🧠 Valuation Insight: Copy Shops / Business Service Centers / UPS Stores – Franchise Fees ≠ Free Cash Flow

~ Certified Business Appraiser

📦 Copy shops and service centers (like UPS Stores) often look stable—but dig deeper.

Common valuation issues:

  • Owner often works the counter full-time
  • Addbacks include personal vehicle or labor
  • Heavy franchise fees and marketing contributions
  • Limited pricing control due to brand/franchise rules

📌 Rule of thumb: Royalty doesn’t mean loyalty. If margins are tight and the owner runs the shop, value may be overstated.

✅ Normalize for full owner replacement, franchise constraints, and labor-heavy ops.