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toolsCuppy's Coffee Franchise Allegations Are Disturbingly Familiar
In 2007, Cuppy's Coffee disputed allegations that it was collecting refundable franchise deposits and refusing to return them by blaming its predecessor, Java Jo'z. Disturbingly similar allegations are spreading in 2008.
It's deja vu all over again: Prospective franchisees give a drive-thru coffee company large, refundable deposits ($30-$40K) while they try to secure funding and/or real estate. When they are unable to do so and return for their "escrowed" funds, they are told those funds are no longer available.
The first wave of franchisees (which included Ben Scoble, brother of A-list tech blogger Robert Scoble) had given their money to a company named Java Jo'z. When they returned for their money, the name in the logo was "Cuppy's Coffee." They were told that Cuppy's Coffee had bought assets - but not obligations - of Java Jo'z. And though the Cuppy's execs looked strikingly similar to the execs of the evil Java Jo'z, the new Cuppy's Coffee was even given an award by the American Association of Franchisees & Dealers for how fair it was going to be.
But now it's 2008, and all-too-similar allegations are arising. This time, it about Cuppy's Coffee and Cuppy's affiliate, Elite Manufacturing. Here are some of the allegations surfacing on the 'net.
See: LIST OF RECENT CUPPY'S COFFEE COMPLAINTS
11/7/2007 Ralcalee; 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."
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
2/21/2008 Jls E STROUDSBURG, Pennsylvania Source: Rip-Off Report
02/21/2008 Daniel Suarez FranchisePick.Com
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
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..."
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
3/13/2008 Robert Source: FranchisePick.Com
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Related Stories:
Unhappy Franchisees with Cuppy's Coffee
There are so many unhappy franchisees with Cuppy's Coffee. I think they should form an oprganization to get treated fairly. Why does Cuppy's have a franchise fee? I haven't even seen them on tv- they don't market at all! Why pay any money to them? I will probably do this venture all on my own and profit way more then 15 of their stores all together! Franchisees should seek Caribou!
Unhappy Franchisee
Just take a look at comments and stories posted here.
UnhappyFranchisee.com
Enough to make you sick to your stomach.
Need More
There needs to be more comments on that link. That is totally wrong what they did. They do seem all great in the beginning but I guess when it comes down to it- they royally screw people. This is not fair. I hope you didn't get scammed by Cuppy's..
Franchise Alert!
Look at all the posts made from former owners. This is unreal and unjust. I wanna know how many more are out there? How many don't even know about this website to post comments on? I am sure there are hundreds. If you are researching on franchising you can go to yahoo (one of many search engines) and type in "Complaints on Cuppy's Coffee" and "rip off reports complaints on cuppys coffee"
Of course Cuppy's representatives get on there and try to get positive press, because there is so much negativity. If you go with this franchise you are insane!
Cuppy's: Not Surprised, but am surprised at AAFD
First, I'm glad that Sean brought this story over to BMM, because I think we are seeing abuse of the franchise system with Cuppy's and their affiliate Elite Manufacturing. I've been commenting on this story on Sean's website franchisepick.com.
At first, I thought that this might just be happening to one person, but it seems to be happening to multiple people. Elite (owned by Medina Mgmt, who also owns Cuppy's) offers to pay prospective franchisee's initial franchsie fees at a discount if they send money to Elite prior to the signing of the franchise agreement. The purchase order states that this money is refundable if the prospective zee doesn't get financing. Once the financing isn't approved the prospective zee asks for their money back only to be told that they can only be repaid in installments if at all. So, where is the money going????
I'm not shocked that this is happening again after only a year of the Java Jo'z incident. One of the things that scares me is that Medina Mgmt, just signed up to manage two new franchisors and are promising that they'll have 200 stores open within three years, and these zees are going to have to use Elite. How many more people will this happen to?
Probably one of the most disturbing things to me is an e-mail that was supposedly sent by Bob Purvin (chairman of the AAFD) to a prospective zee that questioned this situation, which is posted at franchisepick.com. It seems as if the AAFD doesn't have anything to say, because these people hadn't signed a franchise agreement and therefore can't be helped by the AAFD. Also, he states that Cuppy's is having financial difficulties and that's why they aren't able to pay them back timely. (At least this is what I understand from it).
I have serious problems with this stance. If you are going to take the position of 'fair' franchising, I believe that you MUST require all affiliates of a company that you've accredited to abide by your rules, not just the zor. And I'm going to once again call out that fact that on the AAFD website, Cuppy's is a shown as a recipient of the AAFD fair franchise seal, not just that their agreement is compliant with the AAFD rules.
I hope that this issue shows that their our flaws that need to be worked out with the AAFD (and at this point I'm with Solomon in thinking the AAFD is a joke). People look to the AAFD and see 'fair' franchising, but I don't think you could look at these people straight in the eye and tell them that they are getting a fair deal.
jd
AAFD & Cuppy's posts
A couple of other AAFD Cuppy's posts, since I'm on a rant:
AAFD: Franchising Watchdog... or Lapdog?, AAFD: Franchising Watchog… or Lapdog? Part 2
I hope this is a wake-up call for the AAFD. Assuming, of course, that it's only sleeping.
Sean
seankelly@ideafarm.net
Franchise Pick
Franchisor Marketing
Cuppy's Response
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
Request for Doug
Doug
There are a lot of questions regarding the refundability of the deposit based on the purchase order. I think for the communities sake, it would be best to forward a copy of that to Michael or Don and have them post it as an attachment to this article. We are basing it on the franchisees word that it was refundable, but it'd be nice to see the actual purchase order.
Also, one more question that I've had for a while now. How many different UFOCs were filed by Cuppy's last year? The one on the CA website says that you have 107 franchise agreements signed not opened, but one of the posters on franchisepick said that that number showed 100 in their UFOC. Since they both said as of 12/31/06, which one is correct? Also, why did the audited financial statements only show 37 franchise agreements signed as of 12/31/06?
Simple Solution
This comment has been moved here.
One other quick AAFD & Cuppy's Question
So, since these 'prospective' franchisees didn't sign a franchise agreement, but did indirectly pay their franchise fee, how are they viewed amongst the AAFD when it comes to 'polling' the happiness of the franchisees when determining if they will be fully accredited?
Scammed by Cuppys too
Morg Morgan is more interested in expanding because he knows that Cuppys will go the way of Java Joz. By Then they will have San Gelato, Planet Wings in full scam operation. I bet the franchise fees for those will be much higher and the preferred vendor Elite or maybe it's next incarnation will require sustantially larger intial payments. They are going big time now. They have been getting by with this so long and while the AAFD would rather defend these crooks then admit they've been scammed they probably feel empowered.
sued
My husband and I started the fiasco with Java Jo'z right before the "asset acquisition" and were lied to from beginning to end. We since have lost our store and are being sued by our creditors. We have always had stellar credit and are now worried about our future. Robert "Morg" Morgan told me that he "prayed on it" and I should quit my job as a teacher and all would be fine. Well I am still unemployed and without our store. We had great reviews in the community but could simply not overcome the hole that their lies put us in. We have a second mortgage on our house and that does not count the $229,000 that we owe on our business loan. Our attorney told us that we have a 6 figure case but will not take us on without a 25K retainer. Cuppy's has sapped us. We were one of the first cafes and they learned all of their lessons on our back. Lessons like changing the sign for the cafes while we didn't have proper signage for almost 4 months. Please anyone who is considering anything to do with these people run screaming. You will be left with nothing and no recourse. DO NOT ASSUME BECAUSE YOU ARE HONEST HARDWORKING PEOPLE THAT THEY ARE!! BUYER BE VERY AWARE! My husband and I want nothing extra, just to be made whole again and that will never happen because we do not have the resources they do. It is not about fairness, it is about what is right and they are so wrong!!
Cuppy's Crap
Reply to Mr. Hibbing,
You're full of it.
We are owed $20,000 at the moment. Oh, wait, we did get back a whopping $1,500 over a 4 month period, and that was 2 months ago.
If I had the means to broadcast the BS we heard from both Cuppy's and Elite BEFORE we knew we were going to be scammed, I would forfeit the money owed just to let everyone know what's going on.
That is how upset and disappointed (in ourselves for believing)and extremely frustrated we are.
Enough to enlist representation?
We've heard it's likely to drag on and on.
I hope Cuppy's is enjoying their smoothies on the beach since we are unable to vacation for quite a while.
AAFD Joke
I am in favor of this. I now belive the AAFD is a joke. Before I thought they were about the franchises and being fair, but NOW they are in favor of a company that has not lived up to the standards and can't perform to a level that they should for franchisees? Yes, Cuppy's Coffee. I have a new belief Cuppy's Coffee and AAFD are both a joke!
Serious?
There is nothing serious about yuour company. Aren't they looking for a new replacement for you? Please tell us how that makes you feel?
AAFD and Cuppy's
I think that this might be a very serious problem for us, the AAFD's Fair Franchising Standards SubCommittee who reviewed the Cuppy's contract.
I don't have all the facts, but some of the public facts are disturbing.
The AAFD's Standards have a basket clause which allows the committee to reject a fully compliant contract if it doesn't meet the intent of the Standards.
If anyone was information that they want me to put in front of the Subcommittee, please send it to me. (I have made this request at Sean's site also.)
Michael Webster PhD LLB
Franchise News
Send Money For Discount Before Signing
"Elite (owned by Medina Mgmt, who also owns Cuppy's) offers to pay prospective franchisee's initial franchsie fees at a discount if they send money to Elite prior to the signing of the franchise agreement." - jd
These businessmen and women actually sent tens of thousands without signing an agreement?
I have an even better opportunity for a cactus juice bar drive-through concept. Think of the size of the health market. It's a steal of a deal. If you send me $30k now before we sign anything, you'll get a 20% discount. Send cash or money order to:
Ima Ripiu Off, Inc.
#1 Fool and His Money Lane
Soon Parted, CA 99032
Hurry up. The price of the opportunity goes up to $40k by the end of the month.
P.S. Cuppy's: you have to train yourself to stop going after these short mini-skirted sexy things who are so eager to give you their all at the first kiss.
Back from the ledge
Just got done reading between the lines of the Lehman earnings call transcript and I am happy to announce that I have returned from the ledge (for now). You always need to read between the lines! I'm sure that you are all relieved to learn that I did not jump...
I've read the Part 2 regarding the AAFD with great interest. I have a few quick observations and suggestions for the AAFD.
1. Bob does seem like a nice, well meaning man and Lord knows that we need more nice, well meaning people in franchising. However, he does need to grow a pair and fast if he wants to remain relevant.
2. Even NCAA coaches (and pro team management working against powerful player unions) have learned that you need to swiftly drop the hammer on rogue elements - but do correctly and professionally…and leave yourself a way out in case the facts change.
3. Seems to me that Cuppy’s is just a bunch of bookies (sorry Trading Places). This looks eerily like a Ponzi scheme or, in the very least, a severe mistreatment of funds. At these dollar amounts, we’re talking very serious poopage potential here.
Here is the AAFD public statement that I would have issued re: Cuppy's ...
Escrow Requirement
Doug, this is useful. But will the escrow requirement be incorporated into the franchise contract or Elite's contract?
(I should disclose that I was on the subcommittee that approved the Cuppy's contract for accredited status. And that Doug and I are on a Standards subcommittee, which I chair.)
But, I also think it is important to note that difference between Doug's response to a "sold, but not opened location" as compared to Quiznos.
Cuppy's appears to be working towards a fair resolution, while Quiznos requires its SNO's to litigate extensively for the return of their down payment.
I don't know all the facts, and have asked individuals to contact me directly, but it should be encouraging that Cuppy's values its AAFD Accredited status enough to step up to the plate and do more than their current contract requires - and significantly more than most of the franchise agreements that I have reviewed on Caleasi.
Michael Webster PhD LLB
Franchise News
Doug Hibbing:
Doug Hibbing:
Why not get an account on BMM instead of posting as a guest? Accounts are free and I believe that I speak for most of the BMM contributors when I say that it would be great to have you interact with the group and straighten out any misunderstandings and claims.
Other franchisor leaders have created blogs offering information from the franchisor perspective and have directly addressed issues on BMM to the benefit of their brand and business.
Translation: we spent it...
and we don't have it anymore. isn't that special.
Sleep Tight.
Is it me or...
Is it me or does the same thing happen to you?
Whenever I read this introductory line from Cuppy's head honcho (and the construction company/preferred vendor's head honcho?)..."Cuppy's Coffee Smoothies & More is aware of the recent internet postings alleging refund complaints involving Elite Manufacturing and some Cuppy's Franchisee applicants."
...for some reason I keeping seeing the word "refund" as "fraud". I'm serious! It is driving me nuts!
When I re-read it, it definitely says "refund."
Maybe I have a weird form of dyslexia or need to get my eyes rechecked. Does this happen to anyone else?
Blue MauMau Also Received Complaints about Cuppy's
Weeks ago Blue MauMau was directly contacted by individual(s) and their complaints of unrefunded deposits for unsold Cuppy's franchises. Some posted here. During the preliminary steps of the investigative reporting process, our contact(s) became satisfied when payments were given or promised within weeks. To our overworked eyes, it looked like Cuppy's had resolved the issue. So we backed off to cover other pressing news events.
Had our sources with our reporters or posters on this site shown a developing problem, our investigation to write an exclusive front page news story would have naturally been as follows:
But the Internet media is by nature very different. This media leaves records AND it is INTERACTIVE. Those who have been offended post, companies respond and neutral parties and experts comment - without any reporter making a single phone call to ask for such things. While we were beating the bushes and coming up with little, Sean Kelly and his community at Franchise Pick documented substantial complaints of Cuppy's investors.
Wanted: more bloggers and online communities to report from the front-lines.
Don Sniegowski
Publisher
Re: Cuppy's Refund
On accident, I deleted my prior post, but after a couple of drinks, I've thought of even better questions that Doug will hopefully answer and shouldn't be hard to answer.
1) What happened to the money? Did it go to fund other operations? I've noticed the Cuppy's financial statements aren't strong either, so I don't know where that money went.
2) You state that Elite isn't the exclusive builder. Why does the UFOC show a 'single' amount for the buildout and not a range? Have you had franchisees use someone else other than Elite? Was the cost more or less? What type of kickbacks does Cuppy's get (and I ask this because I believe the UFOC states that Cuppy's might get something back from Elite)?
3) Are you going to 'waive' the confidentiality clause in any settlement agreement with these people's refunds? I think some of us would like to know that these people are getting paid back. I think Michael is an opponent of any confidentiality clause, so I hope in conjunction with the AAFD this will be voided.
4) How many people are we talking about? 5, 10, 15????? Also, since Elite is 'paying' the franchise fee, I assume this is being shown on Cuppy's financial statements as a liability. If not, it should be and your auditor should be confirming this amount.
5) Have you given the AAFD a list of people that paid money in, so that they can contact them to verify that they are being treated fairly.
6) Why the pressure tactics with Elite and the prospective franchisees telling them that they have to wire the money on a Thursday to get the discount? Did you have a payroll to make?
7) Are the current franchisees aware of the 'bad' name that your affiliate is giving the franchise that they bought in to?
8) Are you, Morg, and the Pres of Elite going to put a personal guarantee on the refund, so that some 'new' company doesn't buy the assets of Elite and 'forget' about these people?
If you don't like these suggestions, there is a simple way to put this all behind you. You, Morg, and the Pres of Elite all loan the company money to cover all of these debts to these franchisees.
I look forward to the responses.
jd
RE: Cuppy's Response
Doug:
I applaud you for your quick response and for joining the conversation. I think that can help avoid some of the miscommunication and mystery of the Java Jo's/Cuppy's discussions of last year. I also commend your commitment to looking into and addressing these allegations.
A few questions:
1) Several people have said that they made deposits to Elite before they received disclosure documents or had been accepted as Cuppy's franchisees. They said they were told Elite would pay their franchise fees to Cuppy's. Is this true?
2) RE: "Cuppy's has requested that Elite place future deposits by Cuppy’s franchisees into escrow until such time that pre-construction actively commences." Why would Cuppy's "request," not "require" this of their preferred vendor? By "escrow" do you mean that you'll require them to use a 3rd party escrow service?
3) RE: "The current economic state has greatly reduced the number of franchisees able to qualify for financing..." Isn't it customary to financially qualify prospects first, then sign them as franchisees, then have them hire the construction company? Why are they giving money to Elite before signing a franchise agreement or obtaining financing?
4) What is the criteria for remaining a "preferred vendor" of Cuppy's Coffee? If Elite Manufacturing is taking $39,500 deposits from Cuppy's Coffee franchisees and prospective franchisees, and is unable to return them as agreed... what exactly would it take to lose "preferred builder" status?
5) How many franchisees have deposits being "held" by Elite? Aren't these at risk? Press releases state that 250 Cuppy's Coffee franchisees have been signed, and only 60-some locations have been opened. Does that mean that more than 100 have deposits with cash-strapped Elite Manufacturing?
Again, thanks for clarifying some of the issues and concerns being raised by our readers.
Sean Kelly
FranchisePick.Com
Cuppy's Franchisees
jd, I would take the view that in the circumstances the signing of the contract with elite is likely a franchise agreement.
But you raise another interesting point: for accredited franchise systems, should be polling the ex-franchisees listed in the item 20? My initial sense is probably not, but an interesting observation.
Michael Webster PhD LLB
Franchise News
Cuppy's Responds Part 2
Cuppy's recognizes that there are many questions regarding the manner by which Elite Manufacturing, LLC is addressing these issues. Again, Cuppy's takes these matters very seriously and appreciates your comments and posts. However, we feel that is appropriate for Elite to address each situation individually and privately, and resolve any issues in a manner that is fair for all parties.
Doug Hibbing
President
Cuppy's Coffee, Smoothies & More
Cuppy's Franchisees
Guest writes: "They have been getting by with this so long and while the AAFD would rather defend these crooks then admit they've been scammed they probably feel empowered."
I am not sure what this means. But if you have been "scammed by Cuppy's too" you need to act in concert and among other things contact the AAFD.
Think about this for a moment: consider the other AAFD Franchise Seal Franchise systems, do you think that if your allegations are true that they will want Cuppy's in their club?
So if you have real information, send it on to the AAFD.
Stop guessing and start doing.
Michael Webster PhD LLB
Franchise News
Cuppy's Response
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!
Re: Scammed by Cuppys too
Morg Morgan is a slimeball. This man wants nothing less than to destroy the lives of others and employ poor young girls to do his dirty work. This man is a liar, crook, thief. I advise anyone even thinking about the name Cuppys to RUN!