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Franchise Pick

Cuppy’s Coffee, Medina Enterprises, Elite Manufacturing Supposedly Sold

by Sean Kelly on April 21st, 2008

(FranchisePick.Com)  Breaking news from the here-we-go-again department:  amidst franchise controversy, angry franchise depositors, and a fair franchising award that rivals Elvis’ appointment as Drug Czar for credibility, Cuppy’s Coffee has been supposedly sold.

The supposed sale comes just shortly before the AAFD 16th Anniversary Leadership Summit and Annual Meeting where the subject of revoking Cuppy’s Coffee Fair Franchise Accreditation was rumored to be the unofficial topic du jour at the May 4-7 confab in Newport News.

The supposed purchaser is consultant to the company and peddler of a $189 per month software bundle, Dale Nabors. 

Stay tuned for more info to be posted on BlueMauMau.org.  This ought to be interesting.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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POSTED IN: CUPPY'S COFFEE, xBuyer Beware

6 opinions for Cuppy’s Coffee, Medina Enterprises, Elite Manufacturing Supposedly Sold

  • Jill
    May 6, 2008 at 12:52 pm

    Cuppy’s Coffee is a horrible company. They like to take people’s money and do what they please with it. If this is not true, than why can’t they pay people back their deposits in a timely manner? Or at all? They are crude- please read what they did to former franchisees like Criston Menz- her story is so true. She goes from being treated so nicely, and then they took her money and now no one will contact her. This company needs to be banned.

  • Mark
    May 16, 2008 at 2:12 pm

    Didn’t we learn anything from the Cuppy’s & Java Joes mess with the negative blogs? The guys who started that ultimately turned around and said Uh….nevermind, we’re mad at Java’s, not Cuppy’s, but by then it’s too late. Cuppy’s was already convicted in the court of public opinion & had to jump through all kinds of hoops to restore their name. I signed with Cuppy’s last May, and although it’s apparent they are young and having growing pains, they’re working hard to be successful….save maybe for a couple bad apples who’ve now been fired.

    Now the deposit issue is bad….real bad, but there is blame to be shared on both sides. If you bother to do your homework and study the negative postings, you’ll find that there’s a lot of buyers remorse and poor planning from the prospective franchisees going on there too. What ever happened to personal responsibility? Elite should have escrowed the deposits for sure, but nobody could have predicted the bank crisis that made loans so difficult to secure. Sounds like the disgruntled franchisees could have done more to secure loans too before throwing up their hands and asking for refunds. Now don’t get me wrong, if I felt I was due a refund of 35-40K and couldn’t get it, I’d be furious. However, before throwing the entire franchise under the bus in the court of public opinion, first I’d consider there’s another 135 of us that currently have signed franchise agreements, and HAVE NOT asked for our deposits back….like me.

    If you try to take down the company on the web, you also help take down the 135 of us that are just like you. Just trying to start our own business…..

    You should call them everyday, bug them relentlessly, litigate, write the AAFD, your senator, hell…. write the president if you think it’ll help, but don’t wreck this for the rest of us.

    Now they’ve been bought out and the new CEO is publicly declaring he’ll make this right….so it appears everyone that’s entitled to get a deposit back will get it. So relax with the negative attack blogs now because all you are hurting is me and my livelyhood…..and I’m a little guy just like you.

  • sean
    May 16, 2008 at 3:16 pm

    Mark

    As you are probably aware, I have been a relentlessly vocal critic of this organization’s tactics since before Roy Snowden got his suite at Club Fed. And while I know you were responding to Jill’s comment, I’ll just take the opportunity to address some who have characterized my editorializing as negative. I disagree that criticism, in this case, is positive rather than negative, and I would urge the silent Cuppy’s Coffee franchisees to step up and start taking a more active role in protecting the brand that they have a huge investment in. Yours is one of the first comments from a supportive Cuppy’s Coffee franchise owner. Franchisees wield great power when they work together and insist on being heard. So far, the passivity of Cuppy’s franchisees has been a hugely negative factor.

    I applaud you joining the conversation, so please take this in the constructive way that it’s meant: You are not going to save Cuppy’s by continuing the nonsensical arguments about the mortgage crisis nor by blaming the victims. The previous owners had a clear habit of taking upfront deposits and spending the money - which was not theirs to spend. Whether they were outright crooks or compulsive gamblers thinking they’d get caught up on the next spin of the wheel is irrelevant. When people get mugged, they’re no less victims because they’d be smarter not to go out after dark.

    This is how Purvin and the AAFD unnecessarily shot themselves in every available foot, then quickly reloaded. What is maddening is how simple the solution is, and all the Cuppy’s franchisees should demand this solution immediately:

    1) Pay everybody not under a contract back. Don’t split hairs. No gag orders. The Java Jo’s era people, too. They’ll understand that it might take some time, but get them a good faith payment asap. Ask some vendors to for loans or contributions, but break with the past. Franchisees should demand that a new era of fair dealing begin now.

    2) Ban, forever, collection of deposits without using a 3rd party escrow service. Post it on the website and in the marketing materials so prospects know. It’s best for everyone.

    3) Set up a franchisee advisory council and a marketing committee to work with the Home Office. This is not an adversarial move, but a supportive one. Dale Nabors and the home office staff has their work cut out for them. Franchisees cannot sit back and wait for the success fairy to fly in from Corporate. You guys have an all-hands-on-deck situation and I believe survival depends on Nabor’s ability to create a “synergy” by unifying and mobilizing all available resources. He inherited a mess.

    I believe it’s critical that Cuppy’s franchise owners realize that, like it or not, this is their chain and their brand. They are responsible for what that brand represents, and they better stand up and be heard before it’s too late.

  • Mark
    May 18, 2008 at 7:29 am

    Sean,
    No, I’m not up to speed on you and your personal role in the web blogs. You make some valid points, and some invalid points, but suffice it to say, the new CEO has reacted quickly to the main issue which is to begin meeting the contractual refund obligations, and to weed out the bad apples that made it through the Java’s to Cuppy’s transition. Ref posting article on MauMau “Cuppy’s New CEO To Improve Operations and Meet Refund Obligations”

    My personal observation is that Cuppy’s and Elite have met my expectations. Nothing changed after they got my deposit, and while there is room for improvement, they have worked with me shoulder to shoulder for the last year to the point where I now have a lease and location that will help ensure our profitability and long term success.

    You seem to be an intellectually honest individual, and if so you’ll allow the new CEO more than 20 days to turn this around. You certainly have to applaud his efforts thus far?

    Thanks for your input.

  • WARNING
    Jul 4, 2008 at 12:50 pm

    Maunfacturer of Cuppy’s buildings levels lawsuite against Dale Neighbors July 3, 2008 for non payment of 2.5 million plus, and is issuing leins against current owners of buildings that havent been entirely paid for. Call me whatever you want, I speak the truth!

  • sean
    Jul 4, 2008 at 1:35 pm

    Warning:
    Isn’t Elite Manufacturing - which Dale’s Fransynergy also owns - the manufacturer of Cuppy’s buildings?

    Can someone actually sue themselves?

    I’m sure if it’s possible, these are the guys to do it.

    Please elaborate and/or email me at unhappyfranchisee [ at] gmail.com.

    This oughta be interesting.

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