UPS Store owners all over the country are packing it in, including 10 in the Dallas-Fort Worth area in the last two years. And the numbers could grow, raising alarms about a possible franchise fiasco.
The problem stems from an unusual situation: The stores can’t compete with United Parcel Service Inc.’s Web site.
Many current and former franchisees accuse the package delivery giant of using the Internet to take away their customers.
Most of the franchisees that failed are mom-and-pop operations that sank all of their savings into their stores. The owners say UPS is destroying their livelihoods and retirement dreams.
“I have no retirement,” said Gary Davis, whose Lewisville store shut down in December 2005. “I’ll be working till I’m dead.”
In his nearly two years as a UPS Store franchisee, Mr. Davis never broke even. He invested $180,000 to get the franchise, cashing out his 401(k), selling stock and taking out a loan.
Atlanta-based UPS denies that it’s undercutting its franchisees. It is an unfounded complaint,” said Rich Hallabrin, a UPS Store spokesman. “It is in our best interests to make sure as many of these businesses are thriving as possible.”
But many existing stores are fighting to survive as well. Things have gotten so bad that even longtime successful franchisees like Barbara Beyer say they wouldn’t recommend the business to others.
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