UPS Store franchise - worthwhile?

[Lou Siffer]

Hi all,

Anybody have any experience or advice regarding UPS Store franchises? I haven't even started to do my research on this yet but an opportunity has been presented by a colleague so I thought I would throw it out there...

 

[BallzDeep]

You're buying yourself a full time job. Nothing else..

I looked into a Tim Horton's once and this was the answer most people gave me, I hate the fact of being a franchise beyatch.

 

[Big Rig]

HFH franchise ... good idea?

Good topic.

I have gone to the franchise shows and decided not to buy.

Look, it is a great deal if you are the franchise seller - you get free capitol and someone else takes the risk.

They charge you for everything, got to buy from their sellers , got to follow their rules, redecorate when they say etc ...


If their product is so great why do not they take the financial risk?

If they put your franchise in a bad location your fucked even though you paid for their bad advice ... seems to me they should pay you back

They got the lawyers so good luck getting even


You are buying a 70 hour a week job and risking your capitol and they got all the power

Takes years to establish a lucrative customer base

Even if it was a good idea how do you choose between all the franchises?

Oh yeah, I read where Tim Hortons franchise is a gift between maifia dons ...
thats what you want ... a franchise that runs itself ... you just pop in every now and then and do the books


If it was a HFH franchise then .... just got a brainstorm ... open up a massage palour franchise

 

[ig-88]

all's i know is that when i go into that joint and want to rent a mailbox, i suddenly get treated like the king of scotland

btw, the place is great if you need a 2nd address (i.e. for whatever reason, you don't want people to know where you really live)

if i'm just going in to ship a package, it's just business as usual

 

[Anynym]

Like any business, it can succeed or fail based on market factors (including, say, the rent charged by the landlord, and the traffic in the strip mall you're in). You'll need to know how to hire good help, since you can't be in the store all the time and most of the rest of the time you'll only have one person working at a time.

As franchises go, it is what it is. And for those who think being a franchisor is all free money, I would encourage you to get into the business yourselves: find a business that you can replicate for free but charge for, build a reputation that anyone can destroy but you have little more than arm's-length control over, and suppliers who will guarantee you prices without knowing the volume of your order.

 

[guelph]

I have some experience with franchise operations the good ones make thier money on your ongoing fees so if you are sucessful they will be too.

The cost of many of the best franchieses (spelling) is high because they equip your startup.

 

[oldjones]

You risk your capital w/ the franchise or w/ your own stand-alone business, and both can suck every waking hour from you. Or you can let others do the work, and take less return yourself. Makes no difference that it is or isn't a franchise.

The questions are: What is the potential for your business to grow—and not have another franchise plunked down next door, and who owns the value added, when you're ready to sell your franchise, (if you can)?

 

[JohnLarue]

1. Ask them what the break even revenue is for the average store
2. Ask to see the total royalties for all stores in Canada (they have to show you that by law)
3. Ask how many stores
4. Do the math to determine how many stores are running below break-even

 

[Big Rig]

And for those who think being a franchisor is all free money, I would encourage you to get into the business yourselves: find a business that you can replicate for free but charge for, build a reputation that anyone can destroy but you have little more than arm's-length control over, and suppliers who will guarantee you prices without knowing the volume of your order.

Good to hear the other side but I say the risk is disproportional. The franchisee risks life savings and years of work and pain. The franchisor risks his reputation. No comparison

Things you shall resent as a franchisee:

1 Being powerless and being told to do things you do not agree with. You signed their contract and they have the lawyers to make you keep your pie hole shut

2 Always using their purchaser when you can get your tomatoes cheaper from a farmer

3 Long hours

4 Most of all, their percentage. After you have established your store and they no longer need to support you, you do all the work, take all the risk and every month they grab their take

I went to the franchise show and got contacts for a franchisee lawyer and accounting firm

It makes sense to pay the accounting firm to devulge what franchise is the most profitable then visit the lawyer to see which ones are hated

If I can not see six figures and less than a 40 hour week at the end of the rainbow forget it but I suspect the percentage is so established as to ensure you do not get wealthy otherwise would it not make more sense for the franchisor to make it a corporate store and pay a manger far less?


I am very interested in opinions, if anyone has any intelligent ones.


Thankyou

 

[ang]

You are buying a 70 hour a week job and risking your capitol and they got all the power

Totally agreed...we were offered a "Great Canadian Bagel" years back, and when we sat down and did # crunching, we would have to work approx 95 hours a week to make an income of $25,000/year...thank God we said "no"...it was not worth the pain

 

[Cycleguy007]

Totally agreed...we were offered a "Great Canadian Bagel" years back, and when we sat down and did # crunching, we would have to work approx 95 hours a week to make an income of $25,000/year...thank God we said "no"...it was not worth the pain

You forgot to factor in all the free bagels! LOL

 

[ang]

You forgot to factor in all the free bagels! LOL

LOL...that's why we would only make 25K

 

[Cycleguy007]

LOL...that's why we would only make 25K

Well then, lay off the farkin bagels then!

(You are not supposed to eat your profits!)

 

[Lou Siffer]

Wow! I forgot I even started this thread.

Leave it to TERB to revive even the lamest of threads.

Just for clarity, I was looking at a few already established UPS stores. I already have a couple of unrelated ventures that are well established and don't really need my attention full time, I'm just looking for some new opportuntities.

Thanks for all the comments guys.

 

[Shades]

Wow! I forgot I even started this thread.

Leave it to TERB to revive even the lamest of threads.

Just for clarity, I was looking at a few already established UPS stores. I already have a couple of unrelated ventures that are well established and don't really need my attention full time, I'm just looking for some new opportuntities.

Thanks for all the comments guys.

Great time to invest in real estate...

 

[Big Rig]

Just for clarity, I was looking at a few already established UPS stores. I already have a couple of unrelated ventures that are well established and don't really need my attention full time, I'm just looking for some new opportuntities.

I am not a businessman but a lot of it is common sense and creativity


If the stores are already established then you will pay more but the books should be open so you know wtf u r getting into

Also, work there for a while - a long while - to see how much you hate it

At the franchise show I asked if I could work at their stores to see if I liked it usually they would say for a couple of days ... WTF ... I work there as long as I desire or forget it

Go see a franchise lawyer for his opinion on UPS and to ensure full disclosure by the seller ... they may have a hidden agenda such as competition coming or the best clients are leaving etc

Another grave concern for any franchise is technology change .... it could easily put you out of business

ALso, there are a lot of established franchises ... some people do it for a living ... start a new up then sell once established for a premium so the question is how to decide? I would never restrict myself to one franchise