Franchise Buying Tip: Use 3rd Party Escrow Service for Refundable Deposits

by sean on April 11th, 2008

(FranchisePick.Com) The posted comments of Criston Menz, a prospective franchisee of Cuppy’s Coffee, demonstrates why you should insist on using a 3rd party escrow service for refundable deposits or downpayments.

Back in December, 2006, a much more optimistic Criston gave a substantial downpayment ($35,900) to Cuppy’s Coffee franchise affiliate Elite Manufacturing, contingent on obtaining financing. However, getting his money back continues to be a time-consuming challenge.

March 28, 2008

Looking for other victims of Cuppy’s to get a group lawsuit together. I am livid and sick as I continue to read “our” story over and over again. Got in contact with others who are willing to bring action against Elite, Cuppy’s, Specialty Coffee and Medina as well as each person individually.

April 2, 2008

…secured the PO with Elite in mid Nov….(They received our monies Dec 1, 2006)
…When I told my rep that I was not going to proceed any longer she said I had to write to Elite to ask for my return on deposit. That was in March 07 and thus, I am still waiting for any money to change back into my hands. They did not respond to my demand letters from attorney’s and did not respond to any of my letters with the FL state agencies. What they did finally respond to was me blogging…

April 8, 2008:

You will be happy to know that Elite is attempting to settle with me, but with very little time frames. I was sent a settlement offer Friday at 4:30pm MST and just looked at my email to see that the offer was revoked if I did not respond by 4pm CST yesterday…. Needless to say after attempting to contact Elite 3 times today I am getting the same run around; on the phone, on the phone, out of the office…at least we can be a bit more creative with the excuses. I suspect the offer has been revoked at this time…too bad for them.

April 8, 2008:

And thus still does (stall…stall…stall). The settlement offer from Elite has been revoked… I was told that the deadline had passed to accept the offer and if I wanted to revisit it, I could accept a different offer or wait another month for them to find another victim, I mean the funds to pay me a settlement. Apparently I am told that they need that money to make other refunds. How many are there?

April 9, 2008:

I have just found out that we are nearly at the minimum of takers for litigation against the whole Medina/Cuppy’s/Elite clan…come one come all that have settled and they have already breached the contract by not sending you a timely payment.

Important lesson: He who hold the money, holds the money.

WHAT DO YOU THINK? ARE YOU FAMILIAR WITH CUPPY’S COFFEE OR ELITE MANUFACTURING? LEAVE A COMMENT.

Comment source: Cuppy’s Coffee, Elite Manufacturing Franchise Complaint on Rip-off Report

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