Cuppy’s Coffee Franchise, Elite Manufacturing, Medina Complaints

March 16th, 2008

Cuppy’s Coffee Franchise, Elite Manufacturing, Medina Complaints

(FranchisePick.Com) Has it really been 10 months since the AAFD declared an important victory for Franchise Fairness, and pinned Franchising’s Medal of Honor on its newest Freedom Fighter, Cuppy’s Coffee? Let’s observe this important anniversary by listening to some of the voices of this new era:

Lina & Lee Alcafaras Not resolved
Charles Hunter Not resolved
Maria Not Resolved
Criston Menz Not Resolved
Robyn Rivera Not Resolved

11/7/2007 Ralcalee (Lina & Lee); Long Beach, California Source: Rip-Off Report

“My wife wanted to invest in a franchise, so she looked on the web and found Cuppy’s Coffee and More. She filled out the online application and soon Cuppy’s reps were calling her… My wife was very excited and gave a deposit of $36,000.00. Cuppy’s sent us the Franchise Offering Circular and Franchise Agreement. We also filled out paperwork for third party financing (Cuppy’s was to refer us to different finance companies). My wife was not able to secure a business loan. Cuppy’s was not able to get us a loan either. Cuppy’s has held our deposit for over a year now. I believe they knew my wife was not qualified for a loan and still said she was pre-qualified. After reviewing the Franchise Offering Circular I noticed that the $16,000.00 franchise fee was not refundable. We never got the franchise, so why should that apply to us. I also noticed that Cuppy’s never put the rest of the money in an escrow account. Elite Manufacturing is refunding $20,000.00 to us but in monthly installments because of what Cuppy’s did. That was very dirty on Cuppy’s part….CUPPY’S should be ASHAMED of their tactics.”

[5/3/08 update: Not resolved. Franchisees have still not received their money.]

11/20/2007 Charles Hunter Source: Complaints Board

“Have requested refund of tendered deposit for a build out for a franchise business. A statement on their purchase order agreement states that, if subject to third party financing and return of down payment; “in the event that Purchaser is unable to obtain financing, then this agreement shall automatically terminate, neither party shall have any further legal obligation hereunder and any down payment tendered shall be returned to Purchaser.”
I have requested a refund of down payment due to not getting financing. I have not been given a refund as requested and they admit that I am due a refund, but only offer it in payments of 13 months. I did not send them a loan. I sent down payment which they should return in full. The company representative does not call me back or email me to return my refund of down payment.
“This company is practicing fraud to prospective purchaser’s of their products. They need to be prosecuted and stopped for their illegal practice! Beware all!”

2/8/2008 8:16:43 AM Rolando BUENA PARK, California Source: Rip-off Report, FranchisePick.Com

We verbally enter a franchise agreement with Cuppy’s Coffee and More base in Florida to build a store in California by there builder who reside at the same address, Elite Manufacturing, LLC. The catch was, Elite will pay the franchise fee of $25,000 if we put the down payment of $37,900 to build the store, the following day, which we did. Cuppy’s Coffee and More never send a UFOC franchise agreement which is a clear violation of the FTC. The franchise was cancelled because we can’t find a lender to finance building the store.
When I asked for our down payment from Elite MFG representative, in which the contract clearly states, that down payment will be return to purchaser if we can’t get finance. Now there representative find a loophole in there own contract and said that it did not say that we will return the down payment in full. That there VP of operation made a mistake by not putting the down payment in an escrow, so they [can’t] return the down payment in full. He is blaming there Vice President of operations. READ ON

[5/3/08 update: Agreement reached. Franchisee cannot disclose terms.]

2/21/2008 Jls E STROUDSBURG, Pennsylvania Source: Rip-Off Report

“I wish to complain about the fact that I have not received my refund of $35,900 which was sent to Elite Manufacturing as a deposit for a Cuppy’s Coffee and More Franchise building. It was sent in two installments on September 12, 2007 and October 4, 2007. I am complaining because I found out from Cuppy’s Coffee and More that I was unable to obtain financing for the franchise and as stated in the agreement signed with Elite, monies would be refunded in that case. I was told that the refund process would take four to six weeks and it has now been more than eight weeks. My original request for a refund was sent on December 20, 2007 and I also received an email from Desiree Kahn at Elite on December 20, 2007 stating that my request was received and confirmed.
I have left several messages as well as emails for both Danny Jones and Desiree Kahn at Elite over the last three weeks and have not received a response or an update. I have not been given any information as to how my refund is progressing or when I can expect to receive my money. The receptionist repeatedly tells me that both Danny and Desiree are unavailable. I sometimes call more than once per day and I have even left verbal messages with the receptionist. They refuse to answer my calls and emails, meanwhile they have my money which I am losing interest on everyday.
“I just want a resolution and also want to sway any one who is considering getting involved with this company from doing so.”

02/21/2008 Daniel Suarez FranchisePick.Com

“I have the same is exact issue with Elite and Cuppys. My partner and I put down $39,600 and after not being able to find financing and Cuppys breaking their agreement (by sending out LOIs to several locations without having secured financing as per their Franchise Agreement) AND being in writing that Elite would refund all monies if financing could not be secured it has now been over 3 months since we have placed a written request and many daily calls to have our money refunded without any word or status update on our case from Elite. Each time we call the ONLY person Dany Jones who seems to be able to do anything about refunds is OUT SICK, or ON THE PHONE, or IN A MEETING and he NEVER returns calls or even replies to certified USPS mail!”

[5/3/08 update: Agreement reached. Franchisee cannot disclose terms.]

2/26/2008 Steve Tierre Verde, Florida Source: Rip-Off Report

“I too have fallen under the same type of scam by Elite Manufacturing and Cuppy’s. I signed a purchase order with Elite Manufacturing and was pressured into wiring $37,900 to their bank account in order to ’save’ myself from pending increases in the franchise fees and increased build out costs. Elite would pay the franchise fee for me if I wired them the money to thier bank account the next day which I did.

“I was given one day to wire the money which I did on 8-16-07. After working with Cuppy’s on financing and was instructed by the Cuppy’s finance department to enter my current salary on the financial docs and to indicate that I would be maintaining my full time job and current salary in order to obtain the financing. I did do that and after realized that I would be committing fraud.
I notified the finance company that I was withdrawing my request. I contacted a lawyer to mitigate the issue with Elite. Surprising that after 4 weeks my lawyer was able to talk with Elite’s lawyer who just happened to be Cuppy’s lawyer. After several months of phone tag, my lawyer was given a proposal for me to review which was that Elite would keep $15,000 for ‘loss of revenue’ purposes and that they would refund the balance of $22,900 over 20 months.
“Cuppy’s lawyer indicates that they are waiting for final bank approval on many deals and they don’t have the cash to return my refund. I am perplexed that any legitimate corporation persuades the public to furnish them money in the intent that a business partnership may blossom only to refuse to return money that is not rightfully theirs….
“I don’t know what else to do other than to sue for the refund back. The signed purchase order states it is contingent to financing which I did not get as well as within 1.5 months of providing the $37,900, Elite was notified that I wanted a full refund. My purchase order states that a refund will take place. No where does it stipulate that it would be returned in payments. It has now going on 5 months that I have not gotten my money back and Cuppy’s or Elite, is still stalling on doing the right thing.
“I am not a bank and should not be held accountable for funding other franchises for Elite or Cuppy’s. Someone needs to do something about these corporations taking advantage of naive people such as myself.”

02/29/2008 KD Source: FranchisePick.com

“we are being offered the same deal by Elite, they will pay the [franchise] fee of $25,000, but have to sign today. Do we do it?… Actually, I asked them to write in the “fully refundable deposit” clause in the contract contingent upon our obtaining the location that we desire. They are reluctant to do so and are finding other ways to make me happy to avoid giving a refund. (Felt like adding this clause would start our relationship out on a “negative note”). I have not received a UFOC and by law, that should have been provided upon approval of our application… “

03/08/2008 maria Source: FranchisePick.com

“I’m in a similar situation as the others who are trying to get their deposits back from Elite. The only difference - I never signed a franchise agreement. It’s been 5 weeks since I informed Desiree at Elite that I would not be signing the franchise agreement and wanted my deposit back. What do you know - I haven’t heard back from anyone. I was never treated with anything less than the utmost respect from the people from Cuppy’s; it’s Elite that has the problem. You would think that the mother company, Medina, wouldn’t allow one company to bring down all the others. I’m hoping to hear what the AAFD has to say about Cuppy’s and Elite - I’ve sent them all this information. ”

[5/3/08 update: Not resolved. Franchisees have still not received their money.]

03/09/2008 MJ Source: FranchisePick.com

“…Prior to my visit, my sales rep advised me that I needed to speak with Elite which leads me to red flag #2. I was provided a SOW and Purchase Order for the configuration I’m interested in. I was advised that my deal (including a ‘free’ upgrade package) was contingent on my willingness to purchase a franchise with Cuppy’s and to be a referral for Elite. I told the Elite rep that if I move forward, and Elite exceeds my expectations, then I would be happy to be a referral. I was then told to bring a check during my visit for a down payment toward my buildout. I told the Elite rep that I am still investigating Cuppy’s, and have not made that commitment yet. And, I advised her that I had just received my UFOC that morning, and the ten day requirement had not passed. My Cuppy’s sales rep followed up with me apologizing for Elite’s fast-track tactic.”

3/12/2008 Chip Geneva, Illinois Source: Rip-Off Report

“In March of 2007 I contacted Cuppys coffee Smoothies and More with an interest to purchase a franchise in the coffee business. This led to many conversations with Mr. Hugh Darley. By Mid May Mr. Darley had assured me that my Franchise Fee of 15,000 would be paid by Elite Manufacturing when I entered into an agreement with Elite to construct my coffee shoppe. I was also assured that Cuppys would help me find financing.
I placed a down payment of $20,000 with Elite Manufacturing to build a coffee house the first of June 2007. a contract was signed by an officer of Elite Manufacturing and me. The contract stated’ if financing is not found the money will be refunded’ The contract also stated ‘upon receipt of down payment the franchise fee will be paid.
“Unfortunately…I could not find financing
“The money..Cuppys claims they never received it from Elite Manufacturing….After many letters and conversations involving Mr Danny Jones of the Elite Manufacturing customer service department, our final conversation in November of 2007 went like this..’Mr. Jones I would like my money back.’ Mr. Jones response ‘ Isnt going to Happen!’ At one point Mr. Jones did offer to pay the $20,000 with minimum monthly payments over the next two and one half years. this was not and acceptable solution. I can no longer have my down payment being used to finance their business.”

3/13/2008 Robert Source: FranchisePick.Com

“I am also having problems with Cuppy’s / Elite similar to Chip, Daniel, and Steve. My financing for a Cuppy’s franchise was denied almost a year ago and my legal representative has only recently gotten Cuppy’s / Elite agree to refund the deposit I initially made. Cuppy’s / Elite now insists on repaying the monies owed me over 31 months which is unreasonable and unacceptable.
“Unfortunately I am beginning to believe that this issue will not be resolved in a just manner, and within a reasonable time period, without the assistance of further legal action. The growing number of complaints for this particular issue is disturbing…”

[5/3/08 update: Agreement reached. Franchisee cannot disclose terms.]

3/19/08 Angela Evans (dpe) Source: Complaint Boards

This is what happend to our family after being unable to obtain financing:
I just want to let everyone I know exactly what kind of crisis these two companies ( Elite aned Cuppys)have put my family in.
1. They owe us 40, 900. (money that I had to MORTGAGE my home for).
2. My house is near forclosure because I now cant pay my bills because of the amount of interest I am paying in order to provide Elite Manufacturing and Cuppys Coffee (one in the same)an INTEREST FREE loan!
3. These people are putting me, my BABY, and my husband out on the streets while WE pay everyones wages!
4. We are in financial ruin so that Cuppys can pride themselves on their website about how they are now up to 100 full time employees!
5. I hope they can all sleep better at night knowing that in the next month my family and I will have no home because they are all STEALING peoples money.
6. MORG MORGAN and DOUG HIBBINGS and BRIAN HAYES…
HOW WOULD YOU FEEL IF YOU COULDNT EVEN FEED YOUR NEWBORN BECAUSE SOMEONE WAS TAKING FOOD OUT OF HIS MOUTH! HOW WOULD YOU FEEL IF YOUR WIVES AND CHILDREN WERE PUT OUT ON THE STREETS BECAUSE SOMEONE WAS RIPPING THEM OFF!!!?????? THINK ABOUT IT! THATS WHAT YOU ALL HAVE DONE TO ME! THANK YOU FOR RUINING MY LIFE!
7. WHAT EVER HAPPEND TO DUE DILLEGENCE??? THATS WHAT I DID! WHAT EVER HAPPEND TO CONTRACTS??? I HELP UP MY END OF THE DEAL FOR AN AMERICAN DREAM THAT DOESNT EXIST.

[5/3/08 update: Agreement reached. Franchisee cannot disclose terms.]

11/15/2007 Mike Titusville, Florida Source: Rip-Off Report

“My involvement with this company dates back to December of 2005. Due to the lengthy site selection and approval process I believe I have more insight due to length of time than most victims.
“First of all, Cuppy’s claims to have nothing to do with Java Jo’z or Emerald Coast Manufacturing… Changing the company name, the medina management formation, the insinuation that Elite manufacturing bought only the physical assets of Emerald coast are all very clever attempts to continue doing exactly what Snowden was doing, while ensuring that they would never have to refund a deposit… These guys are good at what they do………theft and deception. I believe that sooner or later they will pay for their actions as do all thieves and parasites… I have requested a refund of my deposit. I was told by Cuppy’s to contact Elite, which told me to contact Emerald Coast. All of these businesses are comprised of the same people, albeit with different title from company to company, in the same building at the same address.”

02/27/2008 Robyn & Corey Houma, Louisiana Source: FranchisePick.Com

“I have been trying to get my deposit back since they were Java Joz. They actually told us Morg came up with the name for Cuppy’s and was very excited about having us become a part of Cuppy’s. Yeah whatever, just want my money back. I am sure they have earned more than enough intrest with our $30K. I have hired lawyer, filed complaints more times than I care to mention, still nothing. I am running our of ideas. Help???”

[5/3/08 update: Not resolved. Franchisees have still not received their money.]

5/1/2008 Criston Menz; Albequerqe, New Mexico Source: Unhappy Franchisee

“We were immediately impressed with how friendly and family oriented the entire Cuppy’s Coffee organization was. It was so inviting to see a company value their people the way they described they did and what their vision was for the franchisor/franchisee relationship. We had heard horror stories about other franchisors. They seemed completely the opposite… The initial contact was comfortable with people who knew our name, our background, and made us feel valued and wanted us as a part of their organization. The support was FABULOUS until they got our 20% down payment of $39,500 paid to Elite for the construction of the build out.

Once they had our money, everything changed. From then on, we were ignored and left wondering what was going on. Trying to get anyone from Cuppy’s to call us back was like waiting for it to snow in the summer time… Instead of sending us a check, they sent us a settlement agreement that stated they would keep the franchise fee of $15k and pay us $20,900 in 8 equal installments over 8 months. They stated that they had invested our monies in their “new” company.
I am tired of being bullied by a company that did me wrong… I truly believe that this company is a fraud being carried over from its predecessor
[5/3/08 update: Not resolved. Franchisees have still not received their money.]
Martin M. Bala July 7, 2007

Well, as with many of you who are Java Joz owners or are in the process,my experience has been for the most part quite disappointing to say the least. Right now I am trying to settle with these people down in Florida and they refuse to respond to any of our letters. The lawyer that represents the who company has since placed a lien on my store. They say that we owe them money. Well on the contrary, many of the items that we were suppose to recieve we didnt. The contractor on the job was so slow if he went any slower he would be going backwards. My signage was late…etc…

Then there are the people who try to get they’re money back and the Snowdens state that if these people sue,then they will just claim bankrupcy. Isnt that convienent!

In my personal opinion this whole process has been shady to say the least. Sure, Cuppys offered to change Java Joz investors over to Cuppys at no price. If you think about it, the reason many of us wanted to be licenses is because we didnt want big brother telling us what we could sell and how to sell it.

There is no way the Morgan couldnt of known what Snowden was doing. When he pulled out the tape recorder during our meeting I should of turned around and went back home. But I didnt. Now look at the mess I am in. Please think twice before you do business with these people. There are many other companies out there that are established and up and running in good form.

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