Starting a UPS Store franchise in Canada requires a significant investment, with costs varying based on location, store size, and type. Here’s an overview of the investment range and key details:
Investment Range:
- Traditional Location: The total initial investment ranges from $210,500 to $293,500.
- Breakdown of Costs:
- Franchise Fee: This fee is included in the total initial investment and covers the rights to operate under The UPS Store brand.
- Store Design and Build-Out: Costs associated with designing and constructing the store to meet brand standards.
- Fixtures and Signage: Includes the purchase and installation of necessary fixtures and signage.
- Equipment: Encompasses computer hardware, software, and other essential equipment.
- Initial Inventory: Stocking the store with initial products and supplies.
- Training: Comprehensive training programs for franchisees and staff.
Additional Financial Requirements:
- Working Capital: An additional amount of at least $50,000 is recommended for the first year to cover operational expenses.
- Liquid Assets: Prospective franchisees must have a minimum of $150,000 in liquid assets, which can be met through cash, bonds, stocks, mutual funds, retirement accounts, or other non-borrowed sources.
Ongoing Fees:
- Royalty Fee: A percentage of gross sales, typically around 7%.
- Advertising Fee: A contribution to national marketing efforts, usually about 3% of gross sales.
Additional Considerations:
- Store-in-Store Locations: These are freestanding UPS Store setups within another business, such as hotels or convention centers. Costs for these locations may vary.
- Financing Assistance: The UPS Store provides access to financial resources and has relationships with several financial institutions to assist with financing needs.
Disclaimer:
The above figures are subject to change. For the most current information, please refer to The UPS Store’s official Franchise Disclosure Document or contact their franchising department directly.