Can you buy a UPS Store in Canada?

The UPS Store in Canada does franchise. Its website says it offers franchise business opportunities, and that its Canadian locations are independently owned and operated by licensed franchisees of MBEC Communications Inc., the master licensee of The UPS Store, Inc., a subsidiary of United Parcel Service of America, Inc. Buying a store therefore means dealing with MBEC as franchisor, not with United Parcel Service directly.

Formats the franchisor describes

The franchise opportunity page lists traditional franchise locations, non-traditional locations and multi-centre franchise ownership. It describes a store-in-store model created to let franchise owners set up locations inside other businesses, such as hotels and convention centres. The site also has pages headed Franchise Costs and Franchise Approval Process, and an online form for prospective franchisees. Read each format’s terms before choosing one.

What it publishes on cost

The Franchise Costs page says “A Traditional Location Ranges From $219,500 ‐ $299,500*”, that the total initial investment includes the franchise fee for a 10‐year Franchise Agreement, and that you “should also plan for an additional amount of at least $50,000 in working capital for your first year.” It says The UPS Store “requires prospective franchisees to have at least $150,000* in liquid assets” and “Minimum 50% cash investment required to qualify.” The FAQ says it “collects 7 percent of franchise owners’ Sales Subject To Royalty (SSTR) plus a 3% Advertising fee which goes to support national marketing efforts”, and notes: “All funds in Canadian dollars.” The figures are marked subject to change; the disclosure document gives current amounts. More on the brand is in Buying a UPS Store franchise in Canada.

Searches for a UPS Store for sale can mean an existing location. The pages read do not set out how an existing store is resold, so ask the franchisor whether it must approve a buyer and what it charges to transfer. Our answers on who approves a franchise resale and transfer fees cover the questions to put.

Disclosure depends on the province

The approval-process page says franchise offerings in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Prince Edward Island require delivery of a formal Franchise Disclosure Document, in accordance with each province’s laws, at least 14 days before any commitment by the prospective franchisee. It adds that the company provides limited disclosure documentation in the remaining provinces. Ontario’s statute, the Arthur Wishart Act (Franchise Disclosure), 2000, requires a disclosure document at least 14 days before the earlier of the events it lists, subject to exceptions in the Act.