Cuppy's New CEO To Improve Operations and Meet Refund Obligations
Editor's note: After 18 days at the helm, Dale Nabors, new CEO of Cuppy's Coffee and affilliated companies, reports on next steps for the troubled chain. His post was originally written as a comment responding to posters who declared that more than new ownership was needed to lift the franchise chain from its current problems.
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As much as I'd like to respond to each and every comment regarding Cuppy's I do not have the time, nor would it be wise to do so. However, this is one which I'd like to provide a short response.
I can agree with some of both guest's comments. I wholeheartedly agree that the company needs and must have more than just new ownership. It has been approximately 20 business days since I acquired Cuppy's, and just 18 if you exclude the day of acquisition and today which has hardly begun. In this relatively short period of time, numerous employees have been terminated and more than a million dollars per year has been cut from the company's operating expenses. In the coming weeks and months there will be more cuts, a few new hires, and many new systems, processes and procedures implemented.
Not withstanding any of the above, the company has a very good product, both from a consumer perspective and an investment perspective. The company has MANY employees who posses substantial knowledge, skills and abilities along with the interest and commitment to helping each and every franchisee to succeed, in their business.
I've stated our objectives very clearly, and quite simply. We will curtail sales, we will focus on opening sold but unopened stores and help every store increase their bottom line profitability. The cuts which have been made and that will be made, are being made in order to strengthen the company and to allow us to deal with mission critical issues like opening stores, improving systems, and providing refunds to those who are entitled to such.
The company did not get into it's current position overnight, and we will not resolve all issues overnight....however, I will tell you now, and my team will show you in the coming weeks and months that we are committed to resolving each and every issue which we are faced with, in a fair and equitable manner, and to building a brand that is both respected and trusted.
Believe & Succeed,
Dale Nabors
- Franchise topic:
Re: Cuppy's New CEO To Improve Operations and Meet Refund Obliga
Dale, I've been trying to get ahold of you since you sent me this email on July 26, 2008.
Good morning, and thank you for sharing your story by way of email. It is Saturday morning and I'm out of town and unable to access the specifics to your situation. I will review your file early next week, and follow up with you thereafter, once I've been able to familiarize myself with the specifics of your situation.
I would however like to reassure you and your family that I am committed to making Cuppy's the premiere specialty coffee franchise in America in spite of it's troubled past, most of which has been caused due to the construction aspects associated with Elite Mfg and it's construction vendors.
I hope that you and your family have a good weekend absent of worry over this situation, and I look forward to personally speaking with you in the near future. Until then...
Believe & Succeed,
Dale Nabors
Are you ok? Your phones don't work no more, you don't answer emails, you don't answer to the FBI. Maybe your in jail by know? I would sure like to get my $51,900 back. Please respond so I know your still breathing.
Franchising is less risky
http://cuppyscoffeefranchise.com/
From the Cuppy's website:
4. How safe is franchising?
According to the US Department of Commerce, 90 percent of franchise businesses are still operating 10 years, but 82 percent of all independent businesses have failed.
5. How does franchising minimize the risks of opening a new business?
With franchising, the risks involved in starting a new business are minimized because the Franchisor provides a proven method of operation. The Franchisee's benefit because they maintain total control over the businesses financial and growth potential. As a Premiere Franchisor, Cuppy's Coffee provided initial and ongoing support services which include:
* Cuppy's Coffee site location assistance;
* Site lease negotiations assistance;
* Comprehensive ongoing training;
* Standardized media advertising and marketing materials;
* Ongoing advertising campaign planning;
* Business organization guidance;
* Manuals, instructional materials and much, much more!
6. How safe is franchising?
The benefits of owning a Cuppys Coffee Franchise are corporate identity, international visibility, profit potential, and investment value. Consumers will search out a Franchise before buying a product or service. As the Franchisor, Cuppy's Coffee benefits from the manpower that our franchisees bring to the table, enabling us to grow rapidly and obtain market share, without having to stress our financial and manpower resources.
US Department of Commerce study is a myth
This study does not exist:
According to the US Department of Commerce, 90 percent of franchise businesses are still operating 10 years, but 82 percent of all independent businesses have failed.
See:
Franchise Statistics Debunked Again!Jim Coen
877-469-3002
Blog: Lets Talk Franchising
Executive Director of the New England Franchise Association
Director & Clerk, Dunkin Donuts Independent Franchise Owners (DDIFO) Board of Directors
That US Dept of Commerce "study" was always treated as a joke
At every IFA seminar I ever attended, the guy who did it would always get drunk with me and joke about what BS it was. After he did it, he was always the honored guest of the IFA at its spring legal seminar meetings. At one point he even wanted me to hire his son into my law firm. I am extremely well informed about this farce.--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
CUPPY'S, ELITE, MEDINA MOVING TO MUSCLE SHOALS, AL
FEDERAL CHARGES IF NOT ALREADY WILL BE AGAINST DALE, MORG, MEDINA, ELITE, CUPPY'S, SBT, MBM. EVERYONE IS SCREWED, INCLUDING MEDINA EMPLOYEES!! (WITH THE EXCEPTION OF THE BROWN NOISERS THAT ARE MOVING TO ALABAMA... NO, WAIT A MINUTE... THEY ARE PROBABLY SCREWED TOO. THEY JUST DON'T KNOW IT YET). NO ONE WILL RECEIVE ANY MONEY BACK... NOT EVER BECAUSE DALE HAS CONTINUED THE MORG TRADITION OF TAKING ADDITIONAL $ FROM FRANCHISEES & IS NOT BUILDING THEIR CAFE AND IS NOT SENDING THEM THEIR EQUIPMENT, FURNITURE, ETC... WAKE UP & SMELL THE BURNT COFFEE FRANCHISEES, VENDORS & ANYONE ELSE WHO HAS EVER GIVEN MORG OR DALE ANY MONEY! THEY HAVE OUT RIGHT STOLEN YOUR MONEY & YOU WILL NEVER SEE ANY OF IT AGAIN SO PLEASE DON'T GIVE THEM ANOTHER PENNY. BE SMART AND GET OUT WHILE YOU CAN & TRY TO SUE TO RECOUPE WHATEVER YOU CAN BEFORE IT RUINS YOUR WHOLE FAMILY LIFE!
cuppys
Has anyone got a lawer yet if so please let me know how it is going i have lost 40,000.00 also we need to find out were he is living and visit him there are something you just don't play with and one is my money.
THANK YOU
JOHN KINSEY
Cuppy's lawsuit
John, yes some franchisees including myself have gathered under one firm for purposes of a group legal action. We're looking for more franchisees to join. There more of us there are, the stronger the case and the cheaper the legal costs when split up between us. Contact Dady & Garner for more details at 612-359-5486.
John - I understand perfectly how you feel about the folks at
Cuppy's. Were I in your position, they would long ago have paid a heavy price for what they have done. However, as an unknown friend, please accept my suggestion that you not visit them. If you do, bad things can happen, and the worst is that they might accuse you of doing something you do not wish to be accused of - to put it nicely. People like these will stoop to any trick to try to change the odds on their accountability, and accusing you of any kind of misconduct during a confrontation with them won't get you made whole, and might get you in trouble that you really don't need. You already know that they will say anything, true or not. Good luck.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Dale Nabors stops build-outs
We can't get out we have been fired! Franchisee's should pray that someone stops Dale from stealing their money. At least when Elite was run by Brian Hayes, buildings got built, now it's run by a kid with no construction experience and who brown noses Dale all day. Brian may have been late but the franchisee's got built-out. Dale Nabors,could care less, he stopped paying SBT and MBM, because he wanted to dispute their invoices and expenses. Before Dale our company had it's weaknesses just like all new companies, but we had more than 100 dedicated employee's and managers. When Dale came to the company he acted like he controlled the company and he had Morg's backing while he acted so confident and all the while ran the operations and the companies into the ground. We were a great company with great employees, franchisee's and managers. This is what happens when a person like Dale is left in charge of your future. Dale how do you sleep?
Re: CUPPY'S, ELITE, MEDINA MOVING TO MUSCLE SHOALS, AL
Typing all in caps and posting this message multiple times doesn't make it true. What agency is investigating these guys? Have they seized any documents or interviewed anyone related to the investigation? If you know so much then provide real information.
Re: Seized any documents...
If only the officials were at Cuppy's, Elite, Medina and seized the shredding machines that are in almost every office. The officials would have a time putting docs back together but I think it would be worth it.
RE: Interviewing folks...
If zees or officials were truly wanting to get $ back to at least file lawsuits... they need to speak with some of the upper management who probably saw things first hand as well as heard certain statement from the horses mouths. Upper managerment as in ex-employees as well as current employees. Karma's a b_itch!!!
No Federal charges
against Dale or the employees. There is no fraud. It is a shame that past employees keep writing these ridiculous comments. How about everyone wait and see.
No Fraud my @$$...
When you take someones $40k - $170k and tell zees "if only you will give send me more money now... I promise we will get you open by (a definent date)". That date comes and goes with out getting zee open. THAT IS FRAUD! In the old days you'd be hung or shot for this kind of thievery!
Cuppy's may be fraud
I disagree with "Guest" to the extent that there are unanswered questions which are indicative of fraud:
Any person who borrowed money to fund their Cuppy's should find out if all of the money was disbursed yet, and if the money was all disbursed but the construction not completed, the borrower should have their attorney get involved immediately.
"Wait and see" has not worked.
With the prospect of a investigation of Funding Solutions LLC and Cuppy's Coffee by the Inspector General of the cognizant federal agency, certain people may be working overtime burning out the motor in the paper shredders even as they counsel others to "wait and see."
We have all had much sport bashing Bob Purvin rather than following the money, and that was a very stupid and irrelevant distraction (Parenthetically I would note that while the AAFD threw out this franchisor and directed them to remove the AAFD logo from the website, the franchisor still proudly displays the IFA logo ).
Perhaps now the affected franchisees will actually focus on what happened to those tens of millions of dollars. But perhaps not... that would require some hard work and logic-- qualities which seem to be in short supply among both zees and the zor.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Dale Nabors Steals A Company - Zee's lied too - Employees gone
We are out of here in 2 hours... Good luck everyone!
Dale Nabors hope you are happy with all of the money you have stolen from us and the franchisee's, you fooled us all, but believe me Karma is hell!
Please explain, re: Nabors
Being from the inside, please explain what has been stolen, how things worked, etc.
I know it won't help you out in the future, but it may help the franchisees that you cared about out with their future success or in them trying to get their money back.
Please Explain: I Hate The lies On This Site, But This Is True
Dale promised the managers he had the money and a plan to really speed up Elites build-outs. He claimed we would have all of them done before the end of the year. He told us Morg and Brian were wasting franchisee's money and that he could get buildings built at half the cost. He stopped paying SBT & MBM for buildings and stoped paying the vendors. This caused all hell to break loose. Every week we would hear about some big deal he was working on with a famous builder which would save the franchisee's thousands of dollars and make the company stronger than ever. He told us it was because of Morg's poor management skills and Brians stealing Elites money was the reason why he was being forced to put franchisee's build-outs on hold. He also said that Morg and Brian were probably partners. Before Dale and when he first came on as a consulltant the management team would discuss each franchisee problems at a weekly meeting. Getting the right real estate was always a big factor and the company really had a hard time getting good locations during the first year I was there. The next problem we faced as managers was dealing with the people that we though would qualify for their loans - we would spend hundreds of hours helping them get a good location only to be told they can't get a loan, I know that many of the people did not get their franchise fee's paid back to them. It seemed that the company was always trying to figure out how to pay refunds from Elite, because of financing problems and people getting second thoughts about moving forward. I know a lot of time monthly payments were being made from the accounting department to people that had lost their financing, because they would call if they were a day late. Now the calls are not being paid at all. I am not bitter, but it is hard to see so many peoples hopes destroyed. We once had a vision of this company being the best company in Florida - WHAT HAPPENED???? - I am hurt to see what this company has become - how di we get here? It is hard for me to say, but Dale lied to us and now he is moving on, while the rest of the employees and franchisees are left to wonder what will happen to us next.
Clueless in Cuppy's
Employees and franchisees need Morg to return and paint that glorious vision once again. This time don't settle for just being the best company in Florida. Think bigger.
Morg can give each a great big bear hug to feel good about themselves again.
Morgy needs your help
Sorry, but it's not going to happen unless we can get Cuppy's franchisees to rally Morgy's spirit.
Morgy just phoned me from his beach cabana (located in an undisclosed location lacking an extradition treaty).
He is feeling that his life's work has all been for nothing. His vision was indeed to be #1. But mere millions in fleeced booty will no longer suffice, now that Bernie Madoff has raised the bar.
Morgy is incolsolable, but the Cuppy's franchisees can help.
Call Morgy, and remind him that even though the bank is foreclosing on your home and the kids' college fund is empty... you still love him, are greatful for the opportunity to start over deep in debt, and--most importantly--you will never rat him out to the AG.
The disappointed Floridians must also call Morgy; the honor of their state is at stake. Here in New York, we have low-level goombahs from Long Island who fleeced more bucks from working people than Morgy did. And of course, we also have our hero Bernie whining about being a "prisoner" in his Park Avenue penthouse.
Come on up to NYC and find out how to run a decent pyramid scheme. I hear the Learning Annex is offering a one-day seminar.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
as is the case with many a Dwyer Group employee
It's always been a breeding ground for bad franchising.
Dwyer Group employees love Dwyer
Don't know about that. But Texans keep voting Dwyer as one of the best places to work. The youthful posting ex-employee(s) of Cuppy's may want to relocate.
I used to
work at Cuppys. Since when is it the end of the year. I could not go to AL and was not asked but I know that alot of what employees are saying should be taken with a grain of salt. Shredders in every office.....lol....that is the most stupid thing that I have ever heard. There are problems but I still believe....companies close, people get laid off, companies move. GET OVER IT!!!
Get over it! What gall!
I am sorry, how much money did Cuppy's steal from you?!
How dare you be so cavalier about someone elses hard earned money being stolen!
You get over it!
Dear, I used to...
If you truly worked at Cuppy's than you know that shredders were in every office!!! Maybe you kept blind folds over your eyes. Dale Nabors is a heartless person. Also...3+ weeks in a row now Dale Nabors has told Florida employees & franchisees that he will be in FL office tomorrow, tomorrow, tomorrow. Today was the last day for the FL offices to be open for the majority of employees and did Dale have the decency to show up? HELL NO!!!! Even though he told several that he would be here on the last day. What kind of heartless owner is too gutless to show up on the last day, even if he had to fake it, to thank employees for their hard work and to wish them well. People say Morg ran the company poorly but you can bet your a$$ that if he had to close the business, he would be right there with each employee hugging and wishing them well. But Dale… WTF!!! I hope I never, ever meet another human being such as Dale! He is lower than snake $hit!! What goes around, comes around. I only pray that the employees that have followed him to AL have a plan B. They will need it soon!
This Lady Needs a Hug from Morg
It sounds like Morg had that rare ability to make people feel good about themselves and their future.
Take a look at the video below. I swear the voice of this lady sounds just like an ex-Java Jo'z or Cuppy's Coffee franchisee we've heard here.
The Cuppy's-sounding franchisee in the video, the first story, definitely needs a hug from Morg to feel better about her $400k bad investment.
Nigerian prince seeks Cuppy's Coffee investment
This could be a good source of revenue for Morg & Dale: selling the names and contact info of the suckers who sent Elite/Cuppy's/JavaJoz millions could net sufficient profit to finance a nice house in Florida, where they have that juicy homestead exemption.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Nigerian prince seeks Cuppy's Coffee investment
Paul, your an A$$! Rot in hell!
Nigerian Prince
Oh man! I'm trying not to laugh but I can't help myself . . .
There is no such thing a Nigerian prince
If there were such a thing as a prince of Nigeria, he wouldn't even have a flush toilet. They have toilets, but there is no waterr pressure most of the time.
--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
400k Loser
I wrote a short piece about this telemarketing scam , which you might find interesting.
Michael Webster, a franchisee attorney in Toronto, Ontario, who publishes a website on business opportunities and franchises, called "The BizOp News"
Re: I used to
lol I think you are one of the brown nosers that think that the company can survive by moving the offices to podunk alabama and by taking Natalie out to lunch. in a way, I almost feel sorry for you..not!
who I really feel sorry for are our franchisees. At least with morg, he would tell us how to help the franchisees, and maybe his choices were not the best, but at least he would actually do something!! i email and call dale over and over again...nothing. i email our country singer vp, all she knows how to say is hold on. meanwhile the franchisees are loosing everything! these were our people! I cared about them! and you either ignored my attempts to help them or you told me to tell them something that ended up just being a lie! I can't even believe it, but they were better off under morg! at least he would communicate! where have you been the last month dale? i was here working, listening to my former friends (the franchisees) scream at me because you wouldn't help me help them! I hate you!
Dale Nabors
Dale has 25 years of experience at conning people out of their money.This is his way of making a living.
Strange Network
Oh man! Morg would actually do something?!? You mean like ask for $40,000 more from you?
I don't know what to make of some of the Cuppy's franchisees. These kind of postings make me realize that they would one day leave Cuppy's only to find the next bad investment.
Judging from the statement above and from other stories, there seems to be a significant part of the Cuppy's system that prefers cajoling over reality. To call the honest men cons and the conmen honest.
Strange network.
re Dale Nabors
a typical Dwyer product
Amen!
I hope zees don't let Dale (if he ever talks with them again) that the quality of AL employees is the bottom of the pit. The head person for marketing and doubles as receptionist doesn't even know what "Due Diligence" means... nor does she know what a "corporation" is. Dale, you are the mors popular person now buddy! Everyone HATES you. I pray Natalie has the heart to forgive you for your actions and/or lack of action these last few months.
Morg was a charmer, that much is true
With due respect, I would suggest that you consider who got the money.
A lot of "depositors" would like to know where their money is. People who paid for build-outs and are paying rent on a white box site are wondering where their money went.
Well???
The real problems of the disappearing money predate Dale Nabors. I realize that Morg Morgan was a warm fuzzy teddy bear who inspired dozens (if not hundreds) of people to give him money. Morg did have that way about him, bless his heart.
... umm, not to be rude but-- where is that money?
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Morg a charmer...
Morg did take in lots of $ from zees and JJz owners. Where the $ went, only he knows. It certainlhy did not go where it should have gone. The following is a true statement as well... Dale also sat in front of several zees & looked them in their eyes & told them to send in more $ & he promised to get them open and never did. Money that came in under Dale never went where it shoiuld have. Morg at least kept thing moving even if it was at a slow pace. Dale hasn't moved anything in his 3+ months running the company! Everything has been at a stand still since he took over.
Okay
morg caused this. I think we all know that. the problem is that I think so many of us had such hope because of dale. While he was a consultant, morg told us not to tell him certain things, but dale still tried to help fix things. dale actually called people, and the people he tried to help actually liked him. we liked him! when he took over, we thought he would make things right and stop the nonsense. when he told us he would shut down the daycare and cut some people, most of us understood. he wanted to move the company - fine. but what I do not understand is why he stopped talking to everyone! not me, not my boss, not the vendors, not simona, not the franchisees, not anyone! if you actually got a minute with him, he would talk and talk, but when he left, you realized he didn't actually say anything!
the fact that he didn't communicate is what started this whole thing to go sour. the franchisees have their house on the line. i don't blame them for screaming at them. i have nothing to tell him. i didn't know what was going on. no one except dale knew what was going on, and he was gone. never here, never answered emails, never answered voicemails. what am i supposed to tell my franchisees? my franchisees. i knew their kids names. what they were planning for the holidays. and when they needed me to help, i couldn't do anything. we all tried. i honestly don't think he cares. thats the only thing that makes sense. i feel horrible for them. i lost my job, fine, i will get unemployment and move on. but who is talking to the franchisees now? if we couldn't help, now that there is only dale and the brown nosers - this is his genius plan?
i don't know where the money went. i do know that i was making close to minimum wage, and from what i hear the managers all took pretty big paycuts under morg, so they weren't really getting paid either. someone was i guess. my money is on morg and ben.
Where did the money go...
Dale took $ and never moved a zees project forward. My understanding is he took the $ to launch his FranSynergy company. www.fransynergy.com. Please warn everyone about Dale's company and beware!!!! He's a thief!!!
FranSynergy entity
"Guest" is wrong. As any BMM reader knows, FranSynergy was around long before any of us heard of Cuppy's.
In fact, the famous Exhibit D shows that Dale Nabors arguably assumed a legal liability and pledged the assets of FranSynergy, thereby placing those assets at risk.
All this in the very transaction in which he purchased the Cuppy's-related companies.
"Guest" is demonstrably wrong.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul...
Paul, I respect you very much but in this case... you are missing quite a bit of info on this... you are wrong. Look deeper if you dare.
Rumsfeld my hero
Of course, "Guest" is correct and I am missing a lot of info.
To quote my favorite philosopher, there are "known unknowns" and those make life difficult enough. Add the "unknown unknowns" and we are in the deep muddy.
But I am going on the facts and documents available.
The posting suggested that Dale had siphoned off franchisee money to "launch" FranSynergy, and this is demonstrably untrue. Indeed the reason I stopped speaking to Dale was due to a matter relating to FranSynergy, and that has been discussed before.
Also, I do not have the complete contract. True.
But SBT did not put the contract into the pleading. They did put Exhibit D in the pleading.
So my reply was based on those facts. From what you are saying my guess is that the original post meant to say something other than what ended up being written.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Plan went awry
I don't think there was much planning, and such planning as there was by Dale Nabors quickly foundered on the shoals of Morg's submerged mines.
The magnitude of the unpaid "depositors" was bad enough. But apparently there are people who paid for a full build-out and did not get it; that was not widely known till some time after Nabors took over.
How much Nabors knew about the SBT deal is an open question as well; my gut is that Nabors was shocked to find out what was going on, and I do believe that he was not aware of some key facts until after he bought the company.
Michael Webster has put together the most logical explanation of what happened and why Dale Nabors bought these toxic entities. His explanation covers the known facts and for that reason it is the best current explanation of this story.
And if Webster is correct, then the growing awareness on the part of franchisees who have undisbursed monies is going to throw a potentially fatal money wrench into Nabors' plan.
That is a shame, since if Webster is correct Nabors did have the only non-bankrupty path to setting this company on course.
The problem is that the only significant source of revenue (particularly after stopping the sale of new franchises) is that money in the pipeline. And if those borrowers get wise to the potential for some of their money being shifted to cover the unfinished construction and make payments to all of the franchisees currently under "installment" repayments...well, those borrowers might just tell the lender not to disburse to Elite.
Let's face it: does anyone know what Elite brought to the table?
It took scads of cash (from f'zee wire transfers and bank payments) and promptly sub-contracted the venerable SBT firm to actually do the work.
At least I think that SBT was contracted to do the actual work, but given the soup of entities in what Sean Kelly famously dubbed "The Angola Love Shack" it is difficult to determine who was supposed to do the work.
Whoever that was, much of the work was not done.
So if those borrowers still in the pipeline have a burning desire to run a coffee shop, they just may get a local contractor, source on the Internet for cups and beans, and voila.
Even if the borrowers really want to open a Cuppy's shop, they may get bids from local contractors and find out what the construction is really supposed to cost. And using a non-Cuppy's contractor means that none of that money will flow thru Elite's coffers.
Avoiding money flowing thru Elite may be a smart move for any borrower, given the past history of money which flowed thru Elite.
A corollary to that history is the potential for claims against Elite and a possible bankruptcy filing, which could put the borrower in the position of being an unsecured creditor getting pennies on the dollar but responsible for paying back all the money he borrowed from the bank.
Ironically, SBT deserves a big "Thank You" since that lawsuit filing led to the information which Webster used to piece together this puzzle.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Dales knowledge prior to purchasing company...
Dale definently knew about SBT/MBM, etc... because several upper management told him exactly what was going on when Dale first came on board as a consultant. He begged management to hang in there and stay because he'd make it better. WHAT A CROCK OF BULLSHIT! Someone needs to teach him a lesson about dangling carrots in front of folks face and then not follow through.
Dales knowledge - Mr. Know it all...
Get real. Dale and Morg where like best friends. Dale came to help Morg sell the company and ended up buying it. Remember the accountants in the offices everyday for months on end. Dale and Morg were making sure they could take the money off shore.
Dales Knowledge All Kidding Aside
Before Dale even started working for the company he was made aware of the problems with Elite. His job was to fix those problems and to make sure the franchisees were taken care of. . He ran operations on a daily basis. He was incharge of the day to day decisions. I think he saw a quick buck and took it.
Dales knowledgs...
You are 100% correct! Take care and good luck to you.
Illogical
This doesn't fit. If Nabors knew about the unfinished work, the shoddy construction, the complaints from zees, the ownership of SBT, etc...
...then why buy Elite in the first place? Why sign Exhibit D?
Rather, he could have set up a new entity and gotten decent work at a decent price.
I'm not saying "Guest" is wrong, but it just doesn't fit the current set of facts.
Am I missing something?
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Why buy Elite?
If you are asking why Dale just didn't buy Cuppy's without buying Elite, I think it is because it was a package deal. Elite was the entity that brought in the money anyway and until Dale could turn the company into a "real" franchising company, he had to keep the cash coming in. If the two were separated, would the fraud have been discovered a few months sooner? Wouldn't creating a new entity without cutting off Elite's obligations be reminiscent of the creation of Cuppy's and Elite from Java Jo'z and ECM?