We’ve been seeing articles about inflation and rising interest rates, and we’re following them carefully since they affect the market for selling businesses. High-interest rates make it harder for some buyers to get the financing they need; they’re looking for companies they can get at a discount, or waiting for the interest rates to lower before they get serious about purchasing a company.

But there’s one exception to that trend, and it’s why it’s among our favorite businesses to sell. UPS Stores are still going strong; we currently have 36 listings and over $30 million in closings pending.

Buyers love UPS Stores for many reasons. The franchise brand is well-established, and the national marketing provides strong walk-in traffic. There’s plenty of opportunity to own multiple units – the company says about 52% of their franchise owners own more than one unit. They also offer opportunities to locate within facilities like hotels and large retailers.

Compared to other franchises, UPS Stores offer many advantages. Easier hours: Most stores are open 8:30 – 5:30 with a short schedule on Sunday, manageable business hours that make it easy for an owner to operate, and easy to recruit part-time help. The number of workers required to run the store is minimal, so labor costs are lower. Inventory costs run about $5,000 and don’t attract criminal activity. Inventory loss is low. The margins are much higher than most other retail models.

We’ve seen owners from convenience retail, fast food, and other industries come to us to inquire about UPS Stores. One liquor store owner told us she carried over $100,000 in inventory, worked long and late hours, and was constantly worried that her product and cash on hand were putting her and her employees in danger. A UPS Store model felt like a much better fit for her.

We’re even seeing owners of FedEx and Amazon routes inquiring about buying. They like the idea of staying in logistics but preferred the UPS Store hours and eliminating driving and related liability.

It’s not just buyers who love the UPS Store business model. We’re finding that bankers are very willing to lend to UPS Store franchisees. Most don’t require the seller to hold a note, which means sellers can take their entire profit from the sale at once. Some lenders are even willing to roll franchise fees and renovations into the loan, which is a massive advantage for a buyer,

The UPS Store is proud of their franchise success. They’ve ranked as the top franchise in the postal and business services industry for over 30 consecutive years by Entrepreneur Magazine’s Franchise 500. They remain in the top 5 overall for the seventh consecutive year according to the Franchise 500 list. They’re also rated one of the top franchises for veterans.

The conclusion is you’re likely sitting on a very sellable asset. The only thing left to decide is when. We recommend preparing for your exit up to 2 years before you plan to sell. However, if pending retirement or circumstances cause you to want to sell immediately, we have buyers waiting in line to take your business off your hands. In nearly all cases, we have multiple buyers competing to buy your business. This means a bidding war that you benefit from.

The first step is to understand what your business might be worth. We have a complimentary tool that can get you started. Click here.