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Log In / Register | May 27, 2018

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Morgate is the larger group

"Now there remains the much smaller case of Morgate v The UPS Store."

Not true. Morgate is the far larger group of those who did convert from MBE to The UPS Store. I believe that's around 3500 franchisees +/-. It dwarfs all past cases.

The UPS Store, MBE, AlphaGraphics & PostNet lawsuits by zees

Right. From what I recall, there were quite a few large clusters of Mail-Boxes-Etc. franchisees that sued the franchisor. Pretty much all lost. Now there remains the much smaller case of Morgate v The UPS Store.

Alphagraphics does not have any past (in the last few years) or present lawsuits by franchisees, according to their FDD.

On the other hand, PostNet has PostNet International Franchise Corporation v. Steve Dixon and Wisdom Creek Holding, LLC.. An arbitration hearing about the franchisees allegation of the franchisor's breach of contract and fraudulent inducement was scheduled back two months ago. Anyone know the results?

Re: Alphagraphics profit

Yet store owners are mindful that they have been able to maintain ($1.1 million in) average gross sales per print shop. At the same time, AlphaGraphics grew the number of shops / franchises. Any thoughts on how AlphaGraphics was able to achieve this with significantly fewer staff?

Gordon & Rees Attny Amy Darby working Morgate v. The UPS Store

Gordon & Rees Attny Amy Darby was working this Morgate v. The UPS Store, Inc. et al. case. I don't know the status.

Gordon & Rees Attny Amy Darby is still working the case

Gordon & Rees Attny Amy Darby was working the case. You'd have to contact her to see what the status is, if any. That's all I know.

I thought MBE franchisees still had a Lawsuit vs UPS in Court?

I thought those former MBE franchisees in the U.S. that rebranded to The UPS Store still had a lawsuit pending against UPS Corp? What ever happened to that? It still shows up in UPS's Quarterly and Yearly 10Q and 10K, this from the 2nd Quarter 2017 10Q:

"UPS and our subsidiary The UPS Store, Inc. are defendants in Morgate v. The UPS Store, Inc. et al., an action in the Los Angeles Superior Court brought on behalf of a certified class of all franchisees who chose to rebrand their Mail Boxes Etc. franchises to The UPS Store in March 2003. Plaintiff alleges that UPS and The UPS Store, Inc. misrepresented and omitted facts to the class about the market tests that were conducted before offering the class the choice of whether to rebrand to The UPS Store. We have filed a motion to decertify the class, which was heard in May 2017. A trial setting conference is scheduled for August 2017."

Is this still an active case? Is it going to trial? How long will this be going on?

Alphagraphics profit

Not too hard to figure how they got to a $2.5 million profit. Cut from 100 people to 50 people at an average salary of $50,000, voila!! $2.5 million. This included cutting the entire field support team and the field sales team.

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