(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.

*  *  *  *  *  *  *

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 2008

Medina 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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(Franchise Pick)  Related:  LA WEIGHT LOSS CENTER CLOSINGS (updated 10/3/08)

LA WEIGHT LOSS CUSTOMERS

The post LA WEIGHT LOSS: La Quinta Center Closes Abruptly, Strands Members reports that the LA Weight Loss center in La Quinta, CA closed abruptly, stranding its angry members without notice, without an alternative program, and without hundreds, even thousands, of dollars worth of prepaid products and services they were due.

What else is new, right?  This story has been repeated over and over on Franchise Pick and Weight Loss Complaints, where the unofficial LA Weight Loss center closings list has topped 60 recently.  However, two new aspects emerged in this story.

First, an LA Weight Loss executive actually participated in an interview regarding the closing (as opposed to the usual unreturned phone calls).

Second was the franchisee - franchisor fingerpointing that has erupted. 

The La Quinta LA Weight Loss franchisee blames the LA Weight Loss franchisor

According to the story, “Franchise owner Patricia Gesswein has left a message on her cell phone, telling her customers she will miss them.
‘I got instructions from the corporate office today and I had no notice,’ Gesswein tells callers. ‘This was my job and my life. I’ve never been in a siuation like this.’”

This was my job?  A curious statement from the person who owns the business - even if it is a franchise.  That’s no doubt what set off Brian Siegel, senior vice president of the La Weight Loss franchisor, based in Horsham Township, PA

The LA Weight Loss franchisor blames the La Quinta LA Weight Loss franchisee

Franchise owner Patricia Gesswein has the corporate office of LA Weight Loss befuddled.  According to a story in the Desert Sun:

“We’re as befuddled as the customers are,” Siegel said Wednesday. “Patricia took the customers’ money and shut without notice. Our franchisees are required to take care of customers before they close. This includes proper notice and providing refunds. These are not our operating procedures.”

…Siegel said all he can suggest at the moment is customers call Gesswein’s cell phone number and leave a message. He said the corporate offices “have had trouble reaching her even before this.”

Previous customer Michelle Alfaro of Desert Hot Springs said she was less than three weeks into her 36-month contract for $699. She said Gesswein gave her three payment options — applying for credit, paying cash in advance or making three payments by post-dating checks. Alfaro chose the latter and canceled her two checks still in Gesswein’s possession.

“She really sold it, believe me,” Alfaro said. “She makes excuses on her cell phone message and blames everything on the corporate office.”

Well, Patricia Gesswein accomplished one thing - She prompted someone from LA Weight Loss to speak to the press about one of the many nationwide center closings.  She got the Corporate Office so befuddled, in fact, that Senior Vice President Brian Siegel forgot that company policy was to let their weight loss centers close without comment, and to let the phone calls of inquiring reporters and stranded members go unreturned. 

Maybe if they stay befuddled they’ll actually correct all the confusion out there about them, their relationship to the bankruptcy and criminal investigations regarding Pure Weight Loss and Vahan Karian, which the media continues to confuse and befuddle.

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The acquisition includes Bucks County Coffee’s 15 retail locations and a distribution channel to approximately 400 grocery outlets.

According to the company, the purchase will bring the number of Saxbys Coffee shops to 65 by the end of 2008, jump starting its growth strategy and immediate plans to expand along the eastern seaboard.

According to a company release:

“We look forward to introducing Bucks County Coffee customers to the Saxbys Coffee experience,” said Nick Bayer, president and CEO of Saxbys. “The Saxbys brand is simply about a satisfying cup of coffee served in a refined, comfortable environment operated by a neighborhood business owner. We believe what makes Saxbys Coffee special is the roasting profile for our beans. Our coffee starts with the world’s top 3% of Grade “A” Arabica beans and a roasting process that yields a taste and finish that will be very appealing to not only Bucks County customers but coffee drinkers everywhere. Saxbys soon will become the daily cup of choice for those who crave fresh, rich and smooth coffee and fine specialty coffee beverages without pretensions.”
Beginning mid-October, the Bucks County retail outlets will be converted to Saxbys Coffee shops starting with the site at 30th Street Station, Philadelphia. Saxbys has attracted new franchisees for the Bucks County Coffee locations creating new small business ownership opportunities throughout the Greater Philadelphia region.
“The Saxbys business model provides franchisees with the opportunity to share in a strong brand characterized by an excellent product line, a proven delivery system and comprehensive business and operations training that is the backbone of owner-operator success,” said Bayer.
The Bucks County acquisition gives Saxbys a competitive presence that will help fuel strategic growth. Developmen t plans are underway for 2009 with several additional shops slated for openings in Southeastern Pennsylvania, New Jersey, Delaware and Greater Washington, D.C., as well as Dallas, Texas, and Las Vegas, Nev.

“We are seeking franchisees to share in the Saxbys brand story while building value in their own businesses,” Bayer said.

With free Wi-Fi service in all retail locations, Saxbys offers a relaxed, inviting atmosphere where customers will always find a selection of carefully crafted and consistent coffee and specialty drinks including single origin, signature blends, Fair Trade, organics and decaf coffees, gourmet espresso beverages, lattes, cappuccinos, Frolatte’s®, loose leaf teas, and smoothies, Saxbys’ signature cookies, sandwiches, pastries and more.

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FEATURED STORY:

TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

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Related:  HOLIDAY INN: Defranchising a PA Dutch Country Icon

WORDLESS WEDNESDAY: Save the Amish (Sign)!

The franchisor’s greatest responsibility is to protect the integrity of its brand.

In the end, everyone involved is invested in the power of the brand:  franchisees, shareholders, landlords and employees.

Unfortunately, the most devastating attacks on even the most powerful brands often come from within.  Lax employees and undercapitalized or negligent franchise owners can quickly undermine an image built over decades of hard work and billions in advertising and promotion.

Case in point:  The announcement by IHG, franchisor of Holiday Inn, to “disenfranchise” the Lancaster County, PA, Holiday Inn Visitor’s Center location last week.  Unfortunately, the announcement comes after much of the damage - accrued over several years - has been done.

Think of all the brand advertising Holiday Inn has done over the years to build a welcoming, dependable and trustworthy image.  Then consider these excerpts from the Lancaster Sunday News report as to the problems now associated, at least to those who live or travel to and through PA Dutch Country, with Holiday Inn:

Nonpayment of vendors or utilities

“When John Miller showed up at the Holiday Inn on Greenfield Road Wednesday afternoon to collect a past-due invoice, he knew something was amiss.

“The whole place was dark,” the president of On-Site Containers, said. “The front-desk staff was sitting around in the lobby and people staying in the hotel were standing outside.”
What the guests didn’t know was that PPL Corp. had shut off the facility’s electricity for nonpayment.”

Serious Health Code Violations

“Also Wednesday, state health officials conducted a follow-up inspection at the hotel, documenting 67 state health code violations… These included rodents in the Dumpster area just outside the kitchen door and the evidence of rodents in the food-preparation area itself. Officials ordered the hotel to close its kitchen.”

The health inspection documented that, due to a broken walk-in cooler, food was being stored in a guest room with the air conditioning cranked.

Illegal Liquor Sales

Liquor Control enforcement officers executed a search warrant at the property Sept. 23, after officers observed drinks being sold in a banquet room Sept. 18.
The hotel hasn’t had a liquor license since February… According to Liquor Control enforcement documents obtained by the Sunday News, officers found 30 bottles of spirits, three half-kegs, eight cases and 122 bottles of beer, two bottles of wine, 13 bottles of champagne and receipts for alcohol purchases.
Officer Greg Harvat… said the confiscated receipts show sales occurring over a long period and that those witnessed on Sept. 18 were ‘not an isolated incident.’”  The investigation is still ongoing and will likely result in criminal charges.

“Huge Mold Problem”

[GM] “Byrnes also described a scene when the hotel was renovating: ‘When we started stripping the wallpaper we found all kinds of mold on the walls. We had a huge mold problem and we had to take care of it either with bleach, a cleanser or new sheet rock. It was going to be expensive.’  But Byrnes said [Franchisee Kronos Hotels] corporate officials told him to ‘talk to a guy up in Michigan who was taking care of the problem in one of their properties there for $300 a room. It turned out all he was doing was painting over the wallpaper directly.’

Unpaid employees, lawsuits, ill will

“In February, I went to IHG headquarters [in Atlanta] for a training session,” he said. “When I came back I had about $500 in expenses, but I was never reimbursed.”
Byrnes sued Kronos to get the money he was owed.
“One month later I was terminated,” he said.
The financial issues still mystify Byrnes. Earlier in his career he served as a controller for another hotel, and is familiar with accounting systems.
“That hotel could easily be self-sufficient financially, and turn a profit,  if it were left by itself,” he said. “I have no idea where the money was going.”
Overall, Byrnes said, “My concern is for the community. How many people —  employees, guests — have been negatively affected by this operation?”

Owned by Kronos Hotels and Resorts

The Lancaster, PA Holiday Inn was purchased 15 months ago from Lodgian by Kronos Hotels & Resorts, an Atlanta-based hotelier founded by Malaysian businessman Charles Morais.  According to the Sunday News,

“This is not the only Kronos-owned hotel with problems.

Kronos owns the Crowne Plaza Five Seasons in Cedar Rapids, Iowa. According to reports published in the Cedar Rapids Gazette and televised on KCRG-TV, the company owes the city $71,000 and the state more than $400,000 in unpaid taxes. Employees there also report bounced paychecks. Vendors have sued for non-payment and the general sales manager recently sued Kronos alleging sex discrimination.
In Sheffield, Ala., the city council voted late last month to terminate its lease with Kronos for the ground the hotel sits on for non-payment of taxes. The company was operating the Holiday Inn, Sheffield.

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TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

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Photo credits:  FranBest.  Used by permission.

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(Franchise Pick)  The Marion, IA PizzaWorld franchisees were so enthusiastic, their interview dominates the PizzaWorld’s franchise sales video (they are the couple).  They were enthusiastic about the need for a PizzaWorld in their market, the quality of their products, the diversity of the menu, the family-like culture of the franchise system and their franchisor’s integrity and dedication to their success.

So why did they fail?

In her post (When a Boomer Franchise Fails, Who’s to Blame?), my fellow b5 Business Channel blogger Jean shares her enthusiasm for the Marion, IA PizzaWorld franchise, stating “We found the owners friendly and the food excellent…  They were in a good location in a growing area of town, and we were thrilled to find a good pizza place, particulary at lunchtime.”  She identifies the woman in the blue sweater in the video as the owner who created a positive experience.

“Sadly,” writes Jean, “Yesterday my husband went there for lunch and found only the realtor sign and nothing else.  They were gone.”

The pizza industry is a brutally competitive and operationally taxing business - and real pizza operators love it for just that reason.  They know they’ve always got to be at the top of their game.  As a marketer, I find the pizza segment invigorating because pizza guys and pizza gals are some of the most creative and relentless marketers on earth.  Pizza industry trade magazines, like Pizza Today and PMQ, are treasure troves of local store marketing ideas.

However, there’s not much “margin” for error… literally.  Successful pizza operators are masters of controlling food and labor costs, as well as promotions and customer service.  In her post at Small Business Boomers, Jean makes some excellent observations as to what may have gone wrong, including:

• High labor costs
• High food costs
• Non-competitive pricing
• Too much competition

Unfortunately, providing great quality, huge portions and excellent service can be expensive and force you to price above the competition.  Even if everyone raves about your restaurant, your pricing may be creating once-a-month customers instead of the weekly or even several-times-per-week customers you need to stay in business.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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FEATURED STORY:

TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

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(Franchise Pick)  The Holiday Inn Visitor’s Center, gateway to PA Dutch tourism country, has been shunned from the Holiday Inn chain.  Will someone please buy it and renovate the sign to its previous kitschy glory?

Read:  HOLIDAY INN: Defranchising a PA Dutch Country Icon

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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FEATURED STORY:

TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

Photo credit:  FranBest.  Used by permission.

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(Franchise Pick)  For decades, the Lancaster, PA Holiday Inn on historic Route 30 served as tourism’s gateway to PA Dutch country.  Its prominent and kitschy sign, flanked by a giant Amish couple, was a favorite tourist photo opp - ranking right up there with the nearby “Welcome to Intercourse, PA” sign.

In recent years, the increasing disrepair of the graffitied roadside sign has signalled the overall decline of a once warm, welcoming and trustworthy member of the IHG-owned Holiday Inn franchise family.  Holiday Inn Lancaster has been increasingly plagued with high management turnover, a decaying infrastructure and credit-unworthiness.  After Atlanta-based Kronos Hotels and Resorts took ownership 15 months ago, Amish country’s Holiday Inn went downhill fast.  It all came to a head last week when franchisor IHG International announced that the hotel has been “terminated from the Holiday Inn system.”

According to the Lancaster Sunday News:

The terse IHG statement reads, “Holiday Inn is very concerned about the reported issues at the former Holiday Inn hotel in Lancaster, PA (Visitor’s Center).
“As a franchiser, we have brand standards that franchised hotels must comply with; however, we do not control the day-to-day operations of franchised hotels since they are independently owned and operated. “At this time, the hotel has been terminated from the Holiday Inn system.”

Being ousted from the Holiday Inn franchise system is a huge blow for the ailing hotel.  Not only will they lose the branding power and name recognition that comes with being a Holiday Inn, they will no longer be part of Holiday Inn’s online reservation system.  With a number of serious restaurant and health code violations, allegations of liquor laws, and termination of services by unpaid vendors (including having electricity shut off last week by PP&L), the termination of the Holiday Inn (Visitor’s Center) franchise was well-founded if not overdue.

According to the Lancaster Sunday News, Holiday Inn franchisor IHG has previously revoked the franchise agreements of several other Kronos Hotels & Resorts properties, including Holiday Inn franchises in Pittsburgh, PA and Lansing, MI.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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FEATURED STORY:

TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

Photo Credits:  FranBest.  Used by permission.

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Related stories: New Pet Waste Cleanup and Removal Franchise
New In-home Pet Care Franchise
NEW! Dog Walking and Pet Sitting Franchise
New Pet Care Franchise

Professional Pet-Sitting and Dog-Walking Franchise

Top New Franchises is featuring Franchise Opportunities for Pet Lovers this week.  Among those featured is the rapidly growing Waggin’ Tailz Dog Walking and Pet Sitting franchise

According to their website, “Waggin’ Tailz is a petsitting franchise that provides a wide variety of professional and personalized in-home pet care services.  For clients who are traveling, we can care for their pets in their home as alternative to boarding in a kennel. Pets will stay in their own environment and maintain their regular feeding and exercise schedule–a great alternative to a noisy and confined kennel!”

“Waggin’ Tailz franchises are designed for individuals who have a passion for pets and dream of running their own pet care business, but don’t want to deal with the headaches, risk, or expense of starting a pet care business from scratch.  Our sophisticated infrastructure and comprehensive business model sets the groundwork for our franchisees’ success.  As a young franchise, we are dedicated to growing our company through highly motivated and dedicated franchisees.

READ MORE HERE:  Waggin’ Tailz Dog Walking and Pet Sitting franchise

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TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

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Top New Franchises is featuring Franchise Opportunities for Pet Lovers this week.  Among those featured is the rapidly growing FETCH! Pet Care franchise.

FETCH! Pet Care reports that it continues to expand at a rapid pace, opening 10-15 new franchises per month, nationwide, by breaking down the No. 1 barrier to pet ownership: a lack of proper care for pets while their owners work or travel. The franchise provides professionally trained, bonded and insured pet sitters for owners of any kind of pet, from dogs and cats, to hamsters, birds, fish, iguanas and more. Caregivers can be hired for ongoing daily services, as well as on weekends, during busy holidays or on short notice.

In addition to its basic pet care services, FETCH! Pet Care also offers daily pet visits, private dog walks, group off-leash dog outings, in-home overnight sitting, private boarding, day and evening care, pet fitness services, pet taxi services, home care, yard pet waste cleanup, and medication for pets.

READ MORE HERE:  FETCH Pet Care Franchise

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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FEATURED STORY:

TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

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Related:  CUPPY’S COFFEE, Java Jo’z, Elite Manufacturing, Medina Blogliography

Interview with Cuppy’s Coffee Franchise Owner Joshua Miranda

October 3, 2008

Kindergarten teacher Joshua Miranda and his wife, nurse Clara Miranda, dreamed of opening a Cuppy’s Coffee cafe and operating a Cuppy’s Coffee mobile unit in Apple Valley, CA.  They sent refundable deposits totalling $42,000 to Cuppy’s Coffee affiliate Elite Manufacturing and to Advantage Leasing for the mobil unit.  After their financing did not pan out, they were unable to get their refundable deposits returned.  Elite Manufacturing has defaulted on their refund agreement, and Advantage Leasing, who is suing Elite, refuses to return the Miranda’s $6,000 until they can get payment from Elite Manufacturing.

Joshua Miranda shares his story with UnhappyFranchisee.com, and offers advice to would-be franchise owners.

UF:  What’s your background, Joshua? What were you doing prior to seeking your Cuppy’s Coffee franchise?

Joshua:  I’m a kindergarten teacher. Clara, my wife, is a nurse at a convalescent hospital. We are leaders at our jobs and were convinced that as leaders we had the skills to hire managers and run a café business while maintaining our current professions.

UF:  When did you decide you wanted to own your own business? Describe the process you went through to determine which franchise to buy.

Joshua:  We started with the idea of investing to make extra money. The idea was to use the bank’s money and invest it. So, we opened an equity loan to start investing. We had made a previous real estate investment that went bad; we lost money. We started searching on the Internet and came across the Franchise Gator. Franchise Gator showed all this great opportunities to start a business.

We also had read an article that most rich people were business owners. I made inquiries to several franchises. They all called back including Cuppy’s Coffee. However, Cuppy’s made the most promises and made it sound so easy that I went with them. I didn’t bother to check them out because they were members of the Better Business Bureau, had the seal of the AAFD with the highest score ever achieved for fair franchising standards and were recommended by Franchise Gator, an internet service with guidance and information to franchise seekers. I also took the time to visit a Cuppy’s Coffee store. The owner gave me all the encouragement to go with the business franchise.

UF:  How did you first learn about the general concept? What did you find appealing about this type of business?

Joshua:  Coffee business here in California was booming. Other coffee businesses were making so much profit, so, we decided to sell it too.

UF:  How did you first hear about your specific franchise? What attracted you to the company?

Joshua:  The Franchise Gator recommended and introduced us to Cuppy’s Coffee. Cuppy’s was a member of the Better Business Bureau and had the seal of the AAFD with the highest score ever achieved for fair franchising standards. I also took the time to visit a Cuppy’s Coffee store. The owner gave me all the encouragement to go with the businesses. What was also attractive to us is that they stated that they did not charge royalty fees: a very appealing offer to a starting franchisee with limited assets.

UF:  Describe the company’s sales process and your interaction prior to becoming a franchisee.

Joshua:  A contact person got in touch with me. He answered all my questions very politely and was very encouraging. Every time we talked, I ended up with the feeling that I was going to do great and that things were going to be so easy because the franchise will be with me 100%. They stated that my profits will run from $1,500.00 to $5000.00 per day.

UF:  How much have you invested with Cuppy’s Coffee & Elite Manufacturing?

Joshua: We have $42,400.00 invested, total.  $37,900.00 toward the Cafe, $6,000.00 toward the Mobil Unit and $1,500.00 Credit.

We applied for the Café Franchise in August 2007. We signed a purchase order in September, 2007 and sent $37,900.00 to Elite. We also signed a lease agreement in October 10, 2007 with Elite and Advantage Leasing Company for the Cuppy’s Coffee Mobil Unit. We were going to operate a Café and a Mobil Unit. We had to send Advantage $6,000.00 as a down payment for the Mobil Unit. Advantage in turn sent Elite $28,327.00 to start building the unit.

UF:  How was the company’s training and pre-opening support. Was it a positive experience?

Joshua:  I never got into training. As soon as they got my down payment, the calls to me stopped. They became very hard to reach, and when I was able to talk to someone, they were rude.

UF:  What marketing and promotional guidance, programs & support were provided? Were they effective? Why or why not?

Joshua:  They stated that my financial pre-qualification by them looked very good and was directed to start looking for a business location. They directed me to get contact names and numbers from the prospect business locations that were qualifiers by a ranking sheet they provided me through e-mail. They did not call them as they had promised. I started calling them myself and was able to narrow down a location that I was interested in. The owner provided me with a lease. I e-mailed it to Cuppy’s. They in turn, told me that a lawyer had to review it. They introduced me to a lawyer stating that the lawyer was going to charge to prepare the lease. I made a consultation with the lawyer over the phone but there was never a lease prepared. Now, the lawyer is charging me $1,500.00. I turn to Cuppy’s for answers and never returned my calls.

CONTINUE READING

Pictured:  Now defunct Cuppy’s Coffee franchise in Orlando, FL.  Taken June 5, 2007  Photo credit:  OrangeJack  License:  Creative Commons

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TanWorld: Creating the Next-Generation Tanning Salon Franchise

OVERVIEW Interview with Tanworld V.P. Bob McQuillan

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

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Franchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

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