Looks safe… but what are you actually earning?
This UPS store franchise was sent in by a follower — and at first glance, it looks like a safe, established business.
It’s been operating for over 25 years, in a high-income area, with an experienced team and franchise support.
But stability alone doesn’t make a good deal.
Deal Snapshot
After Financing
Here’s what you actually take home:
So after all expenses and loan payments, you’re left with about $42K per year.
That’s the entire issue.
You’re buying a business… to pay yourself $42K.
Where It Breaks
It’s not just the take-home income.
- 16% margins, well below the ~26% industry average
- 3.8x multiple, above typical pricing for this space
- Low remaining cash flow after debt
So you're paying a premium… for a below-average performer.
Risk Profile
And the industry itself isn’t as safe as it looks.
- Industry default rate: 8.2%
- All-business average: 3.6%
- Labor + retail exposure: high
That’s more than double the national average.
So you’re not just earning less — you’re taking more risk to do it.
The Reality
This is not a passive investment.
Even with staff in place, retail franchises like this usually require owner involvement — scheduling, oversight, and customer service.
So in reality:
You’re buying a full-time job… that pays $42K.
BizHub Verdict
This deal scores a 4.3 / 10.
It’s stable, established, and supported by a franchise system.
But the numbers don’t justify the investment.
Low cash flow, weak margins, and above-average risk make this hard to justify — even at a lower price.
Want to avoid deals like this? Run your numbers →
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