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Log In / Register | Dec 22, 2014

The UPS Store Franchise System Is Massive Fraud, Say Former Franchisees

The UPS Store in Manhattan, New Franchise Owner

The UPS Store in New York City. photo/ps

The recent collapse of The UPS Store network in Manhattan caused much discussion. Now a stunning federal lawsuit alleges that fraud is at the very basis of the franchise system viability: an existential threat to the UPS brand itself.

James' Home Services in Liquidation, Terminating Franchisees

Rogue James Home Services franchisor, Rushlyn Pty Ltd, is being liquidated as franchisees are advised that the administrator has been unable to secure a sale for the franchise.

Franchise Termination, Old-Style

Modern franchisees can have their franchise terminated for failure to "obey all laws" and be forced to take down their trade dress (brand signs). It turns out that old-style was not much different.

Police Order SumoSalad

Australian franchisor SumoSalad found out that when you hand a piece of paper to police to evict a franchisee it helps if it’s the right piece of paper.

Kubota Tractor Mows Down Franchisee

A court rules that a new dealership plopped between two existing dealerships does not substantially change the competitive circumstances of the dealer agreement.

Australian Bank Franchise Model Flawed

The community banking franchise model has been condemned claiming many are costing more than they generate for the communities which own them.

Aus Franchisor Loses In Appeal

The New South Wales Court of Appeal determines where Franchisors promote estimates of fees to prospective franchisees, those estimates must be reasonable and based on performance data ‘where information of actual turnover was readily available to the Franchisor’.    

Code Sends Strong Message

Australia’s franchising Code of conduct sends a strong message to Ray White Real Estate franchisor. Don’t you come back now or we’ll make you promise again.

You Signed What?

From time to time’ franchisees, and even normal folk, put their signatures to contracts that in hindsight were obviously intended to separate them and their money and deliver simmering leverage as a ‘don’t argue’ surprise.

Impertinent Questions In Search of Pertinent Answers

Question:   How is it possible that the largest hotel franchise companies can advertise for new franchisees without even mentioning the major issues: territorial protection, termination and windows provisions, liquidated damages, choice of venue, dispute resolution, vendor exclusivity, minimum performance, etc.?