Franchisees Sue UPS Over Conversion to UPS Store
A group of Mail Box Etc. franchise owners have filed suit in California state court alleging that United Parcel Service Inc. is violating state franchise laws. Two years ago, UPS bought Mail Boxes Etc. and this year the Atlanta-based shipping company offered franchise holders discounts on shipping services if they would rename their outlets “The UPS Store” and agree to other operating changes. The suit filed April 25 in California Superior Court in Los Angeles alleges that UPS violated the California franchise investment law by failing to properly register the new franchise and provide store operators with a uniform franchise offering. It also alleges that UPS made “earnings claims” about The UPS Store without providing franchisees with the backup and disclosure required by California law.
Read More
