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Franchise Graveyard: List of Failed eBay Auction Stores


Group Action??

How do a group of eBay drop off store owners (frachises) get a lawyer to represent them in a group action? I am one of many former store owners who would like to hold a franchisor accountable.

RichardSolomon's picture


The Ebay, UPS Store, Coffee Beanery Cafe tombstones are obvious. There are many more teetering on the brink. It would be a good exercise to scout around and see what others could be spotted that have one foot in the grave and the other on a banana peel.

For instance, why are nine Sylvan Learning Centers up for sale on this morning? What does that say for the "tutorting/testing" business as a possibly durable ingvestment that might thrive during the life of a five or ten year franchise agreement?

Clumps of simultaneous resales as a sign of emphysema? 

Richard Solomon

The UPS Store

Federal Court Accepts Franchisee Victims’ Amended Complaint Against United Parcel Service (UPS)
A group of small business owners (The Brown Shield Association, BSA) unites against shipping Goliath UPS, citing omissions, non-disclosure, unfair practices, breach of contract, and predatory practices for franchised locations.

L. Michael Hankes, Esq. Peter C. Lagarias, Esq.
63 Commercial Wharf 1629 Fifth Ave.
Boston, MA 02110 San Rafael, CA 94901
(617) 723-1144 (415) 460-0100

Los Angeles, CA (March 22, 2007) - A substantially revised amended class action lawsuit against UPS was accepted earlier this month by the United States District Court – Central District of California. The amended complaint was filed by more than 220 franchisees of The UPS Store. The franchisees contend that, among other claims, UPS omitted and/or did not disclose relevant information to franchisees opening new The UPS Store locations and those franchisees switching from the MBE brand to The UPS Store brand; UPS made false claims about how well The UPS Store would perform financially; UPS competes and uses information from the franchisee to acquire customers for UPS directly, bypassing the franchisee altogether.
“Corporate greed is still alive and well in America” says Larry Bowdoin, President of the Brown Shield Association (BSA), and a franchisee himself in Alabama. ”UPS likes to call us a minor number of disgruntled franchisees. We’re just one group. What UPS doesn’t want you to ask is how many additional lawsuits from franchisees are there?”.
Bowdoin continued, “No franchisee could have forseen that our biggest competitor would have been our franchisor, UPS itself. There have been many instances of UPS luring away our [franchisee] customers, often with incentives, affecting the franchisees’ profits. UPS makes more money that way, with no regard to our bottom line. The more money per package that they get doing it that way adds up to tens of millions of dollars of extra profit for them. They don’t care that we have rent, employees, health care to pay for out of our own pockets”.
“Had information been fully disclosed regarding profitability, missing test market data, and unfair trade practices, the franchisees would have been able to see that UPS was pulling a fast one on us”, said Bob Strickland, VP of the BSA and a franchisee from Virginia. “This is not a viable business to be in,” he continued. “Instead, we have people filing bankruptcy, drying out their retirement accounts, maxing out their home equity line of credit - it’s a travesty. We’re fighting back for all of the exploitation that UPS has done to us”.
The BSA represents a wide range of franchisees from around the country.

Mail Boxes Etc.

Michael Hankes and Peter Lagarias also represent approx. 35 Mail Boxes Etc. Franchisee Owners in another lawsuit against UPS.


The MBE/UPS STORE franchise is pancreatic cancer. NO CURE just slow death!


It is amazing how much trouble UPS has because of the UPS STORE SCAM they put on the small investor. 3 individual groups litigating totaling 400 plus litigants 1 nation wide combined class action with 4 legal teams involed for overcharging the franchise,all pak and ship businesses and even its own corp and individual clients. UPS has proven to the world that it is an equal opportunity scam corporation.


Now there is 5 litigations against UPS/MBE with approximately 5000 directly associated with the UPS STORE franchise. Then the overcharging class action can add another 1 million plus. When this pile of brown hits the fan UPS will be delivering packages by horse and buggy. UPS gonna need a whole lot more of those right turns to make up these payouts. LIKE 5 BILLION OF THEM!
The question now is not what brown can do for you, but more likely what the heck is brown going to do to settle these litigations! ANSWER is PAYOUT BIG TIME!

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