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Craig Hsueh over at Blue MauMau posted a story and a link to an article citing a study naming the UPS Store as the “Most Competitive U.S. Retailer”According to the article:
The UPS Store has the biggest competitive advantage among retailers in the United States this year, according to a new study released by the NRF Foundation, the research and education arm of the National Retail Federation….
…The UPS Store (NYSE: UPS – News) tops the list, followed by Dollar Tree, Dollar General, Walgreens, Kenneth Cole, Petco, Kohl’s, Target, Men’s Wearhouse and PetSmart….
The UPS Store franchise program has been embroiled in controversy and lawsuits from franchisees who contend their franchisor unfairly competes with its franchisees.
WHAT DO YOU THINK? IS THE UPS STORE A GOOD FRANCHISE OPPORTUNITY? Leave a comment and tell us what you think.
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comments on The UPS store being a “drop off”!! Totally true. I just drop off my labeled package from my pre-printed home made label and drop off. Lawsuit should include % of drops-off revenue to the store. UPS makes money on the shipping, the store should share that profit. You’re in a good location, UPS should give “bonuses” to those stores in good locations as they save their “Drivers” from leaving their route to pick up at a residence. I was thinking of a ups store, but after these comments..NO WAY…THANK YOU for everyones honesty.
11/8/10…Going to the meeting, this week, whereby the regional UPS guy pitches franchisee ownership to me. Any current comments regarding UPS Store ownership?
I will save any potential victim possible…by saying DON’T DO IT! The only one who makes the real money here is UPS. The franchisee’s work their butts off, with no financial gain. You have to gross a tremendous amounts of money (not even realistic) to make a measly salary. And that’s NO OTHER employees but the owner. Most never even get there. UPS found a way to get others to work for THEM (the franchisees) and NOT pay them. We pay to work for UPS. It’s sad and heartbreaking. It has bankrupted many, and continues to hurt so many innocent people. I wish UPS would someday actually care what happens to their franchise. But they don’t. The only ones who should buy into this franchise…are those who have money to flush right down the toilet. That’s where it all goes. I am stuck…and looking to get out. And there are no good options here. Most likely we will go out of business. That becomes the only way to stop losing more and more money.
961 days ago
[...] 263 Comments // [...]
Looking to purchase a UPS Store for resale in biz since 6 years.
Sales Close to 300 K
What price is right? I am in IT should i quit my career and go in this business?
Thanks.
Z.
1003 days ago
[...] Is The UPS Store a Good Franchise Opportunity? (260 comments) THE UPS STORE Franchisees: Drop-Offs Can Drop Dead Franchise Owners Say Opening a UPS Store Franchise is a “Bad Financial Decision” The UPS Store: Fan Mail From Some Flounder(ers) THE UPS STORE: Overview The UPS Store Franchise: This Dog Won’t Hunt! The UPS Store Franchise: Follow the System and Succeed! UPS Store Franchise Owner Says You’d Succeed If You’d Stop Whining The UPS Store Franchise Owner’s Lawsuit Certified as Class Action Franchise Owners Say Opening a UPS Store Franchise is a “Bad Financial Decision” UPS Store Franchise Dream Ends in a Florida Trailer Park The UPS Store PLUS The eBay Drop-Off Store Equals…? Is UPS Cheating its Customers, Franchisees… and YOU? Owners call the UPS Store Franchise “Indentured Servitude,” and “A Nightmare” [...]
1003 days ago
[...] Leave a Comment // Are you considering investing in a The UPS Store franchise? [...]
I am planning to buy in a UPS store in Monetery Bay california. Current owner is asking for $55,000.00 for the sotre. In 2008, the store grossed $300,000.00. Currently, there are 1 manager and 2 part time worker employed. Franchise fee is 8.5 % . I have never been to any kind of business before. Is this a good deal ??? What should I investigate before investing ??? Help needed . Thanks!
Folks, I’m thinking of getting an UPS franchise. Can you give your comments based on the numbers below ?
Year 2008
Gross 224,000
Cost of Goods 76,000
Gross Profit 148,000
Expenses 146,000
Net 1,500
Owner Salary 33,000
Benefits 11,500
Owner Benefit 47,000
Thanks
Propspect of UPS Franchise Store:
Have you read the 250 comments from UPS Store franchisees? Have you read the other UPS Store posts on this site? This is one of the most heavily litigated franchise companies in the country, you are already complaining about it being a rip-off, and you are looking for guidance on how to get IN?
What is the appropriate bid amount that I should make for this store?
My advice would be to bid every penny you’ve got. Might as well get it over with quick!
I am trying to buy a UPS store here in Ohio. It does $250K in Revenue. 65% of the revenue is from shipping. ( I hate drop-offs ). The pay roll is around $40K and the business has been netting between $28K-$34K annually. The guys is asking $150K for the franchise. The guys gives the same reason that he is old and wants to retire and has not done that much marketing bla bla.. On top of this 150K, I have to give $4.5K in franchise fee, $5k in processing fee to UPS, and also the transfer fee of $5k to UPS. Isn’t that a rip-off. Also not to forget $4K for training (not counting flight and hotel charges). Anyways, what is the appropriate bid amount that I should make for this store. any ideas…. hmmmm $95K and 50% of transfer and processing fee. PLEASE HELP??
ATTENTION!!: UPS is starting to send anybody who needs to pickup a package to their closest UPS store to meet the DRIVER WHEN THEY ARE PICKING UP AT NIGHT. The store gets NOTHING!! Thus, the person sits in your store like an idiot for up to 30min…
Ricard:
Email the folks at AMITheOnlyOne.org they are from Georgia and their specialty is franchisees in litigation.
anyone know a good franchise attorney in Georgia
PS. Carol, the majority of franchisees that contest anything are legally gagged by the mother company, and they don’t have to report it anywhere.
Absolutely Mary Jo and Carol. In fact, the scoundral that over sold MBE (to the point of 3000), is the same person who over sold the bad ebay drop off store concept (they were in business only 3 weeks before franchising). And I understand, MBE had ALOT of litigation against them, including one of the biggest cases in Georgia, and that was BEFORE UPS changed the rules and made things go from bad to worse!
By the way the new FDD (as opposed to UFOC) does nothing toward telling the truth. Add that Arbitration is stacked on the side of the franchisor, and there is not a prayer in #$!@% for the franchisee. Welcome to reality!
Absolutely, maryjo! Very disturbing that a huge corporation would do this.
I personally believe that UPS and their attorneys knew the status quo of the law and regulation surrounding franchising, and knew that they could acquire “drop boxes” really cheap with immunity and impunity under the status quo of the law, no matter how many franchisees were destroyed in the process.
Do you understand that there has never been any litigation or a jury trial that has established that a franchisor has a duty to be competent or to offer a viable business plan to prospective franchisee? Apparently, under government regulatory policy, franchisors can sell franchises to the unsuspecting public at any degree of unprofitability or risk of failure of the first and subsequent owners —–as long as they are “somewhat” compliant with the FTC Rule.
There is a trial in the Denver Federal Court that may decide this issue if it goes forward? Look at the Franchise Times Article concerning the Peaberry Coffee Company and the expert witness testimoney to be given for the franchisor and for the franchisee! It is due to be heard in Febuary. Let’s see what happens.
If you understand that franchising was regulated to protect franchisors from those franchisees who failed who would claim that they were fraudulently induced because of false earnings claims and/or fraudulent concealment of material risk factors, you understand that UPS knew they could USE THE UPS STORE franchisees to their great advantage and could “churn” visibility as needed by shilling the famous brand name to new first buyers of The UPS STORE.
Some of us old-timers bought into the Mail Boxes Etc. franchise concept, and did our due diligence, including having the paperwork vetted by a franchise attorney…
This makes The UPS Store controversy one of the most disturbing to me, because the moral is that even if you do your homework, and buy from the most ethical franchisor, who can say that they might not sell out to someone with other priorities than your success in mind.
PS. In fact, if any one of us had gone to a “franchise” attorney upfront, we wouldn’t be in this mess now!
Not exactly, Chance. Some of us old-timers bought into the Mail Boxes Etc. franchise concept, and did our due diligence, including having the paperwork vetted by a franchise attorney…the UPS bought the MBE brand and changed the rules–and the name of the game–and destroyed the MBE brand.
PS. In fact, if any one of us had gone to a “franchise” attorney upfront, we wouldn’t be in this mess now!