US franchises feel boxed in at UPS
United Parcel Service has seen its profitability rise dramatically in the year since rebranding 3,300 postal and business service retailer Mail Boxes Etc. (MBE) nationwide into UPS Stores, but the same is not true for some outlets, even with the increased shipping volumes.
Some UPS Stores are struggling with lower margins brought on by the standardisation of lower shipping rates across the board mandated by parent company UPS in the conversion without accounting for the wide discrepancy in rents, insurance rates, and other costs that have to be borne by franchise owners.
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