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.


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