Franchisees to Demonstrate Outside UPS Shareholders Meeting

Want Shareholders to Push for Change, Prevent Potential Collapse of Franchise Operation

NEW YORK CITY (Blue MauMau) - The Platinum Shield Association (PSA), a group of UPS and Mail Boxes Etc franchisees, is organizing franchisees to demonstrate at the United Parcel Service shareholders meeting in Wilmington, Delaware.  PSA wants to inform UPS shareholders of their issues in hopes they will push the firm to change. 

Joe Wightman, who operates a Mail Boxes Etc store in New York City and is an official for Platinum Shield Association, elaborates. "When my colleagues in Mail Boxes Etc. and I were asked to rebrand as The UPS Store in 2002, we were told that the MBE brand was broken and the profitability of the franchises was paramount in UPS's planning. UPS' own Franchise Advisory Council had informed management that 60% of the franchises were not profitable. Management needs to 'come clean' with all UPS shareholders."

It's not just poor profitability of its stores. The UPS Store's Uniform Franchise Offering Circular indicates lackluster growth, with only 29 franchise centers added to a system of  4412 units between 2005 and 2006. Wightman adds, "The 'broken' MBE brand traditionally opened more than 300 stores every year."

And then finally some 350 franchisees have filed three lawsuits.

"If any of the class actions are certified by the courts, UPS faces the prospect of the collapse of their franchise operations. UPS management should make its shareholders aware of this risk," Wightman said.

The demonstration will begin Thursday at 7:30 at Hotel DuPont, on Eleventh and Market Street.