International Law

The Brown Terminator

According to Yahoo Finance, Orange County UPS/MBE Franchisee Fights Shipping Giant for Her Survival

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Waller's first years as a Mail Boxes Etc. franchisee were so profitable that she won numerous company awards and was even featured in an article in Black Enterprise Magazine.

But when UPS bought Mail Boxes Etc. in 2001, the financial bubble burst for Waller.

The sales and profits for her once successful store were never to return, as UPS abandoned the profitable MBE franchise brand.

At first UPS promised us that a new business model would realize improved sales and profits for everyone," said Waller.

But it soon became clear to all of us that the only ones in this new relationship to make money would be UPS."

This is one of the odder franchise stories.

When UPS bought MBE, they decided to abandon the distinctive MBE trade-marks. Several court decisions agreed with UPS's contention that they could simply abandon the MBE trademark and substitute a new franchise system in its place.

I find this very odd.

There is a McDonald's several blocks from where I live: it has been at that location for almost 35 years.

It didn't have a parking lot; now it does.
It didn't have pizza, then it did, and now it doesn't.
It didn't have salads, now it does.
It had the distinctive golden arches, now they are more sublime.
It didn't have a huge sit down area, now it does.
It was torn down and rebuilt.

Never during any of these systemic changes did any consumer believe that the building and location was anything other than a McDonalds.

If they now kept the menu the same, but put up Burger King's trademarks, every consumer would believe that it was now a Burger King.

But UPS tried to tell its MBE franchisees that the systemic change to the UPS trademark was not a new franchise system - just a continuation of the old system with a new trade dress.

Very odd. Totally unbelievable.

Full post as published by Misleading Advertising Law on February 29, 2008 (boomark / email).