Franchise Pick reader LEE recently shared this post:
I’m a Vet who has paid the initial UPS Store franchise fee, and although I thought I had performed “due dilligence” before making the commitment, I fear that I may be embarking on an expensive journey to nowhere. Does anyone know how hard the franchisor “comes down on you” if you decide to bail before signing a lease or legal franchise documents? I’d rather take a hard hit now than a knockout punch later.
Several current UPS Store franchise owners shared their advice:
Run now while you can…I have been doing this for 6 years changed from MBE to UPS Store in 2003. We have two stores and neither can break even. You cannot get out once you are in…eat your loss and run for the hills! Bid on some oceanfront in Arizona it would be a far more entertaining waste of money. PLEASE back out now.
take the hit now from a fellow owner. this franchise is a nightmare at this time.
Listen to your gut, don’t get sucked in any deeper.
Take everything you got in writing and all contemperaneous notes you made as to what you were told to a good attorney and see if feels you have basis to rescind all agreements and get your deposit back.
If MBE is convinced that there is some risk to them, they will fold and give your money back. In any event, don’t throw good money after bad by going forward with leasing a location, going to UPS University and all that crap.
The loss of a deposit pales in comparision to what you can lose going forward in something you do not have confidence in. The losses can be more than financial.
Jim Brown wrote:
We’re not being negative, we’re just trying to save as many people as we can from our own fate. Think of owning a ups store as being an indentured servant: Working for free for your master. Do whatever you need to to stay far, far away.
Lee, call a lot of UPS Store owners; don’t just talk to the ones that the folks
at UPS/MBE recommend. Talk to some that are in locations similar to those
you’re considering, and have been in business at least three years to five
years (That’s when reality starts to set in.) You needn’t have lengthy, in-
depth conversations, though that can’t hurt. But be sure and ask the simple
question: “If you had this to do all over again, would you?”
James Dunn wrote:
You should count your blessings. I wish I had ran and only lost the $7500 fee.
These store have no value. After you beg and borrow 300k before you go out of
business you will find yourself broke and destitute. When you try to sell you
will find how worthless these stores are. I think it’s a sin that UPS is
targeting vets now. These criminals have no soul.
So far, there have been no positive comments encouraging LEE to move ahead with his investment with the UPS Store franchise. Anyone out there have anything good to say about this franchise? Should Lee move forward, or cut his losses?
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