A Turn Around for Cuppy's Coffee?

Cuppy's To Share Network Decision Making With Franchisees

SAN DIEGO (Blue MauMau) - The American Association of Franchisees and Dealers (AAFD) is poised to disperse its Accredited Contract status of approval to Cuppy's Coffee, a franchisor who inherited considerable bad history from its predecessor, Java Jo'z. The coffee chain seems to be putting considerable effort into turning things around.

According to Bob Purvin, president of AAFD, "We will this week be announcing Cuppy's as earning the AAFD's accredited contract status, a mark of conformity of fair franchising standards (pdf) to new owners who do not have the necessary operating history.

"Cuppy's has really reached out to involve its franchisees," said Mr. Purvin in a phone interview with Blue MauMau. "Cuppy's reached just a speck below 100% conformity. I think it is 99.5%."

There seem to be new innovations for the industry that Cuppy's is spearheading to involve its franchisees in decision making. One example is its creation of a purchasing cooperative with franchise owners. Franchisors in the past have been known to compete with franchisees by selling products through supermarkets and other distribution channels. Think Krispy Kreme donuts or Diedrich Coffee. 

Mr. Purvin observes that in contrast to such practices, "Cuppy's franchisees will participate in a purchasing cooperative in which they have a say in the sale of Cuppy's products in alternative venues."

AAFD's Standards Committee will meet Wednesday, April 25 for a review of Cuppy's score and a final application approval.

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EDITOR'S NOTE: More news to follow.