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The UPS Store
Platinum Shield Assn. vs. United Parcel Service (UPS)
In 2001, UPS bought Mail Boxes Etc. Corp. for approximately $192 million, beginning the process of converting 3,400 MBE locations into UPS Store franchises. Platinum Shield Assn. claims the franchisor, in addition to making franchisees responsible for conversion costs, cut into franchisee profits by setting low retail prices, creating customers who only use the stores as self-shipping drop-off points, and misrepresenting incentives to convert stores to the UPS name. According to UPS, the long-term benefits of reducing shipping margins and bringing in new customers with the drop-off service will outweigh the short-term setbacks these moves create during the rebranding process. Platinum Shield Assn., made up of 131 franchisees, filed its class action last November.
Outcome: Pending
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