THE UPS STORE: Overview
Critics of The UPS Store franchise claim that UPS has turned franchise owners’ locations into glorified “drop boxes” and unfairly compete with them directly.
Many feel that UPS intentionally undercuts franchisees’ business by offering customers the option of printing their own labels, then dropping their packages off at The UPS Store locations.
The franchisees do not get a cut of the shipping revenue, provide tape and supplies at their cost, and only get a nominal amount for the drop-off packages.
Brown Fool wrote:
UPS only thinks of their bottom line. They do not care if the stores sink or swim. They continually compete against their own brick and mortar stores. And God help you if you ever get audited… My husband and I wondered how they can run so many training classes with so many people in each class. We now know – they are stealing from honest hardworking people to line their own pockets.
Current UPS Store Owner wrote:
I feel myself sinking and can’t seem to get out of this hole! I was just informed about another “required upgrade” that isnt really something I need and is going to cost me $550 that I dont have to spend on it. I am always fighting with UPS to make a buck with their corp accounts! How is this fair??!?! How is it legal???
I owned a UPS Store for 4 years… and never made a dime. I finally had to close it down… and file bankruptcy…. UPS undercuts the I-ship rates by 50% when businesses open an account with UPS and use the worldship software. How can we stay in business when UPS competes with its own stores by offering lower shipping rates.
Other critics of The UPS Store franchise claim that the business model is severely flawed, and few stores will ever turn a profit. Nevertheless, UPS continues to aggressively market its franchise opportunity.
UPS Store Franchise Articles:
FRANCHISE DISCLOSURE DOCUMENT FDD: The UPS Store 2015 – Free Download
THE UPS STORE Franchise Complaints
Are THE UPS STORE Franchise Owners Cheating UPS Customers? Franchisee Lawsuit Says Yes.
THE UPS STORE Franchise Warning: It’s a Scam Claims Franchisee
Are THE UPS STORE / MAIL BOXES ETC. Franchise Owners Happy?
How Much Do UPS Store Franchise Owners Make?
THE UPS STORE Franchise Owners Lose MBE Lawsuit
UPS STORE, MAIL BOXES ETC. Franchisees File Class Action Suit
FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH THE UPS STORE FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
11 thoughts on “THE UPS STORE: Overview”
I’m a terminated franchisee from another company, but recently met my counterpart from The UPS Store on one of Mr. Kelly’s other websites. I can’t give any other background on her, but I wanted to share a warning from this franchisee victim. I’ll call her Joan of Arc for now.
Joan has essentially the same story that all of us at Unhappy Franchisee share. We were told material lies about the business in question. This means that if we’d just been told the truth, upfront, we never would’ve purchased that franchise. Trust me, if I read the book, The Franchise Fraud, by Robert L. Purvin, Jr., instead of Franchising for Dummies, I would never have gotten involved with any franchisor at all. If you haven’t taken the fatal plunge yet and already signed a contract, please do your due diligence by ordering that book. The title tells the story.
Purvin, an attorney, argues that the entire franchise industry is rife with fraud. He proves his case. What appalled me the most was the fact that the FBI and local law enforcement agencies allow this to continue uninvestigated. But don’t worry, I won’t get on my soap box here.
However, Joan has some astute insights into why franchisors are free to lie, cheat and steal right under the noses of the cops. Hell, you wouldn’t even let used car salesmen get away with that. But franchisors have something like diplomatic immunity. For example, diplomats don’t have to go to jail for DUI. I’ve learned the hard way that franchisors don’t have to go to jail for fraud or racketeering.
Joan told me there are 200 ex-franchisees involved in her law suit against The UPS Store. Fellow ex-franchisees, do the math, here’s two hundred, middle class families, who were smart and successful enough to afford to buy a damn UPS store in the first place, who honestly believe they’ve been defrauded. How many more victims will it take before the FBI takes charge and puts a stop to this blight on the middle class economy?
Purvin explains in his book that the dwindling middle class in America is the primary target for ruthless, franchise racketeers. We had enough money to get involved, but not enough to fight back with civil attorneys. That’s why law enforcement must be pressured to take action. Our taxes pay the FBI investigators and U.S. Attorneys. They don’t charge by the hour. The same goes for local cops and district attorneys.
Purvin warns that many franchisors intentionally “churn” franchisees by taking all their upfront fees, ignoring them until they can’t afford to pay the lease, terminate them for bogus causes, and sell the territory to a new victim. They don’t even try to have a professional product competing in the market place. They make their money by cheating us, not helping us advance their product.
That’s the dirty, not so little, secret of franchising. I think every terminated franchisee should report this fraud to the FBI and local police. You have a civil right to report crime and blow the whistle on fraudulent criminal enterprises. Trust me, you’re crime victims and should be afforded all the rights of any other victim. Look up RICCO or Racketeering on Wikipedia or anywhere else on the internet. This is exactly what the Franchise Fraud amounts to.
The companies I read about at this website, which I want to thank Mr. Sean Kelly for providing, are really counterfeit franchises. They were never real in the first place. They were based on lies and deception by conmen. It doesn’t matter how many times a counterfeit $100 bill gets passed around, it never becomes real. Bogus fraudulent franchises have no intrinsic value in the first place and churning them over and over doesn’t make them legitimate.
Article on The UPS Store franchisees:
THE UPS STORE Franchisees: Drop-Offs Can Drop Dead
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SBA franchise loan failure rate is posted here:
Failure Rates of the 10 Most Popular Franchises
I owned a UPS Store for 4 years, bought it new in 2006 and never made a dime. I finally had to close it down July 30, 2010 and file bankrupcy. How can the government allow MBE to keep selling these worthless stores. I-ship is the software I used in my store. UPS undercuts the I-ship rates by 50% when businesses open an account with UPS and use the worldship software. How can we stay in business when UPS competes with its own stores by offering lower shipping rates.
I would like to join a class action suit against MBE and UPS for perpetrating fraud against the franchisees. Anyone know of a class action suit I can join?
Please help !
Still sucks being a franchisee of this franchise (Well, ok it’s worse now because of increased drop-offs. Only one year left and I’m out of this scam! Stay away from buying a store at all costs!!!!
UPS only thinks of their bottom line. They do not care if the stores sink or swim. They continually compete against their own brick and mortar stores. And God help you if you ever get audited. If your profits are not what they think they should they expect you to pay the difference in royalties of what your store should have made. I don’t know how that is legal. They say you have underreported your profits and you owe them the difference. How they can do this I do not understand. My husband and I wondered how they can run so many training classes with so many people in each class. We now know – they are stealing from honest hardworking people to line their own pockets.
I am currently a UPS Store owner and am dealing with all the issues above! I feel myself sinking and cant seem to get out of this hole! I was just informed about another “required upgrade” that isnt really something I need and is going to cost me $550 that I dont have to spend on it. I am always fighting with UPS to make a buck with their corp accounts! How is this fair??!?! How is it legal???
My store only nets a super low under 300,0000 a year. The average is 420,000 a year or higher.
I can still make 40 grand only because I have low rent and super low overhead.
I know stores that have double revenues as mine and are only making slightly more money than me.
Very hard world to own a UPS store. It used to be pretty easy about 7 years ago or so.