, finance can be sourced through the commercial franchise finance firm Franchise America Finance.
But, as part of the seminar events from next week, prospective franchisees will also hear of potential funding assistance being made available through a partnership with the Bancorp Bank.
The partnership has $22.5m available to help with franchise set-up costs though accelerated loans, including $15m for new UPS Store centres and $7.5m for existing branches being transferred to new owners.
“This lending program was developed with FAF to provide qualified candidates with a time-sensitive credit approval process, allowing them to build out their business, create local jobs and begin servicing their community in a shortened amount of time,” said Adkins.
Veterans of the US Armed Forces are also being encouraged to take on UPS Store franchises through the VetFran program, in which qualifying veterans save $10,000 off the franchise fees and 75% off initial application fees.
The reason that the IFA (FAF) had to step in with regard to lending is that these stores are a bad deal, and they’re getting worse so banks simply will not lend to UPS store owners. An owner can’t even get a line of credit anymore.
The Boston Consulting group was hired by the franchisor themselves and BCG found 77% of the stores “at risk” or worse of just breaking even. For more information on this specifically, go to http://www.bluemaumau.org.
If you attend one of these seminars, you will not get any numbers with regard to profitability on a new store. You may as well throw darts blindfolded.
My advise if you are dead set on working sixty hours a week on servicing UPS’ customers for chicken feed is to buy an existing store- they’re all for sale. Then you can look at the P/L numbers like a responsible business person. Also, when talking to existing store owners about opening or buying a store, take the list of owners that the nice seminar people gave you and burn it. Make sure you choose owners specifically not on that list. Good luck, you’ll need it!