CUPPY’S COFFEE: Spurned CFO Sues Cuppy’s Parent Medina, FranSynergy for $132M
(FranchisePick.Com)Seems like only 7 months or so ago that Cuppy’s Coffee parent Medina Enterprises was joyfully announcing the appointment of Don Ochsenreiter Executive VP and CFO. It seems like just 7 months ago that Ochsenreiter was excited about all that Medina had accomplished, all it was going to accomplish, and its contribution to the local business economy.
A lot sure can change in 7 months.
In that amount of time, Medina was purchased by Dale Nabors’ Fransynergy, Ochsenreiter was reportedly let go, the staff was cut, the company was beseiged by lawsuits, and Medina’s final contribution to the local economy was renting the trucks to move the Home Office to Muscle Shoals, AL.
Oh, and Donald Ochsenreiter joined the growing number of jolly plaintiffs by suing Medina & FranSynergy for $132,306,000.
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The March 10, 2008 press release is still alive on Cuppy’s blogs, remnants of a simpler time… back when Cuppy’s Coffee only had opened, well, pretty much the same number of the 300 sold franchises that are open today:
Don Ochsenreiter joins Medina as Executive Vice President and Chief Financial Officer
10 March 2008Medina Enterprises, a Fort Walton Beach based holding company, announced the newest addition to its executive management team with the hiring of Don Ochsenreiter as Executive Vice President and Chief Financial Officer…With Medina anticipating tremendous future growth, Ochsenreiter’s primary objectives are to establish optimal capital structure for the company to facilitate its imminent growth, and to help Medina achieve this growth building a solid financial foundation.
Since its origins over 22 years ago, Medina has been helping grow franchises on a national and international level. In 2007 alone, Medina welcomed two new franchise companies to the family, Planet Wings and San Gelato Café. Medina also franchises for Cuppy’s Coffee and will add another franchise to its portfolio by second quarter of 2008. The corporate offices in Fort Walton employ over 100 people…
“I am very excited about what Medina has accomplished in the past year and a half, and I am very optimistic about its future prospects,” said Ochsenreiter. “Medina is a great contributor to the local economy and it is refreshing to have such a growing company here that diversifies our local business community. I look forward to developing a long-term strategic plan to ensure the company’s continued success.”
Less than 2 months later, Dale Nabors and FranSynergy acquired Medina and the associated properties.
Today, jd reports:
Well, it looks like a new lawsuit has been filed in federal court, this time with Medina and Fransynergy named as defendants:
http://dockets.justia.com/docket/court-flndce/case_no-3:2008cv00457/case_id-51868/
Doing a quick search on the name, it appears that this is the former CFO and Exec VP of the company. Also looks like he is demanding quite a bit of money. No documents have been filed at this time.
Looks like troubles continue to mount for Medina & its owner Fransynergy:
OCHSENREITER v. MEDINA ENTERPRISES, INC. et al
Plaintiff: DONALD C. OCHSENREITER
Defendant: MEDINA ENTERPRISES, INC. and FRANSYNERGY, INC.
Case Number: 3:2008cv00457
Filed: October 9, 2008
Court: Florida Northern District Court
Office: Pensacola Office [ Court Info ]
County: Okaloosa
Nature of Suit: Contract - Other Contract
Cause: 28:1332 Diversity-Breach of Contract
Amount Demanded: $132,306,000.00
The details of the suit are not yet clear, but one thing is: you can never anticipate the next twist or turn in the ongoing saga (soap opera, nightmare, farce, black comedy, Greek tragedy, money pit, loss of innocence, outrage, debacle) that is Cuppy’s Coffee.
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Tags: Cuppy's Coffee franchise, Dale Nabors, Donald Ochsenreiter, Elite Manufacturing, Fransynergy, lawsuit, litigation, Medina Enterprises, Morg MorganRelated Stories
POSTED IN: CUPPY'S COFFEE
4 opinions for CUPPY’S COFFEE: Spurned CFO Sues Cuppy’s Parent Medina, FranSynergy for $132M
carol cross
Oct 10, 2008 at 3:59 pm
Who knows? Maybe it is one of those “Dick and Jane” scenarios where the CFO had no idea that this new job wasn’t a promotion, and he was just a “fall” guy.
Maybe he will do better with HIS EMPLOYMENT CONTRACT in the courts than the prospective franchisees and the current franchisees will do with their contracts in arbitration or the courts.
Franchise law and regulation underlies and enables this kind of nightmare for all involved.
Has Cuppy’s still on the SBA Franchise Registry or have they been removed? I always wondered what it took to be removed from the SBA Franchise Registry!
Clarence Earl Gideon
Oct 10, 2008 at 7:38 pm
He is suing for $132 Million dollars, which is asinine enough in itself.
According to PACER, the suit was filed pro se.
I can tell you from experience that the Florida courts are no place to represent yourself.
The guy is flakier than I was before I switched to Head&Shoulders.
guest
Oct 17, 2008 at 8:38 pm
Latest Update…. The sky has fallen on Dale Nabor’s Dream Team in AL. Dale has finally gotten up enough nerve to meet with the employees that followed him up to Muscle Shoals, AL and told them he can NOT get the money to pay them. But he wanted to know who would continue to work for him for FREE. Has he lost his mind totally? He also told them if they would not stay and work free he did not want them to blog him. WTF????!!!!! He’s an arrogant sh it!! So… now there are NO employees at Cuppy’s/Elite/Medina! Dale is still trying to sell Elite contracts to Brian Hayes. But remember franchisees… Brian Hayes/SBT or whatever name they go by these days is overcharging you for buildout and equipment. Your best bet is to take whatever loss you have now and sue Morg/Dale/Medina/Fransynergy and try to recoup your deposit moneys. Cuppy’s is dead! Even if a franchisee let SBT continue to build them out, I would NOT call it Cuppy’s. Cuppy’s has an awful name and I don’t even think God himself can raise that dead franchise. Franchisee please listen up… you need to join together to get justice. There are more people out here willing to help you get that justice than you may think. Good luck to you zees and to the employees that followed Dale to AL and had work for 2 months without pay. I wish you all well.
guest
Oct 20, 2008 at 1:11 pm
I just talked to the sheriff’s office in AL and he asked me to tell everyone to contact Don Yarborough of the FBI. His number is (256)764-3613. The FBI is in touch with the attorney general office. They are reviewing all the info to decide if this is a civil or criminal case. The more people who report to the FBI the better it will be for all of us. Please everyone give him a call.
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