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The UPS Store, Tales of Gore

Stories of ownership failure, carnage and regrets about The UPS Store (TUPSS), formerly known as Mail Boxes Etc. OH, and the rebuttals to those horror stories too.

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Nobody Forced any of you.....

Nice. Well... I bought two "shipping" stores in 2004. MBE Corporate is trying to turn them into Print Shops... totally forgeting that it says UPS Store on the sign. If I wanted a Freakin Ink Well print store I would have bought one. No... I and many like me... don't sit on our butts. I am very glad that you are making a buck... MOST are not. Margin is everything. I will not call you names... or slander your good fortune... even though It would make me feel a lot better.

i own a TUPSS in Toronto

i own a TUPSS in Toronto Canada, print is a bout 30% of our business with about 75% margin. Average total print in Canada is 25% of gross sales.

Not sure why US franchisees don't see the huge opportunity here?? this is the way out for the stores that are on border line of profitability or want to see some huge increase in their cash flow.

Numbers in Australia is even higher,

get out of your little world and learn something new about your business, I am positive you would improve your business, attitude and ultimately your life and the others around you.

cheers,

He's a 40% er

He is a 40% that is lucky, I am sure his business skills are average and his luck will soon run out when MBE/UPS expands and cuts his territory reach and customer base. Then he will cry foul! It happened to me! When a greedy rep starts to hijack his accounts, he will cry foul also! He knows nothing about other store owners and agrees to every thing the MBE/UPS does. If you have a lot of money to waste, need to work long hours and have a franchisor that fringes on the unethical, then buy a The UPS Store franchise. I am a owner of 8 years and agree that this franchise is unprofitable to the average owner. Sure, some stores do well, MBE satuarates the market with stores reducing your reachable market, UPS hijacks your accounts with consultants telling you “UPS has a right to do business”and UPS PR people telling you it is a training error. Increased drop off package business from UPS customers reduce the franchisees profit and increases their costs.

Future owners should ask one question, “let me see the Boston Consulting Group Analysis” on the health of the The UPS Store franchise. The predictions of the Boston Consulting Group are coming true from the study. MBE is forcing the franchisee to spend thousands of dollars on being printers which MBE has failed at for the past few years. So, if you want to be a UPS drop off facility that is is in the low margin, high labor cost printing business, then proceed. UPS and MBE know how to make money from the franchisee, but not for the franchisee. Name one other franchise that has it’s owner as a major competitior.

WHere are your store locations?

Just curious where your locations are.

this is an owner's response?

Talk about issues..get a grip. This store owner has a right to voice their opinion. "Fat asses" name calling...grow up.

nasty, arrogant comments

You are either a corporate mole or delusional. Many of the UPSS owners who are engaged in suing UPS/MBE are the folks whose stores rank at the top of royalty ratings. They are the presidents of their local advertising co-op and often develop and test marketing or advertising projects that they then recommend to the corporate office. The bottom line is this...if you can't make enough income to support yourself and protect your investment...what's wrong with this business model?

The simple fact that you believe " only a few disgruntled owners" are posting here and elsewhere is evidence of your lack of knowledge. The folks involved in the multiple lawsuits are the one who are putting in the time and energy to make things right. They are protecting their investments both by continuing to run their business and fighting thru the legal system.

"Cry baby, fat ass, loser".....shame on you and your ignorant comments.

Hello

Hello if You have time and don't mind send me an E-mail (boianvasilev@yahoo.ca) i really liked your confidence in the post and think that it is very motivating.

Barbara Jorgensen's picture

I have been reading about UPS for years

It is time to do something about all these horrible stories in franchising.  Any former UPS zees contact me here and I will give you my personal e-mail.  I need verification that you are indeed a victim of bad business practices in franchising.  All fleeced zees need to prove to the world that we will turn something bad into something good.  We need to put our heads together NOW!!!  We need to be proactive and not passive.  Nothing will change until you are willing to put the effort to change things.  I believe there needs to be regulation in franchising.  We need good leaders to do this. 

fraud

i am a former tasti d lite franchisee which seems to be going down the same path as UPS/MBE as it is controlled by the same two business men Jim Amos and Peter Holt.

I am curious what your association is and if you can help.

I am trying to get this out there and protect others.

Had a UPS Store Franchise and are Interested in Contacting You

All the issues mentioned about the flawed business model is true. More than any other statement, the one about UPS being in competition with it's franchisees is without a doubt the truth. After being in the store a few years, saw the shipping sales decline and the drop offs substantially increase. It's pitiful that they're allowed to get away with this. The corp and the franchisees are supposed to be in this as a team effort. And the corp has the power to make or break the stores profitability. It wouldn't have taken much for them to give us, so we could make something from this horrible investment. So much money was lost...down the drain, the UPS/MBE drain that is. They get royalties on the cost as well as the profit which should be criminal. They take so much in fees and have drained the stores of so much of their shipping business...that there is nothing at all left to pay the bills. It came purely from savings and loans to keep the store afloat. This is only one of the many other store owners that have lost EVERYTHING due to this corporations' greed! Would love to speak with you more about this...and would really like to join a class action in hopes to recoup something from this disaster.

I agree

I agree

Sorry about the repeat posting

Sorry about the double posting. It looked like there was an error when initially saving it to post, and when I clicked on save, it showed two of the same. Tried to delete one, but it doesn't give the option. I apologize for the mistake.

Had a UPS Store Franchise and are Interested in Contacting You

All the issues mentioned about the flawed business model is true. More than any other statement, the one about UPS being in competition with it's franchisees is without a doubt the truth. After being in the store a few years, saw the shipping sales decline and the drop offs substantially increase. It's pitiful that they're allowed to get away with this. The corp and the franchisees are supposed to be in this as a team effort. And the corp has the power to make or break the stores profitability. It wouldn't have taken much for them to give us, so we could make something from this horrible investment. So much money was lost...down the drain, the UPS/MBE drain that is. They get royalties on the cost as well as the profit which should be criminal. They take so much in fees and have drained the stores of so much of their shipping business...that there is nothing at all left to pay the bills. It came purely from savings and loans to keep the store afloat. This is only one of the many other store owners that have lost EVERYTHING due to this corporations' greed! Would love to speak with you more about this...and would really like to join a class action in hopes to recoup something from this disaster.

The UPS Stores

I had a UPS store for 4 years. Took out my retirement to finance the store,sba loans and some stock. I lost it all. Had to file bankrupcy to get out of the contract. These stores are riddled with fraudulent business practices. Labels are printed on line by people with accounts that undercuts a UPS stores prices by as much as 50%. All these stores are drop-off locations for people who want to ship packages but don,t want to pay pick-up charges. This bogus business model has ruined me financially.

Ralph

After reading at least 50

After reading at least 50 posts, I have decided to giveup the idea of UPS franchise. I am about to retire and can`t afford to risk my lifetime savings, at this age I will not get a second chance.

would appreciate your input

first off, I'm very sorry for your fate. I am considering buying some existing franchises and I would love to learn more about your experience before I do. If you can spare the time, please respond - thank you

LOL LOL LOL LOL LOL

LOL LOL LOL LOL LOL LOL GOOOOOOD LUUUUUUUCK ha ha ha

I would like to talk with

I would like to talk with you.

jjrxpress@gmail.com

Granville_Bean's picture

Yup

Ralph tells us: " All these stores are drop-off locations for people who want to ship packages but don,t want to pay pick-up charges"

That's pretty much that I (as a customer) ever used them for.  Particularly return labels where the seller was willing to pay for return shipping but not for a pickup at our location.  Well I wouldn't want to pay for it either so I'd go to a pack'n'ship and leave it there.

What was the business mix for a UPSS supposed to be?

Great the Village Idior leading the blind

Tell us Barbara, after flushing your entire life savings down the drain on a Fitness 123 4 years ago what the heck do you plan on doing besides more whining? If you invested as much time in getting ahead instead of laying on the tracks of this site you might have something to sing about.

Prospective UPS zees

I am considering a UPS store in Norther New Jersey. Are any of these stores profitable ? Can you provide more details of why you believe you have a case for a class action lawsuit ?

Don,t do it. This business is

Don,t do it. This business is changing by doing things on line. 70 to 80% of your packages will be drop-offs (prepaid) which you will receive $1.00 for each one. You will never make any money.

UPS stores

I am considering a UPS store and wondering if you ever got your store and want do you think about The UPS Store.

Ivan

Unfair business practices by UPS against The UPS Store

I bought a brand new store in 2006 and ran it 4 years . Refinanced my house, took out my 401k and sold some stock just to keep the store going. In 4 years I never made a dime. I had house account customers that I gave 15-20% if they would ship with me. This worked out fine until UPS found out about my customers and sent sales people to undercut my prices by 50% and takeaway my business. UPS is in competition with its own stores and MBE corp. keeps telling owners to push other profit centers like copying , office supplies and mail boxs. There is no way a store is going to make a profit without charging for package shipping. This franchise is a fraud. Thats why so many stores are for sale or being transfered. One of the MBE sales people offered me a $1.00 for my store which would release me from my contract and then lied about it when I e-mailed MBE that a sales person would buy my store for a $1.00. I have since filed bankrupcy .
Ralph

CRYBABY

I HAD 3 STORES WE STARTED TO GO OUT OF BUSINESS 4 MONTHS AFTER GOLD SHIELD WAS STARTED. WHEN YOU HAVE A STORE CALLED THE UPS STORE AND CANNOT BREAK EVEN ON SHIPPING ONLY THERE IS SOMETHING WRONG WITH THE PLAN. ALL OTHER ACTIVITIES THE STORES DID WERE THE GRAVY. YOU SHOULD CONSIDER YOURSELF LUCKY. THE MOTTO OF TUPS STORE SHOULD BE AT UPS WE DON’T SHIP WE SINK. BY THE WAY IF YOUR STORES ARE DOING SO GOOD TRY AND SELL THEM!

MBE Class Action Suit

Was there ever a ruling in the class action suit of MBE franchise owners vs. UPS? What's the status?

I had a store from '97-'05 and by the grace of God, got out just in time. The guy who bought my store and another, more mature store is barely getting by and he closed a third one that he had for less than 2 years. I was told by my former asst. manager that the new owner would sell the store back to me for half what he paid for it...

I was there at the convention in San Diego when the UPS purchase was announced. I was there when UPS sent the "dog and pony show" around the country claiming that they would drive business into The UPS Stores as their "primary retail" vehicle. At the same time they were making back room deals to set up shipping centers in all the Staples stores and creating on line rates that were lower than the UPS Stores were supposed to charge. And they happily sent customers who paid the lower on line rates into a convenient UPS Store "drop off location", netting the franchisee a paltry $1 per package. It was the franchisees fault if they couldn't convert the drop off customer into a mail box renter, office supply buyer, etc. Oh sure, we were free to match the lower Staples and on line rates if we wanted to, but we were already getting killed on the low profit margins of the retail rates that were imposed upon us.

I've read a bunch of these blog posts and I'm not whining about being caught in a dying industry. The central point here is that UPS repeatedly lied to and manipulated franchisees into converting from an MBE to a UPS Store franchise. Sure, there were plenty of things they did as the franchiser that were solely in their best interest and I don't fault them for that. But the point is, they used coercive, deceptive and fraudulent tactics to get MBE franchisees to convert to The UPS Store, thereby handing UPS the authority to exercise their legal means. For that, they should be punished.

RE: The UPS Store

Yeah right...so what are your store #'s so i can check them against the #'s sent out by 6060 Cornerstone..Your either an A.F. or Corp shill.Good Luck with your Air Conditioned/Heated Drop Box of a franchise...LOL LOL LOL LOL LOL LOL LOL LOL

UPS in court

05-02-10

UPS in court ready to lose; do NOT get into this garbage right now!!

http://www.youtube.com/watch?v=6dMgO7eGXq4&feature=player_embedded#!

You understand that each of

You understand that each of the profit centers and services provided in your Center may be provided by others, including mailbox service, copying, packaging, and shipping and that new competitors, including well-established entities, such as the U.S. Postal Service, JN0-311 may appear at any time and may locate any type of retail outlet within your exclusive franchise territory.
It is also possible that another Center may be located adjacent to your franchise territory, 640-460 and depending upon circumstances, may even be placed ON THE BOUNDARY LINE of your franchise territory (but outside of your franchise territory). Any of these events may adversely affect your operations and profitability. You further understand that any 642-504 “exclusive uses” you have in your Center lease may not be honored by your landlord or may not be enforced by a court.

Question For Michael Webster

Information has been circulated recently regarding a Canadian Arbitration that apparently was recently unsealed by the Canadian Court System.

IN THE MATTER OF AN ARBITRATION

BETWEEN:

MBEC COMMUNICATIONS INC.

                 - and -

DOUGLAS W. GABEL, 1261658 ONTARIO LTD., and

RASDA HOLDINGS LIMITED

Heard at Toronto on June 16 and 17, 2008

P. T. Galligan

Arbitrator

Would you be able to share anything on this?

Sign a Franchise Agreeement

Sign a franchise agreement and Quiznos has acces to your books

WASHINGTON – A trade association representing over a thousand franchising firms has urged the state of New York to postpone a newly created rule that requires national franchise chains to submit the entities of in-state franchise owner-operators and their annual transaction information for tax gathering purposes.

According to New York tax attorney Bruce Schaeffer, president of Franchise Valuations, Ltd., a firm that specializes in franchised business valuations, the newly enacted statute gives New York the right to demand gross revenue figures gathered about a franchisee from their franchisor. Over a month ago Schaeffer warned the franchise industry about the new law. “Franchisors had better think about what to do and how to prepare for providing all this information pronto," he stated in an interview.

On Monday the International Franchise Association wrote a letter (pdf file) to acting commissioner Jamie Woodward of the New York State Department of Taxation and Finance, asking for more time. “We are working with franchisors to help them comply with this law,” the International Franchise Association’s CEO Matt Shay said. “Since this requirement is the first of its kind in the nation, there is significant uncertainty among franchisors about how to comply with this new obligation. Therefore, the IFA requests the initial deadline of Sept. 20, 2009, for the reporting period March 1 through Aug. 31, 2009, be delayed until Dec. 31, 2009.”

MBE DECISION

Thanks, Michael, will look forward to your article.

michael webster's picture

MBE Decision, Again

Yes, I do have an article which should appear next week on MBE and UPS.

MBE AND UPS LAWSUITE

What happened to the law suite with MBE and UPS...After the judge said she was considering...it just droped out of sight???
You said you were going to write an article on Buz Op but I could not find any referance to the lawsuite

Please bring us up to date

Thank you

Now that is something to look

Now that is something to look forward to!

UPS CLASS ACTION CERTIFICATION HEARING

Ups Store National Class Action

In 2001, UPS purchased the Mail Boxes Etc. franchise. In 2003, Mail Boxes Etc. coerced more than 3,500 franchisees to convert to The UPS Store brand through its Gold Shield Program.

Non-converting plaintiffs brought a lawsuit in Los Angeles Superior Court in 2003. The lawsuit was joined by a converting store owner as a representative class plaintiff.

Today, Los Angeles Superior Court Judge William Highberger issued a tentative order certifying a national class of plaintiffs consisting of approximately 3,500 MBE franchisees who converted to The UPS Store as part of the Gold Shield program. The national class of plaintiffs alleges fraud against defendants Mail Boxes Etc. and UPS.

The hearing on the class certification is set for Friday, June 19, 2009 at 1:30 p.m. in Dept. 307. The courthouse is located on the corner of Commonwealth and Sixth Street just west of downtown Los Angeles.

The Court commented that the proceedings are public and all are welcome to attend. We encourage you to do so, as this hearing is an important step in preserving the class members’ claims for fraud and damages

BAD BROWN

Here's a thought, since UPS's plan was to make the stores drop off centers, UPS should pay the rent for each store as well as our employees. I finally figured out that UPS was in the business of selling franchises instead of supporting them. Let's face it Brown-way too little and too late.

It's funny how justice works. Sooner or later, in this case much later, Crime and deception always catches up with you. Wouldn't it be ironic if UPS was forced to buy all the franchises back because what they were reaaly tring to do is run their corporate agenda disguised as franchises so they wouldn't have the huge costs of running a retail distribution centers at several thousand locations. If you like at the timing of the deal, it was awfuly close to the FedEX/Kinkos deal which was a corporate deal (not franchises). Coincidence? I think not. Econ 101 says oligopolies must react to their competion or they will be monopolized. Let's face it. If UPS did nothing, FedEX would have put them out of business. But UPS failed to recognize or didnt care about Franchise laws and Fair Business Practices. Corporate pushed for the MBE Store takeover fast while undermining franchisee rights. I think if you asked UPS today about Fiduciary Responsibilty, Fair Trade Practices, Uniform Trade practices, predatory trade practices, They would respond by saying we have 5,000 stores nationwide. So what? They stole the stores by fraud. There definitely not opening new stores as MBE did. Furtheremore most of their resources are focused on growing UPS's shipping business at the store's expense with no agenda for profitability of the stores. I'm afraid that UPS was not fully informed in its decision making process of being a Franchise. You can't charge royalty fees on UPS Shipping and compete with the stores directly. Store owners would be better off opening an EBAY account from their basement and not pay the 8.5% royalty fee. The whole thing is a scam or a shame, whatever you call it. Distribution Centers for processing should be closed as well as all non UPS Store Processors. TO UPS AND ALL READING---YOU CAN'T HAVE YOUR CAKE AND EAT IT TOO--EVEN IF YOU ARE 100 NOW.

If UPS did nothing, FedEX would have put them out of business

I disagree! - If UPS had not done what they did, Fedex would not have bought kinko's. It was a knee jerk reaction precipitated by the UPS assault not the other way around. Kinkos is not doing well, Fedex has taken big write downs. UPS Stores are losing their asses nationwide.

The original business model with a multi-carrier platform was the right model. The ability to supply the customer with the best service for the particular need trumps any single carrier dominated offering. UPS could have left the Mail Boxes Name on the stores, given better pricing which the franchises would have passed on the consumer without coercion. They wanted to control it all, control freaks that they are.

"TO UPS AND ALL READING---YOU CAN'T HAVE YOUR CAKE AND EAT IT TOO--EVEN IF YOU ARE 100 NOW."

Therein lies a clue - senility has set in at the Brown Towers in Sandy Spring. Companies as well as people reach a peak and then decline.

"Distribution Centers for processing should be closed as well as all non UPS Store Processors"

UPS would like to do this, but they can't! They certainly cannot close the stores of their competitors, get real! And where are they going to process packages without distribution centers, it simply can't be done even if they wanted to.

Ups Store National Class

Ups Store National Class Action

In 2001, UPS purchased the Mail Boxes Etc. franchise. In 2003, Mail Boxes Etc. coerced more than 3,500 franchisees to convert to The UPS Store brand through its Gold Shield Program.

Non-converting plaintiffs brought a lawsuit in Los Angeles Superior Court in 2003. The lawsuit was joined by a converting store owner as a representative class plaintiff.

Today, Los Angeles Superior Court Judge William Highberger issued a tentative order certifying a national class of plaintiffs consisting of approximately 3,500 MBE franchisees who converted to The UPS Store as part of the Gold Shield program. The national class of plaintiffs alleges fraud against defendants Mail Boxes Etc. and UPS.

The hearing on the class certification is set for Friday, June 19, 2009 at 1:30 p.m. in Dept. 307. The courthouse is located on the corner of Commonwealth and Sixth Street just west of downtown Los Angeles.

The Court commented that the proceedings are public and all are welcome to attend. We encourage you to do so, as this hearing is an important step in preserving the class members’ claims for fraud and damages.

UPS / MBE Trial

SUBJECT: TELEVISING THE TRIAL

During Thursday's hearing, Judge Highberger indicated he had received a request by the Courtroom View Network to televise our trial. He asked if either party had an objection. Of course, UPS objected, and the Judge denied the request.

Our understanding is that if there are sufficient requests for the trial be televised, the Court could reverse its decision not to televise the trial

UPS has done everything possible to prevent us from getting to trial. Now that we are about to reach that goal, we know that the last thing UPS needs or wants, is to have a lot of publicity revealing what they have done to destroy the franchise, and put us out of business.

One of the best ways for us to get the publicity we so richly deserve, is to have our trial broadcast for all to see. We have a good chance for this to happen, if enough people use the following link and fill out the form to request the trial be televised:

http://www.courtroomview.com/suggestions/new,

The form asks that you provide the following information:

Case name. Answer: Morgate LLC, et al. vs. Mail Boxes Etc., et al.

Case number. Answer: BC294647

Jurisdiction. Answer: Los Angeles, Ca

City and state. Answer: Los Angeles, Ca

Judge. Answer: William F. Highberger

Please send the link to everyone you have listed in your email contact list.
We have contacted Janet Sparks of Blumaumau, to ask that this link be posted on their website. Janet has agreed. We are also working on posting the information on Facebook, Myspace and Twitter.

Please do not hesitate to use any resource you have, including your customers, to get the link posted, and to get as many people to go to the link and fill out the form. Our goal is to reach as many people as possible, have them complete the form posted on the link, and email it to the Court Room View Network.

There isn't much time, so we must all act quickly.

Ups Store National Class

Ups Store National Class Action

In 2001, UPS purchased the Mail Boxes Etc. franchise. In 2003, Mail Boxes Etc. coerced more than 3,500 franchisees to convert to The UPS Store brand through its Gold Shield Program.

Non-converting plaintiffs brought a lawsuit in Los Angeles Superior Court in 2003. The lawsuit was joined by a converting store owner as a representative class plaintiff.

Today, Los Angeles Superior Court Judge William Highberger issued a tentative order certifying a national class of plaintiffs consisting of approximately 3,500 MBE franchisees who converted to The UPS Store as part of the Gold Shield program. The national class of plaintiffs alleges fraud against defendants Mail Boxes Etc. and UPS.

The hearing on the class certification is set for Friday, June 19, 2009 at 1:30 p.m. in Dept. 307. The courthouse is located on the corner of Commonwealth and Sixth Street just west of downtown Los Angeles.

The Court commented that the proceedings are public and all are welcome to attend. We encourage you to do so, as this hearing is an important step in preserving the class members’ claims for fraud and damages.

From my own experience...

I've owned a UPS Store for five years. My sales have increased 15-25% every year. Went from #30 in my area to #1 or #2 every month.
I can't speak for the methods and circumstances of others, but I can say that despite the flaws in the current system, it is possible to make a good income working 40-50 hours a week in my case. Over saturation of the market has been a problem in some areas.

You sir...are a troll. What

You sir...are a troll. What is you center # and STR? How convenient wrapped is your I work 40-50 and make a great living...listen have a double iced mocha-bullshit latte from your desk in San DIego Faggot.

Increased Business

Dear Sir,

My wife will be opening a The Ups Store in a town north of Montreal, Qc., and I've been looking at various sites to see a non-corporately skewed view of the stores. We are already locked in with our contract, and we are optimistically moving forward. I saw that you have open for several years, and have increased your sales by about 20% per year. You're obviously doing something right - something that your colleagues at the other stores are not. Would you be open to telling me what that "something" is?

Sincerely,

Peter.

 

ups store

If you are indeed the owner of the ups store on fm 249 in houston, you need to be aware of the way your "manager" Shawn is treating your customers. He is the most rude, inconsiderate clerk I have had to deal with. I will never go to your store again.

From my own experience Part II

"It's possible to make a good income working 40-50 hours a week in my case".....HOW IS THIS POSSIBLE SINCE YOUR UPS STORE FRANCHISE AGREEMENT "MANDATES" .. YOU ARE TO BE OPEN 58 HOURS A WEEK...Sounds like someone is going to be getting that "overnited" non-compliance letter soon from the dear ole folks at 6060 Cornerstone Court West.Or did you get a free pass on not having to be open the same amount of hours as the rest of the franchise???

Re: From my own experience Part II

Why would you even bring that up? You must have a miserable life to even worry about that. Please stop the hate and get a life.

Re: From my own experience Part II

The replier of this message doesn't sound all that competent. The owners store is open far more hours than 58 hrs/wk. This business owner has employees to work hours above and beyond. Shall we assume the reply was from an ignorant individual, a failure, or both?

"From my own experience...."

Your numbers are highly suspect. Most telling are the ones that are absent. How old is your store? What's your annual gross? (STR) To what do you specifically attribute the stunning reversal in your store's fortune?

Please provide complete answers. And I've been a franchisee for far longer than you, so spare me blowin' smoke. I can see through it.

I'm guessin' that the wise Michael Webster might have you pegged, pal.

Oops...

My reply questioning his statement(s) should have been to "From my own experience," not headlined as such.

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