UPS/MBE problems?

Mail Boxes Etc. and UPS Store Franchisees to Picket UPS Annual Shareholder
Meeting on Thursday, May 4, 2006 in Wilmington, Delaware

LOS ANGELES, May 2 /PRNewswire/ -- More than 100 Mail Boxes Etc. and
The UPS Store franchisees from across the United States will picket the
United Parcel Service (NYSE: UPS) shareholder meeting in Wilmington,
Delaware Thursday morning over issues related to multiple lawsuits filed
against the world's largest consumer shipping and packaging network.
More than 450 franchisees who own Mail Boxes Etc. stores and The UPS
Stores have filed three lawsuits in California. In separate complaints, the
franchisees accused UPS of intentional misrepresentation, concealment and
breach of contract, intentionally failing to disclose performance and
financial data in addition to multiple violations of franchisee laws among
other allegations. The store owners, who say that UPS is undercutting their
profits, claim the Atlanta-based shipper has made as stated in their
complaint "unabashed and illegal efforts to profit on the backs of their
own franchisees." Store owners are seeking compensatory and punitive
damages as well as attorneys' fees and costs. Mail Boxes Etc., the UPS
subsidiary, is headquartered in San Diego, California.
PSA represents more than 130 franchisees. The group has a trial date
set for November 14, 2006 in Los Angeles Superior Court. PSA is represented
by attorney Miles Scully of Gordon & Rees LLP of San Diego.
In 2006, The UPS Store Franchisees formed The Brown Shield Association
to represent their grievances against UPS. Larry Bowdoin represents in
excess of 200 franchisees who filed their complaint last month in Los
Angeles Superior Court. The BSA is represented by high-profile lawyer
Robert Shapiro of Christensen, Miller of Los Angeles.
The Independent Association of Mail Box Center Owners, Inc. (IAMCO) is
an independent trade organization of franchisees who also filed a lawsuit
against UPS. This 35-member franchisee group is represented by attorney
Michael Hankes of Boston. The IAMCO trial is scheduled for April 2007.
BACKGROUND ON THE MULTIPLE ISSUE LAWSUITS
In March 2001, UPS purchased the assets of Mail Boxes Corporation for
approximately $192 million. At the time MBE was comprised of 3,400
independent franchise locations in the United States and 1000 others
internationally.
In early 2003, UPS launched the Gold Shield campaign to convert 3,400
U.S. MBE stores into The UPS Stores. UPS, and its wholly-owned MBE, chose
not to issue a new Franchise Offering Circular (FOC) for Gold Shield. The
FOC is a mandated disclosure document, which the Federal Trade Commission
(FTC) requires be provided to all potential franchisees to review in order
to evaluate the franchise prior to purchase.
Instead UPS chose a five-page amendment to the 2003 MBE FOC. MBE
franchisees involved in the lawsuit claim, in addition to other issues,
that this failure to issue a new FOC did not comply with FTC regulations or
the California Franchise Investment Law.
Approximately 12% of the MBE franchisees rejected the 2003 conversion
proposed by UPS. About 150 MBE franchisees formed the Platinum Shield
Association in 2003 to pursue litigation in opposition to the UPS takeover.
PSA filed their complaint in Los Angeles Superior Court and have a trial
date set for November 14, 2006.
Representatives of all franchisee associations will be present outside
the UPS shareholder meeting and are available for media interviews.

[Hangingon]

Guess mgm't was so used to violating the contract with impunity they thought they could do the same with their new 'employees', the franchisees. Guess not.

[dannyboy]

Wonder if FDX will have problems with their stores?

d

FedEx actually employees the people at their FedExKinko's locatons.
UPS just acts like they do

[Maineiac]

FedEx actually owns the FedEx Kinkos stores, including the planned mini store concept that copies (excuse the pun) The UPS Store's smaller footprint and emphasis on shipping.

You gotta hand it to UPS, they achieved a network with 4 times the locations and paid a fraction of the price. Now they get mom & pop with dreams of owning their own business to pay the rent and work for no pay. The franchisees go bankrupt and lose their house and retirement nest egg while brown rakes in record profits. This is what Brown can do for you.

Originally Posted by dannyboy

Wonder if FDX will have problems with their stores?

d

[dannyboy]

You make it sound like all of them are going broke. Then why is it that I have at least 15 within a short distance from here, and there are three people that own the majority of them. They are making money, otherwise they would not buy more.

So I would suspect that maybe they are improperly operated? After all, you cant own a UPS store and make money, right? That old mean UPS.

d

[Maineiac]

60% of the franchise network is below breaking even. That means that they cost more to run than they take in. This is before the owner takes a draw to pay for things like food for his family. Out of the remaining 40% that are profitable, 90% of those are marginably profitable. This is why there are lawsuits involving hundreds of store owners. Many, if not most of the stores involved in these suits are in the profitable 40%. The unprofitable ones cannot afford the cost of litigation.

The fact that there are 15 stores around you is part of the problem. Oversaturation does not affect UPS negatively, but there are many stores out there that have seen dramatic declines in revenue because a new store has opened just straddling the edge of their territory.

15 stores and 3 owners? I doubt it, that is definitely is not the norm. The norm is the owner owns 1 or 2 stores and they typically work their store. There have been cases where stores have been abandoned by franchisees who typically invest over $200,000 to open a store and the area franchisee have convinced another franchisee to take over operations for as little as $1.

These stores used to be more profitable than they are now, but that was before UPS got involved and changed the business model. Improperly operated? Tell that to someone who ran a profitable MBE for 15 years. A lot of people jumped into this game after the rebranding in 2003 and bought into this based on the UPS brand. No profit right away can be explained as something to be expected, after 3 years - many owners are now realizing the truth, that the profitability will never come.

You think a UPS Store is a great investment - ask the owners of over a thousand of these stores that are for sale right now why they can't find a buyer? Ask one of those 3 owners around you how thrilled they are with their investment and what they think of UPS.

Originally Posted by dannyboy

You make it sound like all of them are going broke. Then why is it that I have at least 15 within a short distance from here, and there are three people that own the majority of them. They are making money, otherwise they would not buy more.

So I would suspect that maybe they are improperly operated? After all, you cant own a UPS store and make money, right? That old mean UPS.

d

[dannyboy]

I have and do ask them. And while they will be the first to tell you it is not easy money, they do work hard and make a profit.

Maybe that is what the problem with you guys really is. Dont understand that you have to work for a living. Just because you latched your lucky stars to the UPS wagon.......

Funny, you guys like to come here to post your problems. Why is that? Not enough press out there for you to play nice to?

Representatives of all franchisee associations will be present outside
the UPS shareholder meeting and are available for media interviews.

So do your media interviews, let the judge do his/her thing. You made the decision to go with the UPS store. And just like all those people that wanted to get rich off UPS stock right off the bat, it just isn't going to happen.

d

[upsdawg]

What would have happened if the company that owned MBE before UPS bought them went bankrupt ( I beleive it was American Stationary??) before UPS bailed them out---where would those MBE/UPS Store be?? Maybe the UPS Gold Shield program, where all stores have to charge the same rate brings in less revenue to the stores-----this should not be the only source of revenue to these stores---how about monies that the stores bring in for private post office boxes--packaging supplies---copies/faxes?? I have been in a MBE store prior to UPS buying them---and even though the MBE Store was getting a 40% discount on what UPS would be charging---the MBE Stores would add another 40% and "Gouge" the customer----so yes some of the UPS Stores/MBE locations are not making the same 50-100% profit on the customer--------if UPS had not purchased MBE , do you think that customers would not be breaking down the FedEx Kinko doors to ship packages-------and guess what----customers are not going to the UPS Stores/MBE Stores because they can get similar service--if not better customer service there---and it is CHEAPER--as n lower rates than what the UPS Stores are charging!!

I really think that the locations that are complaining should get out of the business--sell their franchise and get into something that they can charge the customer whatever they want to!!

I have also seen MBE locations that provide horrible service and the people running them should not be dealing with the public!!

[funwithups]

Originally Posted by dannyboy

I have and do ask them. And while they will be the first to tell you it is not easy money, they do work hard and make a profit.

Maybe that is what the problem with you guys really is. Dont understand that you have to work for a living. Just because you latched your lucky stars to the UPS wagon.......

Funny, you guys like to come here to post your problems. Why is that? Not enough press out there for you to play nice to?



So do your media interviews, let the judge do his/her thing. You made the decision to go with the UPS store. And just like all those people that wanted to get rich off UPS stock right off the bat, it just isn't going to happen.

d

you moron,it's unbelievable to me that you ever ascended to a position higher than janitor.are you serious? i work 70 hours a week doing better shipping,better,service,better follow up than any ups employee at a fraction of the pay. do you own a business? no, because you never had the balls or the manliness to go out into the world on your own you friggin' loser,wanna be,never was, loser.you are nothing more than a sniveling coward. dont speak to men when you are a little boy. what a piece of garbage you are.you are so conditioned to be a slave,you cant understand free people when they voice their concern.you brown piece of friggin' turd.

[moreluck]

funwithups: Gosh, what a fun guy you are!!

Be careful about slinging arrows when you don't know what you are talking about.

Danny, that post doesn't even deserve a response.

[Maineiac]

Hmm, be careful slinging arrows when you don't know what you are talking about???? I guess that would be a UPSer talking out of his a-- about the retail pack and ship business.

Originally Posted by moreluck

funwithups: Gosh, what a fun guy you are!!

Be careful about slinging arrows when you don't know what you are talking about.

Danny, that post doesn't even deserve a response.

[Maineiac]

Sort of like those providers of "world class customer service" at 800-pickups. That is if you can figure out how to get past the wall of automation they hide behind.

Guess what dawg, the stores, along with the drivers are the public face of UPS. Ask any store employee how many calls he fields from UPS's customers per day. UPS doesn't want to deal with their customers so they pawn it off on their red headed step child.

Originally Posted by upsdawg

I have also seen MBE locations that provide horrible service and the people running them should not be dealing with the public!!

[Maineiac]

So Dannyboy, just how many hours do you log in a week? So "the boss of the destitute" eh? Does that mean you are one of those hub supervisors whose job it is to shout "move it, lets go" to the part time truck loaders at the hub so that they run double time to the time clock at the end of the shift? Bet that makes for a hard day!

I have met and worked with a lot of UPSers. Most of them are great. The drivers are second to none when it comes to professionalism and courtesy. Against DHL and Fedex drivers it is no contest. The average DHL driver always looks like he forgot to shave and smoked his breakfast.

What the good UPSers all have in common is if they get a cut, they bleed red, not brown. They do their job, but they don't drink the Kool Aid. They also don't go shooting their mouth off about something they know nothing about. Then there are the other ones. I think with UPS, the Peter Principle is alive and well. Its not always the cream that rises to the top you know.

Originally Posted by dannyboy

I have and do ask them. And while they will be the first to tell you it is not easy money, they do work hard and make a profit.

Maybe that is what the problem with you guys really is. Dont understand that you have to work for a living.

d

[handrail_hank]

OK, I dont want to get into a heated exchange with either side on this matter, but I do have a little (local)news on this matter. The UPS store in the area I work in just closed up its doors last Thursday or Friday. I haven;t talked with anyone first hand , but I do know the owner (retired from UPS management several years ago) , opened this store and another one in a neighboring city several miles away. The notice on the locked door says (store closed for failure to pay rent) Signed landlord. I have heard alot of customers (coming to another package drop off center that I pickup from) expressing outrage. This is really going to hurt UPS's image in this area.

[upsdawg]

Maniac----so you want to represent UPS, but in only situations where you don't have to expend and energy?? I would think that you would welcome calls from potential customers?

You didn't respond as to what would have happened if the Mother Station-ary store went bankrupt----where would you be--would you be an "Independent"---would you still be in the Pack and ship business??

I am not saying that the UPS Control over the UPS Stores is perfect--and would hope that there are things that are going to happen in the future that will compliment both UPS and the UPSS's. You are not UPS---and yes, I am sure that you feel like the Red Headed Stepchild sometimes-----but I would caution you to belittle-ing any UPS Drivers or employees on this thread because a lot of us have blood that is a cross between Brown and Red--and will stand up for what we believe in---and will be here long after your store closes--whether you sell it,,change the name, or give it back to UPS!

[funwithups]

Originally Posted by upsdawg

Maniac----so you want to represent UPS, but in only situations where you don't have to expend and energy?? I would think that you would welcome calls from potential customers?

You didn't respond as to what would have happened if the Mother Station-ary store went bankrupt----where would you be--would you be an "Independent"---would you still be in the Pack and ship business??

I am not saying that the UPS Control over the UPS Stores is perfect--and would hope that there are things that are going to happen in the future that will compliment both UPS and the UPSS's. You are not UPS---and yes, I am sure that you feel like the Red Headed Stepchild sometimes-----but I would caution you to belittle-ing any UPS Drivers or employees on this thread because a lot of us have blood that is a cross between Brown and Red--and will stand up for what we believe in---and will be here long after your store closes--whether you sell it,,change the name, or give it back to UPS!

{deleted by moderator for TOS violations}

[upsdawg]

funguy---I don't know what you are smoking or what language you are speaking-- "farbissine goyim"????? -but as I mentioned earlier--if you are not happy with UPS--SELL YOUR STORE!! I know you own it, that is why you can sell it-----this isn't rocket science--if you are not happy put a for sale sign on it--or walk away if you don't think that is somehting that has any value at all!! Life is too short---open up a sandwich shop or widget store---don't rely on a Franchise--stand alone--do it yourself--than you have only yourself to blame if you are not successful or happY!!

You are still avoiding answering the question----what would you have done if the previous Franchise Owner had gone bankrupt----would the Store Owners have gone independant----out of business--or what??

[funwithups]

All The UPS Stores are for sale {edited by moderator for violation of TOS}

[moreluck]

goy / goyim....a non-jewish person

[dannyboy]

Thank you Susie, I knew if anyone could figure out the language it would be you!

All The UPS Stores are for sale idiot. Since it looks like you're going to grow a pair - buy mine. What kind of jackass are you?
<!-- / message -->

Sorry, with your piss poor attitude your store is not worth what most people left in the crapper this morning.

Robert Shapiro, jeez I guess UPS just better lie down and just let you have everything you want. What a bunch of crap.

As for owning a business, actually I own two or three. And have employees. My work day never ends, its just the beginning of a new shift.

But you know what? I actually enjoy what I do, and money making is secondary. Try it some time, you might learn something. Do something and do it well and you WILL succeed.

Or not, and you can blame it on the big brown boogieman.

I know things are not quite what they should be, but to blame all your problems including your hemorrhoids shows a real classy person. You went into the business with dreams of striking it rich. Maybe you should have been a bit more careful and read what you were getting into.

As for the "boss of the destitute", that label was given to me by an admirer when I told him what I was paying one of the guys that work for me.

Best of luck in your legal quest!

d

[ups turd]

I work for UPS and I hate them with a passion that is all consuming.

[dannyboy]

hate them with a passion that is all consuming.

And in your case I am sure it will, but not for the better.

d

The truth is UPS has taken over 4000 hard working peoples life savings and used it to their advantage. Can you point out any, I mean ANY, other franchise where the franchisor blatently competes directly with its franchisees. The truth is far far worse than you could imagine on this one.

Go ahead and stick up for UPS, I am sure they are benevolant saints who would never do bad things to good people in a situation where they had zero (read no unions) checks and balances and no one to answer to.

To repsond to UPS store owners by saying simply sell your store. It's not that simple if you ever examined franchise businesses and once you consider what UPS has done to the network and how our invesments resale value has diminished. It is a foolish knee jerk response to a valid complaint.

No one should have to sell a hard earned businesses because UPS can't follow through on its many stated promises. Holding them to their word is what this is all about. Not our decision to participate in a represented opportunity.

To say you should have known what you got into and to have done more research is another uneducated assumption because the current lawsuits are about misrepresentation. I would say to those who immediately assume it is the store owners fault on lack of due dilligence to research further. I can assure you what was presented to us to motivate us to switch our independent multi carrier MBE's to The UPS Store is not what UPS promised.

To say work harder and things will work out is another foolish notion as our customers are continually drained by large bully with no understanding of on the level partnership and ethical business dealings with fair compensation.

If you work for this company you should know what their true business ethics are and be glad you are in a strong union. If you are so simple minded as to follow a corporation blindly because it pays your salary, I feel sorry for you and you should expand your understanding of business outside your immediate job and responsibilities. This Blind devotion is simply ignorance and close mindedness to issues that are not yours.

UPS's short sighted business decisions and dealings with store owners will have its consequences as all short sighted thinking has.

It will just take time because they are so big.