UPS offers incentives to minority franchisees
Starting a business can be expensive, but UPS has lowered the cost significantly for minority entrepreneurs looking to open a UPS Store.
The company’s diversity ownership program allows minority and LGBTQ+ franchisees to open a company store for $15,000 — half the standard $30,000 price.
“We launched this program in August of 2020,” said Michelle Van Slyke, the company’s interim president for The UPS Store. “We wanted to get the word out to minorities and the LGBTQ+ community, to welcome them and let them know we would appreciate them being part of our network.”
UPS has over 5,000 stores in the U.S., all independently owned and operated. “This provides an opportunity for individuals to open stores in the neighborhoods where they live and know people,” Van Slyke said. “Our local store owners are part of the community.”
Philip Gonzeles, 43, of Rossmoor and his wife, Thea, had a June 24 grand opening for their UPS Store at 11873 Valley View St. in Garden Grove. At 2,000 square feet, it’s the largest UPS Store in the nation. Most company stores run 1,200 to 1,500 square feet.
“We’re superexcited about this,” Gonzales said. “For the past few years, there has been an uptick in online shipping and packaging, so we decided to look at different franchises. This is the best opportunity we found. The minority franchise program just validated that this was the franchise we wanted to get involved with.”
The Garden Grove store showcases the company’s new “Blue Horizon” layout, complete with digital screens and menu boards for company promotions.
“It’s a digital-forward design,” Van Slyke said. “It’s more of an open space where customers can see their items being packed.
It has a different color scheme and there is also a print consultation area for printing and notary services. Some of the stores even have lockers.”
UPS stores also offer shipping, mailboxes, faxing and shredding services in addition to retail items, including greeting cards and phone chargers.
“It’s critical for small businesses to have a street address that they can put on a business card,” Van Slyke said.
“We also do returns for national retailers.”
Gonzales, who had a soft opening for his store May 11, previously worked in the advertising field but is excited to transition to the role of business owner.
“We service a lot of other cities as well, including Seal Beach, Los Alamitos, Stanton and Westminster,” he said. “We’ve already gotten involved with several chambers of commerce.”
Van Slyke said there several more minority-owned UPS Stores in the queue.
“It takes time from when you apply to become a franchisee to when the store opens,” she said. “This is a way to get UPS stores into neighborhoods we aren’t in. Much of the business is tied to e-commerce and returns. We remained an essential service during the pandemic.”
Franchise Direct ranked The UPS Store 30th among its list of the top 100 global franchises.
The list is heavily dominated by the fast-food industry, with McDonald’s ranking first, followed by KFC, Burger King, 7-Eleven, Domino’s, Ace Hardware Corp., Century 21, Pap John’s, Taco Bell and Pizza Hut, to round out the top 10.
Like other businesses, franchise operations have taken a heavy during the COVID-19 pandemic.
Franchise Direct said that an estimated 32,700 franchised businesses had closed within the first six months after the COVID-19 outbreak, with 21,834 closed temporarily and 10,875 permanently shuttered.