Comments on: Owners call the UPS Store Franchise “Indentured Servitude,” and “A Nightmare”

By: Bernadez

Bernadez — Tue, 01 Dec 2009 21:20:11 +0000

If I could go back in time, I would’ve never opened one of this stores. Never ever!
It is a very very veeery expensive school of the “know-how” of how franchises work.

By: PrestonF

PrestonF — Sat, 19 Sep 2009 16:38:25 +0000

I have owned a UPS Store for 3 years and it broke even in 18 months. At the end of the 3rd year each owner (2 of us) were paying over $5000.00 in general expenses, such as cell phones, travel, dinners, etc… plus we paid each owner $5000.00 each in owner dividends. We anticipate paying owner dividends of $10,000.00 at the end of this year. Our basic investment was $200,000.00 and believe at the growth rate we are having we will make back our original investment in 5 to 7 years, plus covering many out-of-pocket expensed that we were paying out of our personal pockets in the past. Because of our success we have now purchased a second store in our market and think it will meet with the same level of success. It is important that the owners stay involved in their stores and get our in the local community and neighborhood and make sales calls and market the store. Success comes from hard work not standing behind the counter.

By: Josh

Josh — Wed, 24 Jun 2009 00:04:19 +0000

Every MBE/UPS document starts with a legal disclaimer – that should be your first clue!
Location is everything and there are very few UPS Stores that are making money right now. In the SW most stores are in high rent shopping centers and sales are off 30 to 50% so good luck making any money. In the current depression people are not shipping anything so life is very tough. That is why so many stores are for sale.
Fids something else!

By: Carol Cross

Carol Cross — Thu, 07 May 2009 17:54:36 +0000

Sorry, Jimmie, that things are getting so tough for you.

We are out of our “bad experience” with the “pig in the poke” that was sold as an “unprecedented opportunity” for security and success. We understand your pain! We avoided bankruptcy but we still have to pay on our Home Equity Loan that we used for some of the startup costs for the rest of our life. Every month this big multi-billion-dollar company benefits from our payment on this startup debt because another franchisee, of their choosing, got our business for nothing.

Apparently, Big Brown wanted a “retail presence” in which they could compete with FedEx, and they knew that they could get MBE cheap and exploit the cheap labor and venture capital of franchisees instead of bearing the expense of building their own corporate units wherein they would responsible for fair wages, etc., under our employment laws.

I believe UPS, on top, knew also that the status quo of law and process governing franchising would allow them to USE franchisees with immunity and impunity to grow their profits, even as thousands of franchisees would struggle and fail to make a living on their stores. UPS/MBE use “churning” as a management tool to remain visible in the economy.

Remember that you are not alone and try to start thinking about some exit strategies. Been THERE —-Bad Place to Be. Remember that you are not alone and thanks for sharing your thoughts that will perhaps SAVE someone else who, this moment, is thinking about buying one of these stores.

If the government and the law doesn’t stop franchisors from selling unprofitable franchises to the public, all we have is the INTERNET and our free speech rights to warn others.

By: Jimmie Clendenon

Jimmie Clendenon — Thu, 07 May 2009 13:50:42 +0000

I should have realized that there are more stores than myself suffering the same fate that we are. We have been in this operation for quite some time and still have yet to realize what we thought was our dream business. I am sorry to say that we are deep in debt and have to juggle monies every month to try and pay our creditors. I’m often wounder if the powers that be care whats going on with the franchise owners. I personally think that since the franchise is currently owned by BIG BROWN they can eliminate the AREA owners as they have their own personel that could do the job much more economical? Just my thoughts.

By: DORENE IVY

DORENE IVY — Sun, 04 Jan 2009 15:30:45 +0000

My husband and I are on the verge of buying a UPS Store franchise in an area where none exists nor do any Kinko’s/Fed X. Should we continue with this or would it be a waste of our money and time?

By: Sean Kelly

Sean Kelly — Wed, 24 Dec 2008 18:25:33 +0000

Are UPS Store franchisees making a bad situation worse? THE UPS STORE Franchisees: Drop-Offs Can Drop Dead

By: Davey

Davey — Thu, 05 Jun 2008 17:33:14 +0000

Dave Thomas,
Too bad you didn’t look around a bit more. Not all of these store are losers. For example, I am located in the Phoenix area and STR exceeds 700K, and I am very profitable, and have been ever since the changeover. Sadly, most stores have a different story to tell. Sometimes you just have to kick the rocks around a little more to turn up that gem.

By: sean

sean — Fri, 25 Apr 2008 20:16:52 +0000

What do you think? The UPS Store Franchise: Follow the System and Succeed! The UPS Store Franchise: This Dog Won’t Hunt!

By: Jim Brown

Jim Brown — Thu, 24 Apr 2008 16:25:23 +0000

I will only comment on the MBE’s suits by saying this: It appears that they are going well. one of these has a class component on behalf of the converted stores.

The UPS store’s suit does not have a class component. It is scheduled to go to trial in federal court in September, 2008.