Failure Rates of the 10 Most Popular Franchises

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UPS STORE, MAIL BOXES ETC. Franchisees File Class Action Suit

The UPS Store and Mail Boxes Etc. franchise owners have launched another legal attack over the alleged screwing-over they received by franchisor United Parcel Service (UPS).

According to the NOTICE OF PENDENCY OF CLASS ACTION Morgate LLC v. Mail Boxes Etc., Inc., United Parcel Service, Inc., et al.
Superior Court of California, County of Los Angeles, Case No. BC294647": 

“The Court has certified a national class (“the Class”) consisting of all franchisees in the U.S. who operated a Mail Boxes Etc. store and who converted their franchise to The UPS Store through the Gold Shield Amendment on or before March 21, 2003, regardless of whether such franchisee is still operating The UPS Store Center.

The Court has also certified a subclass (“the California Sub-class”) consisting of all franchisees who meet the above-described criteria and whose centers are or were located in California. Every franchisee who is a member of the California Sub-class is also a member of the Class.”

Janet Sparks summarized the class action allegations in her post on Blue Mau Mau:

The complaint alleges three claims against defendants: negligent misrepresentations; intentional misrepresentations; and misrepresentations based upon disclosures required by the California Franchise Investment Law (CFIL).  Plaintiff alleges that the members of the class were misled by false statements and concealment of material facts contained in five documents provided to franchisees during an organized presentation to franchisees by UPS and MBE, known as the “Gold Shield Program.”

…Plaintiffs are seeking the recovery of damages from the MBE defendants. In addition, for the alleged violations of the California Investment Law, they are seeking the option to rescind the Gold Shield amendment of their franchise agreements.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Are THE UPS STORE / MAIL BOXES ETC. Franchise Owners Happy?

Are you familiar with the The UPS Store® franchise opportunity? 

Are The UPS Store® or MBE franchise owners happy?  Why or why not?  

Please share your thoughts and opinions below.

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In 2009, Entrepreneur magazine named The UPS Store/Mail Boxes Etc. franchise opportunity #8 on it’s much-hyped Franchise 500 list. 

Previous years The UPS Store/Mail Boxes Etc. was also favorably ranked at #11 (2008); #5 (2007); #4 (2006); and #5 (2005). In it’s listing, it claims “The UPS Store® – the perfect opportunity to be your own boss. We are the top-rated postal & business services franchise. Locations available nationwide. Take control of your business future & benefit from a world-class support system with The UPS Store.”

According to Entrepreneur’s franchise listing:

The first Mail Boxes Etc. store was opened in Carlsbad, California by Gerald Aul, Pat Senn and Robert Diaz, who designed it as an alternative to the U.S. Postal Service. In 2001, Mail Boxes Etc. became a subsidiary of UPS and began re-branding as The UPS Store in 2003. The UPS Store locations provide packaging, shipping, copy and print services, mailbox services, computer time rentals and more. Franchises are located throughout the United States and in over 40 countries.

According to Entrepreneur, The UPS Store/Mail Boxes Etc. has 4,459 U.S. franchises, 332 Canadian franchises, 1,236 foreign franchises and 0 corporately owned locations. 

Are The UPS Store/Mail Boxes Etc. Franchise Owners Happy?

Do The UPS Store franchise owners enjoy control of their business futures?  Do they benefit from a world-class support system with The UPS Store? The high ranking bestowed by Entrepreneur magazine and other advertising-driven magazines seems contradictory to the highly publicized franchise lawsuits and the negative comments from The UPS Store Franchise owners we’ve seen (Read THE UPS STORE: Overview.)

WHAT DO YOU THINK?  DO YOU OR HAVE YOU OWNED A THE UPS STORE or MAIL BOXES ETC. FRANCHISE?  ARE THE UPS STORE / MAIL BOXES ETC. FRANCHISEES HAPPY?  WHY OR WHY NOT?

THE UPS STORE: Overview

Read more

Franchisees

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