M
Maverick
Guest
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.
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.