UPS Store Franchisees Form New Independent Group

ST. PAUL -  While skeptical franchisees question whether the newly formed Independent Coalition of Franchise Owners (ICFO) will be different than any other autonomous group that has attempted to work closely with The UPS Store and Mail Boxes Etc. corporate officials, the association says it is optimistic that it will be.

“The ICFO is being formed to work collaboratively with MBE, UPS, vendors and all other potential parties to our network. We are optimistic that MBE will recognize the importance franchisees place on having a voice in the ongoing evolution of all aspects of our network, and that MBE will recognize the coalition at some point in the future,” its blog site explains.

ICFO states that their association is distinguished from advisory councils or other entities sponsored or funded by the franchisor. “Some associations have been funded by the franchisor, but the resulting inhibition of independent action on behalf of franchisee interests makes such organizations at best a hybrid, and at worst completely compromised in their ability to represent franchisee interests,” declares the association on its website.

The organization launched its first membership campaign during The UPS Store annual convention in Las Vegas on July 13. Franchisees attending the annual event were invited to attend the ICFO Open House reception at Caesar’s Place, giving them the opportunity to ask questions and speak with steering committee members. 

Willa Levin, until recently the chairperson of MBE’s Franchisee Advisory Council (FAC), is now chair for the independent organization. Randy Jessup, who has taken over as FAC chair, is also an ICFO steering committee member. The remaining eight members are seasoned multi-store operators who have served on various MBE councils.

One ICFO official said on the website that the new franchisee association has the effect of balancing power in the franchise relationship, explaining, “Carefully targeted collective action by franchisees often produces results that individual franchisees are incapable of obtaining by or for themselves.”

First and foremost, ICFO envisions an owners’ association working in tandem with the existing franchisee committees, and would have financial resources at its disposal to pursue its objectives. Representation of franchisee interests would continue to be communicated through the Franchisee Advisory Council with the MBE network. “However, at some future point we envision a strong, well represented owners association being recognized as the primary voice for owners with MBE,” the web site states.

Annual dues for the ICFO are $120 for a single store owner and discounts are applied from there. A two-store franchisee pays $100 per store; a three-unit owner pays $90, a four-unit pays $80, and five-plus store owner pay $75. One source said that ICFO currently has approximately 200 paying members, and is planning to have Open House sessions in different areas of the country, hoping more store owners will join as members.

At one recent meeting in Atlanta, committee member Dave Grossman explained how the independent association would benefit franchisees, citing the lack of representation at critical federal hearings. He gave as an example a recent hearing in Washington DC concerning proposed changes to the Postal Service that would negatively impact The UPS Store.  AMPC [Associated Mail and Parcel Centers] independent pack and ship stores’ association and other competitors testified, while UPS Store franchisees were not represented.

Grossman also discussed recent changes in The UPS Store’s operations manual, drop-off compensation and The UPS Store’s relationship with UPS, among other concerns.

In an effort to get the company’s reaction to the independent association, The UPS Store president Stuart Mathis was contacted, to no avail. Chair Willa Levin also did not return our request for an interview.

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Related Articles:

• UPS Store Franchisee Council Voices Concerns
• UPS Store Independent Association Sends Invitation to Franchisee Council
• Franchisee Council Pleads, "Treat Us Like Partners"
• Welcome to the Independent Coalition of Franchise Owners (ICFO) blog