Franchisee Forced to Go Independent by UPS
MALIBU, Calif., Howard Spanier, operator of the nation’s top sales Mailboxes Etc. (MBE) franchisee in recent years, now faces a major change as United Parcel Service (NYSE: UPS – News) refuses to renew Spanier’s franchisee agreement as an MBE and he is forced to become an independent. Spanier observed, “UPS told us back in 2001 that we would always be able to renew as MBE stores, if we wished to do so, but that promise — like a lot of others — was broken by UPS. We all feel abandoned by UPS. It’s the business equivalent of walking the plank — jumping into the unknown.”
Spanier was forced to become an independent store in October after 18 years when UPS broke their promise and refused to renew his MBE franchisee agreement. His new store is called Malibu Business and Shipping Center, located at 23852 Pacific Coast Highway, Malibu, California. 90265, Telephone 310-456-2733.
“If this was a failing business, I might understand UPS,” Spanier said, “but I’ve been officially recognized as the MBE Franchisee of the Year. Plus, I’m not the only one facing this situation; there are some 30 other MBE owners in the same position, from California to New York — all being told by UPS to accept the unprofitable UPS Store program or go independent. I didn’t buy this franchise to go independent. I bought it so I would have the value of my eighteen years of equity in the MBE brand,” continued Spanier.
Other MBE franchisees that have been forced to convert to independent status include store owners in Arkansas, Vermont, Ohio, Oregon, Kentucky and Texas, in addition to California. One, Mary Dunseith, of Huntsville, Texas, is a widow caring full-time for her two young grandchildren; her story was covered recently in a national magazine’s special feature on non-traditional family situations.
“It’s a little scary,” Dunseith said, “but as the sole provider for myself and my grandchildren, I don’t have any other options right now.” Her store, now under the independent name Mary’s Pack & Ship in Huntsville, Texas, began operations under its new name in September, even though she, too, would have preferred to remain an MBE franchisee. “I bought this franchise because of the MBE national brand as well as national marketing and franchisee support, and UPS has taken that from me.” Dunseith said her customers have expressed their good wishes for her success. However all of us would have preferred to remain as MBE, if that were allowed by UPS,” added Dunseith.
Spanier said the acquisition of MBE by UPS in 2001 initially seemed to hold real potential for the franchisee operation, but said the early optimism was quickly replaced by doubt, when they realized UPS had removed most of the profitability from the franchisees.
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