Cuppy’s Coffee Responds to Franchise Allegations
(FranchisePick.Com) FranchisePick.com provides an open forum where visitors may leave comments - positive or negative - about specific franchise opportunities and franchise companies. We invite any company being discussed here to provide clarifications, explanations or rebuttals to the often anonymous statements about them. We believe the best thing a company can do is join the conversation and provide its side of the story.
Last year, the reluctance of the franchisor of Cuppy’s Coffee to join the conversation led, in my opinion, to a complete blow-up that might have been avoided. Similar allegations regarding Cuppy’s Coffee and Elite Manufacturing have arisen recently. I was pleased to see Cuppy’s Coffee president Doug Hibbing join the conversation this time. Over at the discussion thread started by Franchise Pick at top industry insider website Blue MauMau, Cuppy’s Coffee President Doug Hibbing addressed the recent disturbing allegations being made about the Cuppy’s Coffee franchise opportunity and the actions of Cuppy’s Coffee preferred vendor Elite Manufacturing.
Submitted by Guest on Tue, 2008/03/18 - 15:31.
Cuppy’s Coffee Smoothies & More is aware of the recent internet postings alleging refund complaints involving Elite Manufacturing and some Cuppy’s Franchisee applicants. We wish to go on record to state we are taking this matter very seriously and are addressing this issue on several fronts.
Elite is one of a group of companies that shares common management, is one of Cuppy’s preferred vendors and we value that business relationship. Cuppy’s recognizes that some of Elite Manufacturing’s customers have been having difficulties obtaining financing, as a result creating challenges for Elite. Many of these customers are Cuppy’s franchisees and Cuppy’s is working with Elite to address this matter. Cuppy’s has requested that Elite place future deposits by Cuppy’s franchisees into escrow until such time that pre-construction actively commences. Cuppy’s has received confirmation from Elite that it will incorporate this practice.
The current economic state has greatly reduced the number of franchisees able to qualify for financing for construction projects. No one could have anticipated the extent of the economic downturn’s impact on the ability of our franchisees to obtain proper funding. Consequently, Elite has informed us that it was not adequately prepared to process the number of refunds encountered. Elite has informed us that it fully intends to honor all of its contractual commitments and it is taking several different measures to alleviate the issues moving forward.
While we value our relationship with Elite as our preferred builder, Cuppy’s offers our franchisees the option to use a builder of their choice.
Cuppy’s is working closely with Elite and the American Association of Franchisees and Dealers towards a fair resolution for all parties.
Doug Hibbing
President
Cuppy’s Coffee Smoothies & More
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POSTED IN: CUPPY'S COFFEE, xBuyer Beware
11 opinions for Cuppy’s Coffee Responds to Franchise Allegations
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Mar 19, 2008 at 10:12 pm
[…] March 19th, 2008 Cuppy’s Coffee Responds to Franchise Allegations […]
Another Cuppy’s Coffee Franchise Allegation on Rip-Off Report
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[…] March 19th, 2008 Cuppy’s Coffee Responds to Franchise Allegations […]
Patty
Mar 20, 2008 at 11:56 am
Mr. Hibbing,
I believe in the interest of clearing Cuppy’s name and salvaging
your public image, you should urge your friend “Morg” Morgan to
allow an independent accounting of the financials of all companies held in management by Medina Management.
Cuppy’s is able to keep it’s shoes clean because they can throw
Elite Manufacturing out in the mud whenever it is necessary.
I contacted Cuppy’s in Jan 2007 to inquire about the Franchise.
I was immediately sent a qualifier and a UFOC dated December 2006,
This was sent on January 14, 2007, even though I told them I was not
yet ready to start, I was merely getting information. By month’s end I was getting calls from Elite Manufacturing pressuring me into sending them $27,000 by the following week. I don’t remember why the urgency -probably because the franchise fee was going up.
In June I contacted Cuppy’s via Frank Seeker to let him know that I and my business partner were about ready to start the process. I then got the urgent call that the franchise fee was going up from $10,000 to $25,000 but if I were willing to send them $5,000 in the next 24-48 hours, Elite Manufacturing would pay the other $5,000. I put the $5,000 fee on my credit card on June 15, 2007.
I had not yet signed the agreement. Then I was put in contact with
Elite who wanted a signed purchase order and $35,900. I wired them $39,500 to Elite’s Bank of America account on July 31, 2007. Note that Cuppy’s would not move forward with our franchise til they were notified by Elite that we had paid our initial fee! In fact they sent us new qualifiers to fill out (faxed to us 8/3/07) Then we received a call saying that we still owed $5,000 to Cuppy’s as the first $5,000 payment went to Elite!!!! So we wired a another $5000 on 8/8/07. On 8/8?07 we also got a copy of our UFOC Exhibit F
with our signed signatures.(cuppys asked us to back date those to Jan 30, 2007)
We are never fully told by Cuppys until after we send our money that we will actually paying Elite Manufaturing and that we are at the mercy of some other company to get our refunds. Its like dealing with Dr. Jekyell/Mr. Hyde. One company has won recognition for it’s fairness and honorable conduct, while the bulk of the franchisees money is diverted to a shady, doubious, company who is accoutable to no one! It’s like having a boy scout pick you up for your prom date, walking you to the car, opening the car door and getting you comfortably seated while his drunken, abusive cousin takes over the wheel and takes you for the ride of your life!
jls
Mar 20, 2008 at 7:50 pm
Mr. Hibbing,
I appreciate your posting but it does not really help any of us with getting our money back. The question really is what are you going to do about it. Since we all lost our money because of an agreement we signed with you in the hopes of opening one of your franchises I think that Cuppy’s should be held accountable in some way. If Elite does not have the money then it only makes sense for Cuppy’s to assist in processing these refunds. You gave all of us no other option but to use Elite for our buildings so in my eyes this is your fault and your problem. You trying to put all the blame on Elite makes no sense to me and makes you look even worse. It would be nice to actually see you do something about it instead of just placing the blame somewhere else. Why don’t you just let us know when you can actually rectify this situation.
sean
Mar 20, 2008 at 7:59 pm
Cuppy’s Coffee franchisees and refund-seekers: email me in confidence at info[at]ideafarm.net.
Criston Menz
Apr 2, 2008 at 9:46 am
It is apparent that you wish for Elite to take the fall for a scam that Medina heads up and that Cuppy’s has not packed in. I suspect you still must be getting franchise applications and submissions. If Cuppy’s was so willing to clear their name with the Roy Snowden incident by paying people back their franchise fees, why on earth would they not clear up the issue with Elite?
sean
Apr 2, 2008 at 11:34 am
Did any of you ever hear of Supreme Building Technologies?
This is a “vendor” of Elite Mfgr in Angola, Indiana?
Check out:
http://www.ai.org/newsroom.htm?detailContent=146_12814.htm&backEnabled=true
Charles
May 30, 2008 at 9:28 am
Response to Doug Hibbing. Do the right thing. Give the people back their money. You know what’s going on in Cuppy’s and Elite’s efforts to scam people. And if you don’t, you should. Cuppy’s rep Rich DeMerchant put me on with Elite for a quikie that Elite would pay the franchise fee, a one time offer I was told, if I got a deposit in to Elite within two weeks. Shame on me for believing that scam. Therisa St. Clair assured me my deposit would be safe in various ways. I requested the deposit to be put into escrow. My check indicated “escrow” account deposit. I was told by your NEW Director of African franchise affairs, Danny Jones, that, opps, we didn’t see it and it was spent on opperations. What? How? Why? Is Cuppy’s using franchisee’s deposits to finance their business? Seems so. I have written a letter of complaint to Robert Morgan at Elite in late November 2007. Did I get a reply, NO! Cuppy’s and Elite’s people are all using the same offices. When Danny Jones, supposedly of Elite, would call me, my phone ID showed he was calling from a Cuppy’s telephone number and office. When I asked Danny Jones why his calls came from a Cuppy’s office line, he said, oh I don’t know. I know and you know. If Cuppy’s wants credibility as an honest company they should assist consumers in getting their refunds back, immediately. No payments. Full refunds up front. Cuppy’s and Elite are taking money from hard working honest people fraudulently. DO THE RIGHT THING, GIVE US BACK OUR MONEY!
confidential
Jun 13, 2008 at 6:37 pm
For all of you who are trying to get a refund from Elite Manufacturing, which they rightfully owe you, may I say something? You should thank your lucky stars that you were not able to open a Cuppy’s. Our problems began when we were ‘accepted’ by Cuppy’s, and we went through with opening a cafe. Elite Manufacturing cheated us out of much more than $35,000! I am an unhappy franchisee, wondering why I don’t see any postings from other unhappy franchisees. The only reason I can think of is, our franchise agreement seems to have us all hog-tied, unable to do anything about the mistreatment we received at Elite’s hands. But I am looking for a way for all of us to band together and get what is owed to us from Elite. Anybody feel like traveling to Florida for a little r&r? We could all pay a visit to Cuppy’s headquarters at the same time. Maybe walk around on the sidewalk with picket signs. I bet the media would stop and talk to us!
confidential 2
Jul 14, 2008 at 6:32 pm
I, too am an unhappy, failing franchisee. It took 22 months to get open due to Java Jo’z/Cuppy’s failed relationships with first a real esatate search firm and then a construction management firm. We were told at the start we would be in business in six months. We, too, had the high pressure tactics thrown at us (no franchise fee, no royalties, free site search, etc. if we sign on that day). All costs were higher (some triple or more) than they projected,and revenue since opening was not even half of a half of a percent of traffic count. What a disappointment and nightmare. We closed our doors after 10 months to stop the bleeding and are suffering greatly financially. I don’t know what recourse we as franchisees who went all the way through the process have, but I do believe being vocal is our only avenue to finding any help out there. I think this story should be told over and over to every agency, publication, reporter, blog, etc. that will listen. Someone must be held accountable for leading so many people to financial ruin.
Charles
Jul 14, 2008 at 8:56 pm
to confidential 2: It’s not much consulation, but know that by you explaining your situation you have helped many others with your story. I truely hope and pray that some how some way you become financially whole. Yes, something should be done against these scam artists. But what? Maybe the new owner, Nabors, can offer something if he is the real deal. I do think a TV report about this would do something. Maybe only warn others to beware, if nothing else. Elite is the Devil’s advocate, for sure.
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