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UPS Sells Off MBE Brand outside US, Canada and India

SAN DIEGO – Mail Boxes Etc. president Stuart Mathis announced today that UPS Store and MBE franchisor is selling the Mail Boxes Etc. brand assets and licensing rights outside Canada, India and the United States to MBE Worldwide, a newly formed affiliate of Italy’s Fineffe Group. Fineffe is an affiliate of international master licensee with 807 centers located in Italy, Germany, Spain and Austria. “Mail Boxes, Etc. Inc. and MBEC Canada will continue to serve as the respective franchisors of The UPS Stores and Mail Boxes Etc. brands in the U.S. and Canada, with approximately 4,800 locations,” he stated. Mathis said the new development will allow them to dedicate even more resources to the growth and support of their network in the U.S. and Canada.

United Parcel Services purchased the Mail Boxes Etc. franchise network in 2001, and has been engulfed with franchisee disputes and litigation over its rebranding of stores under the banner of The UPS Store. UPS earnings have suffered this year, resulting in major layoffs, terminating 10,000 U.S. jobs. Currently, MBE/UPS Stores is engaged in numerous  litigation actions with its franchisees.

Rich Hallabrin, spokesperson for Mail Boxes Etc. and The UPS Stores was not available to make comment. Susan Rosenberg, Public Relations Manager of UPS, stated, “Literally, this means nothing for the franchisees in the U.S., India and the master licensee in Canada. Those remain with MBE corporate out of San Diego which focuses on the UPS Stores and Mail Boxes Etc. brands, including Puerto Rico.”

Joe Wightman, franchisee of one unit in New York, said regarding this latest announcement, “They are getting rid of the MBE brand because by 2012 all the current MBE stores will be up for renewal and will not be allowed to renew as an MBE. They will have to renew as a UPS Store.”

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Letter from The UPS Store / Mail Boxes Etc. President, Stuart Mathis: Fineffe Group Purchases International Mail Boxes Etc. outside of United States, Canada and India

TO:       All U.S. Franchisees
CC:       Area Franchisees, Regional Vice Presidents, Franchise Consultants and Operations Managers
FROM: Stuart Mathis
DATE:  May 12, 2009
RE:      Fineffe Group Purchases International Mail Boxes Etc. outside of United States, Canada and India  

UPS and MBE are selling the Mail Boxes Etc. brand assets and licensing rights outside Canada, India and the U.S. (and their respective possessions and territories) -- some 1,227 locations in more than 30 countries to MBE Worldwide, a newly formed affiliate of Italy's Fineffe Group, whose principals are Graziano and Paolo Fiorelli. Fineffe Group is an affiliate of international Master Licensees with 807 centers located in Italy, Germany, SpainAustria. The existing Master License Agreements, together with the licensing model, trademark and service mark assets, for countries and territories outside the U.S., CanadaIndia, is included in the purchase.

Mail Boxes, Etc. Inc. (MBE) and MBEC Canada will continue to serve as the respective franchisors of The UPS Store and Mail Boxes Etc. brands in the U.S. and Canada, with approximately 4,800 locations (4,456-U.S., 344-Canada). This development will allow us to dedicate even more resources to the growth and support of our network in these two countries.

Other positions and new responsibilities have been identified for each of the employees in our International Department. MBE looks forward to the expertise the international team members will bring to our efforts to support growth for our U.S. network franchisees, our Canadian Master Licensee and the Canadian network. 

Being able to analyze and adapt to changing conditions in our own business and in the marketplace has enabled MBE to sustain and grow for nearly 30 years. We have transformed ourselves along the way to provide new solutions for customers and to create new opportunities for our network. We see this as part of that continual transformation and refinement. 

If you have any questions about this announcement, please contact your area franchisee or corporate-owned area representative. If customers ask about the announcement, tell them the transaction is transparent and seamless for customers in the U.S. and Canada who will continue to access shipping and business services through 4,800 locations of The UPS Store and Mail Boxes Etc. brands. Media inquires may be directed to Becca Andrews, MBE Public Relations, [email protected]/858-455-8982

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