Franchisees: UPS Needs A Better Return Policy

Forbes:

For many small business owners, franchising sounds like the perfect option - it allows you to own and operate a business while having the support of a well-established brand behind you. Yet, there is a darker side to franchising, one that often gets lost in years of court appeals and settlements. If you are looking to franchise, it’s important to pay attention to the fine print.

A David and Goliath battle between United Parcel Service and its franchisees recently turned into a win for the small business owners. In a case that has been going on since 2002, the former franchisees of Mail Boxes Etc. are suing UPS for contract and franchise agreement violations; saying the shipping giant failed them when it forced them to convert to UPS stores or to go private.

UPS bought Mail Boxes Etc., then a chain of 4,300 packing and shipping centers, in 2001 in an all-cash transaction for $191.0 million. Its previous owner, U.S. Office Products, had declared bankruptcy. Read on…