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The UPS Store, Tales of Gore

Stories of ownership failure, carnage and regrets about The UPS Store (TUPSS), formerly known as Mail Boxes Etc. OH, and the rebuttals to those horror stories too.

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That's exactly why I sold my

That's exactly why I sold my store back in '98. They allowed someone else to open a store 10 feet outside of my territory. This was in Manhattan. Never even gave me first right of refusal! They were forcing owners to cannibalize each other's sales. The only sweetspot in my situation was I actually sold my store to the people that opened the store 10 feet from my territory. I later heard they closed that store, transferred all business to my store, then that one closed as well.

First right of refusal

Visitor: "Never even gave me first right of refusal!"

Franchisees are not given the right of first refusal. This is a right that franchisors keep in their adhesion contracts, not just the franchisor for The UPS Store. The other problem is that the new store was ten feet outside your territory so it is out of bounds of your contract. If you invest in another franchising brand, you will have the same problem.

The good news is that you had a defined territory to make encroachment difficult. Many franchisors do not even stipulate that limit on their authority. They can unrestrainedly sell a new store to another franchise buyer just ten feet away from your store, let alone ten feet outside your territory.

that, my friend

That, my friend, is why I would NEVER buy a franchise again!!!

Before you close the doors lets try and salvage your business.

We are purchasing existing UPS stores. If you are seriously looking to sell and move on I suggest you check out our web page. http://www.iwanttobuyyourupsstore.com/

UPS MAKES SETTLEMENT ??

It's been said that UPS very quietly settled with the Franchisee's in October 2013....Has anyone heard anything about this or what the "TERMS" of the settlement are ??

Terms

There were wasn't a settlement.....UPS won

http://www.leagle.com/decision/In%20FDCO%2020091203643

Wrong MBE case!

The case won in appeal by the plaintiffs is still ongoing. You have the wrong case! It's not Samica. Try D.T. Woodard, Inc. vs. Mail Boxes, Etc., Inc.

Once again thank GOD FOR

Once again thank GOD FOR IAMCO................

UPS Stores out of Business

I have read nothing about your cusomters! I showed up at my local UPS stored today where I had a mail box with a contract apid until July 2014 and a notice on the door said: "Store Closed".

Where the F--- is our mail? The money we paid for our boxes? And all the money we have spent on business cards, advertising materials with the UPS Store address on it with our box #.

We are OUTRAGED that this store owner at 5661 Ventura California gave his customers NO NOTICE WHATSOEVER. Just rolled up the carpet, locked the doors....and we are to try to track our mail WHERE????

Don;t forget the customers who are the inocent victims here. Any suggestions for us? This SUCKS! Poor business practice for sure!!!

Conversion of a UPS store to a Go Postal

I am sorry to hear about all of your situations with the UPS Store Franchises. I have watched 2 local UPS store franchises go out of business in the last 5 years. I have read all about the gory problems regarding your situations. I have personally seen the owners literally starved out of business by owning UPS franchises. I have read how almost 80% of all UPS store franchises are at financial risk.

I have a solution to most UPS Store problems.
Check out our distributorship.
http://www.gpostal.com/franchisesdistributorships.html

Last November (2011) We bought out a UPS store franchise in a small town. The UPS store was strangled out of business with the help of being a UPS Store Franchise. You know all to well how that happens.
We converted it to a Go Postal.The total conversion cost less than $5000
Our first year we grossed over $170,000+. I kept the same employee and store hours approximately.
I personally worked there less than 3 weeks the entire year.

If you would like convert or sell your location feel free to contact Ken at keng@gpostal.com

Tortious Interference

You may want to review Paul Steinberg's post here on Bluemaumau or do some research on the topic before potentially admitting to such as in the post above.

http://www.bluemaumau.org/tortious_interference

Once Again All I Can Say Is

Once Again All I Can Say Is Thank God For IAMCO...!!!!!!!!!!!!!!!!!! You all should have listened to us.....

To Buy or Not to Buy a The UPS Store Franchise

In 2006 my wife and I purchased an existing The UPS Store. As most we were very excited to have our own business and break away from nearly 30 years in the corporate world. When we purchased an existing store The UPS Store corporate office required we put $25K into an escrow account for our "build-out". The UPS Store we purchased had the old red and white decor and would need to be updated within 2-3 years of purchasing the store. At the "quarterly meetings" we met several franchisees and heard complaints and success. We tended to block out the complainers and focus on those who were succeeding. We would visit the "successful" stores where printing was going gangbusters and others where royalties were high. I even interviewed 12 franchisees prior to the purchase. Some said don't buy while others claimed it was the best thing since the printing press.
As time went buy our enthusiasm started to die down. It became harder to make ends meet as business slowed down and we were thankful for our full-time 30 year corporate jobs. In 2009 we closed our store. We borrowed and borrowed to keep the store alive and reached out to The UPS Store corporate office, our area franchise office and UPS for support but it was like being on a busy street shouting for help and no one listening. After closing we contacted The UPS Store corporate office regarding the $25K in escrow. We were told the funds were not available to us since we closed prior to the term of our 10 year franchise agreement. Our royalty fees were averaged over the past 12 months and corporate said in a letter the amount we owed them, per the franchise agreement, for future royalty fees equaled the $25K. The funds were going to be used to pay down our $150K SBA loan. Read the franchise agreement carefully, in fact hire an attorney to it for you. Don't be so excited to start a business that you don't understand what you're getting into. The franchise agreement is written to protect The UPS Store corporate office, not you. I used to think this web site, Blue MauMau, was the enemy now I see its value for many to share experiences and I should have listened closer to the complainers.

Absentee Owner is Recipe for Failure

While not a fan of The UPS Store, this post certainly provides a recipe for failure in any business.

From what you describe, you and your wife were absentee owners. Both of you continued to work full-time which means you allowed someone else to manage your business into the ground.

While never a good idea to rely on employees to replace an owner, doing so in the first years of a business is exceptionally dangerous.

You would probably have failed regardless of the business you purchased.

As for the money owned upon closure, this was spelled out in the documents that were signed. They were within their rights to demand these funds.

Not an Absentee Owner

Take it from a full time owner/worker. The UPS Store is NOT a good investment. I work 58 hours a week, I have no other employees (can't afford any) and make barely minimum wage. Have not been on vacation or even to see my grandchildren in another state for over 2 years. I too left corporate America, for what?? Don't do it!!!

Looking to buy UPS

are you still in business with UPS? After reading all these complaints, I have decided not to get into UPS. Thanks

Location, location, location.

Do you mind me asking where you are located? Do you follow the business plan provided to the letter? Curious, as considering this as a business.

Response to Location Location Location

Dear LLL:

I am reluctant to tell you where I'm located because I know UPS Store/MBE goons are monitoring these blogs to see what they can find out about individual stores, sorry if this is not you. Anyway, we of course attempted to follow the business plan to the letter in the beginning. We did everything we could. Now we are just fighting to keep our heads above water and still attempting to follow the plan. However, the plan is not a sound business model. The best research you could do is to "stop in" and make cold calls at as many UPS Stores as you can. Ask to speak to the owner. Most owners will be happy to tell you to run for the hills. If you ask them about the business plan, they may break out in laughter or start crying depending on what day it is. There are a very few stores in awesome locations that do very well. However, they are VERY FEW and far between. This is not a recommended business investement. Trust me, find something else to spend your money on. I got some swampland in Florida for you.......

Not an Absentee Owner

Take it from a full time owner/worker. The UPS Store is NOT a good investment. I work 58 hours a week, I have no other employees (can't afford any) and make barely minimum wage. Have not been on vacation or even to see my grandchildren in another state for over 2 years. I too left corporate America, for what?? Don't do it!!!

Not an Absentee Owner

Take it from a full time owner/worker. The UPS Store is NOT a good investment. I work 58 hours a week, I have no other employees (can't afford any) and make barely minimum wage. Have not been on vacation or even to see my grandchildren in another state for over 2 years. I too left corporate America, for what?? Don't do it!!!

Owner Was't "Absent" - Your Brain Was When Reading His Post

Do me favor "visitor" and get a brain. The franchisee above was saying that when he became a franchisee (after having LEFT corporate America) he realized he was screwed, that he was going to lose all his money and HE WISHED HE WAS BACK IN CORPORATE AMERICA.

At least in corporate America, if you get 'downsized' you don't lose your life savings, including your home. You weren't defrauded out of your retirement savings and your home. You just lost your job and now you go find another one. I am sick and tired of you franchisor apologists twisting and turning posts in order to confuse those potential franchisees who read the comments so they can be your next mark.

Once Again....THANK GOD FOR

Once Again....THANK GOD FOR IAMCO !!!!!!!!!!!!!!!

I want to buy Ups store Franchise I need advise

I am interested in franchise business, and I thought of Ups.
I really want to contact with some owners to know all about it. Is it a good business to go for?
how much money I can earn?
and many more....

Please contact me in Jodie_777_7@hotmail.com

Thanx

Don't buy The UPS Store franchise

I bought into the franchise 12 years ago. I was filled with so much hope and enthusiasm. I thought I was investing in my future. BIG DISAPPOINTMENT. You work, work, work and everyone gets paid except the owner. The overhead is too high and corporate keeps trying to squeeze more money out of us. I could write pages as to why this business is a bad idea, but I'll keep it short. Look for another business. Sorry, fellow franchisees, but the truth is the truth. This business fell way short of my expectations.

Our store makes alot

I work at a UPS store and see the numbers we do and the amount of income we make. The key to a good UPS store is the corporate accounts that UPS sets up for the stores. Our biggest client is a corporate account that we average 5k a month on just there equipment returns. We also do banking services for another account holder that earns us quite a bit. We are in a busy location in orlando, so we get alot of foot traffic, but we also branch out to local business offering them services that are not advertised on UPS commercials. The biggest profit maker is our mail box rental which is complete profit and depending on how many units you have to rent can make you easily $250k per year in profit (thats after franchise fees) .Another thing to consider is you need good sales people to work in your store, not retail associates! Our staff is always thinking outside the box coming up with new ways to get people to come back. We have offered discounts to UPS account holders to ship through our store and pay us. We don't make a huge profit margin on those, but every little bit helps. I agree with most of the posts about it not being easy, customers have a hard time with understanding some of the nuances of UPS shipping policies. We offer so many services that even if one goes to the wayside we have more to take its place. Just a few are public notary, computer rental, business cards, mailbox rentals, shipping, resume building, copy services, and many more. So find out what works best in your area and good luck. I am sorry to hear about the other stores having problems, but wish them the best in there next venture.

$250,000 IN PROFITS, CORPORATE ACCOUNTS SET UP FOR STORE BY UPS!

You must be smoking the illegal stuff some of your customers ship through you!
$250,000 a year profits, not only are you smoking but you must be mainlining HEROINE.
Now listen BRAINS. After 2006 the stores had to go to gold shield or face loosing the franchise. This means you are working on a 27 1/2 % profit margin instead of the old 65%. So jerk to make $250,000 profit your store would have to do a minimum gross of over $ 1,000,000. What a load of crap. In mid 2006 I had 3 of those POS(Piece of Shit) stores and thanks to the help of vulture momma ups I was doing 40% less gross business with 3 stores than I was doing in mid 2005 with 2 stores, again before GOLD SHIT, SORRY I MENT SHIELD! WAS IMPLEMENTED. Anyone who believes this JACKASS should go for counseling because their brain is only getting 1% of the oxygen it normally needs to stay alive. OR you're from vulture momma ups. BEFORE ANYONE ELSE BUY'S ANY OF THOSE POS STORES LISTEN TO THE 2 SLOGANS I HAD IN MY STORES. 1 - UPS SHE EATS HER YOUNG. 2 - AT THE UPS STORE WE DON'T SHIP WE S I N K !.

There are few if any stores

There are few if any stores that "make you easily $250k per year in profit" on mailbox rentals. The original message appears to be written by someone delusional or a shill.

UPStore

Hi Jodie - the UPStore looks like a sweet little niche that just turns money but don't be fooled. There are approximately 20 value streams with shipping charges (UPS) being the most fruitful. Generally speaking people don't need things printed, faxed, or word processing anymore so thoses similar value streams are quickly disappearing. The ordinary income is modest around $150K - $250K annually with the Cost of goods in the $45K - $90K ( expense of just producing a product ). Than you have lots of expenses not to mention a Franchise charge around 14% of the Gross Profit. Roll in the required national advertising expense around the $2500 - $3500 and quickly you see your working for the fat cats on top and the independent person is working hard with no income to show.
Nearly 40% of the UPS stores in operation are loosing money and of the remaining 60% most are making South of $30K / annually. Are there some successes? Yes - but what it really comes down to are customers. Generally speaking, most people are shocked at the prices because they are high and the normal Joe that walks in the door will not be a reapeat customer. Most of the stores I have looked at have revenues hoovering around $12,000 / month. December will typically double that or a little more but it's not enough to make the store a real winner. Hope that helped.

Good Luck

Incorrect numbers

This is in reply to your numbers. The royalty fee is 8.5% not 14% and the national ad fees are covered in the 8.5% if you own a store look at your royalty report it shows a break down. I have been the manager of the store I am at for a little less than a year (Officially), but I have been running it for three years. Our monthly take is between 28,000 and 36,000 depending on the time of year. My bosses take home is about 85,000 and that's after my generous salary. The UPS Store franchise does have its issues but if the store is run right and you put in enough community effort an existing franchise is good. Now as far as new stores they are a bad idea. There was a store opened just a few miles from us and they are in bad shape. They try and steal our customers but they can't take enough to be successful. Now granted the actual take home is about 20% but if you are in a good area and you market well 20% is a decent take home.

gross versus net revenue

8.5% of the gross translates to 17.5% of the bottom line you moron

Thank GOD For IAMCO....The

Thank GOD For IAMCO....The only way out !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

It is what you make of it.

It is what you make of it. Corporate does try to squeeze money... but you have to build your business. We have raised the print business in our store quite a bit. We did close to $300,000 in print alone is 2012.

absolutely full of crap - I

absolutely full of crap - I have a store in the top 10 nationally and am nowhere close to that - nobody even goes over 200k…..

$300,000 IN PRINT ALONE.

I KNOW YOU ARE FULL OF SH*T UNLESS YOU HAVE 20 OR 25 COPY MACHINES AS KINKOS DOES YOU ARE REALLY FULL OF PAPER. WITH THAT KIND OF VOLUME YOU MUST BE CHARGING BETWEEN .03 AND .05 CENTS PER COPY AND YOU WOULD HAVE TO DO 7,500,000 COPIES A YEAR. BY THE WAY THAT WOULD BE ABOUT 25,000 COPIES A DAY EVERY DAY 6 DAYS A WEEK FOR A WHOLE YEAR. YOUR FINGERS MUST BE WORN DOWN TO STUBS FROM PRESSING THE COPY BUTTON!

UPS Store conversion

Hi,

I am sorry to hear about all of your situations with the UPS Store Franchises. I have watched 2 local UPS store franchises go out of business in the last 5 years. I have read all about the gory problems regarding your situations. I have personally seen the owners literally starved out of business by owning UPS franchises. I have read how almost 80% of all UPS store franchises are at financial risk.

I have a solution to most UPS Store problems.
Check out our distributorship.
http://www.gpostal.com/franchisesdistributorships.html

Last November (2011) We bought out a UPS store franchise in a small town. The UPS store was strangled out of business with the help of being a UPS Store Franchise. You know all to well how that happens.
We converted it to a Go Postal.The total conversion cost less than $5000
Our first year we grossed over $170,000+. I kept the same employee and store hours approximately.
I personally worked there less than 3 weeks the entire year.

If you would like convert or sell your location feel free to contact Ken at keng@gpostal.com

The UPS Store equipment

I am looking for a good used pos system either from some one that has upgraded or someone closing down . Thanks , Ron

So should I do it or not?

I came to this page by accident. I was searching about how profitable mail center were before I spend lots of money with a UPS franchisee. After reading these, don't think I will be opening anything anytime soon. Good luck!

UPS

I find these comments funny and not sure what the owners are doing or not doing. I have owned 3 stores for 7 years and the last 2 years have been the best we have seen. We are enjoying double digit growth in a down economy. If the owners are not taking advantage of whats going on with USPS they are missing the boat. If printing or any new profit centers that make you money are to complicated then you are in the wrong business. I am so sick of listening to these negative comments when we make money month in and month out.

Good news for a UPS store.

I am glad to hear you are doing so well. 7 years ago I also owned 3 of these stores. I check back on this site every month or so just to see if there are any new posts. I keep posting here to make sure people who may currently be thinking of investing in one of these stores hear what the majority (approximately 60% of stores or of what is left) are actually doing. Since you own the 3 stores for 7 years you got into the stores 6 months to a year after gold shield was forced upon us. So at that point there was really no where for you to go except up. I am willing to bet you got the stores at a great price. You know I heard the 2 stores left operating in the county I had my 3 stores in are doing a little better. I had 2 stores 6 months before gold shield was forced upon us and had just bought a third store. After 6 months into gold shield with my 3 stores I was doing 40% less shipping with 3 stores than the year before with only 2 stores. This was because of the help I got from UPS by them sending salesmen to every business within a mile of my store trying to sign them up as direct shippers with their own shipper numbers and discounts and as a bonus they could drop off prepaid packages at my store. Also as an extra bonus for them they came into my stores with a nice letter from UPS corporate which told them not only would they get better shipping rates than my UPS stores could give them but that at my stores they would get an 15% discount on everything else in the store except USPS postal services. UPS corporate is extremely good at this type of help. Well I think I will end this now because I am getting tired after worrying all day how to get out of the mess that UPS put me in by helping me get rid of every single asset I had, ya know like retirement accounts, savings accounts, a couple of auto repossessions and lets not forget everything still owed on the stores or the foreclosure on my house because of the equity loans i took out of it to help keep the stores going.
Well good luck to you, and any future franchisees.

Thank you area guy for that

Thank you area guy for that great "P R " about the UPS Store

Comments

Hi guys and thanks.
After mailing out a package of our peanuts I was thinking about a franchise since I spend a lot of time in the stores mailing out our product.
Thanks for the tips. I think I will stick to Peanuts.

Quick tip on how UPS helps The UPS Store Franchisor

After Gold Shield kicked in I naturally was complaining to my UPS rep about how I was hemorrhaging money. His answer was they were going to help and he told me how they were helping me here it is THE TRUTH, I swear to the Almighty. He told me this.

Do you know the $2.00 per week we charge you for the label printers, well we are not going to charge you this fee any more it is part of The Gold Shield package. Isn't that wonderful!

Well I wasted no time and figured out my savings. Well I had 3 stores, each store had 3 label printers(I only used 2 at a time but I kept 1 extra in case of a failure I would have no down time at the location),
I calculated 3 printers times 3 stores is 9 printers. At $2.00 each that was $18.00 per week and it came to a $72.00 per month savings, WOW. I called him back and told him you AS*HOLE you are saving me $72.00 per month when I am loosing THOUSANDS AND THOUSANDS. If I printed here what I called the Idiot it would be deleted

I just thought you should know the kind of help you can expect from the greatest shipping company in the known world UPS.

By the way before my stores closed I informed all customers what was going on I thought it would be a good idea for them to switch to maybe FEDEX or who ever. I then started to put up slogan signs, example 'AT THE UPS STORE WE DON'T SHIP WE SINK'.

Again good luck to you all.

Granville_Bean's picture

Wow, I bet THAT really got you the help you needed....

Another Guest said about his corporate rep:  " .... I called him back and told him you AS*HOLE "

Barbara Jorgensen's picture

The story above is sad.

Very typical.  We've been reading stories about UPS for years.  People need to read and understand what this guest is doing.  Good for you.

Disillusioned

Barbara, I just sold one of my stores and can't wait to sell the other one. Are you an attorney? It took me 3 years to sell my store. I had to sell it way below market value and my area office and corporate took a big chunk of my money. I basically worked for a salary for over 7 years. How are you trying to help the franchisees?

Do your homework

You probably have UPS Stores near you ... go talk to them face to face. Ask if you can hang around for a half day. Do that in several stores. You will learn a lot. I had the notion that multi center ownership was the way to go... but the business is complicated and you have to pay someone $30 grand plus to manage a store .... or you could be in trouble... putting out fires all the time on stupid stuff the lower paid employees do. Don't let anyone tell you that the shipping business is easy. They keep adding stuff that is complicated... like printing... all the time. Margins are crap. So you will have to manage the store by yourself... with a couple of part timers. Location is everything... but rents in those Hi Viz locations don't come cheep... my rent for 1600 sf is around 3100 per month. all in for the most part. So my first 7 grand in sales goes to rent. a week or more. I am lucky to still be able to make my living doing programming because I have yet to take any money out of my stores.... since 2004. I just hope that when I hit retirement... I can start to take a paycheck.

Should you do it or not

As a UPS Storeowner one gets this question all the time. You dont state what you are doing now. What your expectations are etc. You will need to do your own due diligence. I find that people who tend to fail generally don't take the time to talk to 20 or so other storeowners in close proximity of store location you are considering. You might find that used store had previously sold for less than startup cost. While this may seem like a bargain or be a bargain it could be an unprofitable location. Other locations may be totally desireable because there is little competition and area is growing. I would need to know more.
Favorable litigation results could result in positive changes to profitability. You might want to wait and see what happens in the courts before making a decision.

The UPS Store

Nobody forced any of you to buy a store. If you are too damn dumb to run a business or evaluate a potential business/location you should be posting on another page called "I am a loser and a crybaby". I have two stores, both profitable. I'll bet all you complainers sat on your fat asses in the store doing nothing but waiting for people to come through the door. Ever advertise, go door to door business prospecting. Doubt it. You deserve what you got.

the ups store

I have commented on your comments before. As far as I am concerned you are a ups shill.

However just to let you and others know I did advertise in three separate venues for each of my 3 stores.
Going door to door prospecting you betcha, and that means door to door around each of the 3 stores.

Now you ups company shill I am going to tell you a situation I ran into, not to let you know but to let perspective and other current owners about the help I got from ups the motherland.

Standing in front of one of my stores late one morning I saw 2 men walking toward my store but stopping in almost every store along the way except for the Boston Chicken and the Carvel store. As they came up to me while I was standing in front of my ups store they stopped and talked to me. I asked what they were selling their answer was 'WE ARE UPS REPRESENTATIVES AND WE ARE GOING AROUND TO BUSINESSES TO GET THEM TO SIGN UP TO BE DIRECT UPS SHIPPERS'.

I withheld the temptation to grind my cigarette out in their face, and told them nicely to 'Go F**k OFF'

Nice help from mother ups isn't it.

Another side of the UPS Store

You my friend are very lucky. I had three (3) stores six months before Gold Shield kicked in. Three months after Gold Shield kicked in I was doing 40% less business with 3 stores than I was doing a year earlier with 2 stores. It was only 6 months after Gold Shield started that I and other owners found out that the independent report commissioned by UPS to assail The Gold Shield business model told UPS that if this model was installed their opinion was that up to 60% of The UPS Stores would be out of business within 2 years. Now one other thing. If a store called The UPS Store, synonymous with 'Shipping', cannot make ends meet on only shipping it is worthless. All other sale items of the store are the gravy, the icing on the cake, the actual profit

Why don't you ask a Carvel store how many other products other than ice cream he sells to help him make a profit.

I have many more criticisms of the piece of crap company called UPS, but to many who will read this I need not mention them.

BTW the help I received from UPS was basically NILL, also the help I received from the Area Managers was mostly useless. They only care about store openings and they don't have to be new stores, resells, closings and re openings are where they make their money. Due diligence is one thing however purposely with holding facts IE Gold Shield, and stating that your franchise will not be renewed unless you go to Gold Shield, the word to describe it is BLACKMAIL, and LYING ABOUT FACTS, by withholding the reports contents from current and future owners.

You know any bad business will have some locations that will do well.

And just to let you know in area meetings after Gold Shield was implemented the UPS spokesman had the gall to tell us UPS STORE owners and I quote 'You have to learn to be more like KINKOS'. That was a real laugh.

But as I said consider yourself lucky very lucky, and good luck

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