The UPS Store FDD Item 12: Territory | What Franchisees Need to Know
The UPS Store is one of the largest shipping, printing, and business services franchise systems in the United States, with average revenue of approximately $721,000 per location. For prospective franchisees, FDD Item 12 contains a critical disclosure: The UPS Store does not grant exclusive or protected territories. This means the franchisor can open additional locations near your store at any time.
At Lopes Law LLC, we review The UPS Store FDDs regularly, and the absence of territorial protection is one of the most significant risk factors we discuss with clients. This guide explains what non-exclusive territory means for your investment.
What Does Non-Exclusive Territory Mean?
When The UPS Store states that franchisees do not receive exclusive or protected territories, this means the franchisor retains full discretion to place additional franchise or company-owned locations anywhere in the market, including directly adjacent to your store. There is no guaranteed minimum distance between locations, no population-based density limit, and no right of first refusal on new nearby locations.
| Territory Feature | The UPS Store | Typical Franchise |
|---|---|---|
| Exclusive Territory | Not granted | Often granted with defined boundaries |
| Protected Area | Not granted | Radius or population-based protection common |
| Geographic Description | Map with area description (non-binding) | Contractually defined boundaries |
| Minimum Territory Size | No minimum | Usually defined by radius or demographics |
| Right of First Refusal | Not disclosed | Common in many systems |
| Franchisor Competition Rights | Full rights retained | Often restricted within territory |
Attorney’s note: At Lopes Law LLC, we always flag non-exclusive territory provisions as a significant risk factor. With average revenue of $721,000 and investments of $209,000 to $495,000, a new UPS Store location a mile from yours could reduce your revenue by 20% to 30%, turning a viable investment into a marginal one. We recommend analyzing the current UPS Store density in your market and the franchisor’s expansion plans before committing capital.
Reviewing a UPS Store FDD Right Now?
At Lopes Law LLC, our $3,000 flat-fee FDD validation review covers all 23 items, including territory risk analysis. Free 20-minute consultation.
For guidance, see our territory encroachment guide, our FDD review guide, and our franchise exit audit service.
Important: Territory information is based on publicly available UPS Store FDD data. Actual terms vary. Always review the current FDD with a qualified franchise attorney before investing.
Frequently Asked Questions About The UPS Store FDD Item 12
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Last updated: March 12, 2026
Understand Territory Risks Before You Sign
At Lopes Law LLC, our flat-fee FDD validation review covers territory risk analysis for The UPS Store. Free 20-minute consultation.