Letter from the President of Cuppy's Coffee

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

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• Cuppy's Coffee: Some Words from AAFD Raises More Questions by Sean Kelly, Founder of Franchise Pick
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