Franchisees Notified of Class Action Against Mail Boxes Etc.
LOS ANGELES – Notices have been sent out to approximately 3,000 franchisees of Mail Boxes Etc. and The UPS Store, giving them the option to be a part of a national class action lawsuit against the franchisor or to opt out. They have until December 9, 2009 to send in their election form requesting to be excluded from the class. Otherwise, they will be listed as a class member.
The court certified a national class consisting of all franchisees in the US, who operated a Mail Boxes Etc. store and converted to The UPS Store through the Gold Shield Amendment on or before March, 2003, regardless if they are still operating their stores. It also certified a subclass (“the California Sub-class”) consisting of all franchisees who meet the above-described criteria and whose centers are or were located in California. Every franchisee who is a member of the California Sub-class is also a member of the Class.
The complaint alleges three claims against defendants: negligent misrepresentations; intentional misrepresentations; and misrepresentations based upon disclosures required by the California Franchise Investment Law (CFIL). Plaintiff alleges that the members of the class were misled by false statements and concealment of material facts contained in five documents provided to franchisees during an organized presentation to franchisees by UPS and MBE, known as the “Gold Shield Program.”
Gold Shield began as a test marketing program after United Parcel Service acquired the Mail Boxes Etc. franchise system, but it soon became the company’s approved method of converting MBE stores to UPS’s new model. When the franchisor amended its franchise agreements to reflect the changes, franchisee groups responded with lawsuits stating they should have been issued new franchise disclosure documents as a result of the major revisions to the brand and model. The Platinum Shield Association filed its lawsuit in April 2003, representing approximately 150 MBE franchisees, claiming UPS/MBE was in violation of a California franchise statute and common law fraud.
Other lawsuits are pending.
Plaintiffs are seeking the recovery of damages from the MBE defendants. In addition, for the alleged violations of the California Investment Law, they are seeking the option to rescind the Gold Shield amendment of their franchise agreements.
Amy Darby of Gordon & Rees LLP, representing franchisees, said their firm drafted the Notice of Pendency of Class Action with MBE/UPS defendants’ counsel. The court approved the notice and approved their claims administrator, Tilghman & Company, who sent the notices out to everyone via first class mail and by email to current UPS Store franchisees.
Details of the class action and subclass are below in the attached notice.
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NOTICE OF PENDENCY OF CLASS ACTION
Morgate LLC v. Mail Boxes Etc., Inc., United Parcel Service, Inc., et al.
Superior Court of California, County of Los Angeles, Case No. BC294647
BECAUSE YOUR LEGAL RIGHTS COULD BE AFFECTED BY THIS CLASS ACTION, YOU SHOULD READ THIS NOTICE CAREFULLY.
THIS IS NOT A LAWSUIT AGAINST YOU, AND YOU ARE NOT BEING SUED. A COURT HAS AUTHORIZED THIS NOTICE. THIS IS NOT A SOLICITATION FROM A LAWYER.
THE DEFINITION OF THE CLASS AND SUBCLASS
The Court has certified a national class (“the Class”) consisting of all franchisees in the U.S. who operated a Mail Boxes Etc. store and who converted their franchise to The UPS Store through the Gold Shield Amendment on or before March 21, 2003, regardless of whether such franchisee is still operating The UPS Store Center.
The Court has also certified a subclass (“the California Sub-class”) consisting of all franchisees who meet the above-described criteria and whose centers are or were located in California. Every franchisee who is a member of the California Sub-class is also a member of the Class.
BRIEF EXPLANATION OF THE CASE
A legal action was filed in Los Angeles Superior Court on behalf of The UPS Store franchise owners who converted Mail Boxes Etc. Centers to The UPS Store Centers during the Gold Shield offering on or before March 21, 2003. The legal action names Defendants Mail Boxes Etc., Inc. (“MBE”) and United Parcel Service, Inc. (“UPS”) (together, “Defendants”). The named representative is DT Woodard, Inc. (“Plaintiff”), a California corporation with its principal place of business in Costa Mesa, California. DT Woodard, Inc. was a MBE franchisee that converted to a The UPS Store during the Gold Shield offering in March of 2003.
The complaint alleges three claims against Defendants: (a) Negligent misrepresentations; (b) intentional misrepresentations; and (c) misrepresentations based upon disclosures required by the California Franchise Investment Law (“CFIL”). Plaintiff alleges that the members of the Class were misled by false statements and concealment of material facts contained in five (5) documents provided to franchisees during an organized presentation to franchisees by UPS and MBE, known as the “Gold Shield Program.” The purpose of the presentations was to inform franchisees regarding the conversion of their Mail Boxes Etc. Centers to The UPS Store Centers through the Gold Shield Program. The documents alleged to contain the misrepresentations and omissions are: (1) the Summary of the Gold Shield Program; (2) the Gold Shield Amendment; (3) the UPS Contract Carrier Agreement; (4) Frequently Asked Questions; and (5) the PowerPoint presentation given to franchisees at Gold Shield “Road Shows.” Plaintiffs allege these documents omitted material information regarding the profitability of The UPS Stores under the Gold Shield Program and misrepresented the reliability and validity of testing conducted by Defendants which, purportedly, supported the claims regarding the performance of The UPS Store test centers.
The court certified for national certification the following claims alleged on behalf of the Class against the Defendants: (1) for negligent misrepresentation; (2) for intentional misrepresentation; and (3) for violation of the CFIL section 31201 for allegedly selling a franchise by means of written communications which includes an untrue statement of material fact or omits to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
The court certified the following additional claims alleged on behalf of the California Sub-class: (1) violation of CFIL section 31101 for allegedly failing to disclose in writing information concerning the specific sections of the franchise agreement proposed to be modified by the Gold Shield Amendment, and (2) for violation of CFIL section 31202 for allegedly willfully making untrue statements of fact in the disclosures that were made.
Plaintiff seeks, on behalf of itself and the Class, the recovery of damages from the Defendants. In addition, for the alleged violations of the CFIL, Plaintiff seeks on behalf of itself, the Class and the Sub-class, the option to rescind the Gold Shield Amendment.
Defendants MBE and UPS deny these allegations. MBE contends it offered the Gold Shield Program because it believed that the franchisees would benefit from the Program and believe that the franchise network has benefitted from the Gold Shield Program. MBE also asserts that it complied with the CFIL including because it was exempt from making disclosures about the Gold Shield Program in writing and, in all events, did disclose any required information about the Gold Shield Program in writing. Because MBE believes no violation of the CFIL occurred, it does not believe that any franchisee can rescind the Gold Shield Amendment. Defendants also deny that any franchisee has suffered damages caused by converting their center to The UPS Store.
EXCLUSION
Each franchisee in the Class has the choice whether or not to remain a Class member.
If you as the franchisee do not wish to be a member of the Class, you must take steps to exclude yourself from the Class, which is sometimes referred to as “opting out” of the Class.
If the franchisee is a corporation or partnership or has more than one owner, the corporation, the controlling shareholder, partner or owners must determine whether the franchisee will exclude itself from the Class. Each person with an ownership interest in the franchise does not have an individual right to request exclusion. If a form is received requesting exclusion for a franchisee, that franchisee will be excluded, and all individuals with any interest in that franchise will be bound by that exclusion.
Unless the franchisee excludes itself, it will remain in the Class, and all of the court’s orders will apply to it. If the franchisee does not exclude itself from the Class then it will be bound by any resolution of the class action by judgment or settlement, whether or not it is favorable or unfavorable to the Class.
If franchisee desires to be excluded from the Class, it must do so by completing and returning the attached ELECTION TO BE EXCLUDED form by mailing it in an envelope postmarked no later than December 9, 2009, to the following address:
Notice Administration
P.O. Box 13005
Birmingham, AL 35202-3005
THE LAWYERS REPRESENTING YOU
The members of the Class are represented in this case by M. D. Scully, H. Scott Sirlin, and Amy M. Darby of the law firm of Gordon & Rees, LLP. The address for Gordon & Rees is 633 West Fifth Street Suite 4900 Los Angeles, California 90071. These lawyers are called Class Counsel.
You may contact Class Counsel at Gordon & Rees, LLP at (213) 576-5000. Do not contact UPS or MBE about this litigation. You may continue to contact UPS or MBE about any other matter.
If you do not request exclusion from the class action, you may choose to be represented by your own lawyer. If you want to be represented by your own lawyer, you may hire one at your own expense. If you would like to make an appearance in this action you may do so through your own legal counsel.
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Unless another legal firm can find cause, all current TUPSS franchisees may be consigned to dying a slow, painful death! Former MBE owners are on firm legal footing, for a strong case can be made that UPS lied in their "Gold Shield" conversion presentation (see Class Action)! However, a judicial ruling in the "Samica" case (GOOGLE it) may preclude current franchisees from successfully suing UPS! UPS is both smart and devious! Their attorneys have written a very slippery (for them) FDD which may allow them to screw their unsuspecting franchisees over without ever having to face legal repercussion! However, only time will tell! Unfortunately, as we have seen in the Morgate case, UPS will leverage time to their complete and total, uncompromising advantage! Destroy small franchisees by simply "waiting them out" in court! Big crushing small, with no moral compunction about stealing the small business owner's hard-earned life savings! The destruction of their lives! I hope not, but life is not always "fair"..not where greedy and unscrupulous Corporations are concerned! These guys? They are amongst the best of the worse!
..get "screwed over" by buying into this disasterous franchise! Of course, how many people will work against their own financial self-interests? They have bought into a dog, and now they have to sell it! Somewhere in the "food chain", someone is going to get screwed! If you have built a new store, or paid for an existing center without doing your homework, well, your neck may be the one that falls "under the axe"! You've been had! Duped! A business slight-of-hand! The seedy side of capitalism! Caveat emptor, my unsuspecting [future] franchising friend! Caveat emptor! However, for those yet unscathed, be thankful for the Internet, and bluemamau.org! Your "buying decision" is all laid out here, in gorgeous black-n-white (and Orange)! Don't do it! &Good luck!
These people know, and could care less! They are just too big! Everyone else is just an ant! This is simply the way it is! The only thing they will understand is a major loss in court! We hope to achieve just that!
But will UPS, one of the biggest abusers of the franchising concept, now use their vast sums of money and power to fight the allegations in this Class Action, a suit which has arisen to protect the interests and preserve the legal rights of the "little guy" franchisee? You bet they will! United Parcel Service, one of America's largest corporate enterprises, is turning out to be one of the worst perpetrators of mass fraud and deception that can be found in the entire U.S. franchising industry! They are using the time-honored method of conducting the nation's business, franchising, to sidestep the costs and burdens associated with servicing their clients all across this great and open nation! ...especially where it concerns their many new-found internet-shipping users! Yes, franchising has proven to be an effective vehicle through which UPS can avoid not only the costs associated with running UPS Centers across the nation, but also to sidestep labor laws and their own unions in the execution of this despicable and fraudulent franchising scheme! Unfortunately the financial burden of this abusive "strategy" is being borne by the small and powerless "The UPS Store" business owner! These allegations of misconduct and corporate thievery will be proven true in this upcoming Class Action trial, a "status conference" to be held in early January of 2010! Gordon & Rees' attorneys will be presenting a very strong case, one which alleges both negligent and intentional misrepresentation of material facts in regards to the fiasco/fraud known as the "Gold Shield" program, a now-uncovered plot to convert profitable Mail Boxes Etc. centers into unprofitable (for the store owner) "The UPS Store" locations! In accordance with UPS's devious and well thought out plan, all of these stores have morphed into unpaid drop-off locations that predominantly service UPS's Internet and corporate accounts businesses, and not the business of their small and vulnerable "The UPS Store" franchisee! They steal the commerce and dollars he needs to simply keep the business open! Funds are siphoned off by this greedy, giant Corporation to the detriment of the hard-working, yet easily victimized, "little guy" store owner! UPS makes all the money, he does all the work! ...and also pays the bills that keeps the easily accessible storefront "drop-box" location open! Their behavior seems to flaunt both the legal and ethical standards/relationship that one would expect to find between an ethical franchisor and their trusting franchisee!
Congress also needs to look into the many violations of franchisee legal rights that takes place across this country on an all-to-often basis! UPS is a prime example of how a company can violate these legal and ethical standards seemingly with impunity! A violation of the public trust! As people will soon find out when these allegations of misconduct go to trial, the Corporate vipers and con-men at UPS have destroyed the lives and dreams of many an innocent entreprenure; this hard working but uncompromisingly victimized "The UPS Store" owner! But of course, UPS has alot of money and "horsepower", both in their Brown delivery vans and their high-priced, very well-connected Washington Congressional lobby! No doubt they would try to influence (to their sole benefit) any legislation that might be proposed to amend and make more fair the miriad of laws concerning Corporate franchising in the U.S.! The alleged violation of State franchising regulations too (CA) shows that UPS is hoping to operate above the law to avoid observing high standards of [business] ethics and moral principle in all 50 States! That they have fought their franchisees for six long years (through protracted/sneaky legal manuveurs) is defacto proof that UPS fears being "called-on-the-carpet" to account for their many fraudulent and illegal claims and misrepresentations! Franchising is a good method of conducting business, but not when it is used to avoid having to pay people to assure a Corporation's earning excessive and unwarrented profits (and goodwill) at the expense of the small business person! So let the laws change, and let's hope UPS fails both in lobbying lawmakers, and in screwing over the much abused and very frustrated UPS Store franchisee! With the passage of new laws, 2010 could be a very good year for the entire franchise industry..if they can rid themselves of dishonest franchisors like UPS and allow the many honest and trustworthy franchisors to operate, grow and profit in a fair and equitable manner...something United Parcel Service obviously hopes never to see!
I just spoke to a The UPS Store owner today...an immigrant from India! He was asking about the Class Action, and was desperately inquiring about participation. His store was dying, as were others he knew of. He was acting on behalf of himself and these The UPS Store owners that he had had aquaintance with, and described/related to his fellow franchisees as immigrants often do, by their nationality; This Indian guy up in Town X, a couple of Indian guys from town Y, a guy from Afghanistan in town Z. Having known many immigrants over the years, I realized that that's how they often remember each other..by their country of origin, not name, for it is often the easiest way of sorting people out in their new and very diverse culture..a "shared experience" which both bonds and leaves an impression. A way to recall and refer to "the guy"... by his nationality! They were all highly distressed over the deterioration of their businesses...stores that they had invested their hard-earned life-savings in, not to mention working long hours! The problem? They were getting nothing but unpaid UPS drop-offs! Then I understood! Many immigrants come to this country to realize their dreams, and, of course, they are naturally older..that's how they have come to save the money needed to invest and buy a business! Not to mention the fact that they understand they will not go very far in an American corporation, as they are not physicists or engineers, or young...they're just hard working people, entreprenures, small-business people who want to do well! You know the type, for you see them running small businesses all over America. Well, then what happens if they were misfortunate enough to buy a The UPS Store? Their world begins to collapse as they come to understand that the "bill-of-goods" they were sold by UPS was a decieptful one..a lie! How the rosy picture painted by their franchisor was a bitter [plant of] herb instead! A fraud that stole their money, hard work, and dreams! You see, this Indian gentleman wanted to know how to contact the Class Attorneys, for they feel more defrauded and helpless with each passing month (of lost business) to UPS's internet/corporate accounts/reverse logistics drop-off scheme! They work, pay bills, service customers...but receive no funds for their "POS", their bank-account lifeline...the survival of their "Dream". They were being used by UPS (even an immigrant understands what a "bad guy" is. They've seen so many in their past lives)! So, you get the picture, and it is a sad one! Very sad indeed! UPS has made coming to America a bitter lesson in Corporate greed, deceipt, and destruction of immigrant families lives, ambition, and pride! Lost hope! Lost dreams! Lost money! ..they are too old to "start all over again", to reaccumulate another "life savings"! Not quite what they expected would come from listening to and trusting in the well-dressed franchise representitives...indeed, very contrary to what they were led to believe when they purchased a The UPS Store! Too bad, and so very sad! Thank you so much for destroying the American dream for so many "trusting-in-America", "dreaming-of-America" people, UPS. Vulnerable people. Thank you so LITTLE much! P.S. I had to tell him that he was not a "convertee", so he could not get help from this Class. I emailed him the attorney's contact information..maybe they can help! ...and that he was not alone! Not while I breathe!!!
Guest you provide great information. If you were to go back and break it into paragraphs of 1, 2 or max 3 sentences you will find it will be read, understood and impact with a hell of a lot more people. Read around, try it and see.
The more things change; the more they stay the same.
But I suppose we can all be, at times! ...and if angry enough! I will try to be more concise and direct..like your fellow authors here on BMM! Any suggestions on whose writing style I should dare try and mimic?
just be yourself. Very few of us here are journalists and you do get the message across as yourself. But you want it better understood and smaller paragraphs also makes reviewing easier before you hit 'save'. One of Australia's most renowned [and sued] jounalists made the same suggestion to this windbag years ago. But when there is a lot to share and a purpose I say why not ...
The more things change; the more they stay the same.
You must pick up the phone an talk to an attorney about bringing about litigation! UPS will not hire a lawyer for you! If you can get a group of 3, 4, 5 or more franchisees together, do so! Go about the process of fighting for your rights! As you will see when UPS loses this 3500 member Class Action, you have been used by both a giant Corporation, and their greedy little affiliate down in San Diego..those "yes men" (&women) who only care about their jobs! Like the phoneys up in Corporate Accounting..the ones who threaten to shut you down if you miss one (undeserved) Royalty payment! That's all you mean to them! Doesn't matter if you've paid for 5, 10, 15, 20 years! Don't you see! Family my keister! It's all about the $$$...they get it all, &you work for free and lose your life savings! You are a spounge to be squeezed for more and more money..every month on the 14th! You have no voice! Even the Franchise Advisory Council (FAC) has been shut up! Do you really think Lil' Stuy Mathis is going to confront UPS for you? Don't be absurd! Who signs his checK! Wake up, or be put-to-sleep like a helpless stray animal! Get mad, get an attorney, and get going!
They will try to sell you the world, but when your money is forked over, you will be stuck with a rock! ...a rock with payments! Go ahead, do your research! In the end, you would be better off working as a night-time stocker at WalMart! What to do when researching this franchise? Look at the reports and comments here at bluemaumau.org for starters! Secondly, invest the small sum needed to buy a transcript/report of the Morgate Trial! No matter how the Court rules, it will give you a balanced view of both sides of the argument (albeit a partial one, because Phase Two of the trial has not yet taken place...and that's the big one...3500 vice 150 plaintiffs...a much larger Class)! So, go to Courtroom View Network at www.courtroomview.com, or call at 1-877-834-8627, or email them at support@courtroomview.com. Or wait until after the next part of the trial, next year, when more testimony/verdict will be had. Pass on committing to a The UPS Store! There will be plenty of locations to consider! Be careful, too, for danger lurks beyond the opening of a Brand New center! When buying an existing location, you will be told "all is roses"! But unfortunately, that's just not true! This franchise model is sick...very sick! And you cannot even trust the numbers an existing Store gives you because these stores get worse (less and less UPS shipping revenues) each year (shipping is 50% of your business, and as UPS internet drop-off traffic grows, you will become an even bigger package drop-off consolidation outlet/point...and get paid peanuts)! So, how can you project any [revenue] numbers accurately? You can't! I know this will disturb some current The UPS Store owners because they want out, or do not want to acknowledge their bad situation, but their issue is with UPS, not some unsuspecting buyer! Their store has already been devalued, and will continue to decline! The "horse" is already "out-of-the-barn"! Yes indeed, a current The UPS Store owner's "beef" is with the franchisor, United Parcel Service, not the potential purchaser/franchisee! They must address this situation in court, for UPS does not give a hoot about the financial health of franchisees, or what they have done to the value of your store! You, the interested buyer, need to go elsewhere and buy a reputable franchise! Or wait! Current owners will win this one in Court, and UPS will be forced to pay them a hefty sum! Read all the Class Action materials! The issues being litigated are there! Get informed! So, Good Luck, and keep a sharp lookout ... at Bluemaumau.org ... (that's .ORG, not .COM)! And make good use of Google! Now, get together, get organized, and get ready for a fight to recover your losses! &Pass this along! After all, there is SIN (strength in numbers)! ...and this number (of angry store owners) is large...Very Large indeed!
We would be remiss if we did not take a moment to show our strength and humility by thanking those whose efforts have brought us all to a point where there truly is hope for correctitude and justice on the horizon. First, we are thankful to the fine attorneys afforded us by Gordon & Rees, LLP, for they are truly knowledgeable attorneys who fully understand the merits and justifications for our case. We finally have someone on our side. We thank them! We also thank the Morgate Plaintiffs, whose hard work, efforts and long struggle have given birth to this opportunity to seek justice and recompense for the many ills we have suffered at the hands of a cold and callous Corporation, United Parcel Service, whose management, not employees, have seen fit to grieveously dishonor the company for whom they labor (if one can call their "efforts", "labor" ..more like racketeering). We thank them, the leaders of the Platinum Shield organization! Lastly, we thank this website, bluemaumau.org, for giving voice to the voiceless, publication to the unpublished, and a virtual light to shine on the financial and emotional abuses suffered by so very many..defrauded franchisees like those of The UPS Store, as well as many others, who have suffered harm through corporate deceipt and malfeasance. Their efforts to inform the public have surely meant that many have avoided the pain of falling victim to unscrupulous franchisors and their self-serving and greedy corporate officers. They have led the fight for truth and openness. We thank them! And thank you all for your entreprenurial spirit, without which there would never have been born a great and prosperous United States of America, a beacon for the world! Happy Thanksgiving!
Please let's not forget IAMCO...THE FIRST GROUP UPS SETTLED WITH....Which was lead by L.Michael Hanks Esq....We did blaze alot of the path that has been followed by the other Suits...Thanks to Mr. Hanks
I believe that you meant L. Michael Hankes Esq.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
...to Bluemaumau.org? Remember, not .com but .org! You must do so..contact 3-5 or more store owners, then have them do the same! Get everyone to this website so they can see that they are not alone in feeling defrauded..that there are thousands of unhappy franchisees who feel just the same (burned) as they do! So, what time is it? Time to make UPS buy-out your store..for $1,000,000 dollars per location! Let UPS pay per store the same amount that FedEx did for 400 Kinkos Centers! You have been ripped off! (Read the Class Action allegations)! Now, it's time for UPS to pay up!
She needs to hear what you've been through with UPS so she can build YOUR CASE.
For all franchisees eligible to participate in the current Class Action Lawsuit, to take no action is to be automatically "opted in"! You have until Dec 09, 2009 to "opt out". But with regards to another Class Action suit that many non-convertee stores want to start, can the same firm, Gordon & Rees LLP, take that case on too..even as they prosecute this current Class or after they win this current Action? If so, then all The UPS Store owners must contact Amy Darby and inquire as to how they can initiate a New Class Action! Do so via email or phone, but do so immediately! Many of you are on the verge of bankruptcy as you continue to have business bled off by UPS via their internet website..business they could not possibly service if they did not use (or should I say abuse) you and your store as a package pick-up consolidation point! You see, that's all they ever wanted...a way to service their internet/reverse logistics/corporate account business while not having to bear any real cost! You, the sucker (or so they think) franchisee can do that...on the cheap...until you go out of business, and someone picks up your expensive store for nothing! So, contact Amy, and see if she can start a second Class Action for you franchisees who opened as a The UPS Store but were not told (in the FDD) that 77% of the stores were failing...wether you opened a new one or purchased an existing center! Good luck, and may the courts bring this fraud (as outlined in the Class Action..see above) to a screeching halt! Corporate greed and indifference must be stopped!
Where does this leave new owners who bought after the conversion? Will there be a followup class action for them?
Email Amy Darby, or call her. The contact information is here for all to see! You must make the call, you must alert other owners to come to this website, or you will all be doomed to eventual bankruptcy! UPS will see you out on the street before they'll own up to their wrongdoing, so get started..Now! Call, write, but above all, ACT!
They are out of luck. They had the chance to Join the BSA which is an individual lawsuit (not a class action) that covered both the converted stores and stores that bought converted stores or opened new stores under the "ups store" business model.
Read the Class, see who can participate, and then understand that another Class Action can (and will) be had! It will come..count on it!
BSA membership is not required to join this Class Action lawsuit! You just have to have been a franchisee who converted from MBE to The UPS Store! Many current UPS Store owners were never even given an opportunity to join BSA! They can sue later, when the next Class is established..a New Class Action Lawsuit! Stay tuned, spread the word to come to bluemaumau.org, and stay informed!
Call Amy Darby at Gordon & Rees! Get the ball rolling! Most all current The UPS Store owners will sign on to a new Class Action! I know! I have spoken to many of them, and they are all angry! In the mean time, besides calling, start by getting people informed! Have them come to this website, and pass the address (www.bluemaumau.org .. dot ORG!) along to at least 3-5 other store owners (or more). Have them do the same thing..keep passing it along! I cannot say this enough! ...Have them get informed! There is power in numbers, and once this case is won (it will be) there will be many legal firms looking to sign on to a new Class Action (probably even prior to winning the current lawsuit)! And why not! You have been hurt almost beyond (financial and emotional) comprehension ... not to mention your degraded physical and psycological health! And a good case can be made that UPS did not disclose pertainent financial data in the FDD..information you needed to make an informed franchise purchasing decision (the Boston Study Group consultion, among other information that UPS withheld..or so will be argued, successfully, in court)! So, get on the phone (just make one of UPS's "drop-off" customers wait until you hang up..or send them along without a printout from your Thermal Label Printer..too bad..they can copy down their own internet-derived tracking number)! UPS must be taken to task for their fraud (as outlined in the Class Action complaint allegations..read the story above)! How much "taken to task"? Try a million dollars per store (hopefully..something along the lines of the $4 Billion+ Fedex paid for 400 Kinkos stores as a baseline valuation, not the $200 million "sweatheart deal" given to UPS by the inside information guy, Jim Amos, for 4000 MBE Centers)! You will find Amy's number above! She is very nice, professional, and capable! Don't be afraid to call her..if you meet her you will like her..she is like a (smart) friend! Go to www.gordonrees.com, click under "practices" in the maroon bar, then click under "Franchise Law" in blue, then "Lawyers" in the top bar! There's her picture and bio. See! She is as approachable as she looks, so fear not (some people have trepidation about contacting attorneys! No need to with her)! So, Fight on!...and get The UPS Store owners to this website! NOW! They need to get their money (life savings) back, and UPS needs to stop creating more (franchisee) victims...especially our Vets through UPS's disingenuous participation in the "VetFran Program"! 150+ of our finest Public Servents, Soldiers, ripped off..as outlined in the Class Notification! How dare they! HOW-DARE-THEY!
The figure? 3 and 1/2 Billion! Given the damages incurred, and allegedly fraudulent actions taken, the number is not unrealistic! Now you understand why UPS has pulled every dirty trick in the book to try and squash these lawsuits! Others have individually sued and been awarded even greater damages! UPS knows what you should know! When found guilty, they will have engaged in a very costly fraud! ...Oh, one more item! It does get worse! If you purchased a The UPS Store (non-convertee), UPS will have to explain in court (when you sue them) why they did not disclose pertainent financial data to you via the FDD (Franchise Disclosure Document)! They had data which showed that The UPS Store concept was a failed business model..for the store owner, that is, not them! How failed? 70%+ (of the stores) failed (see story in BMM.org on the Boston Study)! And sure they knew it before Gold Shield was ever even implimented, as is alleged in the Class Action Notification! That's why those franchisees who converted from MBE to The UPS Store are suing! UPS rigged their initial "test store study", the one that evaluated the financial impact of changing the store name from MBE to The UPS Store. They fraudulently skewed the poor financial results uncovered in the national pilot study (according to the Class Action) in order to deceive you (as is alleged)! You see, the "test" results would not have gone over well in their "Road Show"! Later, it was reinforced as a failed business model in, again, that Boston Consultant Group Study (which I already mentioned above)...a study they paid millions for but denied ever existed! They tried to keep it secret, but were "outed" by a journalist! When confronted, the UPS VP of PR denied the study ever took place (it did)! Want more hubris? This VP talking head is quoted as saying that UPS does not need any outside consultants to tell them about their businesses (let me reiterate, he denied the study ever took place)! And, he said, even if they did commission a study, they would not tell prospective franchisees about it (none of your business)! Yes...that's what he said! What the...? Is not vital financial information supposed to be disclosed, by law, in the FDD? Um...Yes! But not if you're UPS! They are above the law! Well, that's a big part of the story. There's alot more "dirty laundry" that has been discovered! It will come out in the trial! Now that you've seen how UPS conducts "business", well...as Patton said...once seen, "You'll know what to do"! Do you (know what to do)? It's ok to be mad, to seek the return of your life savings ... your stolen efforts! Thousands are! Now, go Contact Gordon & Rees...the plaintiff's fine group of attorneys! Get your legal action started! You've been had! Stop being taken for a ride!!!
Each and every UPS Store owner needs to spend time on this website...Bluemaumau.org! >>> .ORG <<< (not .com)!!! Have them come here, read this and past stories, and see how they were played for fools by their franchisor! Read all of the allegations in the Class Action Notice, read the discovery as outlined in past articals, get mad, and spread the word! Take legal action! Talk to Gordon & Rees about another Class Action! If they cannot ajudicate for you, ask them to recommend another law firm! Band together! Seek justice! This is the only way that may people whose lives were (or will be) destroyed can go about seeking restitution!
..our attorneys!!! You have been shafted by greedy corporate America..United Parcel (dis)Service! They do not give a hoot, as long as they make (and take) your loot! Work for nothing! Lose your savings! Mortgage your future. How many times must you hear..They do not Care!!! These are number-crunchers in Atlanta who are bleeding you until you drop! So, what to do? Contact the Gordon & Rees Attorneys, and speak to them! Tell everyone you know (owners) to come to this website and read-up on the long history of alleged fraud (by them) over six painful years! And find a dynamic person who has been screwed over, and have him advocate (with a legal group) to start another Class Action (of people who opened a The UPS Store, or bought an existing center after the name change)! You do have both proof positive that they lied (The Boston Study)! &They did not disclose [that] important financial information (disclosure) in your FDD! You are now a unpaid drop-off Center for their internet/returns/corporate account business! And to them, you are all mosqitos! Their business makes billions (see Yahoo financial), and they want more! So, get together with a couple of store owners, talk to Gordon & Rees, and start seeking legal remedies! That is the only way you will ever make any money with this "franchise"! They need to pay for their harmful, despicable actions! ...and they will!
...is in this article and in these comments! Look! Read! Copy! Call! Now!
'Brown is making me green! the lady on video said with a smile.. 'My package count's in the triple digits every day.'
--oh really??..I MISSED THE FINEPRINT THAT READ 'I GET A F*$KING DOLLAR each for 3/4 of those packages. Why wasn't that mentioned? I CAN THINK OF ANOTHER 'F' WORD TO USE AND IT'S CALLED FRAUD.
..at Gordon & Rees LLP, and tell her what you know! It will all be kept strictly confidential! Tell her how you were promised increased shipping volume, but how you ended up getting $1 dollar per package for increase dropoff volume! Give them information...an affidavit...indeed, get (more) angry and return fire!!! ...directly at UPS!
..must contact Amy Darby or Scott Sirlin at Gordon and Rees, and tell them this story! They know! They can help you! They're a top Legal firm who have answers for you! get help..get Hope!
our defense needs to know about the particulars of the 'roadshow' and how we were swindled.
That and a whole lot more! Hint: UPS commissioned a study..they wanted a vast retail presence in the market, but did not want to pay for it! Answer? The MBE network..get it on the cheap! Or should I say steal it! How? By fabricating (oh yes, allegedly) a fraudulent story about how they would drive traffic to your store, and pay you for it! They worded the presentation in such a way as to have you think you would make full retail markup on the "new" volume! In reality, when they said people would come into the store and you would get paid for processing their package, they misled you into thinking you would make 50% of the price to ship the package...not .50 cents, or a dollar (on, for ex., a $150.00 overnite package)! Volume they could not service without a physical outlet...an MBE Center! They needed storefronts! Gold Shield was designed to mislead you...and it did! You have been used! So, if you have any information, such as perhaps a video or notes on the presentation, give it to Amy Darby or Scott Surlin at Gordon & Rees. Their number is listed above! And, get the word out! Have 10 franchisees alert 10 franchisees alert 10 franchisees, etc., to come to this website and review many articals over the past six years! It is (mostly) all here! And have them contact our attorneys! You were robbed, & you need to act...Now!
Yes, they did promise that you would double your shipping volume and revenues! What they did not say was that it would be under other account numbers! They led everyone to believe that paid-business would be flooding through your door! ...That you would benefit enormously as a The UPS Store! Not quite so "accurate", were they! ...and knowingly so! So? Do something...Now!
i am paying rent.utilities,payroll,taxes,ups bills,royalties,national and local advertising,etc. ups steals my customers and converts them to drop-offs,at a better rate than i get! the ups store advertising is horrendous-strange (focus group)??.what are they thinking? i know of many locations that will close soon.they abuse their drivers and other employees,just like us.
Do we have an option to become independent @ 10 years? I just love seeing our 8 1/2 % royalties going toward TOTALLY WASTEFUL corporate b.s. like these idiot area reps they pay to check up on us, all the CMS technology b.s., mbe web, online printing, online training. what a flippin' joke. Check out GOIN' POSTAL as a franchise oportunity. No royalties, no visits from idiots, no b.s...Just more money for the franchisee. Isn't that the whole point? We're working for free, folks. WAKE UP.
not to mention total "gold shield" fraud-horrible tv ads(focus group?)-stealing customers-franchisees'paying rent,labor,royalties,etc.to be a drop off location.i know of many stores that will close soon.i anticipate a revolt at the convention- if they don't cancel it again! that said:"goin' postal" is a STUPID name.
What exactly does this mean for the franchisee? Does that mean we'll still be UPS Stores and have to continue putting up with all the corporate b.s.? Will we have an option to become independent?
why doesn't ups own any ups stores?
Because they all run at a net lose. &Because the owners work for free, or worse (and commonly) pay to work there (keeping it open with savings/retirement money until it closes), so UPS knows fully well that owning and running (they can't run it as well as a franchisee) a store would cost them millions! They probably hope to bankrupt the stores, then keep the best locations (maybe 500) built on the owners dime, thereby incurring minimal loses on combined store operations! But they will be wary, because they see what has happened to Fedex (loses at The Fedex Stores), and they would prefer to have The UPS Store owners work for free, so UPS makes all the money (internet drop-offs/reverse logistics/corporate accounts), and the franchisee takes a bath! It all boils down to corporate greed, and this will come out in the trial! Stay tuned! They will most certainly lose!
..is costing them to lose a tremendous amount of business through the loss of goodwill and clients! Why? It's a no-brainer! This strategy of having The UPS Store owners work for nothing, and watch as their investments slowly disappear, is having a profoundly negative effect on franchisee morale, customer service, and consequently on UPS's public image! Store owners, working day in an day out for nothing (or worse), simply develop a very bad attitude (it's only human) because of how UPS is screwing them! Unfortunately many store owners take their frustrations out on the non-paying drop-off customer who naturally thinks the guy behind the counter works for UPS and is getting paid, has medical/retirement benefits, and does not want to lose his job..Wrong! So this same drop-off customer (who buys no other services) often finds out that service and attitude is lacking at the store (just as if you walked into a resturant, sat down, and took out your lunch box and started eating..then told the waiter to bring over some (free) salt & pepper, ketchup, and a glass of ice water)! Naturally the store owner, forced to service you (via the FDD) is unhappy, and you, the non-paying customer, will often have a bad experience (especially if you, as a drop-off customer, act in a difficult manner)! They then take it out on UPS (actually, both customer and franchisee do), both get angry at UPS, and the customer walks out and switches over to FedEx or the USPS! This goes on all day at a The UPS Store..day in and day out, through thousands of customer transactions! ...Oui ve! UPS has created a real mess, and it will costly them dearly when they are forced to get out of the retail shipping business (at least via franchising), and on top of that they now face years of litigation (from franchisees) that have been (and will be) taking legal action against them! Yes, current store owners will sue..start another seperate Class Action! It's coming! And UPS's reputation gets hammered even more! And the legal costs, already estimated at 50 million dollars and growing (for UPS), is daunting! Double oui vei! You see, Big Business has trouble running Small Business, as UPS has found out (and continues to find out)! But they did this to themselves by trying to screw the individual franchisee! Let's just call it "Business kharma"!
what was the judges' decision regarding mbe stores that did not convert?
Judge Highberger indicated that he will rule in favor of UPS/MBE...the MBE stores who did not convert will appeal. This next trial, of MBE's that did convert, is seperate from the first in that Phase One dealt with the sole question, "Can UPS legally buy MBE and switch the name", while the upcoming trial basically asks "Did UPS lie during Gold Shield about the viability of the new system, The UPS Store"! See the Bluemaumau article "Judge tentatively rules in favor of Mail Boxes, Etc". This second Phase deals with completely different issues.
..the trial date is not yet set, but a "Status Conference" (means just what it says) will be held in mid January! So, an early "Happy New Years" to the many aggrieved parties! Having spoken with many of you, trust in one thing..the Plaintiff's Legal Council knows exactly what's going on! ...and you won't like the full story once it "gets out"!
..I wish you all well, and feel very sad that you, too, were caught up in this (allegedly) fraudulent scheme! I was in court..I heard the details..I was angered (to say the least) and I feel strongly that the plaintiffs will win this case! Make your voices heard all over the Internet! I know that there are many of you, as you were "enticed" into this "venture" through the VetFran program..a program designed to assist you in finding gainful (self) employment! Then you were (again, "allegedly") ripped-off ... sold a false "Bill of Goods"! God Bless you all for your service! ...That this class might make you whole again!
..coerced legal agreements signed that stated "you will not sue" after your forced sale..forced because of their lies (alleged)! It was an action taken by UPS to finish their dirty work! You were Defrauded, as outlined in the Class Action allegations, and then forced to sign an agreement under tremendous duress..especially if you owned more than one store, and were trying to save another (a hopeless pursuit)! Contact Katheryn Patteron-Shinn at (619) 230-7747 (direct) or (619) 696-6700 (main line) to participate in the Class. Please contact any former owners you might know of who did not receive a notice. Current TUPSS owners who opened as a The UPS Store cannot participate in this Class Action, but stand by! You are all very angry (hateful towards MBE/UPS), & (again, allegedly) you were not told the truth (In the FDD) about pertainent financial data (disclosure of the Boston Consultants Study that found a failure rate of 70% + of UPS Stores)! You will have cause for future action! As will the Morgate plaintiffs, when this Phase of the trial is brought to a successful conclusion! You are owed that! To the Yahoo poster under UPS in the financial section, please get this out on the message board! If you converted from MBE to The UPS Store, or know somebody who did, and you (they) have not received the Class Action Notice, you must all call Katheryn at the above number! Take care, and hold on tight! Justice will be served!
This will be a Case Study in what happens when Big swallows up Small, fraudulently (alleged), and franchisees unite NOT in anger..no, no, no! I have spoken with them. This is hate..pure, raw hate for what this company has done to them! If they had any idea at MBE Corp headquarters (they do) about franchisee morale, they would take immediate action (they won't)! Now, here come the Big Guns! Remedy shall be had!!!
what's going on. They don't care about you. They care about numbers. Their numbers. It blows my mind how they can send new store applications to our centers and expect us to promote TUPS to potential franchisees. Instead of 'Be your own boss' the headline on the app. should read, 'Invest in us and work for free.'
it wants with its brand? This seems like a losing case from a 50,000 foot level. My franchise agreement made clear I do not own the brand or the marks and they can make any changes or even sell the entity as the franchisor sees fit.
I don't see how the franchisees can win this suit. Can a franchisor be held liable for a merger/acquisition scenario when you contractually agreed that such may happen?
What are the compelling franchisee facts of this case?
You're right except that they can't lead you and 90% of the Franchises down a path for failure. Which is excatly what they did when they converted these store and the choice of shipping was limited to one shipper. So there really wasn't much competition.
..the feelings of utter contempt that franchisees have for UPS! Also, go on to any Consumer Complaints website, type in a search for "The UPS Store", and see all of the (former) customers who swear they will never again do business with UPS because of the bad experience they had at a UPS Store! Why? Well, franchisee morale is lower than low! They are going broke! They hate what UPS has done to them..their continued lies and stealing of their business/efforts! Garbage like UPS saying that they are going to make money for the UPS Stores by making them "Copy Centers" (what a joke)! Having coniving UPS reps acting as their "friends", but really only supporting the people who sign their paychecks (UPS)! The list is endless! So, as stores continue to fail, watch the complaints by consumers and franchisees grow! By miles! And watch FEDEX enjoy the business that UPS loses, and they gain! &Keep an eye on Bluemaumau.org! Eventually, as does water flow downhill, The UPS Store franchisees will eventually find their way here...to vent, inform, and see their way through the nightmare that UPS has created for them! WARNING: DO NOT BUY THIS FRANCHISE! There! You prospective franchisees just saved a few thousand dollars in attorney/consultant fees!
wording says renew "this" agreement with same terms and conditions for a new MBE center. oh I am sorry we are only selling MBE centers in europe. "this agreement" deals with the MBE center business model.
franchise contract was much different in 1993
The contact information is clearly provided here. Many vital details will not be discussed on this forum as this large on going legal battle. If you are really intrested in the detals or in joining this important case contact the franchisee lawyers and they will discuss with you one on one what is and is not possible. Only general or public things will be posted.
To answer to your question, yes, they can be held liable. Look into to it if you feel that you were swindled. Join the ranks.
I have just became aware that there is a new type of UPS Store opening in a few places, they are hotel based and are being promoted as "special venues". They carry The UPS Store name, but are being allowed to charge (very good money), for "handling" drop off packages. I would like to get this information to the right people. How can UPS differentiate us regular plaza based stores from a Hilton based one and allow them to make a profit and not us. I am in absolute shock that they can get away with this. To rub salt into the wound it turns out one of the co-owners of one of these new "profitable UPS Store" is also a member of my area franchise, ironic? just a bit.
..comments? Let me make sure anyone who comes here understands, once and for all! UPS means to dismantle this franchise system, and then replace it with 500 or so stores that they own, control, open, close, up, down, sideways..get it? They wanted to get rid of MBE because they could not stand the fact that consumers were being given a choice! That someone was getting a foothold into "their" industry! When you understand that simple fact, everything else falls into place! ...and this all has already come out in trial! Wake up!!!
..drive them out of business! Your dime, their paid-for facility! Please, order the transcript of Phase One, and read! This was all brought out in trial! The question raised was, contractually, can they do this? Legally? YES! According to the UPS attorney, they could rebrand you as "The Blue Moon Cheesecake Factory", or anything they want to, and "legally", they are well within their rights to do so! However, Phase Two will be a little different! The question will be, "Were they within their right to lie during the Gold Shield presentation"? A whole different can of worms! Stay tuned!
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