Franchisees Say UPS Special Policy Forces Them to Handle Alcoholic Beverages

14/03/07 Franchisees of United Parcel Services charged that UPS policies force them to take part in the distribution of alcoholic beverages, despite potential harm to underage customers or local restrictions against such shipments.

"As small business owners, we are very concerned about UPS' special service for its selected customers, known as Corporate Retail Solution (CRS)," said Joseph Wightman, an official in the Platinum Shield Association (PSA), an organization of current and former Mailboxes, Etc. (MBE) franchisees across the country. "CRS requires that we handle alcohol -- specifically wine, despite the risk that an underage customer may be assigned to pick up the shipment. I am also concerned that many of our employees are under 21 years of age and may inadvertently be breaking the law," he added.

"It troubles me and many of my associates that we have no say in providing the service," Wightman said, "no matter what we think or -- in some cases -- what local regulations might say about such a practice. Further, UPS is putting its franchisees at grave moral and financial liability in the event an underage recipient drinks the wine and causes a tragic auto accident."

Wightman, whose MBE store is in Manhattan, said the CRS policy covering alcohol was discovered recently, at the same time one of his PSA colleagues found that UPS has a similar policy requiring franchisees to handle shipments from Zero Tolerance Entertainment, a producer of pornographic videos. "You have to wonder," Wightman added, "how UPS could do business with a company whose slogan is 'Zero Tolerance For Bad Pornography' and then claim that the company is in the apparel business."

Wightman identified the alcoholic beverage shipper as Cakebread Cellars, a California-based winegrower and bottler. "We have no complaint with Cakebread Cellars itself," Wightman added; "our issue is with UPS, which seems to be developing a pattern of imposing possibly improper business relationships on franchisees who have moral objections or may operate in locations where these special services are illegal."

In January, PSA revealed that UPS has instructed its franchisees to use their stores as alternate delivery locations for Zero Tolerance Entertainment. "It puts us as franchisees in a difficult position," Wightman said, "and our message to UPS is that we pride ourselves on being productive members of our home communities and hope UPS will honor that attitude in future dealings."