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The Payoffs of Owning a UPS Store Franchise

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Investors looking for reasons to invest in the UPS store franchise will not have to look far. The UPS store is a pervasive and welcomed force in the packaging services industry rivaling the United States Postal Service and Federal Express. The company incorporated in 1980 completing a long evolution starting in the early 20th century.

The store is responsible for more than just shipping. UPS Stores also handle printing business cards, letterhead, posters, flyers, and other general business services like notaries. Currently, UPS handles both U.S. domestic packages and international packages shipping to over 220 countries and territories across the world.

With 4,600 independently owned locations, even the brown color of the UPS trucks have become more than a figurative symbol of the UPS brand power. What can brown do for you? The franchises’ “road warrior” truck-force is widely visible. The omnipresence of the brown trucks alone makes UPS’ brand power recognizable by small business and international corporations alike.

The slogan is now, “United Problem Solvers,” changing two years ago from the “We Love Logistics” slogan that launched in 2010. According to Forbes 500 list, the company’s market cap is at $91.3 billion as of May 2017. There are over 4,600 franchise locations in the UPS store franchise.

  • Initial Investment: $159,224-$434,521
  • Net Worth Requirement: $150,000
  • Liquid Cash Requirement: $60,000-$100,000
  • Franchise Fee:$29,950
  • Royalty Fee: 5%

The History Behind The Company

Since incorporating in 1980, the UPS Store franchises have been serving small business communities for the past 37 years, under this company name. (Although they have been operating for much longer under various company names and business models). They are the seventh-largest employer in the U.S. with 362,000 domestic employees and 444,000 global employees.  

Of course, it wasn’t always the United Parcel Service. The company was originally called American Messenger Company originating in 1907. The company’s current headquarters is based in San Diego, California, but the company’s first parcel delivery service was in Seattle, Washington. During this budding era, the company was known as American Messenger Company.

This was back in 1907 when most deliveries were made on foot. Bicycles were used for longer trips. Fast forward six years, the Model T Ford became the company’s first delivery vehicle. At this point, the company was operating under the name Merchants Parcel Delivery.

In 1916, the company resettled in Oakland, California and changed its the name to the now known–United Parcel Service. With technological innovations like the conveyor belt system, UPS was able to expand to deliver up to 125 miles outside of Los Angeles. The delivery service did not stop there.

In 1975, the now UPS Store was able to begin servicing 48 states in the U.S. and began establishing operations in Canada. Ten years later UPS Next Day Air Service was launched for all 48 states and included delivery to Puerto Rico.

From 2001 to 2003, the UPS Store franchise acquired Mail Boxes Etc. and officially re-branded 3,000 locations as the UPS Store, but has been franchising locations since 1980.

What Makes Owning a UPS Store Franchise Location so Appealing?

A UPS store is a one-stop-shop for small business owners and employees. All general business service needs are handled by all UPS locations making the franchise convenient for customers, and essential for other small business owners.  

The entire UPS store franchise also has the most advanced technology in its segment. The franchising network engages with the most contemporary and highly developed digital information systems in the world. This technology makes it possible for franchisees to deliver more than 13 million packages, documents, and pieces of mail daily. The tracking system that UPS uses is also state-of-the-art. The company’s system enables customers to track every packages’ location.

This year Entrepreneur Business Magazine listed the UPS store #1 in the postal and business services category. Since UPS first earned this ranking, the company has not budged from the position in 27 years. The UPS store franchise is a nationally recognized franchise brand with a myriad of media outlets. The famous brown trucks weave seemingly across the globe delivering anything from pianos to happy birthday letters.

Down Sides to the UPS Store Franchise

As with all franchise opportunities, there is no guarantee of success. Securing profits is a question of how hard franchisees work, the support and training corporate supplies, and talented marketing. It has been reported by The Balance, that it takes a UPS Store franchise “$365,000 in annual gross sales” for a franchise owner to yield a “$35,000 a year income.” The same report states that “about 60% of all US stores do not break even.”

The breakdown of this means that a UPS Store Franchise would have to make over $30,000 in monthly sales for an owner to receive any profit. However, those looking to purchase a franchise should take figures like these with a grain of salt. Forbes has ranked the company as #70 in profit based on accurate key metrics.

Basically, franchising–like all business–has no guarantee of making money. Franchise owners can profit hugely and expand, or close their doors within five years. Success is contingent on making the right business decision and this includes choosing the right franchise.

Here are some other franchises worth researching.

Splash and Dash Groomerie & Boutique

Although Splash and Dash franchise operates in a completely different industry than the UPS Store franchise, both companies emerged as leaders in their respective industry through similar means.

Splash and Dash is a pet spa retail store with a mom-and-pop feel with big-box capabilities. The franchise recently ranked #59th on Entrepreneur’s Franchise 500 list. A comprehensive evaluation on areas of costs, fees, size and growth, franchisee support, brand and financial strength, and stability led the company to earn the ranking.  

The pet franchise has also ranked on other business magazines like INC 500 List and has been featured in countless media outlets.  The company has been franchising since 2004 with a 1200% three-year growth rate. The swiftly growing pet industry is also to thank for Splash and Dash’s success with a growth rate of 269% from 1994 to today.

What advantages does Splash and Dash Groomerie & Boutique have over the competition?

The pet franchise has access to cutting edge terminal software. This technology streamlines every function of business making it easy for shop owners to profit. Support and training are also vital for both franchises. Splash and Dash retains talented shop owners trained to develop franchise locations that will succeed. Another vantage point shop owners in the Splash and Dash franchise enjoy is recurring revenue. Business models that utilize recurring revenue both secure profits and allow for franchise owners to break even with the goal of six months after soft opening.

  • Initial Investment: $152,000-$360,300
  • Net Worth Requirement: $500,000
  • Liquid Cash Requirement: $150,000
  • Franchise Fee: $25,000
  • Royalty Fee: 6%

Whether you are looking for an internationally delivering parcel business, or see yourself in the pet care franchise, an opportunity to own your own small business is the dream you can make a reality.

 

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Is the Anytime Fitness Franchise a Healthy Investment Choice?

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Anytime Fitness Franchise Propels Industry

The fitness industry was first put on the scene by the baby boomers from the late 1960s through the early 1970s.  During the ‘Golden Era of Health,’ many Americans found new ways to exercise by joining health clubs.

The fitness industry spiked in growth again beginning at the turn of the millennium. Now, 57.3 million people in the U.S. are participating in active health club membership. In the past 12 years, there has been over a 37% growth rate in U.S. gym membership.

Those looking to get a sweat going have over 36,550 different clubs to choose from. Yet the momentum has been felt the strongest in the one name that has been tattooed on over 800 gym employees and member’s biceps—Anytime Fitness Franchise.

That’s right.

Anytime Fitness franchise’s brand loyalty is so strong that employees and members alike have been known to tattoo the company logo on themselves. The company has over 3 million members. Anytime has over 2,255 U.S. owned franchises, while 1,240 locations operate internationally. 38 franchise locations are retained by corporate. The Anytime Fitness franchise, along with thousands of other thriving gym franchises have changed the landscape of the fitness industry.

  • Initial Investment: $114,950-$434,521
  • Net Worth Requirement: $300,00
  • Liquid Cash Requirement: $100,000
  • Initial Franchise Fee: $19,000-$37,500
  • Royalty Fee: $449-549/mo

What Makes Anytime Fitness so Competitive?

The fitness industry is far from monopolized. Any style of person with any varying styles of working out can find a gym franchise to their liking.

Gym franchises like Orangetheory, Snap Fitness, and Planet Fitness are all recognizable brands with cult-like followings. But the Anytime Fitness franchise dominates the market surpassing all other franchises by the pervasiveness of locations alone. The company’s revenue has arrived at $1 billion in sales revenue and claims to open a location every day with a member joining every 3 minutes. Hard to argue with figures like this when you can’t  drive through a Midwest strip mall without seeing Anytime’s  running-man purple logo.

Anytime Fitness is a 24 hour, seven days a week. 365-days-a-year exercise facility. All locations come equipped with aerobic and weight training equipment, changing areas, and showers. Members receive key-card access with a panic button. Advanced surveillance and security systems allow for members to workout literally whenever they want.

This was integral to the founder’s philosophy. Chuck Runyon and Dave Mortensen—the men who founded Anytime—both believe that membership retention stems from convenience. On Average, most members exercise between 6 a.m. and 9 p.m., with 11 members working out between 9pm and midnight, and five members that prefer the early morning between 1 a.m. and 5 a.m.

With every location equipped with security systems, there is no need for the gym to be staffed as constantly as competitors. Combined with massive support from regional offices, this is how the Anytime Fitness franchises have been able to reduce overhead.

Anytime has also been one of the leaders in engaging with customers outside of the gym. The launch of the Anytime Fitness App shifted the franchise from a ‘workout space’ to a dynamic brand. The app offers fitness guidance and tools. Goal setting, customized workouts, and a health feed are all available through the app. This digital platform maintains steady engagement with the Anytime Fitness franchise’s brand and helps customers achieve healthy results.

How Did it All Happen?

Anytime’s founders hail from the ‘Land of 10,000 Lakes.’ Chuck Runyon and Dave Mortensen were working for a fitness club in St. Paul when they decided to jointly purchase Southview Athletic Club. At the time, the club only had 500 members. 7-years-later the club swelled to 4,000 members thanks to work of Mortensen and Runyon. The two also worked in a consulting firm dedicated to under-performing athletic clubs which gave them the foundational knowledge behind the industry.

After watching their athletic club grow the two drew up the first franchise agreement with another employee Eric Keller and the first Anytime Fitness franchise location opened in Cambridge, Minnesota. (Keller is now Vice President of International Franchise Support for Anytime).

Shortly after, two more employees opened locations in different cities in Minnesota. The pattern continued until forty locations later the first corporate store opened. This lateral movement is pretty atypical for franchise beginnings. Usually, a few corporate locations are open and thriving before founders decide to franchise out. After the first international location opened in 2005 the brand was an undeniable juggernaut in the gym franchising world.

Many cite the Anytime Fitness company culture as the means of success for the franchise. The founders wanted a place where people could go workout without the grunts and machismo of average health clubs. Franchise owners seem to genuinely want to help their members. Runyon who is now CEO, describes franchisees who helped a 71-year-old grandmother loose her goal of 110 pounds and a location owner who donated a kidney to a member. The intimacy and personal connection encapsulated in the Anytime brand are big pushes for their success.

The contemporary economic climate—consumers wanting more experience and connection—combined with hard work and talented marketing, drove the Anytime Fitness franchise to carve the path for the rest of the gym franchising world. What other franchises should investors consider that followed this same model?

Gym Franchises:

  • Get In Shape for Women
  • GYMGUYZ
  • Charter Fitness
  • Planet Fitness
  • Pure Barre
  • Baby Boot Camp

Top Ranking Franchises:

  • 7-Eleven INC.
  • McDonald’s
  • Dunkin’ Donuts
  • The UPS Store
  • Jimmy John’s Gourmet Sandwiches
  • Splash and Dash for Dogs

Splash and Dash Groomerie & Boutique

  • Initial Investment: $152,000-$360,300
  • Net Worth Requirement: $500,000
  • Liquid Cash Requirement: $150,000
  • Franchise Fee: $25,000
  • Royalty Fee: 6%

When one boils down Anytime’s business model, at the Axiom, a prevailing concept that has nothing to do with marketing or rapid unit growth appears. The company is a family. Franchise owners care about their employees, members, and themselves.

There is no disingenuousness when Runyon tells media outlets, “In this industry, I’ve learned there are three types of people. There are people who care about lifting weights, people who care about lifting money, and people who care about lifting people.” Anytime Fitness is undeniably about “lifting people.”

Another franchise that shares this same outlook is Splash and Dash Groomerie & Boutique—the brick and mortar franchise segment of Splash and Dash for Dogs.

The company was founded on a principle of bettering the world around us. Of course, when individuals invest in a franchise they want to profit. But half the battle of acquiring those profits maintaining the focus to ensure one doesn’t burn out.

This takes fiery passion.

This is why Splash and Dash was built on core values that give shop owners the reins to be leaders in their community. Educating on sustainable and wholesome means of pet care, providing love for animals, and lifting the people in their community are a few ways owners can do their part to better this place.

Splash and Dash Groomerie & Boutique aims to bring all the love of familial mom-and-pop stores with all the advantages of big-box shops.

 

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