CVN Gives Final Overview of UPS Trial
LOS ANGELES – As a summary of this week’s trial in Morgate v United Parcel Services, Cynthia Cohen, Ph.D. said in her final report on Courtroom View Network that she generally observes how juries psychologically view the issues rather than determine interpretation of the law. “I’m not giving legal advice, nor do I practice law,” she explained. But she gave her observations after sitting in the courtroom for two days, reporting on the events as they unfolded.
As the trial began on Monday morning, Cohen said the courtroom was filled with franchisees and their attorneys from two law firms in San Diego (Aguirre, Morris & Severson LLP and Gordon & Rees). She said many of the franchisees wore their UPS shirts. "Judges are people too and the effect of the roomful of plaintiffs was not missed by the judge nor anyone in the courtroom,” Cohen reported. She said it was apparent that these grassroots franchisees have their livelihoods tied up in this case, but stated, “While this case touches their lives and emotions, the judge will be focused on the law, not the facts.” UPS had two attorneys from Morrison & Foerster LLP representing the franchisor.
Her report briefly reviewed the issues of the legal dispute pertaining to the franchise renewal contract not being as favorable to franchise owners of Mail Boxes Etc. and The UPS Store as the MBE agreement in 1993. Differences focused on certain aspects of the contracts, mainly dealing with exclusive territory, transfer rights and pricing. Cohen said the question is, what did the franchisees believe they were agreeing to in the renewal contract? She said, “In interpretation of the law, it does not matter that the renewal contract was not as favorable as the 1993 contract. What does matter is whether the franchisees understood that the new contract is not as favorable as the 1993 contract."
Again, viewers are invited to read the full report by Cynthia Cohen on Courtroom View Network ($25 subscription fee required to have access to all of the blogs).
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Related Reading:
- Judge Promises One-sided Decision after UPS Trial Ends
- UPS Defends Right to Change MBE at Trial
- Attorney Argues 'Evolution, Not Revolution' in UPS Trial
- UPS, Mail Boxes Feud Heads to Court
- Publishers Jointly Offer Daily Coverage of UPS Store Trial
- Amos Exposes Insider Information in UPS Acquisition of MBE
- UPS Denies Existence of Feasibility Study, Now Unsealed as Evidence
- Franchise topic:
What does TUPSS mean? Can someone tell me what TUPSS mean?
Well, guess that's why I recommend this site to all MBE/TUPSS franchisees..I thought I was the only one who knew about many aspects of UPS's fraud! I can say with certainty that many franchisees are too busy to keep abreast of the publicity surrounding UPS's skullduggery, thievery and piracy! Well, not everyone in franchising has yet to visit this wonderfully informative site! See story by Janet Sparks, "Breaking: Michigan Questions UPS's Claim That Federal Tax Law Prevails", dated 2007/07/18. Live and learn!
This is important for the franchise industry. If the zees win it will be a strong statement that rougue zors better clean up their act. I am looking all the time to hear any news about your case. There is too much suffering when people get hurt in franchising. You are in my prayers and I hope you get the justice you deserve.
...that's why UPS wanted MBE...to have their cake and eat (all of it) too! They knew that if MBE continued it's phenomenal growth (to 10,000 stores) and they (MBE) ever entered into an arrangement with the Post Office to ship their products (wholesaled to the MBE), then UPS would see it's package count (daily) drop even more precipitously! Better to contol all parties..the franchisee, FedEX, the consumer, and the 200+ United States Postal Service employees and stockholders (us, the U.S. citizens)! Like the bad guy with the red hair in Kevin Kostners' futuristic movie, "The Postman"! Evil and contolling, heartless and overbearing (to say the least!). But hey, remember what happened to him? Kostner's character "Got 'im! So too shall the Morgate Class plaintiffs/franchisees get their "bad guy"...UPS!!
For years now, people have talked about privatizing the US Postal Service. Today, the USPS's financial losses has rekindled that long-running (low-intensity) debate! Guess what? It's getting louder! MBE was on a growth curve to take full advantage of any opportunity that (predictably would) someday come along vis a vis USPS privitization. Now, it's UPS who has (through fraud) manuvered themselves into a position to take advantage of that, albeit with a much smaller (than would have been) network (due to the fraud-induced closure of so many stores, and halting of the networks' growth). Once again, the scheming by UPS becomes clearer and clearer, and how they helped to squash present and future competition, as well as the franchisee, becomes obvious! Future potential(s) is (are) not actionable (for damages), but hopefully they can be factored in to any settlement (?) or yet-to-be filed lawsuits or judgements (like the one that's coming should UPS be found negligent/fraudulent in not having disclosed the Boston Study info into the FDD for people who purchased a TUPSS franchise)! So, hang tight...pass the word...stay informed...and tell all your TUPSS owners/friends about this very informative website (bluemaumau.org)! Stay well!
Yes, UPS continues to build their business on the backs of the UPS Store franchisee! Just announced was a tracking initiative for EBAY sellers through UPS's WorldShip program! Now, in case some of you think that UPS is looking to "pump-up" the volume (for TUPSS shipping business, as they assured us they would during Gold Shield), think again. I humbly point you (who do not know) to the following FAQ's on an EBAY Shipping info. web page..go to http://pages.ebay.com/sellerinformation/shipping/bestpractices/faqs.html and see what "Brown is doing for you", the Gold Shield/TUPSS franchisee! Read and learn...
...there it will tell you that you can use TUPSS as a drop-off point, but you will not get the discount if you ship directly through the store! FYI.
For instance, one person commented that UPS only had a net gain of seven (7) stores in '07. I wonder what the net gain/loss was for '08, and YTD for 09! Recession combined with fraud (finally working it's way down the ladder of stores..the death can be a slow one) must not bode well for the total number of TUPS Stores! Of course, the fraud is probably the pedominent factor in the franchises' demise, so numbers must be properly analyzed! But the story is probably sad, and soon to get worse! As I said, I see another Class Action on the horizon related to non-disclosure (in the FDD) of the Boston Study results to post-rebranding TUPS Stores! When the hammer comes down, I hope the likes of both UPS and MBE corporate executives takes a hit! God knows they have destroyed many lives, livelihoods, savings, homes, businesses and families! Young and old, able-bodied and disabled, healthy and (made by the stress) unhealthy! For some, probably even worse, but I won't venture (further) in that direction! That the 200 non-convertee's have held out (in their suit) for so long is testimony to their tenacity, fortitude, and fine choice of legal council! One thing is certain. This story will be playing out (in multiple directions) for some time to come! UPS faces not their day of reckoning, but years of it! Lucky for them, it's a faceless, emotionless, non-living entity! Too bad they cannot feel some of the pain they have so carelessly dished out!
...as was posted in one of the comments! In the mean time, this guest will continue to try to inform (the many, many franchisees who don't know what's going)! & stay tuned to bluemaumau, and also to some of the more popular financial blogs, as well as platinumshieldassociation.com! They reference many a BMM story! Yes indeed, there's a whole lotta fight to come! Brown does'nt know it, but even they are not above the law!
what does that mean?
...attorneys get together with Judge to settle on dates.
That they purchased MBE through the use of insider information is established (see Amos depo). That they then acted to stifle competition (by changing the multi-platform system into a single platform one) has also been established. Question: Should UPS be forced to divest itself of what was formerly the MBE franchise? Should they be fined for use of inside information in purchase of the same? Have they violated laws put in place to prevent anti-competitive practices? Does Sherman and Clayton Anti-trust Acts apply here? These are just a few of the questions that arise out of this debacle that was the purchase of Mail Boxes Etc. by United Parcel Service. After all, competition is good for the nation (look what happened to commerce during the last Teamsters strike against UPS in the '90's)! See what happened to DHL. Airborne. See how lots of small players are emerging in the small-package shipping market (OnTrac, the former California Overnite, comes to mind)! Will UPS unfairly crush them? After all, who is left besides UPS and FedEx to carry most of the nations small-package freight. And think of the growth of small companies that are an offshoot of the internet. And the big ones that service the small ones (EBAY, Craigs List). Should they be limited to chosing between only two major carriers (the USPS not withstanding, as they are in reality Govt subsidized through their 1`st Class mail monopoly, and should not be allowed to compete in the private small package-carrying market anyway)! Yes, these are big questions...off-shoots of the UPS/Gold Shield fraud, and Congress, the SEC, FTC, and other governmental agencies, should address these questions! When UPS loses this legal action, it may be found that they have engaged in anti-competitive practices, and should be forced to divest themselves of MBE!
The world of commerce, the internet, small-business, job growth, the American economy...all of these things demand that the big not be allowed to crush the small, because then, everybody loses (except the mega-giants like UPS)! Divest itself of MBE and go back to a multi-carrier platform? Yes, for the American economy, for the budding entreprenure, that would be a good thing!
effectively managed independent franchisee associations early on - and I mean very early on. After the barn has burned down is too late for effective association intervention. A properly funded association does not have to simply take a franchisor's word for the potential of any program the franchisor decides to adopt. A professionally managed assoociation can organize militant resistance when that is what is called for to prevent disasters. A professional association can afford the level of expertise its franchisor has available to help franchisees vet proposals and negotiate their specifics or resist the proposal.
The earlier on that franchisees face up to this critical responsibility to optimize their own future, the less litigation they will have to fund down the road.
No one is going to hand you the new world. You will have to take it.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Sure the franchisor typically has the contractual ability to force change but the performance of such change is less in the short term when a network does not embrace that change in the form presented and achieving the desired result can take through to the process of rolling over contracts at renewal and incur damaging fallout.
The end result of franchisee involvement in the development or refinement of any franchisor introduction or amendment to the system produces a balanced outcome where the greater one-sided franchisor windfall that was first dreamt up and in reality was not going to be achieved without franchisees buying in then must be forsaken for an achievable, albeit less, windfall when franchisees are involved in refining what and how a new initiative is and is driven.
When franchisees accept that change is a win then a real win is achievable for all parties without damage to the franchising relationship that is necessary to grow a healthy franchising reputation that in turn enhances the value of everyone’s investment. Individual franchisees cannot achieve that input.
Consistently; many franchisee networks are too stupid, lazy and penny pinching to come together. Consistently; many franchisors are too greedy and stupid and persist in driving new initiatives through the mud when the dry road in company with a franchisee representative body will produce a balanced windfall for all in shorter time and maintain the franchising brand and eliminate ugly confrontation and potential litigation. Does that make sense?
If so; then why do we have stupid, lazy and greedy when most of the siht can be avoided?
When Bobby complained to dad that J.R. wasn't playing nice, Jock turned to Bobby and told him: "Nobody gives you power, boy! You need to TAKE power"! Bobby stood there looking dumb-founded. Now where are you from Mr. S?
...came along, screwed up the entire multi-carrier system, destroyed many a store, and saw the growth of the franchise shrink to where it is today! By 2000, MBE was hoping to have 10,000 centers open across the nation, serving the nations growing businesses and customers big and small. Impressive! What happened? UPS happened, that's what! Seeing the success of MBE and realizing that the then [MBE] system allowed for multiple carriers, who were gaining footprint in the marketplace (while they stagnated and fell), UPS came in and crushed this once growing, innovative, worldwide franchised enterprise! Destroy [MBE founder] DeSio's dream quickly they did! Now, do we call that anti-competitive? Do we call that corrupt? Do we call that stacking the deck in their favor? We sure do, and that's why this fraudulent gambit must be stopped, and those harmed (including the American free enterprise system) must be made whole again! I hope Judge Highberger takes all of these matters into consideration. He seems a fine jurist, and I rest comfortably knowing that no matter what his verdict, it will be a fair and equitable decision! I am also more than confident in the plaintiffs' outstanding legal team. Despite UPS's cowardly actions to delay, the legal system has moved forward! Let wrongs be righted! Let justice be served!
What UPS didn't want were 10,000 stores shipping FedEX, 10,000 stores shipping DHL, 10,000 stores shipping USPS overnight, 10,000 stores shipping Yellow Freight [freight] services, 10,000 stores with bargaining power over them, 10,000 stores doing anything that may have given the consumer a choice other than UPS! Graph the growth curve, see how the number of stores opened drops post-UPS purchase, see how other companies were pushed from the MBE marketplace, and now the pieces of the puzzle fit and you can shout out "JIGSAW" (or is that BINGO)! UPS indeed feared competition, thats why they wanted to squash it! UPS feared having to negotiate across the table with MBE, making a deal that might have seen the franchisee treated fairly. UPS feared lack of control over pricing and the nuts and bolts of a large organization not controlled by them! UPS wanted a network just like MBE, one servicing them and their products only, a network that would have been too expensive to build out by themselves! The franchisee was not just and not an after-thought...they were a hinderance. Pare down the number of stores, and that's ok, because now that they are omly a single-carrier shipper, there will be less growth, less threat to UPS, but enough stores to service them and their products only! Wow! Who would have thought this would turn out to be the (puzzle) picture when all of the pieces were fit together! So, the not-so-old saying goes...What can Brown do for you!
Of course it isn't, but seeing how UPS has faired in other cases, especially the Canadian one, the franchisee is left to wonder..was this a franchisor or a provocateur? There seems to be a distinct pattern of deceipt and disdain for the franchisee! Recall the wi-fi fiasco...you know, where UPS gave some service provider permission to engage each TUPSS as an internet "hotspot". Equipment was installed (using the stores' wired-in internet service) and calls were made (to the franchisee if the provider recorded service outage at your hotspot, for whatever reason). After a few years, it didn't work out, and equipment was removed). But here's the question. The franchisee was not paid any money by UPS or the provider for use of his space or to piggyback on his internet (signal), but I'll wager that UPS was paid a good amount of money by someone to facilitate that deal (with no concurrent monetary benefit to the franchisee). As I recall, few people were coming into the store to access the service (not to say they did not stay,say, in their car or something) so it was stopped after a few years. But I ask...was UPS given money by the service provider...dollars that they kept to themselves? If anyone knows, please pass it along, as it fits well with UPS's pattern of putting Brown first, the franchisee last. I would appreciate any information on the matter!
...of State franchising laws/regulations. This is only a test!
...business. They're gona purchase the NFL Franchise "Cleveland Browns", rename it The UPS Browns, and change the [franchise] system (in full accordance with the FDD) to a Same Day Courier company! Yes, speed will be the name of the game! Ex-NFL punters need not apply ... only Running Backs and Receivers!
Sure, sounds logical, doesn't it? Seems a shame to just throw it away! I guess they are gona change the UPS Store name to UPS KINKOS! Why not, after all, changing the brand/system is quite kosher according to UPS! Didn't you read what their attorney said during the trial? & you thought UPS was all about shipping, and they were'nt gona take care of the TUPSS franchisee! Now don't you feel foolish! Best of luck to all of you in your [new] copy business! It'll go gangbusters! So I ask, "What else can Brown do to/for you"?
...in mind, think again. Every day, internet [shipping] usage goes up for UPSs, and in-store package count goes down, or fights a strong head-wind, for TUPSS franchisee. UPS gets more customers, you (TUPSS) gets more drop-offs (all the while facing increasing rents, raises for employees, electricity, etc. etc.)! & the best part is, you have no control over the pricing of your primary product, shipping. You bleed / UPS's greed. & you like it. Why? Well, UPS is going to give you lots and lots of copy business, you know, like Kinkos, which does not even exist anymore (in case you haven't heard, it's called The FedEx Store now)! Now that's a growing profit center (not)! So, allow for some well meaning advice...wake up, take a deep breath, and smell the roses...lest you work for 10+ years and have nothing to show for it (except summons's from collectors). Complaining? No, just giving you a friendly and courteous heads-up! I wish you all good luck! ...and watch this site for updates on the trial!
Because the brand saw tremendous growth out of a (never before existed) system that represented muliple carriers! How many people would shop at WalMart if they only carried one brand of widgits? People like variety and the choice that comes with it. So too did MBE because along with [multi-platform] choice came the customers' business and bargaining power in negotiations with various shipping companies! Not so much to the liking of UPS, however. To them, comsumer choice was a bad thing! Someone negotiating with them, in good faith, was also a bad thing. What happens if they chose another carrier? Indeed, court arguments showed that consumers did, and that was why they cornered Amos (with a "bonus") and bought the MBE franchise. Their Average Daily Package Count (ADC) was falling. They were losing business to FedEx in the ASO (Authorized Shipping Outlet) store. Better to lock out the competition than compete with them (even though they stated that their intention was too maintain MBE/TUPSS as a multi-carrier platform)! Also to their likeing was the power to dictate terms to the franchise, MBE, who was gaining customers in the marketplace and therefore leverage over them. Do you understand now? It was a hit not unlike the fate which befell Sonny Corleone in The Godfather! At the toll booth, place a Brown truck in front (of the franchisee), and Gold Shield to his rear (if you get my drift)! Hit a success! Or was it? 'Cause here comes the Morgate plaintiffs led by a team of rightous sheriffs...Gordon & Rees. Aguirre, Morris & Severson LLP. And a dynamic, perservering leader in one Howard Spanier, who UPS/MBE couldn't fool even once (though they tried)! Good luck to this remarkable Team. They've held out for six long years, despite UPS's underhanded legal [delay] tactics! So be it! That will make a Victory all the more sweeter! Sour grapes? No, just the little guy refusing to be trampled by today's all-powerful Corporation! So, let Judge Highberger make his ruling in Phase One. & Bring on Phase Two!
Cynthia Cohen writes..."it was apparent that these grassroots franchisees have their livelihoods tied up in this case...". This observation is a good tie-in to the statement made by "Big Vince" Marinelli of A Taste of Philly [franchise] in the quotables section of BMM. He stated: "We know we're putting peoples' life savings at stake"... in the opening of franchises in Florida, therefore, he stated that they (the franchisor) would be careful about franchise expansion and development. What a breath of fresh air, and compare his philosophy to that of UPS! Vince recognizes his responsibility to the franchisee, and this statement well highlights his concern for people and the need for having a strong ethical character. UPS, quite to the contrary, has shown little concern for the lives and financial well-being of TUPSS franchisees! Their ethical line seems to stop where it meets up with their profit objectives! Nothing else seems to matter to these [UPS] corporate capos, Mr. Kelly & then Mr Eskew having been the [then] top company deal makers, the capo(s) de tuti cappi! So be it! As ye reap, so shall ye sew!
It isn’t about how long they run the FranWhack before it runs itself into the ground. It is about operating a system with a franchise reputation that generates its own growth and any necessary market driven transformation through the financial success of a collaborative network while collecting dependable and swelling revenue. There is true wealth in longevity.
Scams come and go; some last way too long and attract way too many. But we don’t hear that much about the ones that are so ridiculous that they attract very few and fail quickly. Perhaps prospects will learn more when they read about zors like yours.
OK, so we know how UPS feels about their ethical responsibility to their franchisees...they dont! What did they do with the Boston Study Group report? Denied it existed, swept in under the rug, and then took actions not to improve the franchisees financial condition, but to worsen it! How? Well, lets look at how they handled MBE's best customer...your best customer...the EBAY shipper. They siphoned that business off from you to them by offering substantial discounts if they shipped their stuff over the internet via the UPS website, and then took their packages to a consolidation pick-up point...The UPS Store! But these same EBAY customers were told that they would not receive the discount if they shipped through a TUPSS! Just drop it off there. This is how UPS addressed the BS Group study! They knew there was no way to (inexpensively) service these shippers by arranging for thousands of driver pick-ups, so they gave the discount and used you as the drop-off point...vitually unreimbursed (to you)! Thats how they handled the issue of ethical treatment of franchisees..of a study that pointed to a severe problem. Kinda like seeing you drowning, walking over, glancing over their shoulder, then using their (booted) foot to push you under. How ethical! And they knew what was happening to your profitability all along, because you warned and pleaded with them for years about this drop-off issue and how it was killing (77%) of you! Quite a difference from the 90% plus success rate experienced by franchisees of MBE stores! But hey, BS Group was initiate as a legal cover. They knew in early 2000 (post-MBE purchase) about what Gold Shield would do for you (and them)! Well, to my main point. I know that many of you, be it out of anger or as a protest, are not supplying ground waybills to customers who want to come in and use their own account to ship. Furthermore, many of you are charging $1 to put a piece of tape over an openned package. Unfortunately, by doing this, you come off looking both unprepared and cheap! These fine folks know nothing about the UPS rip-off! Indeed, most think you are a UPS owned facility, and can you blame them? Look at the sign above your store and the logo on your shirt! Treat them as you would all of your customers...smile, be courteous, and make them feel that they just had a great customer experience, and they are your friend (in many cases, they are)!!! The fraud perpetrated by UPS is well understood, and is being addressed in court. Better there then at the [store] counter! So good luck, and understand that much of your plight was created by your franchisor. Honest people tend to blame themselves, especially the trusting ones. Don't!
"I know that many of you, be it out of anger or as a protest, are not supplying ground waybills to customers who want to come in and use their own account to ship."
Here is something I bet most drop off customers who use the black ground waybill did not know! It actually costs more to use that ground waybill. UPS has a $5 dollar surcharge for ANY shipment tendered using a black ground waybill! It does not matter if you have a corporate discount or not, you get dinged the 5 bucks no matter what. On top of that, there are declared value limitations, even though you have the ability to write in your insurance amount, the fact that it is on a waybill limits how much UPS will honor in the event of damage or loss.
Guest said
"Well, to my main point. I know that many of you, be it out of anger or as a protest, are not supplying ground waybills to customers who want to come in and use their own account to ship. Furthermore, many of you are charging $1 to put a piece of tape over an openned package. Unfortunately, by doing this, you come off looking both unprepared and cheap! These fine folks know nothing about the UPS rip-off! Indeed, most think you are a UPS owned facility, and can you blame them?"
To your point why is it okay that the Post Office will not tape you package, but TUPSS must? The post office will make you buy a whole roll a tape then get back at the end of the line.
As for Ground Waybills that is a whole other issue. Why don't you check and see if you can find them in UPS dropboxes. Grab a ground waybill and read the Terms & Conditons on the back, then you will understand why we are looking out for the customers.
As for most customers thinking we are a UPS owned facility - tell me about it! The other little convenient thing for UPS thats not mentioned anywhere in the FOC/FDD. As a TUPSS you will answer the phone for UPS between 50 and 100 times a day. Everything from where is my package to a driver just did donuts in my yard with the big brown truck. Even the operators at the UPS 800 number will give customers our Stores phone number when they run out of answers on their script.
- Actually that has become fun because now I just promise them a $100 credit on their next UPS bill.
So you say that a strip of tape is only a few cents, true. You also say that it is the fault of the Franchisor that has caused all the resentment to drop off customers, true again. You also say that the drop off customer is unaware of the zor resentment and the problems they have caused and feel nit picked, gauged, slighted in some way because the store owner wants to charge for a strip of tape, yes true again. Would you feel the same way if the shoe was on your foot if you knew more of the details about drop offs and our businesses? Well here are a few more things that the drop off customer may not know but should consider: As I sit here at 10:45 am, I am looking at 60, yes that’s 60, drop off’s that have already come into my store today, most of which were shoved onto my counter in front of waiting customers along with several questions to be answered about tracking and what time they will go out etc. Am I expected to supply labels, tape, log and store all of these for free? I am looking at a solid hour to properly handle all of this while not being able to help paying customers or handle the daily business of my own because they have to go out today. I am also expected to field the countless phone calls to track those packages when the drop off customer gets a whim that he wants to know everything made it to its destination on time and to give out advice on how to handle it if they did not and yes this to, usually happens while trying to wait on paying customers. This is just a couple things from the customer side, now here’s a few from the corporate/legal side. Lets just say one of these packages was insured for 5k and gets lost, guess who gets the blame and has to deal with the person who dropped them off, we do, not UPS. Until the package is pickup AND SCANNED IN AT THE UPS FACILITY, we are held responsible for the package, including the time in transit to UPS after it leaves our store since UPS does not and will not scan them at our location. Lets say the drop off customer has figured out that he can ship an insured item for $$$$, place a brick in the box instead of the item, then claim the store owner stole the item after it was dropped off and demands his insurance $$$, does UPS deal with that…no, we do.
Lets say one of these packages contains a hazardous material, guess who gets the fine and potential loss of their business for accepting the package (even if we had no idea the guy who shoved it on the counter and ran, put something illegal in the box). Guess who gets charged for the cost of shipment if the account number is illegible or incorrect, we do. You see UPS considers us the shipper even if it’s on your own account because it was logged and picked up from our location. These are just a few of the problems that come along with taking your drop off package and all we get is a buck. Actually I only get $.80 cents because I am not a TUPSS. Lets also consider that you could call UPS and have them come straight to your house to pick up your pre paid package, guess how much that would cost, $15.00. Oh and yes you would have to have it properly taped and packed or they would not take it. You couldn’t just leave a note asking the driver to finish up the packing for you.
This is the only business I have ever been in that people come in and expect you to provide services for free. Would you take a live chicken into Tom Thumb and expect the butcher to process it for you, for free. I think not. Would you think it was OK to borrow a friends car, use ¾ tank of gas and bring it back without filling it back up, I think not. And here is another; would you take the time to ask the store owner why he is charging for the tape and patiently wait while he gave the explaination? Would that give just a little justification for whopping $1 he is asking for to provide you with so much?
Lastly, I am not saying all this to “flame” those that drop off packages but to educate you to the entire process. You see, although I do not agree with giving out my services for free, I DO NOT charge for taping or taking drop offs. With that said, before you “flame” the store owner who is trying to keep his doors open, take a moment to educate yourselves from his stand point and not just your own.
>>Furthermore, many of you are charging $1 to put a piece of tape over an openned package. Unfortunately, by doing this, you come off looking both unprepared and cheap!<<
Actually, it is the customer who comes off looking unprepared and cheap! We don't package for free for people paying to ship either. Use the service, pay for it! Want to avoid a taping charge, buy some tape, do it yourself and look prepared when you come in. Last I checked, UPS counters don't tape for free either and most UPS drivers are not even allowed to have a tape gun on the truck!
user pays and if they can't bring in a package that is properly H taped on all seams, they should expect to pay for using us.
Would you ask your gas station to let you use the lift for free, you bought your own oil at Kragen's but they don't have a lift, same difference. Would your car dealer who sold you that $50,000 SUV change your oil for free? If I bring my coffee table to the grocery store, will they polish it with their lemon pledge at no charge? Why not, I am a customer and I might buy some groceries!
...fraud, and the denial to many, under threat of closure (and broken promises to those converted to TUPSS, commitments well recorded) to remain an MBE center (contractually promised ability to renew) The problem you have is the guy down the street who does it for free and with a smile, and next time, that's who he'll go [back] to...most of the time, we are only talking about a little strip of tape...12-14 inches. Pennies. Little time. And guess what. In business, I found that it is the little things that people remember, not the big thing that they paid for. If they think you are being nit-picky, they walk! Give their kid a trinket (even after a $100.00 sale) they come back! Don't charge for those 5 bad copies they screwed up, likewise... back they come. I found it's the way to keep customers for life...it's so uncommon for people to do anything for free! Lesson I learned after a number of stores [opened] but slowly killed off by of UPS's lies. You are mad at UPS and their using you to service their client..that guy who used to put a $150.00 charge on his corporate master card, but now he asks you for a waybill to use his companies' UPS account. You used to give half to UPS, and you kept half to keep your center open for the customers. You offered convienence, location, service (as an MBE), something UPS never had. After all, UPS was 20-30 mile (or more) away! Nowadays, UPS keeps it all, uses your labor and facility to service their customer, and gives you a buck, or a quarter! That's what this fraud by UPS is all about! The suit! Their profit, your headaches and bills! As an MBE, you offered alternatives to UPS. You worked and made a profit. As a TUPSS, you work, they profit! But why take that out on the guy using your store to drop-off? He doesn't know how UPS is killing your business, about their broken promises made during Gold Shield, about breaking of the FOC's comitments made to you. But he will remember you charged to put a single strip of tape on that ARS, that stinkin' Dish TV return..and he gets upset, tells friends, doesn't come back...they remember the little things! In Naval Aviation, they call it attention to detail. Miss the loose rivet on your aircraft's control structure, and maybe there goes your day (and life). The little things! But hey, I see what UPS has done, and, like you, I think it is despicable! Don't worry. Payback is a comin'!!!
...you only charge those coming in with a drop-off package of some sort...you don't charge a "paying" customer. Bad show (in my opinion)!
I believe there is true wealth in longevity. The problem is the zors who turn and churn still give an illusion of longevity. I am hoping more zees will get educated and look for the signs of turning and churning.
l. If everything cost three times more to open: They are turning and churning
2. Everything they tell you to do doesn't work and the materials they have you use is really expensive.
3. They tell you you have a great location. Then your customers tell you differently. They are turning and churning.
4. Money goes through your fingers like lightning before you know you have to close in a short time.
5. In our case I had studied turning and churning. I refused their non solid offer. I did not want anyone else hurt. I believe it was a scam and they hurt many people.
Again, you're "spot on" Mr. B! But UPS is a big American Corporation, and what has been a major criticisim of the American corporate executives' outlook as it concerns the health and prosperity of their company? Has not it been that American corporate execs tend to focus too much attention on "short-term" results, that their vision doesn't seem to extend much beyond the company's next quarter [financial] performance! They say America is being beaten by the Japanese and Chinese because, unlike their American counterparts, these Asian powerhouses have firms that focus on long-term strategic, vice short-term tactical, results! Also, there's the "greed factor". Corporate execs in America are criticized for "dipping their hands too far" into the companies' financial "kitty", or being compensated above and beyond what is warrented not only by the results they acheive, but also as compared to the multiple of what an average company worker makes! In short, greed and [moral] corruption, not showing any concern for parties outside of their own [personal] sphere of concern, ie; themselves! Can we ask what has happened to "corporate standards of morality and ethical conduct", or is that too old fashioned? I'm afraid that the bar has been lowered in America, and today we are seeing the results of that moral and ethical greed, corruption and decay; pension funds raided, companies driven down to the point where they are but a shell of their former selves (or destroyed altogether), lives devastated by the likes of crooks like Bernie Madoff, standards lowered to the point where financial schemes become the mainstream holdings in a companies' investment portfolio (credit-default swaps), banks not accounting for the true value of their assets (mark to market), franchises constructed with fraudulent assertion, etc. etc. It is a sad story that reflects the horrible state of affairs within corporate America, one that is highlighted by indifference and the resultant financial "rape" of the "little", or shall we say "powerless", guy (gal)! But they don't count on this "little guy", this franchisee, fighting back with tenacity and fortitude! That's what's happening here with TUPSS, and we can only hope that the "little guy" is able to effect a change-in-course of some of the most diabolical, yet still afloat, ships of American industry and those attempting to penetrate the market through the hi-jacking of a successful American franchise (UPS's takeover of MBE)! After all, how long can we last as a competitive nation if the Govt. is always bailing the "Big Guy" out? How long can we last if companies like UPS can use twists and turns in the complex wording of ,in this case, franchise contracts, in order to gain that [successful enterprise] which is [quietly and over a few years time] stolen from the small American franchisee...companies they built over a long period of time and with much financial and physical effort but ultimately, and in this case seemingly fraudulently, "appropriated" by the mere stroke of the greedy corporations' (uncaring) "buyout pen"! In short, they've (and this) just gotta be stopped!
Opps! I forgot two very key words! When I wrote "franchises constructed with fraudulent assertion", I should have added the term "ie; Gold Shield", the vehicle through which UPS (allegedly) defrauded the unsuspecting MBE franchisee out of his once very successful franchised shipping business! Only two words, but they are a key part of my lengthy (MBE transformation into The UPS Store) argument!
...be a result of information that has come out because of the trial, and franchisees are now becoming fully aware of UPS's harmful actions. I understand many zee's did not know about the detailed information coming out of the trial. Boston Study. UPS's presentation to the Board as to the reason for purchasing MBE. Amos's passing along inside information. Etc. etc. More will come out in Phase 2. This may just be the beginning of a tidal wave, one birthed by an earthquake (Aug 3 trial) but a sunami that has not yet reached shore. If it does, look out! Good luck to those whose story was told in the initial Phase. I look forward to the remainder of the trial!
If UPS loses this Class Action, you know a newsmag will want to run an expose. What's the guys' name...John Stossel? BMM's archived stories may well be the starting point for any necessary research/backround on what is sure to be a hot story for the "gotcha" press. We'll see. However, it won't be very good PR for UPS! But first, the Court must have it's say!
If you have never owned a MBE Center then you have never eaten Cheesecake. The whole idea of buying into a Franchise is to follow basic guidelines while still having control over your business. As the lawyer stated in court the other day - we are now UPS Servants, Subordinates and have to use shippers that UPS tells us to. With the way our system is set up now, we basically are "glorified employees" without the benefits. Had I known then, 16 years ago, and three stores later, what I know now, I wouldn't of ever invested my savings into the current model as it stands. It is all about the bottom line. Sure, our packages might of increased after a transistional period in 2003, but did our bottom line? If you look back, and recall, we had to work "harder - not smarter" to desperately try to recoup what we had before. Our profit line for UPS went down and we lost our Fed-Ex revenue completely and a good majority of the packing jobs that came with Fed-Ex after awhile because it was more "convenient" for the customers to do one stop shopping. I liked giving customer's a "choice", it is my job to make my customers happy. I am not against shipping UPS, but I am against the one sided hold they have on me. Where would our bottom line be now if we were still had the competitive edge as we did as MBE. UPS has wronged us, they knew what they were doing prior to changing the name and destroying the brand. It was all about getting more for them at our expense. As I recall, I wasn't even given proper time to truly digest or understand what the new playing field would be, as they gave us what? Less than a week or soon from our meeting to sign? I have been able to hold on - but what about the others who could not? My heart goes out to those individuals who lost everything. The truth needs to come out in the upcoming trial and hopefully justice will prevail in our favor.
I would love to read some posts on how other owners feel the first two days of trial went. Do you think that Badie was a good case to reference? I have read it, in hopes of getting him standing on all fours? Any input?
I don't know much about Badie, but I was at the trial and [plaintiffs attny] Mike Aguirre put on a magnificent presentation/argument when he got up to do his thing..even cut off McDonald with a couple of well-placed objections (pounced like a tiger)! But I can say this. BMM's Mike Webster recently won an arbitration up in Canada that paralleled Aguirres argument...about renewal of the brand/system/trademark (see BMM and download pdf). So I would say that Badie and the rest of Mike's argument stands a good chance of comung out on top! However, two things are certain...Phase Two is very strong, and the plaintiffs can be very greatful that they have a fantastic set of attorneys on their side...especially Mr Aguirre, a tremendously strong litigator and possessing great communication/logic/knowledge/legal skills. Wham, bam, thank you...um, I mean...see you at trial, Herr [not so big in court] Brown!
Guest writes: " BMM's Mike Webster recently won an arbitration up in Canada that paralleled Aguirres argument...about renewal of the brand/system/trademark (see BMM and download pdf)"
To be clear, Mario Herman and I collaborated on this arbitration. And I would be remiss, if I didn't acknowledge Michael Hankes' influence on my thinking about this case.
Good luck to all the MBE franchisees on this one.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Fine job Mr. Webster. I read the arbitration, and see that your arguments parallel those of Mr. Aguirre, the Morgate (plaintiffs) attorney. A shame that there is no mechanism to reference your case in a US Court, what with MBE having been an Intl. franchisor. But at least the word is getting out, thanks to the fine work of attorneys such as yourself. We down in the lower 48 at least know that someone up in Canada understands the (alleged) fraud we are fighting! I am sure your client is very greatful to you and your collaborating attorneys! We down here are likewise very pleased with and confident in the legal representation afforded us by the Gordon & Rees team and their associates at Aguirre, Morris and Severson! They are truly great! I hope ours can be as successful a decision as was yours! Thank you!
the Canadian Case was submitted to the judge I believe.
...can comment on the use of Canadian case law, or arbitration, in this US trial. I assume it would be, at best, advisory, but I just don't know. Can you comment Mr. W? It is a very interesting proposition, one that I would welcome. Readers to this article should take the time to download and read the case. After all, Canadians are reknown for their wisdom and good taste! Speaking of good taste, anyone have the recipe for "moose milk"? I remember being treated to it by the Canadian AF on a trip to Comox AB, in BC. Boy could they host!!!
My recollection, from playing far too many dart touraments in the Legion, that moose milk is essentially rye and rum, with some egg yolk for colouring. Anyone who has tasted Canadian rye will appreciate the necessity for adding a lot of mix.
As to the MBE case, I have commented on the arbitration case that Mario Herman and I prepared, and there is little left to say - except I do have a general news piece forthcoming.
Again, I simply would not have understood the deep complexities of this case without the help of Michael Hankes and Mario Herman, and I would recommend either of them as trial lawyers.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
and it is wonderful - Crown Royal, Alberta Springs. Give me a break! Even down scale, VO makes the best Manhattan in the world.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Outstanding (the moose milk, that is)! God Save the Queen!...and I'll save that recipe!
it will depend on who wants to stick their neck out the most, these things never end on round 1, the war attrition continues. Money almost always shouts the loudest, what is fair or right has little to do with it.
This comment thread is off the topic of the article and has been moved here.
UPS is a package delivery service. OF COURSE they would want to increase their intake of packages, and looks like they thought having 'retail' type drop off points would help them with casual shippers. Why would UPS have any interest in having a brand they own steer volume to FedEx? Why would they care about "mail boxes"? If ya want to be in a franchise system, you have to do it the system way. If you don't then don't be a franchise. Can't have it both ways.
We don't have any of these in my town. The hardware store is a drop point for UPS but doesn't do any packing services; if my package is already boxed up, I leave it with them. Up the road there is an independant pack & ship; if I want help getting it packed, I go there; they will check the rates for me and sent it either FedEx or UPS whichever I want.
UPS is a time & motion, clipboard & stpwatch, command & control culture. Works great for package delivery. Lay out the drivers' routes to only have right turns, instruct them to knock first before taking time to look for a doorbell. But having franchisees is like herding cats, and maybe they aren't too good at that.
Well the judge has the case, so not much point in BOLDFACE CAPS, shouting something hardly makes it true
The issue is that once the our carrier vendor bought us the changed the business model. That is the problem. Duh we aren't UPS. We are not their employees.
>>Why would UPS have any interest in having a brand they own steer volume to FedEx?<<
why did they stand up in front of the franchisees and say that they would keep the multi-carrier platform.
They bought the franchise rights, they did buy the stores, they didn't buy the right to destroy a proven business model.
They tried the UPS Store concept on their own and failed miserably, then devised a scheme to deceive the franchisees and steal all the goodwill built up over many years and $100,000,000 in franchisee funded advertising!
So, don't preach to me about not being a franchise, My franchise agreement states that any successor must assume the liablities of the agreement. UPS is the one trying to have it both ways. They assumed the assets and some of the liabilities!
Talk about pick and choose and bait and switch!
Meanwhile, they are afraid to compete on a level playing field! They are denying customers the opportunity to choose between them and other carriers in the same locations.
You are right about one thing, it is in Judge Highberger's court, the next move is his, then we can all react appropriately!
But if you didn't want to be a UPS Store, could you finish out your your originbal agreement? We see lots of folks on BMM saying get a short agreement so that you can bail out more quickly. Maybe that works both ways?
Now I DO hear you have some other issues, like, perhaps, misrepresentation = fraud in the inducement. But what UPS wanted to do with the stores is no surprise to most folks. UPS, a package delivery service, wanted to acquire a whole bunch or retail drop-off outelts, in commercial strip locations rather than the industrial parks where their own facilities were located. And oh yeah, what a deal if they could be self-managed by Zees rather than employess, and also self-invested so they could avoid having to put up their own capital to build out thousands of stores at once!
Not saying this was good for the Zees, but IMHO pretty obvious where UPS' interests and incentives lay.
change did to didn't where I referenced buying the stores.
It's an old lesson that the execs at UPS should have taken heed of a LONG TIME AGO!!! Instead, probably due to GREED, ARROGANCE, and a TOTAL LACK OF CONCERN for the HUMAN ELEMENT (ask their drivers), they have let this matter drag on and on until, like a small cavity, the HARM, CAUSED BY THEM, HAS GROWN BIGGER AND BIGGER by the year, so now instead of a FILLING, what UPS has found itself needing is a FULL BLOWN ROOT CANAL! This is the point where we find ourselves TODAY!!! 200 Morgate Class Action participants have become 3500 Class members. 3500 Class members will some day grow to include another Class of TUPSS franchisees who will discover things like NON-DISCLOSURE (in the FOC) of the Boston Study, an ever-increasing volume of DROP-OFF packages that will bleed off more and more shipping business from franchisees (year by year), discovery by the franchisees that THEIR BEST CUSTOMERS are being approached and "siphoned off" (stolen) by UPS sales personnel, franchisee realization that UPS has NOT stopped the ASO program (as they said they would), etc. etc.! Then, of course, because this has lasted SO LONG, more and more SBA financed stores have FAILED and left the GOVERNMENT to pick up the (defaulted loan)tab! SEC investigation into the (insider-information fed) MBE purchase from USOP! UPS's LEGAL BILLS in the funding of themselves AND plaintiff attorneys, already in excess of 50 million dollars, will continue its' stratospheric rise! Attorneys fees paid by UPS to finance attorneys in any FUTURE Class Action! You see? The list goes on and on...all SNOWBALLING, growing from a LARGE FRAUD into a GARGANTUAN FRAUD...one that the press and "The Street " will grab hold of and run with for ALL OF THE NATION (and stockholders) to see! Then there's the inevitable LOSS OF BUSINESS due to LOSS OF GOODWILL! And who's lurking in the backround to LEVERAGE UPS's problems to their advantage? Fred Smith and FEDEX who are looking for ANY and EVERY OPPORTUNITY to HURT UPS, not only for COMPETITIVE REASONS, but because FRED IS MAD AS A HORNET WITH UPS BECAUSE HE KNOWS THEY HAVE BEEN AND ARE TRYING TO "TEAMSTERIZE" HIS BELOVED COMPANY, something he has fought for years!!! Indeed! Get my point? You gotta KNOW WHEN TO HOLD 'EM, and KNOW WHEN TO FOLD 'EM! Now I ask, do they teach THAT at business school, or is it only something you learn in the University of Hard Knocks? Ask some of UPS's retired execs...you know, the ones who USED TO know something about the business they ran!!! They'll tell you something like "UPS has OVERPLAYED their hand, and therefore they will pay an EXTREMELY STEEP PRICE for their VERY POOR, ILL-ADVISED business decision"! But by the time they realize THAT, it will be MUCH TOO LATE!
Do you really THINK that people read YOUR RUN ON tirades which are REALLY JUST A WALL OF type which just SERVES TO TAKE up space on BMM!!! And all of those? QUESTION MARKS and the exclamation POINTS which are presumably used BECAUSE YOUR argument is illogical and WEAK?!?!??!! ???? !!!! ???? !!!! It isTRUE THAT Faulkner could write for PAGES AND pages WITH A run ON sentence and NEVER use a PARAGRAPH TO BREAK up the WALL OF type?? !! ?? BUT YOU are NOT FAULKNER!
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Did you read my "tirade" Mr. Steinberg? Why the phone number next to your name? Looking to get in on the action? Shut up Mr. Steinberg! And enough of your quoting the bible! You're as PHONY as any 2-bit NY attorney comes! Go drum up some business in the Bowery! Maybe you can find some "clients" unlawfully denied welfare payments out there! In the mean time, let's all see what Judge Highberger has to say! As for YOU, WHO CARES! Not a NY nickel has come OUT of your pocket because of this affair! Let's hope NONE finds it's way in!
I promise your posts are not helping. If I were a perspective zee and I asked about the lawsuits, MBE could point me to your posts. It would be advantageous to them telling me it's just a bunch of disgruntled store owners.
If you have facts state them clearly and respectfully, otherwise you come across as ignorant.
I promise I'm on your side, but also understand how afraid you make it for me to stand next to you. You are now criticizing people trying to offer their professional insights. STOP and THINK. If you can't stop and think you should consult your attorneys or group and ask their opinion. PLEASE
I know this is hard to grasp, but you are coming across like the drunk guy at the party trying to pick fights.
Thank you for the insight. This is a VERY CHARGED affair, and though these are just personal comments, I am open to correction and criticism...I do understand, and if I have insulted anyone, I apologize and stand corrected! This is NOT just about me, but many others! Again, apologies offered, advice taken!!!
In particular my apologies to Mr. Steinberg! I do not know you, we have never spoken or met, and my emotionally charged comments were over-the-top and out of line! How do you know this is the guest that made them? You'll know! No more fireworks! In retrospect and in a calmer mode, and under no ones duress, I again apologise for my unwarrented and uncalled for rebuttal!
posing as a Guest and apologising to yourself.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
all GOLD.
Many franchisees know they have the right to be p..... off .... but that is not really the reason they came here. This is sometimes a frustrating site where we learn what the arguments are. BMM will never change the past but it is hoped it will change the future.
I like to read everything but when you structure your comments the way you do they don't emphasize anything; they turn people off bothering. Until very recently I generally had a very high opinion of the comments made in the UPS/MBE saga. How about people get back to what supports their opinion and have enough testes to debate the issues .... or don't. I understand the emotion but in my time I have never seen venting fix a problem.
One never knows?
Nahh, I can't even habla. I've a long road ahead of me if I am to become a wise Latina. But I did live in the Bronx for a bit, so there is hope.
On a serious note: BMM periodically gets these over-wrought postings on various topics. It is one of my pet peeves but also it is counterproductive insofar as the presentation is so off-putting that it drowns out any substantive merit to the argument.
As to the signature line and phone number, this is the way that Mr. MauMau set up the account for me back in the beginning of time. I only practice locally and in state court, so I have no dog in most of the fights discussed on BMM (including the UPS Store debate).
And while Solomon is wrong on a near daily basis, I don't publicly say so since Solomon throws a decent party with really good wine.
As to biblical quotes, I only volunteer those when poking fun at Jim Amos. I have corrected errors such as the recent attribution to Socrates, but I would correct such a misattribution from any source.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Can you give us any insight to what the CARMA case was about that Mr. Aquirre quoted during round one last week. I have searched all over the web but can't seem to find anything.
Thank You
I count on your loyalty more than you could ever know.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
It makes my head hurt.
people is the apparent illogic of acquiring something and then wrecking it post acquisition.
It happens much more frequently than most people ever could imagine. It's just that is usually happens in a non franchised context - acquisitions that the acquiror doesn't know how to run and in which it alienates the management it asked to stay around and teach it the ropes. Not infrequently that is the case - a seller of a business who started the business from scratch and really knows how to run it, selling to a bunch of B School mentalities who only know what they were taught in school and in other business settings that had no resemblance to that of the acquired company.
I saw that many times during the last 45 years, and in the non franchised context, the wrecked acquired company is simply sold off, usually at a substantial loss, and sometimes back to the original seller from whom they bought it. When that happens it just gets written down and the shareholders see it only as a footnote to financial statements they don't read anyway.
In the context of franchising, the franchisees are the shareholders who are taking the hit, but they are taking the hit on everything they own, not just on a few huindred shares of stock.
Not everyone in franchising today is in franchising to be a competent franchisor. Many are there for a quick hit. Many others are there with B School notions that don't work outside of games theory and certainly not in the context of traditional vertical business relationships.
When I get some time I think I'll expand a bit on this thought, because it is the franchisees' failure to be able to identify a real franchisor from a lets pretend franchisor that often leads to disasters.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
...former store owners who then went down to corporate headquarters in San Diego to run the company. Unlike UPS, MBE had people with hands-on experience in what it [actually] took to run a successful retail shipping outlet, not only customer-service wise, but financially as well. UPS had not one person (in Atlanta) who knew anything about how to do this properly, hence the terrible, one-sided decision making! Big met small, big dictated to small, big crushed small! This whole aquisition and what I believe will be it's eventual failure will make for many a B-school study. It will not benefit the small, agile business person as a lessons-learned on how to run a small business, but there will be many lessons learned by the big guy! Let's just hope that the (already harmed) MBE/TUPSS franchisee can be made (somewhat) whole again. As it is, Gorrillas don't belong in a china shop!
The thing that is so upsetting to the MBE's and to the TUPSS owners is there was no reason for this. The nonprofitability issue and the Branding issues should have never happened if UPS had any sense at all.
I was involved with one such pretender from July 2000 until the brand was destroyed last year. Recently in Australia we saw the Terry White Chemist network taken back by the original franchisor. It would be helpful for those caught up in system acquisitions to understand the profile of what took the reins since they don't have an opportunity to pursue due diligence.
Investment firms that buy brands are there solely for the investment return and don’t necessarily understand the need to cultivate the relationship. But some do. It would seem that one such 2007 acquisition here actually turned around the network in difficult circumstances after the original owner got way too greedy. But that investment firm had a background in franchising and a number of [apparently] successful brands.
UPS could have been such a company. But they failed.
Are you just saying the the UPS bullies just made an idle threat to attempt to intimidate the franchisees who had their life savings invested?
Maybe we should move on and talk about the damage done by not being able to reccomend the most reliable brand, Fedex Express, when appropriate!
Listen, if you don't like the company, try to sell your center. If you like the money, and your making it, then shut up!
No company needs disgruntled store owners whinning about silly unimportant things. Besides the mmystery shop program is no more for the last12 monthes , so wht are you talking about, and you should have been wearing your uniform all the time during business hours at your center period. Quit being a baby. Be proud to wear the logo, it's what is now bringing in the customers to your center in addition to the great customer service you are supposed to offer. If your angry all the time , your customers will notice and not come back to a center where the boss is not with the program. There are rules to obey , even if they are small.
MBE did not destroy the Brand They enhanced it, My store has doubled it's sales since the change and continues to grow. I beleive it is because I embrace the BRAND, I push it, i like it and my customers see the love of what I do here at my center.
The Franchisor is in charge , they always were and still are, We signed an agreement to let them re-invent the wheel for us when necessary, that is the nature of franchising, We leave the think tank up to others, to do what is best for us.
I support MBE in all they have done with the brand and I will fight for my right to stay a THE UPS Store, I dont want a group of sour owners telling my company they are wrong when they were right all along. I never supported this fight as it is wrong and a waste of money.
My bet is you have an intrest in supporting MBE, or you bought your store in the last two years and haven't figured it out yet.
My AF told me the same thing when I was buying my store, that the lawsuits were just about Store Owners not wanting to wear nametags or uniforms. The truth comes out after a while, and you learn UPS and MBE have no intrest in stores profitability at all.
- It is not a group of sour owners - It's now 5 groups and many individual owners. By middle of 2010 I will bet that more than 1/4 of the network is in litigation. And if one of the suits goes toward the direction of an independent Franchise Association, it may end up more than 1/2 the network.
I have owned a center since 1996, I enjoy what i do, I don't make a ton of money but I make a decent living and my business continues to grow. I know how to get problems solved thru MBE with the contacts I have made over the years and I have no complaints. I did not like doing Fed Ex then and I don't like it now , so I have no problem with just doing UPS. Anyway it's just my opinion, nobody has to pay any attention to me. I just never cared for the "silver shield" Etc. I hope when the litigation is over somebody is happy and we dont have to keep hearing about it anymore, it's boring.
Not every day is perfect at my center but I dont blame MBE for everything, I usually blame myself for not trying harder. I complain when necessary. Its not a cakewalk .
Did you buy your center or open it.
Purchased it existing.
I assume printing is now your forte. I suppose that you are happy that getting into the shredding market now costs you $109 a month for 39 months and get this they have programmed suggested prices into the leased equipment that to change will cost you $250.00. But remember they are letting you set your own pricing for everything other than shipping. Looks like they have found a way to set the pricing by making it financially costly to be able to do so.
My printing business is very average, in fact I choose not to be part of online at this time, dont want it, I forsee problems. I am not buying a shredder!
Why do you assume so many things? You know nothing about me. Assuming is not a proper argument or rebuttle. Please if you want to respond do it with intelligence. I will do same.
You are entitled to choose and be happy with your choice. No on is saying you can't. But I chose not to rebrand and the Franchise agreement I signed said I could renew as an MBE center. I had alread renewed once as an MBE, why would I have ever thought that I would be retricted or that they would destroy my brand name and substitute a different business model. Modification's yes but this was a wholesale change that I feel was a breach of my franchise agreement.
I guess then it's all up to a judge to decide the fate of some. Again, I said before my opinion is just mine , nobody has to get up in arms at my thoughts. I want everybody to be happy. If you can remain an MBE great. It does not bother me. I just liked the UPS Store concept so I bought into it and re branded. If the judge says you need to comply then you have a decision to make is all. Be prepared to make a decision in case judge rules against MBE stores. Going to a higher court will be super expensive im sure. if you appeal get the $$ ready lawyers are not cheap!
You MUST be a PLANT...and I do mean PLANT in both ways...one that says things to throw down people's guard, and one that has a stem, roots and sometimes FLOWERS!!! You have a right to your opinion, your store (as is, if you do not mind working without GROWTH and appropriate COMPENSATION (are you a million dollar STR store as Gold Shield, UPS and Stuey promised you'd be?), your condesending tone towards those who started this franchise twenty years ago, PROSPERED, paved the way FOR YOU, then had it all STOLEN by UPS...you have a right to all of the above! But so do WE!!! Now here is the real question Mr. UPS Store owner...maybe....If things are SO GREAT, why are 77% of the stores failing or teetering on failure (see the LIED ABOUT Boston Study Group expose)? Why did 1000 people DEMAND to see the Superior Court proceedings televised only to have that nixed by UPS? Why has UPS DRAGGED THIS OUT IN COURT for so long (6 + years?) Why is the fight being lead by the man who was (for many years) the TOP STORE IN THE COUNTRY???!!! Why will the class see THOUSANDS (that's right, not 10's, or 100's, but 1000's) of participants? Why and why and why? You seem to have MANY ANSWERS (They're all complainers!) So, my duplicitous friend, you fight for your beliefs, and many others will fight for their RIGHTS! The court will decide the ultimate disposition of this matter! As for you, as I said, you are either a UPS plant or a PLANT...probably BOTH!!!
Why so angry? Your blood pressure is rising as you wrote that silly rebuttle. Im not a plant, just another owner who does not have a beef with MBE is all. I guess the judge will make the choice for you so why get worked up. it's out of your hands anyway.
I see you resort to insults like a little child. Im not a million dollar store, just upper 45% in my area. I make a living , i satisfied and I not a two face. I have never supported this action, I like my center and my parent company, even with it's faults.
Thruout your reply you continue to insult me as though im here as a corp plant, your so paranoid. Chill out!! Sell some shipping, make your customers happy if you can.
Life is short to be so hateful.
My friend, it is YOU who called the THOUSANDS who will "opt-in" to this Class Action "complainers"! I found that rude, and deserving of a harsh response. Shirts? Who said I or anyone else did not wear the UPS shirt at work? You misread the comment! BP? 115/78 pulse 75...even after reading your flippant remark! You are the one who needs to do some soul-searching, given YOUR hateful comment! Mine was a rebuke, and harshly worded given your mis-characterization of these many hard working (albeit duped) franchisees who are sueing UPS... people who have suffered SEVERE financial loses under Gold Shield's fraudulent representations! They have VERY LEGITIMATE COMPLAINTS against UPS, despite what you think!!! You must be ill-informed, therefore, I forgive you your transgretion! Have a nice day!
Are each of these thousand of franchisees that 'opted in' paying money into the attorney's fund or are the attorneys working on a contingency fee?
As for the 6 years it took to get into court, why is the PSA working on their 12 amended complaint? Usually doesn't that mean the defense has a certain amount of time to answer said complaint, so isn't part of this delay due to the 12 amended complaints?
Also, what happened between the PSA and Dady Garner? I noticed that there was an appelate court case in MN for what I imagine was some disputed fees. If there was a dispute and new attorneys were hired then I'm sure this also played into the delay.
No it didn't. But having Paul Reeves try to delay as late as July 28th, 2009 should give you some kind of indication. He wanted to delay because he was going to a birthday party out of the country.
jd, you definitely sound like someone sent here by UPS to stir up contention. Who is feeding you the crap you are posting. A casual observer would not be digging into appelate court cases in MN etc. etc.
Facts are, PSA has had the same California counsel from Day one while UPS has changed law firms. The Dady Garner thing was a mistake, they were not California lawyers and there were serious questions about their ability to get the job done, but that was 6 years ago. We moved beyond that. UPS has dragged this thing out, failed to respond to discovery on a timely basis and even ambushed individual franchisees with unfounded TRO attempts. Some of the ammendments to the complaints were necessary simply because of the delays. In a 6 plus year case with multiple plantiffs, people join in, people fall out, people die, the ammended complaints are not as much the fault of anything plantiffs do as of the senseless delays and posturing of the defendant.
Right now the ball is in Judge Highberger's court. The next move is his! His move will dictate the appropriate response. He has promised to come down on one side or the other, I am anxiously awaiting the decision. No one should be trying to speculate at this time!
He comes and he goes ... and he prompts .. he is worth listening to when he prompts.
UPS targets retirment funds and military pensions knowing very well what they are selling. Be careful with what side you take. Some people will eventually have to answer to a much higher judgement than a court of law.
Indeed! I wonder how many veterans bought into MBE or TUPSS franchise under the VETFRAN Program? Given UPS's poor treatment of franchisees, I would question wether or not TUPSS should still be allowed to participate in the program (if it is still active) lest our most valuable citizens surcome to good-faith purchasing of this failed business [model]...and lose what little savings they have? A shame that UPS should lie to those who assure their freedom and safety! Yes, UPS Inc. does hire many veterans, I am sure, but how can they justify misleading MBE/TUPSS franchisee Vets? In my opinion, it's disgraceful!
I understand that the VA hekps disabled Vets gain loans to open businesses so that they may re-enter society. If indeed UPS has targeted mil retirees and veterans, than this is beyond outrage...it is despicable! I do not know, but will check into it. VA/SBA should have stats. If any of our finest have been harmed, I will personally alert The American Legion, DAV, AMVETS, and every Veterans Service Organization I can. To the veteran, especially if he/she is disabled, do we all owe a tremendous debt of gratitude. Let no one be left behind (except Amos, who I believe was a former Marine? How did he get so...um, robust?).
What do you mean if they target vets?
http://www.theupsstore.com/franchise/speopp.html
To quote "As our way of saying thank you for your service to our country" --Makes you sick doesn't it.
Thanks for the link...I did not know this. I wonder how many UPS corp execs are veterans...especially the B-school snot-noses who probably never served a day (for our country) in their entire lives! This trial is not yet decided, but if UPS is shown to have committed a fraud on these 100 or so veterans, I pledge to them my solid oath...I will not rest until financial restitution and personal dignity is restored to each and every one of you that may have been harmed. As have you served others, so too shall you be served! Thanks again for the link. This will be passed on to the appropriate attorneys for their consideration.
Some of us have the courage to stand up against the bullies, to defend our right to continue to offer our customers a choice of shipping options, not being mandated to always offer the "UPS solution" when there are better options that fit the specific need of the customer.
The very name MAIL BOXES ETC. identifies a mail receiving, business services center that offers much more than a THE UPS STORE which denotes a place to drop off your packages.
And you sound just like the Area boot lickers with your beginning statement that if you don't like the company, try to sell your center. Look, pal, read my lips - I own my center, I will do what I like with it. You are out of line trying to tell me what to do with it.
So, they changed the name and don't call it the mystery shop anymore, read your contract, it still states you can lose your store (yes, store, you don't have a center) on the third violation, corrected or not!
And UPS did certainly destroy the brand by not allowing renewal or transfer as Mail Boxes Etc. and insisting on blind compliance to an inferior business model.
As far as uniform, if I wanted someone to dictate what I wear, what I say and my hours, I would have joined the Army. If you are happy being a robot following orders of superiors who haven't a clue about running a retail business, god bless you, go for it, but don't critize those who have the guts to stand up for what's right!
So let me understand you correctly, You think it not proper to HAVE to wear a uniform and serve up UPS shipping for your customers and have a regular set of operating hours? Then Why even have a franchise? They all are alike in that respect. Uniformity across the board, it worked before since white castle began and it still works. I say sell your center and open up a " ask the man" ship depot.
Nobody will mystery shop you, so you never will have to worry about violations. The last two mystery shops I had were both over 100% with extra credit, yea for me. Sorry you did not do well.
You can wear plaid shirts all day with shorts if you like. You can call it a center or store , whatever you want. you can call it a depot or a local hub, whatever is pleasing to you. You can leave out whatever profit center you dislike and only have the ones that dont challenge you. You will finally be your own boss, you can stick out your chest and say it loud and proud," IM MY OWN MAN, IM THE BOSS, NOBODY TELLS ME WHAT TO DO, IM TOO SMART FOR THAT....
It was very brave of you to insult me (boot licker) your so tough when you hide benind a "silver shield" oh look I made a joke Ha Ha
you are being forced to rely on printing which surely isn't in your brand name BECAUSE UPS won't give you any shipping. The are from their own months only giving you customers that ship 4 of less packages a MONTH the more frequent is your honored drop of costomer.
I thought only school children got "extra credit." Looks like your master is treating you like a child.
You have never read a mystery shop report fully then. They had a few extra point "shop" items , if you got them too, your point totals were better. Cmon dont talk like an ass. There is no master here except me, I make my decisions, good or bad. I enjoyed getting a high score, I got a trophy to display to my customers and I keep them coming in with the great customer service we are all supposed to have. Seeing the trophy reinforces customers that they are at a recognized high quality store.
why the sarcasm, it was not necessary, intelligence conversation should be the only forum here.
Ask the man writes;
"As far as uniform, if I wanted someone to dictate what I wear, what I say and my hours, I would have joined the Army. If you are happy being a robot following orders of superiors who haven't a clue about running a retail business, god bless you, go for it, but don't critize those who have the guts to stand up for what's right! "
Didn't you join a franchise and sign an FOC/FDD? Inherently, that would indicate you agreed to follow the processes, which include wearing a uniform and maintaining an hours schedule as set forth in that agreement. That is part of buying in to a franchise that you subscribed to. Imagine a McDonalds franchisee with your approach that decided hot dogs were a better, healthier menu choice for his customers than cheeseburgers.
I am surprised that with your vast knowledge of this business and what is right that you don't open your own business or even become a franchisor.
This comment thread has been moved here.
You criticize but you cannot identify yourself in any way so that we can know which "guest" the bs is flowing from and thereby rebut in a meaningful way.
Your reading skills seem weak, I said if you want to be a robot, go for it. I didn't try to tell you that you have to follow my lead.
Yet, you come back with the old rhetoric about didn't I sign an FOC - actually no I did not sign an FOC, I did not agree to wear a uniform, I did not agree that my franchisor could destroy the business model I bought into. My franchisor made a mockery of their own agreement. I will give you one example from the very preamble of that agreement.
"Franchisor has developed and provides services, sales development programs and other related benefits for use of Franchisee under the mark "MAIL BOXES ETC."
Franchise acknowledges the substantial goodwill and business value in Franchisor's trademarks, System and services:"
The day UPS began to rebrand stores, they began the destruction of the substantial goodwill and business value that induced me to become a MAIL BOXES ETC. franchisee. UPS destroyed the value of the brand to advance their own agenda.
Our cause is right, no battle was ever won by staying out of it, I will not quit and it is damn hard to beat a man who won't quit.
You may choose the path of appeasement which equates to unconditional surrender on the installment plan. First it was control of shipping prices, then maximum pricing for most of your other services to cockaminny national accounts, now it is control of the retail pricing on shredding services. Meanwhile, no allowance is made for the variability of the expenses of doing business in various areas. The franchisee in Manhattan, Kansas and the franchisee in Manhattan Island, New York must offer the same rates though the rents in New York City are about ten times as high! It was stated at Gold Shield Dog and Pony shows that UPS was aware of this problem and working on it. Six and one-half years later, nothing has been done to address this issue.
The lawsuit is not about following the rules. The lawsuit is about signing a contract that says one thing and gives you one thing and the UPS buying the brand and changing it mid term and not living up to the contract that the franchise signed up under.
The problem is the FDD doesn not have all their verbal disclosures. It doesn't matter what they say. They can b.s. all day long. The way they get around the truth is many of the the things said outside of the agreement isn't in writing. That is why no one should buy unless they have EVERYTHING in writing that is represented to them.
I hope the zees win because I know personally how much misrepresentation is done when buying a franchise. In many states advertising does count. Still the FDD is tricky. Many people say," read it". It takes more than reading. It takes many people and a franchise lawyer is see the lies. A good year or more to analyze the bloody document.
If a contract can be interpreted more than one way it needs to be thrown out. It is misleading. It needs to be in common layman language. No double talk.
If the judge doesn't see how the UFOC can be interpreted different ways than there is no justice for the common layman.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Barbara, I am fairly new to the website, but so far yours are my favorite [comments]. I always agree with you wholeheartedly! Keep 'em coming, and I'll keep reading!
Re the above, please drop the "s" at the end of "someones". Too silly to leave without correction!
Sometimes crooks are hard to recognize because they wear suits and ties, but they are THIEVES nonetheless! Our society has trouble recognizing white-collar con-men, but they often cause more damage than the petty criminal! That brings to mind this story and the role played by UPS/MBE executives! PREDATORS by any other name! Lurking behind the doors of corporate America, they have devastated the public trust! Good people must take our nation BACK, and that starts with the court and repercussions! Put (quite a) few of them in JAIL, make them forfeit their holdings, and maybe the message will finally get out...America is a nation of laws, equality and fair play! Let us hope we get that tradition BACK!
Yes, many a franchisee in attendance did wear their TUPSS shirt, a "dirty cloth" that turned out to be worth it's weight in "GOLD" (shield)! Certainly the "proud" zee would not want to lose that coveted shirt because he did not wear it during a (very subjective) Mystery Shop! Why? Fail three (3) of those, and you LOSE YOUR FRANCHISE, (and shirt) lock-stock-and barrel! Funny how the "relationship" with UPS seems more like employer/employee then franchisor/franchisee, isn't it! But hey, things like uniform uniformity is SO IMPORTANT, ESPECIALLY when it brings more attention to the UPS logo embroidered on the shirt! Funny how the logo stands alone on the sleeve, NOT encumbered by the words "The UPS Store"! But, hey, that's what Gold Shield was REALLY all about , wasn't it! HIJACK the MBE stores, change the brand, redo the system (to favor UPS) and WALLAH...UP GOES UPS'S EXPOSURE AND DAILY AVERAGE PACKAGE COUNT, which, in the end, is what the "destruction" of MBE was all about...to HADES with the franchisee! What a scheme! Hook-em with Gold Shield (lies), and SLAUGHTER THEM at the alter of the UPS demigod! The "little guy"thanks you once again, corporate America! May we have another???!!! Well, just so happens that lots of "little guys" have banded together, and soon UPS will feel the wrath of thousands of franchisee's burned in the process of UPS's FRAUDULENT take-over! Indeed, when the rest of the TUPSS owners initiate their own class action lawsuit against UPS, the words "thank you, may we have another" will have changed users...from the FRANCHISEE to the FRANCHISOR! Then, and only then, will JUSTICE have been served!
You could not produce one instance of any franchisee that lost his franchise based on failing 3 mystery shops. There were no failing grades only a numeric representation of the criteria for that shop. I think your emotions are clouding your rationale.
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