More than 200 owners of UPS Stores across the country have filed a complaint against UPS and its franchiser, Mail Boxes Etc.
The franchise owners said in a filing in U.S. District Court in Los Angeles that they haven’t been able to make money because UPS undermined them by using the branded stores as drop-off points for prepaid packages and forcing the owners to focus on providing document and printing services.
“For a large group of us, it has been very difficult to make this work,” said Larry Bowdoin, the Alabama-based president of the Brown Shield Association, a group of UPS Store franchise owners. “Who would’ve thought that UPS would’ve created this franchise and wanted to see it do anything except succeed?”
The complaint, filed in April, claims the business model of the UPS Stores has been disastrous to franchisees’ bottom lines.
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