Amos Exposes Insider Information in UPS Acquisition of MBE
LOS ANGELES – Franchisees are currently engaged in litigation with the world’s largest package delivery company regarding whether they should have been forced to convert from their original concept of Mail Boxes Etc. (MBE) to that of The UPS Store. United Parcel Services (UPS), through its acquisition of the 20-year-old franchise system in March 2001, has dramatically altered the MBE network, and now it is having to defend its actions in court against claims that it withheld crucial information and made misrepresentations in persuading franchisees to change over. In the closely watched trial of Morgate LLC v Mail Boxes Etc., a deposition taken in July 2006, MBE president and CEO James H. Amos’ memory was tested on the intricacies of the sale of his company. When he was asked about certain details surrounding the acquisition, he stated, “UPS actually only ended up acquiring MBE by accident.” Amos proceeded to tell the story, under oath, as to “why UPS owns this company [MBE] today.”
Now, these detailed accounts could prove to be crucial in the upcoming trial, currently scheduled for August 3 in Los Angeles Superior Court, as they could be with other similar court cases. Along with Amos’ testimony, other vital information will be allowed as evidence, including the following:
- Boston Consulting Group report (sections now unsealed by the court, pdf) – An intensive study on the franchise network determining the health of the system.
- UPS Asset Purchase Agreement with the “deal bonus program and deal bonus payment made by MBE to Thomas Herskowitz in the amount of $182,150 and deal bonus payment made by Parent to James Amos in the amount of $455,375.
- 2000 Strategic Overview of the Mail Boxes Etc., a simultaneous presentation used in discussions with potential buyers of MBE showing its success, while testimony suggests otherwise.
But there are certain aspects to Amos’ testimony that must be questioned.
Jim Amos’ deposition shows that he took confidential company information and passed it on to UPS, such as U.S. Office Products (USOP), then-parent company of MBE, was going to file for bankruptcy. His testimony also shows that USOP had negotiated a deal with Apollo Equity Group and that through insider information that he passed on, UPS was able to return to the bidding game and eventually acquire MBE. Those close to the case argue that in this regard Amos did not protect the interests of MBE franchisees by making sure that UPS in the asset purchase agreement would not force their own agenda on the franchisees in the system.
And regarding the bonus program, Amos and Herskowitz were only paid if the UPS/MBE deal closed, showing that they were in conflict with the idea of protecting Mail Boxes Etc.
Amos’ Untold Story of UPS Acquisition
Amos gives his testimony of how UPS’s purchase came about, stating, “I am the only person, one of a handful of people that really knows the truth, because after these transactions, there is always a lot of revisions [to] history, particularly when things go well.” As background, he said he came on board with MBE in 1996 because the board felt it was time to move former owner/CEO Tony DeSio out. After that, MBE gave Amos a year to complete the transaction of selling the company to U.S. Office Products, and in 1997 it was finalized with a transaction cost at $75 million.
After a chain of events, detailed in the deposition, Amos and his team were looking for an opportunity to sell the chain through private placement, engaging in management discussions with 18 interested parties. At that time, he said he presented his strategic overview of the Mail Boxes Etc. system. That’s when UPS first engaged MBE. But after all negotiations were whittled down to one company, Amos and his team entered into formal talks with Apollo Equity Group. The MBE parent company reached an agreement with Apollo. Amos, according to his testimony, put a management buyout (MBO) on the table with American Securities for $175 million. When the investment bankers and dealmakers became involved in the acquisition, they would not accept Amos’ offer. Later, they once again started over in the process, bringing the interested parties back to the table, including Apollo Equity and UPS. The bid ended with U.S. Office Products selecting Apollo Equity as the top acquisition prospect. At the end of the day, according to Amos, their offer was somewhere around $220 million. But as negotiations went forward with the successful bidder, Amos said Apollo became brutal in their tactics against USOP and he became concerned.
As the discussions were continuing with MBE and Apollo, Amos was also stepping into the chairman position of the International Franchise Association during its Las Vegas convention on February 27, 2001. Early in that week Amos said he received a call on behalf of stamps.com, or Stamps (previously doing business as Iship), in which MBE had invested $4 million on their technology to do online shipping. They were negotiating on a new program to benefit the MBE network. The call came from David Mounts who was running mergers and acquisitions for UPS when USOP first engaged them. Amos stated that at that time he and Mounts had become good friends.
As they were talking, Mounts told Amos that UPS was interested in an acquisition with Stamps, and the two discussed some of the problems MBE was having with that company and how they could resolve them. But then Mounts asked Amos how the “transaction” was going. Amos told him he couldn’t answer that. But when Mounts asked if the pricing structure was anywhere close to what he knew UPS would have offered a year ago, Amos told him it was in the ball park. Amos stated that UPS knew the right price was what he had put on the table with American Securities ($175 million).
But, according to the transcript, Mounts called back within an hour and told Amos UPS wanted to re-engage. Amos testified that he thought he was talking about Stamps, but Mounts told him no, they wanted to re-engage with MBE. Amos said he felt he had a moral and ethical dilemma—he could say nothing and the deal with Apollo would happen, or he could call somebody and talk to them about it. He said he had no love lost for U.S. Office Products. “I thought they were horrible operators and bleeding us dry,” he said in his testimony. He added, “The worst thing you want to be is the crown jewel in the hat of a bleeding parent.”
Amos said he sympathized with USOP because of the way Apollo had treated them, but he made the decision not to call them. He said he prayed about it. His final decision was to call the person involved in the transaction with Apollo, who was now co-chairman of Credit Suisse First Boston, and lay it out to him. According to his testimony, Amos stated, “ . . . I need to tell you what just happened, and I’m not going to make this decision, but I think it’s beyond my scope of authority with fiduciary responsibility to you as well as the system not to tell you what just occurred.” Credit Suisse thanked him for the information.
One person close to the case, who did not wish to be named, said, "The revealing of confidential insider information is inconsistent with the fiduciary duty that Amos owed MBE."
At that time, USOP officials were getting the paperwork done with Apollo to sign the contracts, and they were at such a late date they decided to bring in consultant Michael Seid to work with them on the franchising side. Apollo officials were toasting with champagne because they thought it was a done deal, since MBE had an exclusive with Apollo that they couldn’t talk with anyone else. But in a day or so Amos said he received a call back from Credit Suisse First Boston in New York, which owned 38 percent of USOP, saying they made the decision to disengage from Apollo Equity Group. Amos stated that records now show that USOP had to pay Apollo several million dollars as a break up fee if USOP could get through the process with UPS in order to complete the sale with UPS.
The Rest of the Story
But in his deposition, Amos said he wanted to tell one other thing that was salient. He said he also received a call a week or two before the IFA convention from Chase Bank in New York, a banker who knew him, asking, “Jim, do you know what USOP is about to do?” Amos told him he wasn’t sure and asked him what he was talking about. He answered, “Well, I have to tell you off-line because I can’t tell you officially, but I think you need to know that they [USOP] are about ten days away from filing bankruptcy.”
Amos testified that he immediately called USOP and confronted them with this news. He told them he was leaving on Friday to attend the IFA convention to become its chairman. He knew that he was within a day or so of having a deal cut that would exclude USOP, but “with a company that may be worse.” Amos said the whole breakup process was going on as he went to Las Vegas. On Monday he was named chairman, and on Tuesday he said he spoke on the phone with 200 bankers making a strong case that he’s not a “dip.” He said he had “upstreamed” 80 million bucks, and he hadn’t “taken a dollar from these guys.”
Wednesday, a year after their first discussions with UPS, MBE re-entered the war room with UPS. They didn’t leave for three days, Amos said. At the end, Jim Kelly, chairman and CEO of UPS, called him saying that they had a deal.
Amos said the whole deal was made in one week. When people asked him if he thought it was a miracle he told them no, “I know absolutely it is.”
But Amos also stated in his testimony, “And here is what the franchisees, my good friend[s], don’t understand.” He said he had several options, including the choice to say the heck with it and allow USOP to go into bankruptcy. He said, “I can become a debtor in possession.”
When the deposing attorney asked Amos if he believed the UPS acquisition was in the best interest of the franchisees, Amos said, “Absolutely 100 percent, no question.” He then asked if he knew during the discussions leading up to the execution of the Asset Purchase Agreement, that UPS was going to require the franchises to convert from MBE to The UPS Store. Amos responded with, “Of course not. How would I know that?” When he asked at what point he knew UPS was going to in fact require the franchisees to convert to The UPS Store, he answered that you can only offer them incentives. You cannot force them or require them to convert, not in the MBE program or any other program.
When the attorney asked if it was Amos’ understanding that the MBE franchisees had the option of converting to The UPS Store or remaining an MBE until the conclusion of their franchise agreement, Amos stated, “Well, I think that’s exactly what happened.”
After reading the Amos deposition, one person close to the case, who did not wish to be named, said, “The revealing of confidential insider information is inconsistent with the fiduciary duty that Amos owed MBE. The legal duties that he owed the MBE franchisees is no doubt what will be revealed in the courtroom. They were supposed to protect the franchise agreements and instead, they turned over the franchise to a company that had no interest in maintaining the franchise. And then that company, once they got hold of the franchisor, exercised their authority and power to wipe them out.”
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Related reading:
- UPS Denies Existence of Feasibility Study, Now Unsealed as Evidence
- Court Certifies Nationwide Class Action against UPS on Fraud Claims
- Mail Boxes Etc Franchisees Head to Trial with Crucial Exhibits in Hand
- James H Amos, Franchipedia entry
- Amos to Lead IFA in 2001
- UPS Picks Up Mail Boxes Etc. - Forbes.com
- COMPANY NEWS; U.S. OFFICE PRODUCTS FILES FOR BANKRUPTCY - The New
| Attachment | Size |
|---|---|
| DepositionTranscriptforJamesAmosdated6-15-06.pdf | 4.38 MB |
| MBE Startegic Overview.PDF | 3.47 MB |
| BCG_Report_excerpt_pages_June_09.pdf | 1.21 MB |
- Franchise topic:
This comment is way off topic and has been moved here.
To answer some of the questions asked .....
The survey is intended for active franchise owners. While this may be disappointing to those who have closed their stores, we don't see how information from former franchisees is useful to aid in improving communication between franchisor and franchisee. I understand that some will disagree and even feel that this is wrong. However, our experience is that franchisors have no interest in the perspective of those no longer part of their franchise network. Our aim is to provide information that is not slanted and that can lead to improvement. So while excluding input from former franchisees may negate some of the value we can provide, we feel that doing so will lead to a greater ability to facilitate communication between franchisor and franchisee.
While it is true that franchisors may attempt to "dummy up" the results, the same can be said for some franchisee interest groups. Since the survey involves all franchises (as opposed to just one or two), these efforts are more likely to stand out when comparing various franchises to each other. If we find that this type of attempt is being made by one or more interest groups, we will most likely make this effort public by qualifying specific survey results. This qualification would appear in the reports we publish.
As to how the information is being used, I think that is made clear on our website (www.FranchiseFactsUSA.com). You can view this information on the site and also see a Sample Report that is similar to what we intend to make available at the end of year.
Perry Shoom, FranchiseFacts
Capturing the franchise experience!
Franchisee Survey in progress at www.FranchiseFactsUSA.com.
If you are a franchise owner or store manager, please participate!
Understanding the Franchise Experience blog can be found at franchisefactsusa.blogspot.com
This is off topic
Being a former MBE franchisee and also involved in the ongoing litigation, I won’t comment on these matters.
I did, however, do a search of our National Franchisee Survey database to determine if the concerns and problems mentioned here are reflected in the survey responses we’ve received. Surprisingly, we have received fewer than a dozen responses from UPS/MBE franchisees. I would have hoped for a better response rate from franchisees of my former franchise.
Without a better response rate from UPS Stores and MBE franchisees, we will not have sufficient information to present a clear picture of the UPS Store situation.
So this is a request for UPS Store and MBE franchisees to participate in our National Franchisee Survey at www.FranchiseFactsUSA.com.
Our final report will not be available until later this year. We will begin disclosing some preliminary findings beginning late March or early April.
Perry Shoom, FranchiseFacts
Capturing the franchise experience!
Franchisee Survey in progress at www.FranchiseFactsUSA.com.
If you are a franchise owner or store manager, please participate!
Understanding the Franchise Experience blog can be found at franchisefactsusa.blogspot.com
what does this have to do with the topic being discussed.
As a franchisee, I've never heard of FranchiseFacts. What have you done to inform franchise owners to go take the survey? How are the results used?
As a former owner of a The UPS Store I attempted to take the survey so that more bankruptcies could be avoided.
Major survey flaw: Q5: How long have you owned the business or been employed by the company?
Less than 1 year
Between 1 year and 4 years
Between 5 and 10 years
10+ years
No place for "Store Closed" and questions related to past closings. Q8 asks only about future closings. For greater participation and accurate info you may want to correct this.
is at best frustrating. So let me help.
I might be wrong but I suspect that franchisors might dummy up the results and the only way to know is if franchisees participate and if it is publicized that a franchise system with say, 200 franchisees, received input from 400 'franchisees'.
The questions are relevant and straight forward. Once you get to Q22 you begin to have an even greater influence on how the franchise will be viewed by potential investors. And that means that a lousy rate of real franchisee participation [a whole 5 minutes] offers even more chance that the result would be manipulated.
Aussies; this survey applies to international as well.
Australian Franchise Opportunities, a common sense approach to franchising
03/03/2010 Motion in Limine ((Renewed) Number 11 to Exclude Evidence about Apollo Management's Interest in Purchasing MBE Before the UPS Acquisition )
Filed by Attorney for Defendant/Respondent
Above from lasuperiorcourt.org, official website
Just one of many motions by defense to attempt to prevent jury from receiving the facts necessary to make an informed decision at trial.
To see all of these frivilous attempts by UPS, go to lasuperiorcourt.org, and check out the case summary for case number bc294647 !
"In the United States, The Sarbanes-Oxley Act (SOX) has introduced new standards of accountability on the board of directors for U.S. companies or companies listed on U.S. stock exchanges. Under the Act, members of the board risk large fines and prison sentences in the case of accounting crimes. Internal control is now the direct responsibility of directors. This means that the vast majority of public companies now have hired internal auditors to ensure that the company adheres to the highest standards of internal controls. Additionally, these internal auditors are required by law to report directly to the audit board. This group consists of board of directors members where more than half of the members are outside the company and one of those members outside the company is an accounting expert". (Thanks wiki!)
Carol Tome. Executive VP, Chief Financial Officer, The Home Depot ... On the UPS Board of Directors since 2003. Chairwoman, Audit Committee.
10k Filing : "Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, United Parcel Service, Inc. has duly caused this report to be signed on it's behalf by the undersigned, thereunto duly authorized. This Report was signed by Carol B. Tome pursuant to her duties as a UPS Board member.
UPS's auditor is the accounting firm of Deloitte & Touche LLP.
Both of the above are probably very interested parties! May 6, 2010 is the next yearly meeting of UPS stockholders in Wilmington, DE! Time to do another end-run around UPS's upper management! Ms. Tome seems like a genuinely good and honest woman. ...Don't want her thrown under the UPS Brown Bus re; this Amos deposition, the Apollo Co., and the purchase of MBE by UPS under the leadership of James Kelly!
In a VERY thought-provoking earlier post (The Postmaster General, USPS and UPS. The UPS "agenda"... by Guest) and some following, the subject focused on the USPS problems and their attempt to solve them by partnering with MBE. A test-market program had been established, was successful, and a roll-out program had begun. Of course, when UPS acquired and re-branded MBE, this died. However, it was a harbringer of what's going on today, with MBE and The UPS Stores out of the running. Hope the copied link below works...
They are doing a test of these kiosks at Target in Texas. Here's a link:
http://cbs11tv.com/local/USPS.Teams.Target.2.1532447.html
MBE was very well positioned to offer Postal products to the public, which would have grown the number of MBE centers nationwide even more! These MBE Centers all could have prospered as mini-post offices. And the public would have greatly benefited by having access to postal products at postal retail rates! All of this possible, and certainly the direction MBE was headed (given the test program with the Post Office)!
As far as that motion in Court by the UPS defence to exclude the Apollo revelation (in Amos's depo)...won't work! They must also fear an SEC investigation. But correct, we will never know about the Postal possibilities...unless MBE is reconstituted by the Court! The Class Action seeks the ability by franchisees to rescind the Gold Shield revisions! ...too bad for the many who have already gone out of business, the many who sold on-the-cheap, and the many who now are struggling to survive with their TUPSS's!
Well, The UPS Store CEO Stuart Mathis stated his belief that each store would be positioned to gross 1 million dollars per year (see the Wall Street Journal article "Franchisees See Red After Brown Takes Over" at http://online.wsj.com/article/S60509GIBSON.html (don't type "www" in before "online")! He stated (according to the WSJ on para 14 of the article); "As for the possibility of $1 million a year in revenue, the company says that figure was part of a pitch to get Mail Boxes Etc. franchisees to convert to UPS's new format. But the number wasn't a promise, UPS says -- it was simply intended to show how multiyear gains in customer counts and other factors could enhance a store's take". ...WHAT? Part of a "pitch"? Does that mean a negligent error in their Gold Shield market study predictions, or a deceiptful error? ...and when coming from the CEO of the company, Mathis, how much weight is a "reasonable person" going to give that "prediction", or "pitch"! BTW, by "pitch" did they mean "representation", "misrepresentation" or "mistruth"? You tell me!
But why didn't this "representation", this "non-promise" succeed? Because of UPS's direct, planned and harmful actions, that's why! In para 19; "Finally UPS encouraged individuals and small businesses to set up Internet accounts, where they could produce labels for their packages themselves". ...and drop them off at your convieniently located TUPSS! No waiting for a driver (too expensive for UPS)! No driving 10, 20, 50 miles to your nearest UPS package sorting facility! THAT's why that "non-promise", or representation to make The UPS Store shipping revenues increase (to a profitable level) never materialized! UPS took steps to make sure stores would rarely if ever gross &1,000,000! The WSJ article mentions stores averaging $295,000.00 per year in sales! At that rate, stores FAIL! Don't think so? Go to the Boston Study Group report and see what they have to say about a dismal figure like that! And UPS has known this ALL THE TIME ... even as was predicted to them by their Gold Shield Marketing Study! ...and if this Gold Shield study didn't tell them this, then they were negligent in conducting the study! ...But the plaintiffs believe they did indeed know, misrepresented the Gold Shield numbers and then presented those manipulated numbers to franchisees in order to sell them a bad-bill-of-goods! ..Or was those Gold Shield results presented to franchisees during the dog-n-pony show just a "pitch"? Yeah right! One man's "pitch" is another man's lie, no? Stay tuned!
To be fair, this article refers to a "company spokesman" saying that the stores should earn 1 million dollars per center. The article did not quote Mathis, but I do recalling him making that same assertion in the past! But as this particular article does not quote him saying that, and I can not point you to his quote, I will not attribute that particular quote in this story to him! But all MBE franchisees remember the UPS Store Corporate officers, including Mathis, representing greatly improved shipping volumes, and hence greatly increased store profits! Without that added volume, we would go broke given the lesser margins per pkg! This will all come out at trial! Be there!
Titled "Franchisees See Red After Brown Takes Over", it truly contains shocking revelations. In particular para 14; "As for the possibility of $1 million a year in [STR] revenue, the company says that figure was part of a pitch to get Mail Boxes Etc. franchisees to convert to UPS's new format. But the number wasn't a promise, UPS says -- it was simply intended to show how multiyear gains in customer counts and other factors could enhance a store's take". ... ENHANCE? OMG! Increasing the yearly "take" by 10,20,30,50,70% ...that's "enhance"! So what would you call a 4X increase??? You see, the WSJ stated that the average store (according to their research) was doing $295K STR per year. Now, when UPS came along and "pitched" a QUADRUPLING (to 1 mill) of yearly STR if franchisees go along with a name change, well, that representation is not of an ENHANCEMENT! ...It's of an EXPLOSION ...presented to franchisees (listening to the Gold Shield dog-n-pony show) of a greatly superior franchised network (per center), TUPSS, and a figure not presented merely as a "pitch", but as a figure that no sane business person could turn down, unless ... unless it were not true! And let's look further...
Was UPS trying to imply that this stupendous new STR would be arrived at if the MBE increased copying, or fax, or notary if the name changed to The UPS Store? NO! Shipping being 50+% of the average store's yearly revenue, that asertion was made to lead the MBE franchisee to believe that their UPS shipping volume would EXPLODE ... IF they changed their name to The UPS Store! And where did UPS get this 1 million dollar per store increase in STR? From their Gold Shield Test Marketing Program? ...or did they pull it out of thin air? Now, you tell me! Was Gold Shield misleading or truly representitive of good things to come? That's why the former MBE franchisees are in court!
The artical states that a UPS Corporate spokesman said; "As for the possibility of $1 million a year in revenue" [per store], "the company says that figure was part of a pitch to get Mail Boxes, Etc. franchisees to convert to UPS's new format. But the number wasn't a promise, UPS says -- it was simply intended to show how multiyear gains in customer counts and other factors could enhance a store's take". ... ENHANCE? If the average store was bringing in $295.000 gross per year, and UPS believed that they could bring that figure up to $1,000,000 per year, well, that's not an "enhancement" ...THAT's an EXPLOSION in per store revenue, and a bold and loud claim that could not possibly have been reached through increased revenue in fax service, mailbox service, copy service or notary service!
The only way a "goal" like $1,000,000 per store gross could have possibly been reached would have been through increased sale of SHIPPING SERVICES (50% of the average store's revenue) ... in this case, through selling more UPS shipping because the stores now offered a lower price! That's the message that UPS was trying to convey! ...especially if the name was changed to The UPS Store, suggesting to the average joe-on-the-street that we were a shipping store, not a mail store, or a fax store, or a copy store (increases in those services now would become most unlikely given the new name)! The statement by UPS is indicitive of their many misrepresentations made to entice MBE owners to go through with the Gold Shield Name Change Program! Then UPS's actions through ARS/BIN, Internet and in-store use of Corporate accounts made reaching any figure even close to $1,000,000 per store just about impossible! UPS's actions did not meet with their representations! So when people ask' "What can Brown do for you", don't take that statement at face value, nor the intent they seemingly wish to convey ... for their words do not mate well with their action (a charge leveled by the Class Action Notice)! See you in Court!
From the point of view of the stores that UPS converted from MBE to TUPSS, let's take a quick look at what legalities were involved in the execution of a "Gold Shield Contract"!
As is well accepted, a contract can either be written or verbal, implied in fact or implied in law (quasi).The "reasonable person" standard can also be applied (though here it does not need to be. Plenty of promises were made in writing). So, at the least, what would a reasonable person have expected the outcome to be if they accepted the Gold Shield Program's promises? That their shipping profits (the largest and most critical part of their business .. albeit not the only) would increase. Though the vehicle called the Gold Shield Program, and through concurrent statements made by the then MBE CEO (stated goal to make each store a "million-dollar/year STR store"), this expectation by the franchisee is both reasonable and to be expected as UPS's "consideration" for the franchisee changing their store name and business model.
The key was VOLUME! If volume did not increase, then profits would not increase. Because of the drastically reduced per-package margin, decreased volume would severely (negatively) impact shipping profits, hence severly impacting franchisee profitability/survivability. It was expected that UPS would take those concrete actions needed to increase per-store [package] shipping counts...actions that would go above and beyond simply putting the UPS brand on the front of the store (logo/name change). Did that happen? Did UPS work to increase daily store package counts (pkgs shipped under the store's account number)? No! UPS instituted volume-bleeding programs via the internet, reverse logistics, and the in-store use of outside corporate accounts! They used the [former] MBE Center to increase their package counts, their pick-ups, their volume, their profit ... but not the store's! They reneged on their promised "consideration", an exchange that was/is reasonably and provably expected by the now-screwed MBE/TUPSS franchisee!
So, that's the case in a nutshell (in my humble opinion)! UPS could have easily taken corrective action to shore up per-store profits by forwarding a fairer drop-off compensation plan (such as a "tiered" plan) in order to make up for the lost volume (generated by their actions), but they did not! That's why stores are struggling (or worse). And that's why we are all in Court! Even the stores that did not convert, for they were smart enough to see that not only would their shipping profits plummet, but also their other profit center's dollars! So, that's why we say ... See you in LA!
that what UPS did was unethical or even unlawful. But face the facts, you won't win. IAMCO took a crappy settlement. BSA is all but dead. PSA has hope, but we no longer live in a country where right and wrong mean anything.
The good news is they can't sell this POS anymore, so we will get to watch the Area Franchises get the shaft harder than the stores over the next couple of years. We will also get to see San Diego fall apart. Trying to move the stores into hotels and hardware stores will only hurt the franchise and the AFs are too stupid to realize that they are going to be on the hook for the majority of the FS stores because they are trying to push special concept stores. That's like an idiot Blockbuster franchisee trying to sell online rentals.
You got to quit worrying about the legal aspect, because I promise you, you won't win. UPS has the power to have laws changed. Our country has changed, I don't want to go into politics, but understand this concept - Power > Money > Government > People. With the constitution It was supposed to be People > Power > Government > Money, but that concept is now gone.
But you can still have fun with this. Just sit back and enjoy the show. You will get to watch all the people who UPS controlled over the last 6-7 years start to lose their butts. Granted the people in SD will just jump ship, but with the economy they will have to swim awhile and the AFs have a vested interest, so they will more than likely lose more than most store owners.
Just watching the AF's squirm and feel the financial pinch is good. Watching your AF go broke? Priceless!!!
..against UPS on the horizon...by these very same Area Franchisees, who were screwed over too by this whole Gold Shield fiasco! ...to say nothing about current franchisees (those who bought stores as a The UPS Store ... but were not given proper representations in the new FDD, which made NO MENTION of the (pertainent) financial data HAD by UPS (via the Boston Study Group Report), but not GIVEN to prospective franchisees! Will this all explode in UPS's face? I hope so, because the bubble has already burst for many a franchisee, leaving them financially and emotionally devestated! Come to Court and witness history in the making! (Can you imagine UPS presenting the cost of this fiasco to their Stockholders at their annual meeting? UPS's CEO is going to need some tranquilizers ... horse tranquilizers!)
I would strongly disagree that BSA is finished! Judge Highberger just last year confirmed the strength of the BSA case by expanding the PSA lawsuit to include them (BSA) and 3500 other class members! I was there when plaintiff's attorney Sirlin rightly called it a big win for the franchisees! Amy Darby of Gordon & Rees argued for expanding the Class, and Judge Highberger agreed! 150 became 3500! Trust me, the plaintiff's legal team is very confident as this case moves forward! The settlement? From what I understand, the plaintiffs are looking for over 1 million dollars per store! Plus attorneys fees! The Court compromised by politics? No! Stay tuned!
...ball? Nice ad campaign! But when does "payday" come for franchisees? &How about those already pushed under (the Brown bus)? Good luck!
From a high of near $90 in 2005 to below $60 per share today! The company's decline (in rapidity of growth and competency of operations) started about the same time they went public! Too bad for those who built the company! They need to wake up and shake up! ...their top management! That's the Board's job! They obviously are not doing it! Stay tuned! The shareholders annual meeting is just around the corner! Expect some fireworks ... especially from Platinum Shield and the UPS stockholders! But this year will be mild compared to the year they have to explain the writeoff if the Class Action goes against them! Like Judge Highberger said ... better to handle these things sooner rather than later! The amount may rival the charge incrued to withdraw from the Central State Pension Fund ... which was 6.1 billion! For the sake of all the good people working at UPS (Teamsters), I hope that the Company can get it's management house in order!
Because of a low stock price? Quite possibly. After all, the UPS Store owners have no representation (of any import) that can aggressively represent their interests in the face of United Parcel Service's reimbursement (for drop-off packages) or in-store pricing policies! UPS can dictate to The UPS Store owners ... even if the parent's policies are detrimental to the franchisee!
Total revenue (millions) in '09/'08 - $45,297/$51,486 DOWN -12%
Net Income (millions) in '09/'08 - $ 2,152/$ 3,003 DOWN -28% (06/07 -91%)
It does not take a rocket scientist to see why the stock price is lower than over the past couple of years (highs near $90), and why UPS does not (seemingly) care about the fiscal well being of their beleaguered franchisees! Perhaps that's why MBE/TUPSS franchisees are in Court! You are very welcome to attend this public, open-door event! Hope to see you there!
Found an AP story: "Postal Services emerging model: Never on Saturday" ... GOOGLE it. Take a look at the last paragraph of the story ... look, it's the Boston Study Group! Remember them? They're the guys who warned UPS that the UPS Store network was "in extremis" (to say the least). Seems they consult for the United States Postal Service (USPS) too! Well at least we know that United Parcel Service (UPS) hires the best to tell them what they (purportedly) do not know! Now, if the United States Postal Service takes action on the recommendations of this consultant, BCG, why not UPS? ...oh, they did, didn't they (not really). They decided to seek improvement in TUPSS's cash flow by making them all into copy centers! Forget that the Internet drop-off and ARS/BIN reimbursement rates are "lacking" ... UPS seemingly dodged that BCG report's recommendations by acting on "copy services" to improve franchisee profitability (even though shipping services compromise(d) around 50-55% of the average store revenues ... until UPS came along, that is! So I must ask...does UPS's response to the BCG report pass the "smell test" or not? Is UPS really concerned with franchise profitability, or their profitability? Let the Court decide! I have...
The Postmaster General came out today and stated that the Postal Service was gona have to change the way that they do business! So what does that have to do with UPS and the MBE rebranding? Figure it out! It has to do with the whole Gold Shield program, and the attempt/INTENT by UPS to squash not only competition (by FedEx, the USPS and the multi-mode retail shipping network called Mail Boxes Etc.,), but also UPS's intent to push all three entities out of the way so that they could control the internet shipping (emerging in early 2000 ... their internal studies showed them this) market! You see, the Postmaster General said today that the Postal Service was going to have to rely more on places like supermarkets and drug stores to sell their services, especially package shipping services! ...until UPS came along and purchased MBE! Who would have been better positioned than MBE to resell postal services? Getting clearer? Let's go on...
You see, it is not some sort of "revelation" that the USPS would someday turn to MBE to sell more of their services, especially package shipping services, because the USPS was going broke! This has been known for some time. They needed a reseller! A partner! One that would help them sell their product! Word at the time was that the Postal Service would need a retailing partner, and MBE owners knew that their multi-mode shipping stores were well-positioned! Getting clearer now? Let's continue...
Now, who was best positioned to become a nation-wide reseller of USPS products (as well as other carriers ... let the consumer decide because of CHOICE)! McDonals? No! MBE, of course...until UPS came along! Clearer yet? No?! Forward...march...
You see, MBE would have offered a perfect match with the USPS, as well as FedEx, UPS, DHL, Transbox, etc., etc! Is it possible that UPS wanted to act in an anti-competitive way by targeting all of these shipping companies? ...to eliminate the pre-supposed "threat" to them, even the emerging retail shipping franchise called MBE, all at once? ...To by then have opened (or be openning) 500 UPS-owned centers to grab all the business? To not meet the Gold Shield representations that the new UPS Store was to become the "premier" shipping services retailer? If the plan (Gold Shield) was failing (as seen by actual lackluster store performance and as indicated by the Boston Study Report), why didn't they take concrete actions to shore it up? And did not UPS initially state that they were not going to change the (MBE) business model (before the name-change)? That they were going to keep us as a multi-carrier platform? Something smells, no?
Anti-competitive. Gold Shield misrepresentations. No appropriate response to shore-up the UPS Store franchise when they saw (and were told by the Boston Study Group) that the network was failing ...primarily because of ARS/BIN, Internet and Corporate account use (at the formerly successful) MBE stores. Something a truly concerned franchisor (and parent) was obliged to do!
So, don't be so quick to scoff at franchisees when they bring up terms like Sherman Anti-Trust, DOJ, and a number of other "terms" like "misrepresentation"! ...And don't be so quick to call us all "overly emotional" in the arguments that we forward! Also don't be so quick to deny the need to bring back the MBE name in order to DECREASE shipping costs to consumers on a nation-wide basis, to foster competition! &The franchisees who have been destroyed? Not emotionally illiterate, but legally well-spoken ... very well spoken! See you in court!
Go to: www.brownbailout.com/buried-bailout/?fbid=9IMmbShygGX
and see! Did they hope to cut off the USPS and FedEx by compromising the MBE system? Did they see that very same franchised system as a competitive threat? Did they really mean what they said when they forwarded their Gold Shield Plan to MBE franchisees? The Class Action alleges that they did indeed misrepresent! What do you think? What will the Court think? Stay tuned to bluemaumau.org and find out!
GOOGLE: mail boxes etc usps ... and take a look! 250 centers running a test program in 1998 to retail US Postal Service products! Now, do you think maybe United Parcel Service (UPS) knew about this test program with the USPS? Of course they did! And do you think they wanted MBE centers selling (wholesaled to the center) Parcel Post in these Mail Boxes Etc stores? ... a service that competed in price and level of service with UPS Ground? And what about Air? ...both services now (possibly, if the test worked out) wholesaled to the MBE center instead of the franchisee having to mark-up from USPS retail prices? Of course they didn't like or want it, and remember, while UPS did not own MBE in 1998, they certainly did have a close relationship with the company (at one time 'lotsa stock and I believe a seat on the MBE Board prior to the USOP sale)! So, play the game of "connect the dots", and see if you can intuit UPS's intent when they put in place the Gold Shield program! ...and if you can't intuit, then judge UPS by their actions...actions which brought about a weakening of the TUPSS franchise system! That's why this matter is before the Court! Stay tuned!
GOOGLE: mail boxes etc usps ... and take a look! 250 centers running a test program in 1998 to retail US Postal Service products! Now, do you think maybe United Parcel Service (UPS) knew about this test program with the USPS? Of course they did! And do you think they wanted MBE centers selling (wholesaled to the center) Parcel Post in these Mail Boxes Etc stores? ... a service that competed in price and level of service with UPS Ground? And what about Air? ...both services now (possibly, if the test worked out) wholesaled to the MBE center instead of the franchisee having to mark-up from USPS retail prices? Of course they didn't like or want it, and remember, while UPS did not own MBE in 1998, they certainly did have a close relationship with the company (at one time 'lotsa stock and I believe a seat on the MBE Board prior to the USOP sale)! So, play the game of "connect the dots", and see if you can intuit UPS's intent when they put in place the Gold Shield program! ...and if you can't intuit, then judge UPS by their actions...actions which brought about a weakening of the TUPSS franchise system! That's why this matter is before the Court! Stay tuned!
The actually complained to MBE corporate because their share of the MBE business was declining too much MBE shipping business being diverted by the Franchisees to FEDEX and the Post Office
...would sit back and take a "screwing over"? 3500 former and 3500 current franchisees? 7000 small business owners, some former attorneys, military people, mid and upper-level managers from major corporations? They underestimated who they were up against! Each and every one of them must individually and collectively confront UPS in any and every way they can! Use your imagination and the tools available to you! The internet, attorneys, and YOUR good customers! If they are current UPS customers ... switch them to FedEx. Not all..don't want to hang yourselves .. but many! Especially those corporate account customers and Internet dropoff customers that you make nothing off of anyway! Stick it to them like they are sticking it to you! They will not succeed in this gambit of theirs! We promise!
They knew that this name change issue was UPS trying to peddle a bad bill-of-goods to franchisees! They knew that UPS was not the benevolent parent, but the cruel dictator! How strong could the MBE network have become if the USPS started teaming with MBE to sell their products...while providing MBE with wholesale pricing?! We may never know...or will we? The Class Action seeks to allow franchisees to rescind the Golf Shield amendment! Good or bad? From the looks of things...a very good thing! Let the trial begin!
The going got tough, and the tough got going! When UPS decided to take on MBE franchisees, did they really think they were dealing with uneducated sheep? I'd put many a franchisee up against anyone in UPS management! That's why MBE did so well! Great job by both associations!
Not all of them, but many! Especially this new CEO, who did not even come up from the ranks! The first outsider! Kelly? Poor advice from somebody ... or poor execution! Who knows, or cares! Some day maybe they'll realize that in order for a unit to excel, they must function as a team! This is what happens when you form an adversarial relationship! Well, time will tell! For now, on to another adversarial encounter ... Judge Highberger's Court! See you there!
Big UPS, followed by smaller FedEX, followed by ... no one? Is this a good thing for the U.S. economy? Remember what happened during the last UPS strike? People turned to FedEx and the USPS. Now what, a weakened USPS? Leaving who to service all of the packages that ship coast to coast, 24/7/365? Especially if UPS faces labor problems? In this new Internet era?! FedEx alone? Do they have the capacity? You see, here's the danger of market manipulation...anti-competitive schemes like Gold Shield! Lawmakers and producers of products of all kinds had better take a look down the road, and see the danger that this economy could face if UPS's gambit is allowed to succeed! UPS stifled competition, therefore they must be made to divest themselves of the MBE network, and pay all damages caused by this whole set of (Gold Shield) misrepresentations (that are alleged in the Class Action suit)! Should DOJ look into this whole sordid affair (Amos/Gold Shield/anti-competitive practices)? Yes, I believe they should!
And now UPS is trying to Change what Act FEDEX is regulated under. I always had problems with why the teamsters would sell of the UPS pension. Other than the money what was in it for them. Until you start hearing about UPS fighting to get FedEx under the railroad act instead of the Aviation Act. Then the deal becomes clear. UPS will deliver the ability to Unionize FedEx locally to the teamsters. IMHO
...for the amount in damages that should be awarded to each MBE/TUPSS Class Action plaintiff. Why? Well, FedEx paid (aprox) 2.4 billion for 1200 Kinkos centers. That works out to $2,000,000 per store. UPS has reportedly already paid out $5,000,000 to a former franchisee who sued. Davis made $5,500,000 in '09! Now, take the sum of all three figures and divide by three. That equates to $4,200,000 (rounded to the nearest hundred thousand). With attorney costs at 1/3 (ballpark ... maybe more), that leaves ... let's see; 4.2 x 1.3 = $5,460,000. OMG! That's the same as Mr. Davis's 2009 salary (rounded to the nearest $100,000)! Am I a genius or what! Let's hope UPS can add, multiply, subtract and divide too! Let's see. 3,500 plaintiffs x $5.5 mil ='s ...
Or you will get a coupon good for 1 zone 1-2 package shipped ground (4 lbs. max, not valid between November 1st through June 30th).
Found a very interesting comment on the website "Unhappy Franchisee". The comment was in response to a story; "The UPS Store: Overview". The writer identified himself as Rod, and the post was made on Sept 11th, 2008. Allow me to share it with you, for I find it one of the most interesting comments I have read on this subject (of UPS allegedly defrauding franchisees) to date. Here it is verbatum:
"I'm a terminated franchisee from another company, but recently met my counterpart from The UPS Store on one of Mr. Kelly's other websites. I can't give any other backround on her, but I wanted to share a warning from this franchisee victim. I'll call her Joan of Arc for now.
Joan has essentially the same story that all of us at Unhappy Franchisee share. We were told material lies about the business in question. This means that if we'd just been told the truth, upfront, we never would have purchased that franchise. Trust me, if I read the book, The Franchise Fraud, by Robert L. Pervin Jr., instead of Franchising for Dummies, I would never have gotten involved with any franchisor at all. If you haven't taken the fatal plunge yet and already signed a contract, please do your due diligence by ordering that book. The title tells the story.
Purvin, an attorney, argues that the entire franchise industry is rife with fraud. He proves his case. What appalled me the most was the fact that the FBI and local law enforcement agencies allow this to continue uninvestigated. But don't worry, I won't get on my soap box here.
However, Joan has some astute insights into why franchisors are free to lie, cheat and steal right under the noses of the cops. Hell, you wouldn't even let used car salesmen get away with that. But franchisors have something like diplomatic immunity. For example, diplomats don't have to go to jail for fraud or racketeering.
Joan told me there are 200 ex-franchisees involved in her lawsuit against The UPS Store. Fellow ex-franchisees, do the math, here's two hundred, middle class families, who were smart and successful enough to afford to buy a damn UPS store in the first place, who honestly believed they've been defrauded. How many more victims will it take before the FBI takes charge and puts a stop to this blight on the middle class economy?
Purvin explains in his book that the dwindling middle class in America is the primary target for ruthless, franchise racketeers. We had enough money to get involved, but not enough to fight back with civil attorneys. That's why law enforcement must be pressured to take action. Our taxes pay for FBI investigators and U.S. Attorneys. They don't charge by the hour. The same goes for local cops and district attorneys.
Purvin warns that many franchisors intentionally "churn" franchisees by taking all their upfront fees, ignoring them until they can't afford to pay the lease, terminate them for bogus causes, and sell the territory to a new victim. They don't even try to have a professional product competing in the market place. They make their money by cheating us, not helping us advance their product.
That's the dirty, not so little, secret of franchising. I think every terminated franchisee should report this fraud to the FBI and local police. You have a civil right to report crime and blow the whistle on fraudulent criminal enterprises. Trust me, you're crime victims and should be afforded all the rights of any other victim. Look up RICCO or racketeering on Wikipedia or anywhere else on the internet. This is exactly what the Franchise Fraud amounts to.
The companies I read about at this website, which I want to thank Mr. Sean Kelly for providing, are really counterfeit franchises. They were never real in the first place. They were based on lies and deception by conmen. It doesn't matter how many times a counterfeit $100 bill gets passed around, it never becomes real. Bogus fraudulent franchises have no intrinsic value in the first place and churning them over and over doesn't make them legitimate.
Other critics of The UPS Store franchise claim that the business model is severely flawed, and few stores will ever turn a profit. Nevertheless, UPS continues to aggressively market its flawed franchise opportunity".
End
Well, there it is. I can't argue with it, but I will take the gentleman's advice, and write my local FBI office. I would suggest that you do too!
Truth be told, it is (we) franchisees that have allowed the misperception of "successful franchising" to perpetuate. Franchisees refuse to think "collectively" and continue toiling "in their own self-interest". We look only at our own franchise system (as opposed to working together to show how all these systems use the same tactics). Within each system there are usually 3 types of franchisees: 1. Successful - those fall in the minority, 2. Profitable but minimally - usually a decent percentage and 3. Unprofitable - a strong percentage.
Group 1 wants everyone to shut up. They try to control the information flow within their IFA's regarding their franchise organization because, eventually, they want to sell at the highest price.
Group 2 wants to be known as group one. They, too, want to sell - for obvious reasons, and don't want anyone to know how bad the system is. They refuse to work with others to help transform the system out of fear of termination (a very easy thing for franchisors to do). They figure if they can hold on long enough they can sell out of this debacle or, at the very least, hire someone to "mind the store" and they will get a full time job to offset any lost income due to the minimal earnings.
Group 3, the largest group, is in a full state of panic. Most likely they have a family at home relying on the success of the business. Their home, all their savings, their children's future and their very marriage and family are on the line. They are "all consumed" with trying to salvage this sinking ship.
The franchisor has successfully "divided and conquered" the franchisees. Telling them repeatedly not to speak with other franchisees, telling each individual franchisee that they "are the only ones having this problem" thereby embarrassing them into silence.
Look at this website. How many of us sign on as "Guest". We bitch and moan individually and rarely come together. Franchisors have manipulated us into silence. We are not only fearful of our franchisors (and potential lawsuits for speaking out - what happened to "free speech"?) but also of the "Judas'" within our own systems willing to "tattle" just to ingratiate themselves with management. For many of the failing zees, they just want to walk away from this fiasco and try to start their life over again - never to look back.
As for the Guest's suggestion of the FBI and AG's office, they are bound by the law. What laws were broken? What, in writing, was guaranteed that falls into illegal, criminal, behavior? If wronged, it is most likely civil so the FBI and the AG will politely decline.
This won't be stopped until more speak out thereby stopping the sale of "new" franchises. What would work better on this site is for franchisees to create a "sign on" name so readers will know how many of us there are. Are the postings all by the same "Guest" or are there multiple hundreds of "Guests" out there? It will provide more legitimacy to this site and let potential franchisees see the enormity of the franchise scam. From there, we can contact one another thru an individual contact system on this site that is totally ANONYMOUS! Your email address is NOT given out. I know, I have been in contact with several people here and I don't know who they are and vice versa. It may help us "connect the dots" between franchisors - and there are a number of dots that are "connectable" to show collusion.
"The UPS Package Drop-Off Store"! Franchisees? They can drop too...drop dead! Stay tuned to bluemaumau.org for further updates!
from feb 2,3 FAC meeting of TUPSS
"1) September, 2009 was the first month with the volume of pre-labeled packages (dropoffs)
exceeding the volume of manifested packages"
What UPS drop-off customers are gona see more and more of as ever-weakening franchisees come closer and closer to the edge of the [financial] cliff (or go over it)! These customers need to blame the culprit ... United Parcel Service, Inc., who pushed these franchisees into a corner! But UPS management probably sits there and curses; "those pain-in-the-neck franchisees"! ...can you imagine! That's like O.J. Simpson cursing out Fred Goldman because Fred pushed the issue in court! Well, O.J. was finally brought to justice! UPS too will suffer a similar fate! When your chickens come home to roost ...
Let us hope that the jury well represents the public it will be charged to serve! It must truly be a representitive one so as to insure diverse voice and fair deliberations. I do believe the next phase will not be a bench trial, but I must admit I do not know, or really care...as long as the case is heard! Let the process move forward!
How? Amos was negotiating with Meg Whitman of EBAY (CEO) in order to work out details for EBAY to partner with MBE in the lucrative, and emerging, internet sales market! Now, did UPS follow through on these negotiations (after the name change) in order to benefit both them and the (former MBE) network? Seemingly not, for soon there after UPS announced deep discounts for EBAY shippers...discounts (in shipping price) that would not apply if the EBAY shipper went directly to a MBE/The UPS Store! Oh, well, they kinda did want the EBAY shipper to go to a TUPSS, but only to drop off their package! ...NOT to use them, or PAY THEM, to ship! Just drop it off! So, one can see the true INTENT of UPS from the get-go ... cut off the MBE/TUPSS from this growing (internet transactions) market! Use the UPS Store to service the "clicks", but not to profit from them! That was the sole purview of UPS ... the sale and profit that is! And why not cut-off this network, MBE, from this growing internet shiopping market...ESPECIALLY since MBE's offered shipping services outside of UPS (FEDEX, DHL, USPS, etc.)! INTENT! UPS's is becoming clearer every day, especially where the emergence and growth of the internet is concerned, and guess what...the intent was always to throw MBE and the hapless franchisee "under the bus"... the UPS Brown Bus! ...and MBE's & UPS's corporate management either knew about this at the time, or should have seen it! As the Class Action states...for "negligent or intentional misrepresentations" (to franchisees ... by all involved)! Stay tuned!
Number of corporate-owned stores UPS plans on opening to replace The UPS Stores that are driven under by too many drop-off packages! What to do? Warn each other ... and follow the news here at bluemaumau.org! ...and send leads (from UPS's corporate/internet customers) to FedEx! Use the package's return address! Why not?! Do on to others...!
How can you find them? Go to www.ups.com/pressroom/us/board/board and take a look-see! They seem like decent folks ... at least there are no politicians amongst them! Too bad there are no ex-military! One would think a company like UPS would seek out a retired General, or Admiral! People who prize their dignity and honor ... and those of the company they represent! Well, maybe some of the UPS Board members have served! I wonder?! Here are their names (FYI): Ann M. Livermore, Hewlett Packard Co., D. Scott Davis, Chairman and CEO, UPS Corp., John W. Thompson, Symantec Corp., Michael L. Eskew, UPS CEO (ret.), Stuart E. Eizenstat, Covington & Burling, Carol Tome, Home Depot Corp., Duane Ackerman, Bell South Co., Michael J. Burns, Dana Corp., Rudy Markham, Unilever (ret.), William R. Johnson, CEO H.J. Heinz Inc. .... Now , maybe they know about Amos, and maybe they don't. Maybe they are aware of this lawsuit .. or maybe they are not. But they're attention we need have, if for nothing out so that 1) They can't say they did not know about this and; 2) They can inquire into this Amos affair, his testimony seemingly being pretty cut-n-dry (yet still dirty...on this inside-info driven MBE aquisition)! Well, we'll see! They say the boss is the last one to know! Let's see if that's true, and if we can "blindside" UPS's (current) upper management! I might own some UPS stock! ...no, that's right ... had to sell my retirement money to keep the dog afloat (until I had enough)! Well, maybe some of you out there have some stock! I'll do it for you! Stay tuned...
...Hmm. OK!
Amos and Kelly? ...and Rockush? Stuy? Davy? The whole crowd involved in this seedy Amos and MBE-purchase affair (if his testimony was accurate and involved illegally-divulged inside information..I'm sure that it was...truthful)?! Yeah..I think these guys need to both check AND cover their "sixes"! ...and see to it that their attorneys are prepared to "cover their backs" should other "interested parties" wish to look in to this entire affair! ...beyond Judge Highberger's good Office of the Court! Including United Parcel Service! IDK because I am not an attorney...but I do know how mice run for cover when somebody turns on the light! Gentlemen...the ball is soon to be tossed into your court! ...and I do mean Court! Good luck! &I do hope that you don't have to feel the same pain that the poor MBE/TUPSS franchisees have had to feel! ...nahhh! I really do...hope that you are compelled to answer, and to feel! Live long and prosper! ...and come visit with us in court! April and October! In LA! Hope to see you there!
By the Court and on UPS's dime! Signage! Advertising! Corporate restructuring costs! Maintaining of any and all wholesale shipping discounts now offered to MBE franchisees by UPS! This whole scheme (alleged) must be reversed! Why? For the sake of competition (on a national basis)! To discourage UPS's monopoly of shipping services in this new internet (sales) area! For the sake of consumer choice! For the sake of upholding the SEC securities laws and regulations of The United States of America! There is no other other avenue to take (other than UPS's actual and punitive reimbursement (costs) being awarded to all past and present franchisees of Mail Boxes Etc. and The UPS Store)! ...in this guest's humble opinion! See you in court!
"For the sake of competition (on a national basis)! To discourage UPS's monopoly of shipping services in this new internet (sales) area! For the sake of consumer choice! For the sake of upholding the SEC securities laws and regulations of The United States of America!"
What country have you been living in? Business is now allowed to be to big to fail. Some companies will become invincible as we move into a global economy. Trust me UPS will be one of those companies.
...and so did many other dedicated (and aggrieved) MBE/TUPSS franchisees! That country's name? The United States of America! Yes, it is still here! ...and yes it will be, for a long time to come...no matter what hijinks are perpetrated by UPS (or other corporations) on it's franchisees or competitors or the American public. UPS and others might try to (illegally) step on the toes of companies big and small...w/ UPS it was FedEx and the MBE/TUPSS franchisee...but that does not mean that the instrumentalities of fair and legal competition (like the SEC, the Courts and our long-established laws of commerce) won't try to keep the playing field level and fair so as to maximize benefits to the entire economy! So, let UPS keep delaying the inevitable...the upcoming Court order rectifying this perverse and illegal (alleged) situation! And let the little guy show the Corporate Giant that we still live in a nation of Laws and judicial redress! ...and I hope you come to court so that I can shake your hand! See you there!!!
You can wave the flag and beat your chest all you want. The truth is it is no longer the country we served. It is now "The United States of Big Business". You doubt me - call your U. S. Senator and ask to speak with him/her or call you back - you will get a staff flunky and never speak to the Senator. However, if your the CEO of UPS and call the same Senator - your call goes right through. So much for of the people, by the people and for the people. And justice - yes you can get justice - if you have enough money - if you run out of $$$$ justice is over. The sad part is the country is controlled by big business and the federal government - it's a partnership. You don't think so - just look at the last Supreme Court ruling on campaign contributions and connect the dots. That ruling alone insured total control over any elected political group. Why do you think there are 30,000 lobbyists? And not one of them represent you.
But I would dispute this;
I would suggest it is more of a master 'good boy, roll over' relationship. I suspect the only thing you can do about it is to not rely on any political assistence and work with what might assist you. In Australia we have to vote and while I always have voted the choices have fast come down to who can do the least damage or one between the various well intentioned non-entities that offer zero influence. Promises to franchising are a divided into those that will never be fulfilled and those that are 'self-rewarding' or serve the political party.
Australian Franchise Opportunities, a common sense approach to franchising
..obtained information (from Amos) about the sale of MBE to the Apollo group? If this director of UPS Mergers and Aquisitions, David Mounts, was personal friends with Amos, then did he than pass this "inside info" along to UPS CEO Jim Kelly, who then proceeded to act on that information by re-engaging Amos...after the fact that the Apollo offer to buy MBE was accepted? This guy Kelly was the CEO of a major U.S. Corporation! Certainly he knew about the "inappropriateness" of engaging Amos in re-opening purchase talks given the circumstances (of Kelly's obtaining confidential inside information from his employee Mounts)! ...and then, when Kelly and his team went before the Board of Directors to get approval for the plan to purchase MBE, did they not inform said Board about the Apollo (pending sale of the company to this investment Group) offer? What is going on here? Can you say; "Red Flags galore"? If not, can you say; "SEC investigation"? I can! I hope that Judge Highberger is able to forward this matter on to the Justice Department and the NY Attorney General, as well as the CA AG, for further inquiry! No matter what happens in this trial, these people must answer for any (alleged) illegalities engaged in! Stay tuned...to bluemaumau.org! And do your fellow franchisees a favor...get them here before UPS opens up one of their 500 Corporate owned centers near YOU (see the transcripts of the Morgate trial..Mike Aguierres presentation to Judge Highberger...go to Court View Network to see about obtaining the transcript of the trial! After spending $200K to open your center, is not it worth the $25.00 investment ...in order to get the truth)?! Do not you owe that to each other?
Interesting question ... and one that FEDEX recently had to answer for the State of California (much to their disappointment and dismay)! You see, the Franchise Tax Board, IRS, Social Security Administration, and Justice Department's Labor Law div has an accute interest in seeing to it that big corporations do not use fancy business "manuveurs" to avoid meeting their financial responsibilities and obligations to both the Federal government and to the States. Did UPS, by requiring franchisees to maintain certain hours, wear a certain uniform, sell a certain product, advertise a particular brand and call their business by a very specific corporate name...did UPS in actuality hire, train and gain profit from what were in reality defacto employees, NOT "independent contractors" or "franchisees"? After all, UPS Stores typically derive over 50% of their revenues from UPS shipping! As we well know, 51% ownership in a corporation gives one a controlling interest in an enterprise, if indeed percentages are to be used as the measure by which we ajudicate ownership and concurrent financial responsibility! UPS was/is a seperate business entity that "purchased" a franchise, Mail Boxes Etc., and after the fact of it's establishment. This is quite a difference, from, say, McDonalds, which started and developed as a franchise! Or Jiffy Lube! Wendy's! A very interesting legal question, and given the sorry state of State and Federal cofers, an issue that must be raised ... and responded to by UPS! Monies are tight, revenues down, sources of dollars scarce! Tax dollars! FEDEX was called upon to answer for their "independent contractors" hiring process after they expanded into ground shipping services! In the spirit of fair competition and to assure a level playing field, so too must UPS be called upon to determine if they used "franchisees" to avoid complying with state and federal tax and labor laws! And the Teamsters should also be interested in deciding wether or not UPS illegally used non-union labor to undercut their proud and productive union! For the sake of healthy society and in accordance with fair taxation and government, one would hope that UPS did not engage in a shady manuveur that denied the public much needed and, by law, required finanancial [revenue] resources! And union membership! Stay tuned...
What these people at UPS should be thinking is; "How do we make this right"? Instead, what they are thinking (as evidenced by their actions to date) is; "How can we get away with this"! Poor decision making! What they need to do is what Tiger Woods did ... owe up to past transgretions, and get on with business! But they won't ... in typical corporate fashion! Not until and unless, that is, the legal system forces them to! But by then, as we have seen, it will be much more painful...for all parties involved! But especially for the stockholders of (ticker symbol:) UPS! Pension funds. Retirees. Former Madoff investors looking for a "safe" haven! What a shameful performance!
Yes, franchisees need do their research...and do it well if they do not wish to lose their shirt! Go to GOOGLE and type this in; "Pros and Cons of The UPS Store Franchise", and read the franchise review on about.com by Don Daszkowski. He states; "Questionable Profitability - According to a very reliable source it takes "about $365,000 in annual gross sales" to produce a modest "$35,000/yr income for the owner" and "about 60% of all U.S. stores do not break even ...". Well, let's help Mr. Daszkowski hone his figures a wee bit in order to even more accurately support his research, a prudent investigation which shows that owning a TUPSS is a risk not worth taking (thanks to the destructive actions of the parent, United Parcel Service, Inc. [a very BIG "Inc."], a charge leveled in this Class Action suit)! According to The Boston Study (see story here in BMM.org), commissioned by UPS (who said it never existed..a "mis-statement" by their VP of PR, Norman Black, who said, when confronted with this study by a reporter; "I have no idea what you're talking about" ...yeah, right!), fully seventy-seven percent (77%) of the stores are operating AT RISK OR WORSE! Yes, that's 77% (mathematically (accurately) rounded off to 80%) of the stores FAILING! 4 in 5!!! Of course, what the other 20% (1 in 5) make is more than likely not too impressive (to say the least)! Now, if one assumes lost interest income from monies invested to start the business, well, one can easily see that you end up paying UPS to work...for them! What a deal...raw deal, that is! And if UPS has known this since AT LEAST the issuance of this Boston Study Report in 2006, does not that make them (alleged..if the information is true..it is!) liars to each and every franchisee that they sold a business to since '06 (at least)? Yeah, I believe that it sure does! And you know what...they knew this was happening/would happen since the time they conducted their Gold Shield market research in the early 2000's ... about the time they sold the MBE owners a bill-of(bad)-goods during the Gold Shield (name change) presentation! So, before you condemn any former or present [MBE to] The UPS Store convertee, think a little! ...you don't even have to think very much! These people are scoundrels, all of them, and they need to be taken to task! They will be! In the mean time, remember these two things: a woman should never walk alone on a dark street in NY, and do not buy a TUPSS franchise! Both mistakes very likely will lead to the same unhappy conclusion...!
...in the FDD? Is that not pertainent financial information that the future franchisee needs when making a decision on wether or not to purchase the franchise???
The reason is simple...the Gold Shield Test Marketing Study (pre-MBE purchase) and the Boston Study Group Report are or should have been one and the same...both showed failure of The UPS Store model! ...and here's the key...but if they did'nt (as UPS contends), then THEY SHOULD HAVE! Of course, in actuality, the plaintiffs are arguing that they did (they will prove this in court)! Now, if UPS says that the Gold Shield Test Marketing Study did NOT show the same results as the Boston Study, then one must ask why, and certainly it should have...UNLESS the Gold Shield Marketing study was severely flawed...which then makes UPS NEGLIGENT in the conduct of the Test Marketing Program! So, either way, UPS sold the MBE owners a bill-of-goods, wether intentionally or unintentionally! The Class Action allegations bear this out; " ..(1) for negligent misrepresentation; (2) for intentional misrepresentation", and it is what the Plaintiff's attorneys must argue! UPS cannot say that the Boston Stdy was a "revelation" to them, because if that were true, IT SHOULD NOT HAVE BEEN! This is a large, very experienced company...with a reputation for unprecedented accuracy in their time masnagement and marketing studies! ...UPS driver time studies! Foreign Market (penetration) studies! The Gold Shield Test Marketing Study! How in the world can they argue that they did'nt see what they Boston Study saw ... either they did or they should have! What does this all mean? Well, that's up to the Court to decide! We are a nation of Laws, not personal opinion! But UPS has much explaining to do ... especially when they try to say that the Boston Study showed "unknown-to-them" store failure rates, findings that supposedly differed from the Gold Shield Test (of selected stores in selected markets) Program! So, to UPS I wish, in the words of the famous poet, "strong winds, and a star to steer by"! ... one that takes their ship of "misrepresentations" right into the arms of the MBE plaintiffs! It's called JUSTICE!
One a "report" (the Boston SG product), the other a "study" based on sampling (the Gold Shield Marketing Study). The report confirmed what the study both projected and foretold...that the UPS Store concept would lead to mass failure of what was formerly a very successful franchise model ... the MBE shipping stores! How successful? A 20+ year record of revenue growth and franchisee prosperity ... all brought to a grinding halt when UPS took over, and whose actions purposefully (allegedly) caused failure of store-owner's businesses en masse! Purposely or through gross negligence! The GS Study results are fully and completely reputed by the Boston SG report! Did UPS have prior knowledge? Did they purposefully misrepresent, or negligently misrepresent? It does not matter, for they did not accurately represent findings to MBE franchisees in the Gold Shield dog-n-pony show! They misrepresented! Fraud or mistake? That's for the court to decide! Culpability or innocence? Let the facts of the case tell the story...in it's entirety! ...and let present UPS management confront the issue head-on, and in a fair and honest manner! Then, look for who "screwed up" and hold those people accountable! Action postponed just lets a tumor become malignant, requiring much more painful surgery! Stay tuned!
As part of their corporate strategy, UPS may soon be opening 500 or so corporate owned parcel centers (at least it has been reported), thereby completing the scheme hatched years ago to destroy a franchise that they saw as a threat to their market domination...the multi-mode shipping services retailer called MBE! So, to my good friends slaving away at TUPSS (accepting more and more drop-off packages everyday) I must ask, why so much coporate advertising of mailbox services, notary services, copy services, and so little advertising for shipping services? The reason is obvious...you are being groomed for something other than survival (primarily) as a retail shipping services center (allegedly)! No matter that shipping is your primary source of revenues..the reason you invested your hard-earned dollars in this franchise in the first place! Much better for UPS to own fewer centers w/greater driving times (for their internet drop-off and corporate account/reverse logistic [ARS/BIN] customers)! You? Oh well! My question to the more enlightened out there...did this UPS takeover of MBE in any way violate the Sherman Anti-Trust Act (yeah...what's that)? Food for thought..maybe! Well, keep tuned to Bluemaumau.org! Send your fellow franchisees here so they can contemplate their next move...career wise! It's always good to keep a fall-back plan in your back pocket! ...no? And shelve those plans for retiring on the proceeds from the sale of your store after years of hard work (only UPS management gets parachutes...their stock plans and corporate-matching funds into 401K's...dollars you so graciously contributed to them through your hard work)! That's why you pay Uncle Sam 14% of your income ... for Social Security! But hey, that's another story! Good luck!
So, UPS may open 500 corporate locations? Hmmm.. Sounds like a conflict with the premise that the Buisness Model is broken that is being stated around here. Let's flush the 200k investment in 500 stores, aka $100,000,000.00. Yeah, that sounds realistic for the organization with all the data you think is a smoking gun. Put the emotion aside or you might continue promoting the wrong argument.
BTW, 'at risk' does not = failing. I'm tired of that poor jump in logic as well.
A UPS business model for a store and the zees model for the store would not be the same. Also drop that 200,000k down to about 75k. UPS won't be forced to pay $1400 for a $400 computer or kickbacks for contractors and fixtures. Not to mention franchise fees, technology fees, medicine to help heal the brushburns on your knees, overpriced training fees, kickbacks on copiers etc. etc. etc.
I've never heard of this 500 store thing that this guy keeps talking about, so I call B.S. until he can prove it, but the store would be a totally different business model under UPS.
...I was in Court and it was part of Mike Aguirres presentation. But you weren't there, so I can understand your amazement! I was too! Now, I am sure you don't want to go through the trouble of ordering a trancript of the trial, so let me try for a 2nd best thing ... something FREE here on bluemaumau.com. Go to the BMM story, and below the story (above these comments) see the "attachment" section...and click on ;"Deposition transcript for James Amos dated 6-15-06 pdf"! Read it, and stop when you find the question (to Amos) about UPS's plan to open 500 stores! ...Now admittedly, Amos himself was not aware of the plan (or so he states), but that is understandable as he was not in the UPS loop at that time! Barring your obtaining the actual court transcript, that's the only place I know where you can go to verify my statement about 500 stores! If you want further proof, you need to read the trial transcript and find it in there ... unless Mike was mistaken about UPS's intentions re; these 500 stores! But as the UPS attorney, McDonald, did not object, I must surmize that Mike presented good information to Judge Highberger! Hope this helps!
It's been a while since I read the Amos depo, so I re-read it and you can find the question to him (about UPS's plan to open it's own stores) on pg. 120 line 4 through pg. 121 line 14. Now, the number of stores is not mentioned here, and Amos denied any knowledge of UPS's plan to open these company owned centers, but if you don't want to buy the transcript of the actual trial, this (depo) is the only place I know of (to go) if one wants to verify this [500] store comment! ..or at least come close to verifying it! BTW, I recall hearing this number when plaintiff attny Mike Aguirre was presenting his case to the court because I remember how shocked and surprized I was about it. I considered it a devious, back-stabbing (in my opinion) plan...like a bullet confirming my belief that UPS was out to screw us (franchisees)! ...and since McDonald did not object, it must be factual. (...but Attorney Aguirre may have also put up a chart on the overhead that he was using during his well-researched presentation). So there it is! Want more? Get the transcripts, or attend the trial proceedings! I do my best to call it like I perceive it, rather than trying to throw out BS!
...500 corporate stores opened by UPS once the MBE network is pushed "out-of-the-way"! ...At risk does not equate to failing? Than what does it reflect...success? And how best to change "at risk" to "success"? Hmm ... by getting rid of the MBE owner, and having someone come in and get the (already developed) store on the cheap! Less loan to service ... less working capital to get the business "up-to-speed"! Those costs were borne by the now (gone) MBE/TUPSS franchisee! He swallowed the loss ... and soon the new buyer(s) will too when drop-offs finish the store off, and the job of getting all other players (like FEDEX) out of the game ... UPS's "game" (only)! Yes indeed ... logic! ...not too hard to logic through UPS's intent here ... from the get go! Stay tuned!
So your saying:
Owner 1 fails
Owner 2 gets the business 'on the cheap', then fails
UPS opens corporate store once franchisee is pushed out and succeeds?
Oh, and 'at risk' means 'at risk'.
Owner one, two, three ... all bear less costs until the business either succeeds (marginally) or fails! The 500 corporate stores? Not built after the fact, but DURING the fact! Then, no more multi-mode (carrier) franchisee to deal with (MBE - one who was gaining leverage), your main competition is pushed out (FedEx), &then you are the only one left to garner all of the business (or most of it) far into the future! Is this a complicated story? Only if you throw up smoke and mirrors (like UPS is)! But the bottom line is this ... why did they say that the name-change would result in vastly increased business (for the franchisee), then take concrete steps to see to it that THAT did not occur (ex: internet drop-offs)! How could they make all of these TUPSS's "$1 million dollar per year STR stores" (as was their stated goal) if the main part of the MBE business, shipping revenues, was consciously bled away?! The scheme too costly for UPS? Hardly ... not when projecting future revenues from the new-born internet shipping market, one that you now control! 100 million to cut off COMPETITION or CONTROL DISTRIBUTION is a small price to pay (for a future vast revenue stream)! Stay tuned!
I gather that you must feel the same way about Landlords of Retail Space. Benefiting from business owners investment and generating cashflow & equity in the process. All the while conciously bleeding your revenues by leasing space to other businesses that may dabble in some aspect of your profit centers. Those silly landlords with their churn and burn tactics, charging the market rate and replacing poor performing tenants.
What kind of dimwit would sign a lease in a strip mall without a non-compete clause? This guy obviously is a MBE/UPS agent provocatuer.
Not affliated, but find the comment above very funny. While pointing out the odd logic of the emotionally encombered, this is the reply?
Really?
Why sign a MBE/UPS franchise agreement without a non-compete clause?
Dimwit out.
Dimwit is drifting in and out of two different arguments. Are you talking about your original statement where you were talking about a strip mall lease, or did you just jump into an attack on MBE franchisees in regards to a non compete with UPS? Which one?
The point and the argument as you call it are the same, that emotion here has clouded the logic of the guest poster and that his statements/accusations are at times inconsistent (logically speaking, though they do consistently agree with his/her opinion).
If by analogy to another business interaction via leasing you were lost, then the hope that speaking in the same terms (as are used in the UPS evil empire theme) about anther business would be responded to with less emotion and be seen for what it is. More simply a discussion of contractual language, obligations, enforcement, and breach…. Just like in a lease agreement. A document that is negotiable, slanted to the author, and signed for the pleasure of doing business under those terms, should you choose to sign it.
...or shall we say misrepresented both verbally and in written form ... the well documented "dog-n-pony" show! Now, go ahead and color the plaintiffs "emotional", but their grievences and representations have indeed been given legitimacy by the Court! ...and contracts can be both verbal and written, no?! Gold Shield was both, and contained numerous misrepresentations (allegedly as outlined in the Class Action Notice). So logic is in the eyes of the beholder, no? If not, why have jurisprudence? Indeed, why! Law is in the eyes of the Court, or at least it's interpretation is! Let's just leave it at that and see how they decide! See you there!
Keeping with the analogy, is that dissimilar to a Landlord marketing a space for lease with demographic information and co-tenants that change over time or go dark? It's most likely not in the agreement, but does influence you decision to sign. Just curious, but it seems that the responce to this question revolves around percieved intent, not the result.
Not trying to bait the conversation, as you said, you'll get resolution one way or the other through the court based on the courts interpretation.
As you stated; "You'll get resolution one way or the other through the Court based on the Court's interpretation". ...That's right! I just wish UPS would not try to drag this thing out, as they have for years and and years through numerous (delay inducing) legal manuveurs! Justice delayed is justice denied, no? I think so! Let's just see what Judge Highberger thinks! Find time to attend the trial. I will!
It's obvious that UPS never had any intentions of keeping the MBE/TUPSS franchise either active or healthy. The last two sentences (of the story) encapsulate it all very well; "They were supposed to protect the franchise agreements and instead, they turned over the franchise to a company that had no interest in maintaining the franchise. And then that company [UPS], once they got hold of the franchisor, exercised their authority and power to wipe them out".
Now, what proof do we have of this dastardly intent? Why, judge a man, or a "corporate entity", by it's actions! EBAY! ARS/BINS! Misleading statements during the "Gold Shield" dog-n-pony show (as presented to franchisees by both UPS and MBE corporate executives ... both of whom should have known UPS's true intent (or so it is alleged in the Class Action suit))... those intents being to further the parent's financial interests at a [detrimental] cost to the fiscal health and well-being of the MBE/TUPSS franchisee! UPS seemingly wanted MBE/TUPSS out of the way! Cut and dry? ...Well now, again, that's a matter for the Court to decide! That's why I'm going! How about you?
...utilization of the internet to capture business for them, NOT Fedex and NOT the MBE franchisee who they purported to want to "team-up" with! Cut them all off by destroying a competitive "threat" ... the fast growing multi-shipping retailer called Mail Boxes Etc., the "Walmart" of shipping services that threatened their total control over and dominance of internet shipping commerce! A new emerging market that they planned to corner no matter what the cost! A great franchise (MBE) needed to be disassembled, and franchisees bankrupted! Quite the scheme, and quite the plan ... executed with precision and cruel, cold calculation (as is alleged in the Class Action suit)! So forget the JFK conspiracy. It's too hard to prove! Not so this malfeasence perpetrated by UPS! Slick they are, but invulnerable they are not! They didn't factor in Platinum Shield, IAMCO, Brown Shield, Gordon &Rees and 3500 dedicated and determined franchisees ... those MBE center owners wronged by this despicable act of false misrepresentation that was meant to cover their true intent (as outlined in this powerful Class Action) ... to wipe out the MBE franchise and "little guy" franchisee! So tune out CSI, and tune in Court View Network! Watch the trial! ...Real life is so much more interesting than make-believe, no?!
#1: Choice. The consumer of shipping services could now go to one place to chose from multiple carriers offering multiple levels of service (because of competition among shippers and availibility in one location). 2: Convenience. Something new in retail shipping...numerous easy-to-access locations that were easy to identify as a source of these same shipping services (MBE vice, say, a drug store that did shipping). 3: Service (packing/boxes/supplies/etc.) 4: Price, which would have eventually had to come down as carriers competed with each other for access to and choice by the consumer. ...these are the things that MBE not only trailblazed, but was refining (as they grew with time)! Now, one might find argument with any economic point made here, but that does not change one simple FACT; that UPS represented (to franchisees) certain assurances that (the Class Action suit now [properly] alleges) UPS just did not deliver on! Gold Shield "representations" and "assertions"! Wether deliberate or negligent. Does not matter. The Class Notice outlines both circumstances of these misrepresentations! But one must ask, if not deliberate, why did UPS not take aggressive action to shore up per-store profits when they saw their "promises" not being met by Gold Shield? They could have, if they had wanted to! Their intentions, given their actions, are suspect! But suspicion is not the issue here...accountability is! Being held accountable for verbal and written promises made (in the Gold Shield name-change presentation by both Atlanta and San Diego based corporate personnel)! ...and more stores are continuing to close, or be sold at something less than what they would have commanded had UPS not stepped in and shirked their obligations and responsibilities as a good-steward Franchisor! So let Judge Highberger guide both parties though the judicial proceedings! ...Fair enough!
Not an MBE or TUPSS franchisee, dimwit.
...but what would one expect?! And guess what ... as more stores go under, it's gona get worse! So be it ... that's why the Court is hearing this case. Let them decide. I'll be there because I'm an interested party! If you are too, and you have the time, then you should come! They do not charge for seating! ...and it is all going to be very interesting! See you in Court!
What is the assignment fee every time there is a new owner? Are there other revenue streams? Inflated training, legal costs etc?
Thank you IAMCO, and thank you PSA. I am a former koolaide drinker MBE/ the UPS store convert. Thank you for keeping the torch of truth lit all those dark years so that the truth may shine. I am now a member of the BSA and without the guts,tenacity and bravery of those two groups who stood toe to toe with the brown beast all these years I don't believe there would be a BSA. You guys hacked your way through dark and dense jungle, we just followed the trail you blazed. No retreat, no surrender! Go PSA!!!
...so do your part! If you cannot come to court, then pass the word on to all fellow TUPSS franchisees ... get informed by coming to bluemaumau.org! There is strength in numbers, and when fighting a stronger adversary, defeat them by remaining in one tight, cohesive group! Like the movie "300", or "Gladiator"! All of you have your (collective) heads on the chopping-block, so rather than being lead off to slaughter ... support each other! Fight the Big Brown Beast! Not all of them are bad ... most are good, except the "bad apples" that oversaw this (alleged) scam! But their time will come ... and so too shall yours! Court! Be there if you can!!!
nothing that ups might do would surprise me. however the opening of 500 stores is the most outlandish idea i have heard lately. i would be very interested in where "it has been reported". believe me i am no fan of ups having been a franchisee for 18 years, but let us all in on where you got this latest revelation...
So, once again, you think that I made an "outlandish" charge? Well, I can't blame you for jumping on me like that! I though that the UPS plan, in light of their rebranding of MBE to TUPSS, was despicable yet irrefutable proof that UPS has planned for the demise of MBE/TUPSS for some time! Another "smoking gun"! But who cares what I would think! What would the former CEO of MBE, Jim Amos, think (if he knew about the plan)? "SHOCKING"! That's how he would describe that revelation! Go to the Amos deposition here on bluemaumau.org (this Amos story) and get a taste of what Amos thought! You will find the quote on pg. 121 line 1. Now, this depo does not give any definitive answer to the question; "Does UPS plan to open 500 stores", but that is the closest you can come to verifying my comment without purchasing the Morgate trial transcripts! Plaintiff's attorney Mike Aguirre states it quite clearly there...as I pointed out in my previous comment! UPS attorney McDonald did not despute the fact! So spend the money, and get it! I got it by attending the trial, which was much more difficult to do (but alas, so much more "enlightening")! Now, what can you do? Enlighten your fellow franchisees by having them all come to this website/this article! Do for them what I have done for you! Best of luck!
Did FAC, MAC & Pace just send out an email stating that this business model as we know it doesn't work and has been in decline for 10 years?
"Over the past 10 years, our business and the market it serves have changed dramatically. Many of the goods and services we provide have evolved from specialty items to commodities that are available in a wide variety of Internet and brick-and-mortar retail settings. Other changes in our marketplace have dramatically increased the number of pre-paid catalog and Internet sale returns, many of which were previously paid transactions at our retail rates. And, as you all know, the introduction of gift cards and Internet retailing has substantially reduced consumer shipping as part of gift giving. We've also seen changes in the document services and fax service markets. It's likely these sorts of changes will continue as part of the evolution of how people do business. These are simply facts. Successful businesses must find ways to adapt to changing circumstances and to take advantage of opportunities that confront them."
Surely we buy into a franchise because it's a proven business model, right? What are they trying to say?
...trying to say, through proxie, what the comment above already said...that UPS is going to try to push you all "under the bus", for this is what they have been trying to do for years! This is the charge that is being leveled in the Class Action suit (allegations)! They cannot wait to get rid of you! ...I came on the internet this am to pass the following story to you (when I read this comment about FAC/MAC/PACE)! I get a call on Sunday morning from a distraught franchise owner. I no longer own a UPS Store, so why are they calling me? Well, they are very upset, and hate what UPS is doing to them! They are from India, and they are scared! They are in financial extremis, and asked me the following; "Our friend who owns a UPS Store in (town X) wants to know, if we speak to an attorney about suing UPS, and they find out, do you think they will come after us?" ...Need I say more??? I told them to watch for information about what happens in the Morgate Trial, the next court date being in April, and see what happens. In the mean time, any consultations you have with an attorney will, I'm sure, be kept stricktly confidential. Do I think UPS will retaliate against you if you take legal action against them? Hmm..does chicken "dung" stink?! So, my advice to current franchisees...stay tuned to bluemaumau.org, and come to the trials...all of them! Let UPS know that they are in for a fight, then FIGHT THEM! They do not understand your family's suffering, but they do understand an order from the Court! ...Stay tuned!
...then why is UPS continuing to sell franchises? Well, if anything, at least we now know the tact that UPS will take in court...that this was/is a "declining franchise model, and they had nothing to do with it's demise. It was headed towards failure anyway"! ...Oh, Mr. UPS, is that right? Commoditization? Then, my friends, why are you still selling franchises, and why didn't you tell us this years ago, for surely your "vaunted" market research told you this was happening during the Gold Shield Test Marketing Program, no? But, you (UPS) said our package shipping volume was going to double, no? NO! Not until you, UPS, took the actions you took via the internet/reverse logistics/corporate accounts! And now that they have thinned the MBE network out, well, on to the next phase!And btw, if shipping is indeed being "commoditized", surely MBE's franchise model was perfectly positioned to take advantage of that (by being a multi-mode carrier), no? Well, UPS took care of that, didn't they! ...UPS's tactics are clear, and guess what...it ain't gona fly! They have much to answer for, will have much to answer for, and Gordon &Rees will see to it that they do indeed answer! ...send your fellow franchisees here, to bluemaumau.org!
Commoditization? If the shipping business is becoming "commoditized" (it isn't ... personal service/convenient locations/easy access/secure pkg location/packing service/etc. still counts), then why would any rational mail store owner want to be beholden to one shipping supplier (UPS) instead of having access to ALL "commodity" suppliers? Would he/she not wish to bargain with the "commodity producer" for the best price, deeper wholesale discounts, faster service, more reliable service, volume incentives, etc., and then pass them on to the customer by selling them the product that meets their need at a reasonable cost while at the same time doing business with the shipper that maximizes his profit (example: Walmart selling Tide over Cheer, Quaker State over Penzoil, American Airlines over Delta ( if they sold airline tickets)!? What if Walmart was contractually forced to sell Tide, or Penzoil..Delta? Would those suppliers then not be able to not only garner excessive market share (through reduced COMPETITION), but also to dictate what service you will use, regardless of wether you made money or not? Would they not also NOT have to provide you with deeper wholesale price discounts..discounts other COMPETITORS might have offered you because you had a big retail network? And would their name be "Walmart" or "The Tide Store"? ...THEN what would they sell??? And what about these drop-offs? How much power do you have to negotiate per-package drop-off reimbursement rates with this "commodity supplier" (they aren't...they differentiate through advertising every day)? After all, do not people "click" on UPS because your "brick" store is close and convenient? ...otherwise they might go elsewhere (like the Post Office, or FEDEX), or UPS would have to have them wait at their home for a driver to come pick the package up, and charge the customer for fuel and time used, and hire more drivers ... etc. to service that (and many other) pickups? And would you as a store owner not rather have multiple carriers who paid you for multiple bin pickups/drop offs? You see, UPS gets that internet business because you are conveniently located, they don't have to send a driver out to pick up the pkg, you provide the service, you carry the costs of maintaining the facility, etc., etc.! And why doesn't UPS fix this problem by paying you more per dropped-off package (say, more for a large overnight package and less for a small ground package), a "tiered" reimbursement system, since you maintain this facility and the personnel that enables them to garner the business that might otherwise go elsewhere? They said they would increase your package shipping count in the Gold Shield Presentation, didn't they? They said their "GS Marketing Test Program" proved that this would happen! No, this "commoditization" excuse is just a cover for them, as in looking to justify the harm they have (allegedly and either through negligence or by design) brought to the MBE franchised business(es)! So don't believe anything a PACE, or a FAC, or anyone else says because we all know that UPS crushed any attempt towards collective franchisee bargaining a long time ago! They now are a voice for UPS's agenda ONLY! Bank on it! ...and bank on this: the Class Action Lawsuit is proceeding forward, and the Gordon &Rees legal team is not only very knowledgable, they also know what has transpired here and they have the evidence to prove it! UPS could fix this mess, but only if they wanted to do the right thing (for their victimized franchisees)! They seemingly don't (judging by how long they have dragged this thing out in court)! So stay tuned..stay informed..and stay in touch with the Court proceedings! ...In person! UPS has alot of explaining to do! They will try anything they can to avoid having to answer for what they have done, and what they are continuing to do to all of you, the beleaguered UPS Store franchisee!!! (But in fairness, we must all wait and see what the Court decides...for both sides will express their legal opinions! THAT's what Court is for! Stay tuned!)
...and read it...all of it! That's the source! It is recorded and available...VERY AVAILABLE! And I must ask, what is more outlandish...destroying the hard-earned businesses of franchisees, or taking a major corporation to task for gross wrong-doing? There are lives involved here...savings of a lifetime lost when promises were made, but broken! That's what this trial is all about! ...and when people have everything financial taken from them, well, they fight back as best they can! In the end, let it all rest with the court! All we ask for is a fair hearing...and we're gona get it! Many have nothing left to lose! Wake up!
..to seem that way by UPS as they try to escape (for years now) liability for the damages they have caused! It all boils down to this simple fact..UPS, via the Gold Shield Program (and concurrent name change) said they would increase our shipping revenues by decreasing our shipping rates to the UPS counter rate, thereby increasing our daily shipping volume! This margin is needed to operate a retail shipping outlet, which UPS had few of (...to pay for rent, electricity, salaries, etc.)! The name change would drive business in, UPS stated (both via written and verbal communications during the "Gold Shield" dog-n-pony show") thereby making up for this tremendous loss of margin! Fair enough! If that did not happen (increased volume), then the [former MBE store] would die! They knew that! ...and their test program SHOWED THAT (or certainly should have, combined with other marketing research conducted by them). What did they do next? Siphoned off business via the internet/reverse logistic/corporate accounts programs so that the franchisee not only made less per package (margin), but also saw drastically REDUCED volume due to UPS's efforts to use us simply as a drop-off location for their drivers to service their customers ... ex: EBAY...people who used to be our customers because we grew the (previously non-existant) network, we offered multiple ways to ship (UPS/FEDEX/DHL/TransBox/Yellow etc.), we afforded access, and we opened and bore the full costs incurred in maintaining this ever-growing retail shipping network! UPS told those people to use their internet site, get a discount, then go drop your package off at your convieniently located UPS Store...but you will NOT get that discount if you go directly to them! But UPS did not have to incur the costs associated with maintaining the "bricks" to service their "clicks"! You see, they could never have built this vast retail network out by themselves without spending billions of dollars in cost, as well as billions to run the businesses (see the Morgate trial testimony as it refers to the presentation made to the UPS Board prior to the purchase of MBE)! Also we, as a network, were gaining voice as we made competing services available to the public! COMPETITION! Get it! Yeah, you do! The Class Action calls it like this: "(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...etc., etc (see Class Action notification, as published here on BMM.org)! Now, if you're a franchise owner, I know you see it (how this has hurt your business) because your $1.00 per package (not enough to maintain the business..for you) drop-offs increase monthly! Ultimately, that will spell YOUR [business] death warrent! So again, WAKE UP ... and get informed by reading the trial recordings or by attending IN PERSON! That trial document will answer the "Why would they do this" and "how did they do this" questions! Capishe?!
When a major US corporation makes an honest mistake, and then tries to rectify it, that's called an error, an aberration, a misjudgement ... a blooper, blunder, "boo-boo"! In modern venacular, "my bad"! Such behavior is both understandable and tolerable! But what happens when the "mistake" is, in reality, not a mistake, but a lie? Let's ask Mr. Webster for a little help here. What is "fraud"? FRAUD - \'frod\. A noun. 1a: DECEIT, TRICKERY; specifically: intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right b: an act of deceiving or misrepresenting: TRICK. Now, is UPS having this action brought against them because of an alleged "boo-boo", or is it much worse than that? The Class Notice refers to "intentional misrepresentations". More specifically, "for violation of CFIL section 31202 for allegedly willfully making untrue statements of fact...". Now, you can cut it, dice it, twist or spin this any way you want, but we are talking about a crime, NOT an honest omission! That being the case, someone at UPS or in The UPS Store corporate offices has some explaining to do! If found in violation of the law, monetary damages is only the beginning of the remedy in this Class Action! People at UPS will have to be held to account...held personally accountable for illegal behavior! A violation of the trust placed in them by a variety of parties! Stockholders! Employees! Retirees! Yes indeed...numerous aggrieved parties! Will this end if the plaintiffs win this Class Action suit against UPS? One would hope not, for violation of the law cannot be tolerated, no matter how far or high into the corporate front offices the "long arm of the law" must reach! ACCOUNTABILITY! Without that, we cease to be a nation of laws, honor, fidelity to one's duty! Good stewards of the positions of authority to which they have been entrusted must be trustworthy! If not, if they have engaged in illegal behavior, then they must be rooted out and prosecuted to the fullest extent of the Law! The end (of the Class Action) may, in reality, only be the beginning...of the process we call "accountability"! Let's hope so!
For I A M CO !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Waz Dat? It called the "Wheels of Justice"! Turn they do, albeit slowly! But what can you expect when doing battle with a giant corporation that (oh yes...allegedly!) crushes fair competition and franchisees like proverbial bugs under Wehrmacht Jackboots (that's what they called the German Army in WWII, for you non-historians)! Here's the court dates of interest: April 26, 2010. Trial for original three (3) PSA members who did not change name from MBE to TUPSS (the smart franchisees)! Oh yes...unfortunately for UPS, there are 127 more PSA member (suits) to follow! Now, for the thirty-five hundred (3500) plus franchisees who did change their name from MBE to TUPSS (those not-so-smart franchisees), the court date of interest is Octobr 25, 2010! Where for both trials? Why, at the Los Angeles County Superior Court Bldg., 600 South Commonwealth Ave., Los Angeles, CA 90005. In the am. The courtroom of Judge William Highberger. Just program your GPS nav system with the address, take the easy drive to the courthouse, park in the basement garage, take the elevator to the main floor, go through the security checkpoint, and ask the person at the front-door information booth for the floor (to take the easily accessible elevator) to! It's that simple! I'll be there, as a very interested party! Will you? C'mon...have some fun! ...and watch those wheels of justice turn like a wine press...United Parcel Service being the in-season varietal! Many a franchisee has been left to mercilessly twist in the wind! Now, it's their turn!
What about the BSA litigants?
...their day in court (October 25th)! Yes, they need credit for having taken the lead! They did their duty to themselves and their fellow franchisees! But don't forget IAMCO and PSA, and in particular Howard Spanier ... the top performing MBE franchisee who they tried to co-opt by "special treatment", but couldn't! Howard saw the writing on the wall, and took the fight to them! He smelled the rotten apple, and refused to take their bait! ...and believe me, they tried to turn him, but couldn't! Howard Spanier is a man of dignity and foresight, and to him we owe a debt of gratitude! This (alleged) fraud will be won by the plaintiffs, because what has been done to these TUPSS franchisees is truly despicable...and provable! Don't think so? Go to court and hear the evidence! This Class Action was not expanded from 200 PSA plaintiffs to 3500 franchisee plaintiffs for nothing! Where there's smoke there's fire, and those franchisees burnt by UPS will not be the last to feel the heat! UPS will...and some people within their management are going to be held personally accountable...for fraud (if this case goes in favor of the plaintiffs)! I believe it will, then, it's payback time for the upper echelons of the UPS management team involved in this "issue"! Hide your assets, my friends! Hide them very well, and IF you are guilty of wrong-doing, be prepared to answer for your illegal actions! There's a prosecuter somewhere out there who takes his/her duty seriously, and they may wish to make their mark...with YOU! Look over your legal shoulders, my friends, for the next few years! This ain't over by a long shot!
..members, after years of litigation, unless there was some suspicion of wrong-doing? Answer? Judge Highberger sees merit in the plaintiffs case! His advice in the courtroom to the attorneys was...better to properly handle these things early rather than late (cause dragging things out just makes 'em worse)! ... A message to UPS, or to the plaintiffs? Well, we'll just have to wait and see! This Judge will apply the law! But if the court does rule in favor of the plaintiffs, look out UPS! You may find out that you are from the planet Vulcan, 'cause you're gona bleed GREEN! ...lots of it! Now, how will THAT look in your yearly financial report to stockholders? Not so good! But hey...your corporate officers will have earned it! ...for the abused franchisee! This is not going to be a small matter! See you in court!
wrong. Wehrmacht translates as "armed forces" All the armed forces were combined into the wehrmacht (Heer(army),luftwaffe(air force) and kriegsmarine (navy). It is a common misconception to call the WW2 german army the wehrmacht, but that is incorrect.
We need be accurate, no? I stand corrected!
Yeah, that's what the UPS drivers wear, but make no mistake about it. They are all, each and every one of them, hard working Teamsters who are the rubber that meets the road (of good customer service)! The best drivers in the industry! But ask 'em...any one of them! Are they happy? ...or is the "jackbooted" management of UPS working them into the grave? They get screwed each and every day. Like The UPS Store franchisee! All in the name of corporate greed and excess (in my humble opinion)! They hate what the company has become, but soldier on because they are good workers, and good Americans! Not so their greedy corporate management! As long as the know-nothing 25 year old account (and other corporate) execs get their bonuses! To hades with the Teamsters and franchisees...they're just (abusable) cogs in the big wheel...the Atlanta corporate "hub"! Well, they connive, but Court convenes ... in April and October! We'll see if the Superior Court of California is as easily manipulated!
The court hearing that was scheduled for Jan 10, 2010 was postponed to Feb 10, 2010 (defendant requested more time for discovery). The Class Action, otherwise, is proceeding as per the filing! Stay tuned to bluemaumau.org if you want the latest "scoop"!
anyone have new info on this?
...was that? If you are interested, YOU are the "anyone"! YOU call the Class Action attorneys at Gordon &Rees and find out! Yes, BMM is a good source of information, but if you are a franchisee, you need to do some of your own "legwork"! Start by calling the plaintiff's attorneys, and also make the effort to attend the trials set for April and October! THAT will open your eyes, and if nothing else, will confirm what you already suspect...that this was a set-up (by UPS against the MBE franchisees) from the get-go! ...allegedly! That's a matter for the court to decide! Soon, they will! Lots 'o people gona wake up then! Bank on it!
i have met him and in my opinion he is lower than a snakes' belly. he hides behind religion and marine service,while living a lie to both.
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I'd say that UPS had better be a boxer with PLENTY OF ENDURANCE, because the Morgate Class Action is JUST ROUND ONE of what is going to be a VERY LONG AND COSTLY MATCH! How many rounds might this "bout" last? Well, lets take a (theoretical) look! Round 1-Morgate. Round 2 - Franchisees who opened stores as "The UPS Store" but were NOT GIVEN required DISCLOSURES by their Franchisor, UPS, via the Franchise Offering Circular (FOC). Round 3 - SBA investigation of illegalities perpetrated by UPS, which caused many a The UPS Store to go under, thereby leaving the US Government to make good bad SBA-backed loans. Round 4 - The Apollo Group, who, because UPS was (allegedly) given inside information by MBE's CEO, Jim Amos, had their winning bid thrown into the trash, allowing UPS to (using inside information ILLEGALLY OBTAINED and in VIOLATION of SEC rules/laws) purchase Mail Boxes, Etc., Inc. from USOP. Round 5 - State Attorneys General initiate criminal investigations into (alleged) misconduct by UPS corporate officers, MBE corporate officers, investment bankers, consultants, etc. etc. (the net will be cast far and wide) vis a vis the UPS purchase of Mail Boxes, Etc., Inc. Round 6 - State Attorneys Generals investigate fraud and misrepresentation (allegations) as may have been perpetrated by UPS through non-compliance with FOC disclosure laws. Round 7 - The FTC begins it's investigation. Round 8 - Congress holds hearings into widespread fraud perpetrated by the nations franchisors (including UPS). New rules and regulations may be the order of the day. Round 9 - USOP stockholders smell blood and enter the fray, numerous lawsuits being led by MBE's founder and architect, Anthony (Tony) DeSio. Round 10. Hoping to avoid prosecution, many a canary begins to sing, including Amos, Kelly, Mathis, Romanella and anyone else (possibly) involved with this (alleged) fraudulent scheme. Round 11. The IRS wants to see where these fellows have stashed their ill-gotten (alleged) gains. Well, that's all (for now). Let the readers of Bluemaumau feel free to referee additional "Rounds" at their leisure!
MONDAY AUG 3rd..... No Delys...No B.S.....Once again UPS tried to delay the trial but the Judge said NO WAY to UPS.......Everyone stay tuned to the exciting event thats about to happen..After over 6 years the franchisee's FINALLY get their day in Court...Will UPS spokesman Mr. Norman spin,spin,spin.. of course he will, thats what a whirling Dervish does SPIN,SPIN,SPIN.We all know that many eye's will be on this trial..There is even a daily reporter blog coming direct from the courtroom EVERYDAY of the trial,which WILL BE POSTED ON BLUE MAU MAU....THE TRUTH WILL FINALLY COME OUT FOR ALL TO SEE....BUT KEEP IN MIND UPS DOES NOT REALLY CARE...".IT'S ONLY SHARE HOLDER MONEY THAT THEIR PLAYING WITH"
i am a upss franchisee. i just discovered this! i am going down fast- can someone get this out to all fellow franchisees? no one i have talked with is aware of the lawsuit. would be nice to see it covered in the media,as well!
'can someone get this out' - classic zee language - interpretation: can someone else ...
'would be nice' - interpretation: can someone else .. Does anyone really find it hard to understand why franchisors find it so bloody easy.
Australian Franchise Opportunities, a common sense approach to franchising
When did you open your store? Did you buy into the UPSS or convert from a MBE? How is it possible that you "JUST DISCOVERED THIS". Are you a KOOL- AIDE DRINKER ???....You cant be this clueless about your own franchise...YOU MUST BE A UPS PLANT ON THIS WEB SITE ...NICE TRY......YOU GET AN "A" FOR EFFORT....... "F" IN EXECUTION
relax-w/o giving away my identity, in answer to your questions:i opened my FIRST location more than 9 years ago,so obviously i "drank the kool-aide".as far as my statement regarding discovery-i of course have been aware of pending litigation, however i did not know about the court date or class action ruling.why did't mbe tell me?
"Why would'nt mbe tell me" Are you serious ?? Why would they tell you.Legally they have no obligation to tell you anything about litigation THEY are involved in.Why would they tell you about it ...maybe they didnt want you to look at your situation as a UPS Store and then get an atty and also sue them...YOU CANT JOIN IN LITIGATION IF YOU DONT KNOW ABOUT IT>>>>THATS WHY THEY DIDNT TELL YOU FOOLISH STORE OWNER...The other poster was right PULL YOUR HEAD OUT OF THE SAND>>>>How much longer is your "store" going to be open before you are forced to close...Guess you should have joined the law suit....lol lol lol
i'm not going to resort to name calling, however-don't you realize that comment was totally sarcastic?? duh!
Get you head out of the sand.
What took YEARS for hard working MBE franchisee's to build, so did UPS TAKE in one quick, deceiptful and highly dubious manner...the MBE network! No matter that thousands of dedicated franchisees toiled in their businesses for many long hours and numerous difficult YEARS, the "little guy", a small business person satisfied to earn an honest and modest living (mabey 50-75 k per year) through hard work and effort! No matter that UPS TOOK (allegedly) that which they could NEVER have built, even if they had used their own BILLIONS OF DOLLARS (which they didn't) and thousands of employees (which they haven't)...the 3500+ stores in the MBE network! GOOD JOB! Words that joyfully from UPS insiders and the mouths of WALL STREET investors! Meanwhile, on MAIN STREET, the bankrupt MBE/The UPS Store franchisee was left to ponder the question: "How could all of my hard work over the years have disappeared so quickly"? "How could such a "trusted" organization like UPS have been so UNDERHANDED"! How, you ask? Well, go talk to people involved with the likes of companies like ENRON, WORLDCOM, UNITED AIRLINES, GM, ADELPHIA COMMUNICATIONS, LEHMAN BROS., MADOFF INC! GO ASK THEM! The honesty and integrity that may have existed at UPS disappeared, just about the same time that the company went PUBLIC (I'll wager)! Now, they are run by a bean-counting talking head who, for the first time in the history of UPS, has never even so much as delivered a package, much less run a small business! But in today's America, that's JUST FINE!!
Well. well, well. Associated Press (AP) just ran a big INVESTIGATIVE ARTICLE about SBA loan failures throughout the U.S.! It seems that the US Govt. has had to cough up billions to cover defaulted SBA loans. While they mentioned Quiznos in the story, it's too bad that they didn't dig a little further and uncover how many "The UPS Store" franchisees, financed through SBA loans, were forced into default (thanks to Gold Shield lies and non-disclosure of relevent financial/business model information to conversion and new franchisees) thereby leaving the US Government holding the bag for the $$$ loss. If the trial on Aug 3 proves that UPS perpetrated a FRAUD with the Gold Shield/UPS Store conversion scheme, might not the US govt want to pursue UPS not only for monetary damages resulting from failed SBA-backed loans, but also for PUNITIVE fines against UPS due to their illegal (alleged) actions? I think that they very well might, to the tune of millions of dollars, and that includes penalties! Can you say things seem to be getting worse and worse for UPS? I sure can! Oh, & don't forget the (alleged) use of INSIDER INFORMATION obtained by UPS (from Amos) to ILLEGALLY PURCHASE MBE from right under the noses of the Apollo Group! I'm sure many, many parties won't (including the SEC)! Therefore, can you also say somebody might be looking at (jail) time? I can, so let me quote the old Robert Blake "Baretta" show: Don't do the crime if you can't do the time!
So I read a long time ago about UPS strong arming Stamps.com to sell Iship for 2.8 million by buying their biggest customer and announcing that they would discontinue the use of Iship in the MBE Stores:
It was intresting to read David Mounts was calling the biggest customer from stamps.com's own offices during negotioations. Stamps bought Iship for 200 million in 1999!!!!
So, in hindsight the acquasiton of MBE only cost UPS about 23 million assuming Iship didn't increase or decrease in value?
And Amos was worried about Apollo Management Groups negotiating tactics! We can't know what would have happened to MBEunder Apollo but we do know what has happened under UPS.
Would Apollo have been a better owner than UPS? HECK YEAH! Maybe Apollo would have negotiated reimbursements that actually benefited THEM and THE FRANCHISEE, NOT just UPS! What kind of reimbursements? ARS/BIN. Internet drop-off. Waybills that use UPS's business customer's corporate account numbers! Let us especially note UPS's grand plan known as Reverse Logistics. They wanted to DOMINATE their many competitors in that arena..cut them off if you will! Would Apollo have allowed UPS to use the franchisee's stores as glorified (and underpaid) drop-off boxes without proper compensation? How about the internet? Might Apollo have objected to UPS using their internet site to take (virtually unreimbursed) business away from MBE stores so that all monies flowed Atanta-way? ..business that would have been impossible for over-worked UPS drivers to add to their daily (ever-increasing year-by-year) pickup schedule? They slipped THAT ONE right past them "stupid" TEAMSTERS, who might have fought for worker rights by demanding MORE HIRES because their drivers were being worked to death! What would THAT have cost UPS? &How about fuel cost, time, coordinating pickups with customers so that they are home when the driver shows up? Would customers feel secure leaving their packages on the porch awaiting pickup by a UPS driver? Much better to drop off that package at your local The UPS Store, you know, that SUCKER who makes no profit, but actually pumps money every month into a (known by UPS) failing enterprise! That'll keep UPS's costs down and put their profits THROUGH THE ROOF! Oh, the zee's? They have the distinct honor of wearing the UPS logo on their work shirt! THANKS! Or, might UPS have been afraid someone else might dare to negotiate fair terms with them rather than dictating losing (for the franchisee) reimbursements for drop-offs (and then, of course, PICK-UPS, like with XEROX employees and who knows who else in the future)? Was MBE getting too big, gaining bargaining power over UPS?! Might that hurt their PLANS or PROFITS?! We can't have that! And would Apollo have negotiated with FEDEX, DHL, etc., reimbursement rates so that these other companies could have used MBE locations as drop-off points for their product...you know, being a muli-carrier platform as MBE was? YOU BET THEY WOULD! But then, UPS could not dominate the Internet scene (bricks 'n clicks), reverse logistics, drop-off points for employees with corporate accounts, etc., etc.! We'll have NONE OF THAT says UPS! And what if FEDEX decided to buy Mail Boxes Etc., Corporation, as was being rumored they might (at the time)?! How could UPS ever stand for that! A plan! We NEED A PLAN!!! Ah, how 'bout first Amos, then Gold Shield ! Amos greases the skids so that we get to purchase the company (from right under Apollo or anyone else!) and don't worry, MBE franchisee, when you drop your price to UPS counter rates, you will make up for LOST PER PACKAGE PROFIT (margin) by our unceasing efforts and marketing plans (using your marketing money) to increasing your shipping VOLUME! Great idea, hey?! We, UPS Corporate, know that stores under Gold Shield will fail unless that happens (they did their own research, right, because according to their spokesmouth "UPS does not need to hire any outside consultants to tell them about the health of their businesses! Don't you know that the great UPS is the premier planner-, analyst-, marketing- and (know where every penny goes) accounting - savy organization?!" (or words to that effect!) So they already KNEW what the (denied ever even existed) Boston Consultant Study would say way before they (weren't) hired, did'nt they?! THEY SURE DID, based on their own market research, done but not fully and truthfully disclosed during or after the "Change name to The UPS Store/Gold Shield" dog 'n pony show! But why disclose such "unimportant" financial/business information in the FOC? To hades with stupid state disclosure laws! Ok, lets get back to the point. Gold Shield's success was dependent on GROWING each UPS Store's shipping volume! Then what did UPS do? EVERYTHING IN THEIR POWER to INCREASE their volume while DECREASING the volume of each UPS Store, exactly OPPOSITE of what they said they would do if only you zees switched over to The UPS Store concept and the wonderful Gold Shield business model! After all, no increased volume would equal The UPS Store failure en masse, and we wouldn't ever do that, RIGHT???!!! RIGHT!!! But, don't they care about the poor franchisee who might/will/is go(ing) under? Believe THAT and I'll sell you some swamp land in Florida!!! Lets look how they "helped" to increase each stores' shipping volume! Mathis said we're aiming to make every store a MILLION DOLLAR STR operation with Gold Shield, RIGHT!? Again, HORSEHOCKEY! Example. Ever hear of EBAY? MBE had high hopes for future growth from EBAY shippers! Why not? Bricks 'n Clicks, don't you know! Convienience! MBE was already servicing many an EBAY shipper, and that segment was GROWING! so, what did UPS PROCEED TO DO? Give EBAY shippers a 30% (or so) discount if they shipped their EBAY stuff via UPS then dropped the package(s) off at your local The UPS Store! Great, isn't it, Mr. EBAY merchant?! OH, ONE THING. YOU WON'T GET THAT DISCOUNT IF YOU GO DIRECTLY TO A THE UPS STORE AND PAY THEM TO SHIP YOUR STUFF! JUST USE THEM AS A DROP-OFF...WE'LL TAKE GOOD CARE OF THE STORE OWNER THROUGH GENEROUS A COMPENSATION PLAN CALLED BIN PAYMENTS! RIGHT!!! So, allow me to ask...how did THAT increase The UPS Store franchisee's shipping volume, Mr. UPS? Was not Gold Shield's success dependent on just that happening? How else would the poor zee survive? Well, certainly NOT thru shipping! So, let's just make The UPS Store a COPY PLACE, right?! Isn't that what Mathis tried to do? Tell us to go pound sand and try to eek a living from a "shipping" store by becoming a "copy" store! What a strategy! Brilliant! Again, if Apollo (or FEDEX) had purchased MBE from USOP, I am sure that is EXACTLY the direction they would have gone in! Thanks, Mr. Amos! Now the zee's know why you REALLY DID think the UPS purchase would be GREAT for the company you Commanded, Mr. Clean Jean Ex-Marine! Wore that on your shoulders, didn't you? & milked it, and your "faith", for all it was worth (allegedly)! MORE HORSEHOCKEY! UPS wanted to impliment a "plan" that would benefit THEM and THEM ONLY! How to accomplish that? Make sure that their bid assured a successful purchase of MBE! So. lets give Amos a BONUS (or possibly a bribe, dare we alledge), so that just the UPS-appropriate scenario plays out! Cut off Apollo (or FEDEX, or ANYONE ELSE) by putting Amos (allegedly) in our pocket, with that "bonus" that just happens to disappear should anyone other than UPS (like Apollo) purchase MBE Inc.! TO HADES WITH FAIR PLAY, THE LAW, FIDUCIARY DUTIES, FRANCISEES, The SEC, State FOC disclosure laws, and ALL THE REST! WE ARE UPS! YOU WILL BE ABSORBED! RESISTANCE IS FUTILE! They decided to act both ABOVE and OUTSIDE OF the law (again, allegedly) and figured, well, they're TO BIG TO FAIL (at any business decision, legal, shady or otherwise)! Oh, then there's UPS Capital. Would this SBA lender ever LEND to a UPS Store franchisee to build his dream? Why not? It is such a SUCCESSFUL concept, you fools! Conflict of interest? OK, we'll just make money by underwriting a non-SBA loan! BUT THAT'S NOT WHAT HAPPENED! Knowing that The UPS Store was a FAILING concept (around, say, 77% failing?) they let other SBA lenders make the loans, TOO HADES if someone else, ESPECIALLY THE GOVERNMENT, got caught holding the bag by financing a dog of a business! Did poor CIT make loans to The UPS Store franchisees? Did they go BANKRUPT? TOO BAD! Hope that didn't contribute to their (CIT's) recent BANKRUPTCY! But what does UPS care about bankruptcy...of lenders, franchisees, FAMILIES...AS LONG AS IT AIN'T THEM! Me thinks that the U.S. Government (SEC, FTC, SBA) might want to LOOK INTO THINGS! Can you say "YANK UPS CAPITALS' [SBA] CHARTER??? Well, thank GOD for people like Howard Spanier, Amy Darby, Mike Scully, Maria Severson, etc.! Justice will be served...cold! Oh, this malfeasence, cheating, lieing, deciept, etc., that U.S. Corporations so easily (have) undertaken over the last decade or so... IT'S GOTTA STOP! But how big does the "example" company have to get?
can consider it in connection with Item 3 of their Mr Clean franchise FDD/consider it in connection with deciding wehether they wish to continue a relationship with this piece of human crap?
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
Done and also to the plantiffs lawyers that handled the USOP Class Action.
...I've always trusted you more than any legals, even ours.
Richard, would you please forward this to P&G in connection with the Mr. Clean operation you referenced? I wonder how much Tasti D-Lite knows of Amos' background, too. On behalf of many of us who've been had by Amos--and are now involved in various lawsuits, and are keeping somewhat low profiles--we'd appreciate it. Thanks!
(Another thanks to the long, detailed and accurate post with appropriate emphasis on what completely reprehensible behavior has been exhibited by Jim Amos and a multitude of as yet-unindentified individuals in this whole filthy scheme.)
Gawd, I hope there are jail terms for some of these coniving crooks.
Why don't you try here. Make sure to make it to Gary Michael Foster
http://134.186.208.228/caleasi/PDFDocs/005264885.PDF
I have no hesitation doing anything to anybody - for my clients.
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
Thanks for nothing, jerk. A typical legal's remark. We've already spent millions on this, thought you'd expressed an interest in being on the right side. Obviously, just another glad-handing, greedy legal with no concern other than lining your own pockets. Lean to communicate in proper English, BTY. And bite me, fist-flailer.
with to do your black bag work.
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
what goes around comes around. every dog has his day. Never know when one of us might have recommended you. Your loss.
This is Tuesday, Cathy. Is this your day?
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
NO Richie it isn't. My day will be when Morgate wins
Cathy, don't be ridiculous. It is not that difficult for anyone to find the contact information for P&G and send them a printout or an email. Why should that be the job of Solomon more than anyone else?
Now that you mention it, Richard does look like one of those old basset hounds.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Sad. That dog looks old when it is young. It's a puppy, isn't it?
Looks like a grand time after an evening at Muldoons. Ah, what wonderful memories. Sure am happy I remembered to write 'em down.
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
Have you tried getting an email address on this company( P & G). Easier said then done.
http://media.corporate-ir.net/media_files/irol/19/195341/images/managephotos/Bios/Jemison,Steven1.pdf
Also see the previous discussion on BMM.
Frankly this is such a miniscule part of P&G that they are not going to care about a few potential lawsuits.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Someone posted a website address:
www.mrcleanwash.com
however, this is a sales sight that seeks your information to enable them to contact you and sell you a car wash.
Any one care to bet who has oversight over that website and how quickly they will hide any comments.
We need the email address for board members or someone in an executive position with a conscience if such exists in business today!
http://www.pg.com/getintouch/index.shtml
There is a place to ask a question, in lieu of a direct line to the right person, if enough of us ask questions there, we might get someone to pass the message to someone in authority.
http://www.pg.com/investors/investor_contact.shtml
Major companies such as P&G subscribe to news feeds and professional "news clip" services. They also conduct due diligence on their business partners.
P&G knows about James Amos. The company has made a business judgment that the profits gained from having the legendary Jim Amos in charge outweigh the risks.
Ok, do you think then upon their legal staff reading this deposition they might change their minds about the risk? According to Amos, a day before a major sale of an asset, he lets a previous bidder know the price, and gets them back in the game. He tells this not to his employer, but a major shareholder instead. How much of the 185 million in cash went to the major shareholder instead of the company, I wonder? Any, nothing or most? And on the eve of bankruptcy that is ongoing today.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
I can understand why Richard does not want to do the work since no one has retained him to do it!
Still is there someone that can at least suggest who at P&G would be the one to send a copy of the deposition to and
suggest they should do a little research before they throw all their support behind this program.
Why wouldn't a girnt Corporation like P&G want to take advantage of franchising and the mitigation of risk for corporations. I'm sure P&G understands the advanatages of the Moral Hazard of Franchise Regulation and is interested in speculating for profits using franhisees' cheap labor and capital.
Who has done more speculating with franchisee's cheap labor and capital than Mr. Jim Amos?
do their due diligence, and who they rely upon to do it, you would appreciate how they can end up with a Jim Amos and not know about it until a lot of shyte hit the fan.
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
I've read the article twice and am having a hard time fully understanding the sequence of events. It's a little nebulous, particularly concerning the David Moulton phone call to Amos. The specifics of how their friendship came about are left out, and there are other things that need to be provided more clarity. We need more context. The article seems to be written with a rushed attempt to get it out quickly or I am simply not absorbing as rapidly as I used to.
I agree with guest, this is summary of a transcript, itself a description of a series of confusing events. Hopefully, in the coming days things will be made more clear.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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