Franchise Battle Officially Begins; UPS Stores Vs. Mail Boxes Etc.

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I remember hearing about a group of disgruntled franchisees from Mail Boxes Etc. getting together shortly after UPS bought the huge franchise chain out, and deciding that they would not spend the $25,000 needed to retrofit the stores into all things brown. {UPS colors}

I am often asked what happens to the franchisees of a franchise chain that is all of a sudden sold, and new management takes over. {It happened to me. I left and went out on my own.}

Keith Girard over at AllBusiness.com wrote a fine article describing the way things may have gone down. A great read.

From AllBusiness.com

“The franchisees charge that the company’s effort to convert them,
known as the Gold Shield campaign, after UPS’s ubiquitous logo, was
intentionally deceptive and materially changed the ground rules for
their operations. In effect, they claim, it broke their franchise
agreement and dismantled the existing franchise structure.”

They also charge that the company failed to disclose performance and
financial data in addition to other violations of franchisee laws in an
effort to persuade them to switch. “

Read more at AllBusiness.com

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