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Log In / Register | Mar 11, 2010

Official Response of SBT

My name is John Rodesiler, and I am the 100% owner and president of Supreme Building Technologies, Inc. (“SBT”).

As this website reported, SBT has filed a lawsuit against Elite Manufacturing, LLC. In the lawsuit, SBT is seeking to recover approximately $1.7 million from Elite due to work performed by SBT for which Elite has not paid.

I would like to respond to all of the comments made on this website regarding Cuppy’s Coffee, Elite, and SBT, but my attorneys have limited what I can say as long as the lawsuit is pending.

I can tell you, however, that SBT is not related in any way to Cuppy’s or Elite.  As I mentioned, I am the only owner of SBT, and I have no ownership interest in Cuppy’s or Elite.

I do not receive any salary or payments from them (other than the amounts due to SBT on construction contracts).

SBT does not consult with Cuppy’s or Elite on business issues, and they do not consult with SBT.

In fact, conversations between SBT and Elite have been contentious for months, as the main discussion has been about Elite’s failure to pay SBT for work it has performed.

While some on this website have questioned whether SBT’s lawsuit is part of a plan to assist Elite, I can assure you that is not the case at all.

SBT entered into contracts with Elite, and SBT has sued Elite to receive payment under those contracts.One attorney on this site has even gone so far as to concoct a story about how SBT is colluding with Cuppy’s and/ or Elite by filing this lawsuit.

That attorney should know better than to say defamatory things about SBT based upon nothing but his suspicions.

In fact, his post shows a complete lack of understanding about this situation and about business in general.

Others on this site have claimed that Rob Folk “represents” SBT.  That is not true, as Mr. Folk has never been an employee, consultant, or agent of SBT.  SBT understands that the franchisees are frustrated and tempted to look wherever they can to place blame.

However, I ask that everyone keep an open mind about SBT and wait to see how the evidence unfolds in SBT’s case against Elite.

SBT has been owed substantial amounts from Elite for over a year.  SBT has been attempting to collect these amounts, while at the same time trying to keep afloat to service Cuppy’s franchisees who are looking to Elite to take care of them.  However, we are now to the point we SBT needs to obtain funds from Elite to even continue to operate.   Unfortunately, we have been forced to begin exercising our lien rights to protect our position.  Please know that no money received from these liens would ever be given to or shared with Elite, Cuppy’s or anyone associated with them.

SBT has learned that Dale Nabors, the president of Elite, recently held conference calls with Cuppy’s franchisees.  As you know, many Cuppy’s franchisees have paid Elite to construct their facilities, but Elite has not constructed those facilities.  We have been told that during these calls Mr. Nabors stated that Elite has paid SBT and that SBT has mismanaged or otherwise misused that money.  This could not be further from the truth.  The obligations owed by Elite to SBT are real, SBT has not been paid by Elite, and SBT’s lawsuit has no purpose other than to recover those funds so that SBT can be paid for, and complete, the work it has started for Elite on behalf of Cuppy’s franchisees.

Again, please do not buy into the paranoia and unfounded speculation about SBT that seems to have become rampant on this website.  I cannot wait until SBT’s case against Elite moves forward and the evidence starts to come forward.

John 

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John, you are an idiot. by Guest
What a bunch of crap. First of all your company took money for doing no work. You have stolen property that has been paid for by us, the franchisees. You may own 100% of SBT NOW BUT WE ALL KNOW THE B IN SBT STANDS FOR BRIAN THE CROOK. So do not worry about anything, sleep well in INDIANA. Your day will come.
Wanted: Civil Discussion by Mr. Blue MauMau
Mr. Blue MauMau's picture

I would remind guests that Blue MauMau has posting guidelines; specifically: 

[The use of] strong personal accusations without any evidence against individuals  will be removed. Please do not use words such as Mr. or Ms. X is a crook, felon, drug addict, or adulteress, etc. to describe an individual without the strongest of evidence.

In other words, if you say someone is a "crook" then you had better link to court documents showing that they've done time. There are a couple of general rules for publishing. Falsely accusing someone has done time risks charges of defamation to the poster. Crook is one of those magical words that gets people in legal trouble. For reasons of arcane laws in various states, challenging the chastity of a woman is the other that can land people into legal trouble. Crazy, huh?

There are exceptions. Sarcasm and hyperbole come to mind. These two concepts are greatly appreciated in this country.

e.g. "He said this and that? What a crook!" 

The guest's comment, "John, you are an idiot", has such an example.

That brings us to the word "idiot". Although such words are a little too crass and troll-like for us blue-bloods, posters can use such venomous verbiage. After all, it probably describes many of us at certain points of our lives. But it should be said that calling someone an "idiot" just does not fit well with the Blue MauMau community culture. We aspire to argue in a gentlemanly or lady-like fashion on issues. We avoid personal labels. Rather than say someone is a crook, we like to lead the reader to such a conclusion.

e.g. Mr. Vendor says this. But such conduct has landed people in jail, as in the case of X (link to the case).

Mr. Blue MauMau
Moderator

Can tell it is Friday by Paul Steinberg
Paul Steinberg's picture

Mr MauMau writes: challenging the chastity of a woman is the other that can land people into legal trouble

Does this cover Solomon's discussions of wives' panties in his Dunkin' Donuts analogy?

And if a franchisor exec has a traffic cone pilfered in the course of an inebriated frat boy prank, can we discuss this so long as we don't discuss the color of his wife's panties?

The BMM posting guidelines are unclear, and we may have to debate this issue at Muldoon's.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
I'm buyin if y'all wanna come down to Muldoons and cuss by RichardSolomon
RichardSolomon's picture

It's gettin so you can't hardly say nuthin no mo without some blue nose church lady jumpin down yo throat.

I think I'll do a blog post on the subject of intimate apparel for the spouses of franchisees and franchisors. Mr. BMM probly wouldn't publish it tho. Now that he's makin a lot of money, he forgot how he used to talk when he was po.

Somebody oughta remind him thet franchising IS the F word.--

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


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
Bovine chastity by Paul Steinberg
Paul Steinberg's picture

Speaking of impugning the chastity of a female: Prof. Barrett notes that Justice Jackson (before he was on the Supreme Court) filed a suit regarding the bovine equivalent:

Jackson’s ...cases included many disputes involving sales of lumber, horses and cows.  In one, he represented a man who had bought a Holstein cow on the representation that she was “with calf” by a thoroughbred Holstein bull.  When the calf arrived, it was obviously half-Jersey, so the buyer got Jackson to file a Justice Court suit against the seller for misrepresentation.  The trial took two days.  As Jackson put it, “We tried the love life of Bossie the cow with the whole community attending.”  He won a $15 verdict, vindicating his client if not Bossie’s honor and earning a $5 fee.

 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Question for John or whoever owns SBT by Guest
Do you know anything about a unit being built in Las Vegas this month and the work allegedly involving the Hayes brothers? Take a look at the unpaid invoices filed with your suit so you know what site I am referring to. Do you know anything about an attorney alleging to represent your company also allegedly offering to represent owners with their suits against Elite? Of course, consult with your attorneys before responding.
John by Guest
I also cannot wait for the case to move forward and all evidence to come out LOL....you may not like it
SBT Invoices by Truth
Why they sent one agreement signed by both parties with invoices for one job and not all of them seems odd. I almost bet they don't have a signed agreement for all jobs with Elite. SBT built-out the cafe's and built modulars so as the contractor and/or builder they would know where the projects were at all times. That can not be an excuse for them to blame Elite for lack of communication.

I would think that the modular and kiosk invoices should say MBM that is who were supposed to build them unless they merged the companies and never told anyone. Plus the invoices just told how much is actually paid for the buildings which was $29,699 times 2 = $59, 398 and is that not sad since they sell the 10 x 26  for $169,900 or more now. Plus what they charge for inlines (depending on how large) people can see how much it actually cost Elite and how much they made themselves there.

SBT: The Mathmatical Dimwits! by Guest
Apparently SBT can't do math very well. In the invoices attached to the complaint they charge Elite $40,000 for our cafe. THEY HAVEN'T DONE $20,00 WORTH OF STINKING WORK! Yet, oh sit down in your chair .... SBT has put an $80,000+ lien on our cafe! Oh please, SBT produce a LINE ITEM invoice for every minute of your time and every ounce of product you supplied. Oh wait .......... YOU CAN'T! Excuse me SBT, you have not delivered $20,000 worth of crap to my cafe, yet you invoice Elite $40,000 and you put a lien on our cafe for $80,000+. Apparently you must have one of those mob connected accountants. I'm sure the IRS would love to have a word with him/her. Oh by the way SBT I hope you're not charging for the 1st set of blueprints you did. You know the ones where you did a complete set of approved blueprints for THE WRONG SUITE! after you were sent 12+ photos, a video and an initial layout with "Cuppys" clearly written in the space indicating what suite to draw the blueprints for. SBT, you need to go back to elementry school!
Re: SBT: The Mathmatical Dimwits! by Guest
How can one put a $80,000 lein on nothing but a set of crappy plans?
Lien on me... by Sean Kelly
Sean Kelly's picture

I wonder if they deducted the amount subsidized from the state of IN from their labor costs.  From my understanding they recoup part of their workers' hourly wages from the Economic Development Corporation.

 > I believe the references to the mob are off-base.  I think the mob would be much more efficient than this.  They also understand the concept of laying low when the heat's on. And they also understand that some part of the business ought to be legitimate - if only for appearances. <

 On the last point, does anyone know if Cuppy's Coffee has ever collected a single royalty payment.  I thought I saw a comment somewhere that they not only have never collected royalties, but they don't even have procedures in place to do so.

Does anyone know if that's true? 

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
It's actually quite easy by Guest
You just create an invoice of our thin air, despite not having done any actual work, and then file a lien for double the amount!
Lien: Easier filed than enforced by Paul Steinberg
Paul Steinberg's picture

Guest wrote: You just create an invoice of our thin air, despite not having done any actual work, and then file a lien for double the amount!

Not so fast. Sure, anyone can file a bogus lien. But that is why there are procedures to lift such liens, and seek damages against the bogus filer.

Here it is alleged that the liens filed are in excess not only of the amount of work performed but are double what the lienor is claiming in a different lawsuit.

Moreover, the circumstances of Cuppy's/Elite/SBT are such that the contracts may be voidable on the basis of fraud. From the facts presented, the lienee should go to a local attorney familiar with their state lien law and take aggressive action against SBT and their cronies.

There are people out there who are aware of the interlocking involvement of certain investors in these companies, and they should do the right thing and step up to stop this ongoing fleecing of these victims.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Re: Official Response of SBT by H20Man
http://dockets.justia.com/docket/court-inndce/case_no-1:2008cv00163/case_id-55142/
SBT not related in any way? by Sean Kelly
Sean Kelly's picture

SBT President John Rodesiler states, "I can tell you, however, that SBT is not related in any way to Cuppy’s or Elite."

That hasn't been as clear to everyone else, including Elite and cuppy's, it seems. A reporter for the Fort Wayne paper was told by company officials that SBT was "part of" Elite Manufacturing, which she reported in this story. One would expect SBT and/or Elite to request a printed clarification.

Cuppy's Coffee seemed to refer to Elite and Supreme interchangeably. Although the City Council meeting minutes that list Rodesiler and Folk as representing SBT say that state funding was awarded to Supreme Building Technologies, a story appearing on Cuppy's blog picture and state that "Angola IN city officials, Dick Hickman and Julie Cole, tour the Elite Manufacturing plant. The visit came upon the news of state employee funding for the manufacturing company...With more than 20 projects in the works, Elite Manufacturing is expecting to hire more staff, with the help of state funding, to meet all their customer’s needs." This story was written and published by Cuppy's.

Question is: Where's the money?

Sean Kelly

Cuppy's Blogliography

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
The building with two names by Guest
Up until about the weekend of the 4th, the plant in Angola had the name Elite / Supreme Building Technologies. After that weekend only SBT remains. This is no secret, they were in the same building. It was on the same 10' long street sign. This is why they (the city officials) toured the "elite" plant. Side Note: No one in this area knows what the hell those guys are doing! And it's a shame that these guys are so toxic that people start to blast against a whole town! Interestingly, it seems that once Mr. Hayes made his departure, the sign went down like a five dollar....well you know.
The building with two names by Guest
I know for a fact that the signs were changed WAY before the 4th of July holiday. The signs were changed in early June. Maybe you should know your facts before you comment!
Paul should consider relocating to Angola... by Sean Kelly
Sean Kelly's picture

Guest wrote ...it seems that once Mr. Hayes made his departure, the sign went down like a five dollar....well you know.

Five dollars?  Paul, you should definitely consider Indiana.  Rent some office space at the Love Shack on Wohlert... You could live like Eliot Spitzer there.

Sean

PS  Remember that song Indiana Wants Me?  It could take on a whole new meaning for you.

[Comment sponsor:  iSTOLE It

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
Suggested signage for 1501 Wohlert. & lawyer questions by Sean Kelly
Sean Kelly's picture

RE: The building with two names <i>Up until about the weekend of the 4th, the plant in Angola had the name Elite / Supreme Building Technologies.</i>

I'd suggest they go with a digital or scrolling LED sign so that they can change out their entities easily... Elite Manufacturing... Modular Buildings of Monroe... Superior Canopy... Supreme Building Technologies...

The bank signs can include the time (11:39), temperature (82F) and current rate of return on deposits (-100%).

____________________________

Questions for the lawyers:

Exhibit 1 of the SBT complaint contained the typical payout schedule between Elite and SBT. Wouldn't it have been customary for there to be a similar payout schedule between the franchisee's lender or the franchisee and Elite... requiring cash to be released as work was completed? Was Elite paid these amounts - $80K - $150K - up front in a lump sum? If so, why?

____________________________

Trial Questions:

If, at the time that the SBT lawsuit was filed against Elite, Doug Hibbing, Brian Hayes and Brice Hayes simultaneously had ownership stakes in SBTand were employees of Elite or one of its parents, might they be subpoened to testify against themselves? Or can they plead the "fif"

Will Lou Mangianello represent both sides?

Will Danny Jones be responsible for both collecting and NOT paying out any resulting judgements?

How will they possibly find 12 jurors in the Angola/Ft. Wayne, IN metroplex who did not work at, live in a modular home built by, or aren't owed money by one of these companies?

Or will they be allowed to just have one juror with 12 different names?

Sean Kelly
seankelly[at]ideafarm.net

Franchise Pick

[Comment sponsored by: iSTOLE It Franchising Corp.]

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
Line Item Invoices Needed by Guest
SBT needs to supply itemized invoices. This "general" crap doesn't cut the mustard. Would you pay an invoice that said "amount due $40,000" if all you had was a set of blueprints? ARE YOU KIDDING! Heck no! You would ask for a timesheet accounting of all time, labor & materials to back up the $40,000. Guess what? SBT doesn't have it.
Sean, grab a whiskey by Paul Steinberg
Paul Steinberg's picture

Sean writes: Will Lou Mangianello represent both sides?

Obviously Sean has not had his second whiskey this morning, and his brain is still asleep.

Sean: anybody knows that the Consigliere always represents the family interests.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Si. Veramente Paulo ha ragione by RichardSolomon
RichardSolomon's picture

La fidelta parmi gli avvocati Italiani e per tutte nella fammiglia.

Ma, gli avvocati di Frascati son burlati del amor. (Lawyers from Frascati are lousey in bed)--

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


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
SBT not related in any way? by Guest
Sean, take a look at the blog titled "Tangled Web". This was written in response to Paul Steinberg's blog titled "Supreme Building Technologies Suit" dated 7-15-08. This is a very, very interesting story from what sounds like a company who had the inside scoop.
My brain hurts... I been Cuppied... by Sean Kelly
Sean Kelly's picture

I read Tangled Web .

Holy schmoly, my brain's been Cuppied once again.  And I've been following this.

These guys do deserve an award...  Maybe the University of Nigeria will give them an honorary Phd in obfuscation.

 Sean Kelly
seankelly[at]ideafarm.net

Franchise  Pick
Franchisor Marketing

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
As a former special prosecutor for economic crimes, by RichardSolomon
RichardSolomon's picture

I can tell you for  certain that this cries out for presentation to a grand jury,

This scenario is - if true - definitely felony fraud and embezzlement.--

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


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
no money, no store by Guest
You can find the names and locations of stores on the list of unpaid invoices filed with the lawsuit. Take a look at the dates and maybe you can calculate an estimate of how many people have received nothing so far. Dale has told everyone that they will be built out as soon as possible. Time will tell if he can keep his word but owners who are burning cash are going through a lot of pain.
Maybe Cuppys and companions could trade their fairness by RichardSolomon
RichardSolomon's picture

award from Alvin and the Chipmunks for leniency.--

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


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 Custody Battle by Sean Kelly
Sean Kelly's picture

I'd imagine that award has been whisked off to an undisclosed location.  Like OJ's Heisman, it's going to be a collector's item.

Especially since it was printed before the AAFD name change to AAFD&C.

American Association of Dealers, Franchisees & Cuppy's

Sean

Curator, Museo de Cuppee
seankelly[at]ideafarm.net

Franchise  Pick
Franchisor Marketing

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
No parar mientes en drunken Irishman Kelly by Guest
The award got packed along with the cash. It is on the beach towel in Mexico,next to Morg.
Hey, Guest - whoever you aren't - not that it matters... by RichardSolomon
RichardSolomon's picture

Please stop being redundant,--

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


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
SBT and Nabors initial statements sound the same by Guest
It looks like who ever wrote Dale Nabors statement also wrote the SBT statement. They sound very similar.
Re: SBT and Nabors initial statements sound the same by Guest
Where is Dale's statement?
John, Get your facts by Guest
John, Get your facts straight. Dale Nabors is not the president of Elite. Rob Folk's alleged representation of SBT is from City council meeting ninutes. Not from franchisees that are frustrated from the low quality materials and services that your company provided.
Things to remember re Dale Nabors... by RichardSolomon
RichardSolomon's picture

I have not seen any of the documents re DN's involvement with the Cuppy's group. However, there are some things that are so obviously critical in his involvement that we have to assume he did this correctly. Otherwise he has set himself up to be chump of the month.

He had to have arranged to avoid any possibility of personal responsibility for any past acts and transactions, including extant liabilities accrued or accruing from them.

Whatever was signed was signed by a thinly capitalized corporation that he owns/controls, with disclaimers aplenty.

If anything good comes of it, he will reap a reward. If it goes in the tank, he has no personal risk. None that is unless he engages in some wrongdoing for which he would have personal liability.

What these other people do probably can't affect him, except that they may do things that prevent his reaping the hoped for rewards.

If there is any other scenario at play here, DN was sorely under represented.--

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


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
FranSynergy liability? by Paul Steinberg
Paul Steinberg's picture

Solomon writes: Whatever was signed was signed by a thinly capitalized corporation that he owns/controls, with disclaimers aplenty.

My understanding is that the Fransynergy entity was Dale Nabors' main business, with a customer base and recurring revenue from the sale of his package of business management software tools.

On the facts presented, Nabors should not have personal risk, but the assets of Fransynergy Inc are most certainly in a precarious position viz SBT.

On the other hand, the pleadings discuss Nabors by name, and it is not clear as to whether SBT counsel is laying any groundwork for piercing the corporate veil. 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
That was incredibly stupid by RichardSolomon
RichardSolomon's picture

No one who understands the risks attendant upon taking a wild chance on a totally screwed up company would ever put important assets at risk in order to take that fling.

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


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
What could trigger by jd

the employee dishonest insurance or E&O for the prior management  (assuming that they have any).

If it's found out that prior management did something wrong, would Dale be able to recover money from the insurance company and then the insurance company goes after prior management?

Also, does anyone know if Hibbing is still around, or was he let go since the announcement of the new owners?

Re:what could trigger by Guest
you know,I think you are one of the few objectives ones on here and you make sense.I seem to find your comments worth conversing about instead of just a random b+&%h fest.Doug is still there and getting his name drug through the mud like all the rest!It seems odd though how one can go from "President of Cuppy's" to nothing over night don't you think?Sounds like the same thing that happened to Brian!Maybe Dale and the rest of the brown nosing butt kissers are trying to see how many people they can destroy before all is said and done!!Then, after words, the few more talented butt kissers mat get to keep a job...probably not though.
GL Civerage excludes fraud. by RichardSolomon
RichardSolomon's picture

When suing someone for fraud, plaintiff's counsel needs to be sensitive to the fact that the insurer will deny coverage, or at least reserve rights for the reason that coverage is excluded for fraud.--

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


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
Thanks Richard by jd

I just remember early in my audit career I spent a couple of weeks working at a church determining how much money a person stole from the church over 12 years.  I believe we were hired by the insurance company to determine the amount embezzled to determine how much they were going to pay out to the church. 

Again, not saying that any of this happened with Cuppy's/Elite etc, but the money had to go somewhere.

Re: John get your facts straight by Guest
Are you missing the part where SBT is owed over a million dollars? I can imagine by using common sense that they got what Elite told them to as well as what could be afforded. Maybe if Elite/Dale/Morg and whoever has/had their hand in the cookie jar had given them what was owed they could have gotten different materials. However, I have personaly seen the work and it was not low quality.
Facts by michael webster
michael webster's picture

Guest, you might want start reading.

1.  The lawsuit against Elite claims that Fransynergy is the 100% member of the Elite LLC, which pretty much makes Dale Nabors, in the vernacular, the President of Elite.

2.  The alleged representation of Rob Folk of SBT is meaningless in the context.  John was there from SBT and Rob was there from Elite.  No big deal, exactly what you would expect from a new company, SBT, and its main customer, Elite.

John is asserting that Elite hasn't paid its bills.  

How are these other issues relevant, especially when your assertion appears incorrect on its face?

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


Re: Facts by Guest
Others on this site have claimed that Rob Folk “represents” SBT. That is not true, as Mr. Folk has never been an employee, consultant, or agent of SBT. SBT understands that the franchisees are frustrated and tempted to look wherever they can to place blame. I think the point is franchisees have nothing to do with this claim.
Okay then by Guest
Fransynergy may OWN Elite, but Bryan Hayes is the president of Elite, and he is an honest, hardworking man.
wrong, he is a crook by Guest
Brian Hayes, lied to me and my company. He misrepresented himself to us and is getting just what he deserves. Out of a job, faced with law suits and broke. Welcome to the same world that Morg Morgan put all of us in Brian. You deserve it!
Re: Wrong he is a crook by Guest
You summed up your frustration very easy when you said "Morg Morgan" put you in. That's who was at the helm of the ship..it started sinking and he jumped. Dale took it in and now they are doing whatever the can to make everyone else look at fault. As many times as I have spken to Brian Hayes the one thing he NEVER did was lie. He knew that people may not like the truth..but it was what they got anyway.
A Morgan crony who doesn't lie?!! by Paul Steinberg
Paul Steinberg's picture

Guest writes: As many times as I have spken to Brian Hayes the one thing he NEVER did was lie. He knew that people may not like the truth..but it was what they got anyway.

If Mr Hayes was one of the key people at Elite, that means that he knew:

  1. Elite was taking money, in part for franchise fees
  2. Elite was not a franchisor
  3. Elite was used to circumvent impound/escrow requirements
  4. Elite did not perform the services it was supposed to perform
  5. Elite is not able to pay depositor refunds because money has disappeared
  6. that Elite cannot explain what happened to the money

Now, since Mr. Hayes "NEVER" lies--

When you asked him the question "Where's the money, Brian?"...

...what was his truthful response?

With every passing day, it looks more and more like this whole bunch should be behind bars.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Re: A Morgan crony who doesn't lie?!! by Guest
By the way. Wasn't he just the President of the construction portion? They had the whole thing spilt somehow you know. Who was the main person everyone talked to when it was time to get money in?? It wasn't Brian that's for sure.
Re: A Morgan crony who doesn't lie?!! by Guest
Yes I know..very hard to believe. However, ask yourself this. With everything that Morg kept under wraps to sucker Dale into buying Medina, do you really think he (Morg) would let anyone know the financials? He used Brian as a face for the company and that's probably all. From what I heard Morg was VERY secretive about the money..wouldn't most people that were flip flopping it like people are suggesting?
Sean, our bud Brian needs cabfare by Paul Steinberg
Paul Steinberg's picture

Guest writes: He used Brian as a face for the company and that's probably all.

OK. Agreed.

Brian was President of a company when huge wads of cash disappeared. And like Sgt. Schultz from Hogan's Heroes, our man Brian knows "Nothing...Noth..ING!"

Well, Sean Kelly and I are raising money to give to do good deeds for the wonderful but now "peniless" (yeah, right!) ex-scammers... oops, ex-employees.

So my suggestion is that Brian contact Sean, and Sean can fedex cabfare to Brian, so that he can get his innocent butt down to the US Attorney's office.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
A Cab? In Indiana? by Sean Kelly
Sean Kelly's picture

So my suggestion is that Brian contact Sean, and Sean can fedex cabfare to Brian,

Cab?  Paul has clearly never been to Angola, Indiana.

Or Indiana. 

Sean Kelly

Author, Best Prison Franchises 

seankelly[at]ideafarm.net

Franchise  Pick 

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
She's Right by Guest
Paul, clearly you haven't developed a plan B. There are no cabs in Angola. Good catch Sean. But there are some Amish buggies available!
 Ok, I'll Fedex a bale of by Sean Kelly
Sean Kelly's picture

 Ok, I'll Fedex a bale of straw, some apple butter and a slab of scrapple.

Sean Kelly
seankelly@ideafarm.net

IdeaFarm, Franchise  Pick
Franchisor Marketing
Re: Okay then by Guest
I have interacted with the Hayes' brothers for almost a year and I would not use honest to describe either of them. They both have apparently resigned.
Re:Okay Then by Guest
If you can manage to use anything but the word honest to describe Brian Hayes then you must not have had many dealings with him. Brian Hayes is a very honest and hardworking man who was placed directly in the line of fire by people who are simply trying to take the focus off of themselves and the fact that there are MANY MANY Franchisees that have nothing but empty promises to show for their money. The whole scheme is unbelievably tangled to make sure that the Franchisee can't get their money back...other than in monthly payments that don't get made on time! As far as the SBT lawsuit being filed..what would anybody in their right mind do if they were owed almost 2 million dollars??? Most would do alot more than file a lawsuit! I salute SBT for finaly bringing the BS to light on the whole tangled web of lies and cover ups! The only people I feel bad for other than SBT and Brian Hayes getting his name drug through the mud are the Franchisees that are getting screwed! I'm sure a lot of the Franchisees can remember Brian bending over backwards for them as he did for so many..including me! GOOD LUCK IN THE SUITE! I'm pulling for you and many others I know are too!
I for one by Guest
know that the franchisees cannot stand Mr. Hayes, his brother or anyone else involved in the crummy work they got. Also we lost alot of money waiting on Elite, bad drawings, etc. which is why I am in the financial position I am now. With Brian at the helm no one got their place opened on time. Promises and lies is all we got from Brian Hayes.
Re: I for one by Guest
You speak as though you are all knowing. With as many Franchisees that are out there have you spoken to ALL of them PERSONALY? I happen to know for fact there are many that adore Brian Hayes and know he would give the shirt off his back for anyone. How else could he manage to get tangled in with such a bunch as this? To trusting!
Brian, keep your shirt by Paul Steinberg
Paul Steinberg's picture

Guest writes: there are many that adore Brian Hayes and know he would give the shirt off his back for anyone.

Brian, keep your shirt.

Just tell us what happened to the money. 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Re: Brian keep your shirt on by Guest
I'm sure it will all come out in the lawsuit!
Karma bites SBT by Paul Steinberg
Paul Steinberg's picture

Guest writes: I'm sure it will all come out in the lawsuit!

So the owners of SBT may end up paying for the lawsuit that unmasks them.

It would be a fitting end to this soap opera.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
1,700,000 reasons to sue by Paul Steinberg
Paul Steinberg's picture

Guest writes: what would anybody in their right mind do if they were owed almost 2 million dollars???

Um...yeah, that's one of my points.

  1. SBT formed a company.
  2. Miraculously 5 days later they get an exclusive contract with Elite.
  3. When Elite don't pay up, SBT sits on their butt.
  4. When Morgan exits stage left, all of a sudden the suit pops up.

No startup company sits by and lets $1,700,000 of receivables pile up.

And of course, that "Exhibit D" business is a whole puzzle in itself.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Exhibit D by jd

Paul,

Maybe I'm wrong, but the witness signature sure looks like it could be 'Ben Doyle'. 

Doesn't it seem odd that someone that got let go the day after the sale would be signing purchase agreements as a witness?

 

Hayes by michael webster
michael webster's picture

Wasn't Hayes fired by Nabors on July 3rd?  The exact date of the filing of the SBT lawsuit.  Would suggest that Dale wasn't too happy with Hayes.

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


Re: Hayes by Guest
Well in case you didn't notice there have been many people getting "laid off" down there in the Cuppy's/Medina/Elite mix! Dale Nabors has gotten a pretty good plan it seems for everyone..all the way down to the sales people! Let's ponder this for a moment...You are a sales person who relies on commissions. Dale openly said that they were not going to focus on new Franchisees, rather they were going to focus on opening the ones already in progress and getting them successful. Not making any new sales would have to eventually make a sales person have to look for other work. However, when they leave do you think they get their commissions? Try asking one of them..I asked the one who sold me...they said NO! What a way to save money Dale! Good job! Why in the world would an honest man like Brian want anything to do with such a man? HE WOULDN'T!! The only thing I can say is all of those still with the bunch in Florida...be careful! What they did to everyone else they will do to you in the end! I feel truly sorry for the ones fooled by Dale's charismatic way. I know I was for a while!
Re: Re: Hayes by Guest
Lay offs are a sign that he is reducing expenses. That may actually be a good thing.
Re: re Hayes by Guest
And you sound like one of his brain washed drones that will do and say anything to keep their job. Just keep in mind that one day there won't be a need for you anymore either.
Re: Re: re Hayes by Guest
Reality bites, doesn't it? I don't work for Cuppy's but I was Folked by Elite. I am sorry for anyone who lost a job, but entitlement is a disease so please seek treatment. No one is guaranteed a job, free daycare or unlimited free lattes in the real world.
Insane- Cuppy's by Guest
I have just heard so many bad things regarding Cuppy's. It hasn't even stopped with new ownership- Dale tried to get on here and say how things were going to change blah blah blah- they haven't- he can't afford to pay anyone in his company so he fires them. He can't afford a daycare that they have had for over a year- and franckly he could care less about the kids, so there the daycare no longer exists. He is a dirty man that is selfish and heartless.
For our sake by Guest
I hope Nabors can turn this boat around, because I have a lot invested in this thing. I know that he has made efforts to reduce costs on our end. He's already told us he isn't making any new sales, if you can't afford to keep people, what would you do, keep them on as slaves? If they can't afford the daycare, how do you propose they pay for it? It must be heartwrenching to have to lay off people and get rid of a daycare (let's be honest, is the company in a place to keep a fringe benefit like that right now?), but it appears to me that he is making the hard business decisions. This whole mess with SBT, from what I get it appears Nabors is cleaning house, and they are upset their gravy train has been derailed. I am very very interested to see how this turns out. Hayes was the president of Elite yet is also apparently an owner of SBT, which actually was doing the work (horrific job by the way, unless you actually like the wrong plans sent to your site 6-7 times in a row, paying rent because these idiots can't send the right frickin plans - I won't even go into the actual construction work by those clowns - I wouldn't have paid them for crap work like that either), but then Elite isn't paying SBT? What a crazy mess, soap operas couldn't come up with this.
Re: For our sake by Guest
He didn't buy it to turn it around. He bought it to try and play hero. Big bad Morg and Brian screwed everyone so let me fix it. Then turn around and do worse to everyone involved. If your money is still on him you're really going to lose everything!
WTF? by Guest
He is fixing Elite and Cuppy's so he can do a better job a screwing people? To show Morg and Brian how it is really done? What an interesting perspective on all this.
Morg & Brian: pillars of humankind by Paul Steinberg
Paul Steinberg's picture

Sure, Morg and Brian were nice guys.

Loved by all the folks at Cuppys/Elite/JavaJoz/Medina/etc.

And how were all those folks being paid?

Please do show me that I am wrong about any of this:

  1. Cuppy's had a hugely bloated staff.
  2. It sold franchises through a wholly-controlled entity (Elite),
  3. and then sub-contracted construction to a company (SBT),
  4. which several people have said was secretly part-owned by those same Elite folks,
  5. who were simply skimming the vig off the top,
  6. and not actually doing any construction work.
  7. Cuppy's was hemmorhaging cash.
  8. That cash had to come from somewhere.
  9. The "deposits" given to Cuppy's/Elite are missing.
  10. All those folks having a grand old tyme in Ft. Walton were living off the life savings of people who thought that Morgan/Hayes/Hibbing et al were the honest pilgrims you say they are.

Everyone down there in Ft Walton, and the Angola gang, could read the blogs. They could see what was going on from the inside.

And with a few rare exceptions...

they remained silent as long as they were on the payroll.

 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Troubling by michael webster
michael webster's picture

If there are people on staff who wish to discuss or refute any of Paul's conjectures, please contact me. 

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


Re: Troubling by Guest
As a member of the Cuppy's staff, I and everyone else signed nondisclosure agreements. As anyone who has worked in the corporate world knows, this is COMMON corporate practice. These agreements survive the term of employment. Everyone posts here, and on other blog sites, screaming the protection of the 1st amendment, with anonymity and no fear of legal or financial repercussions, employees do not have that luxury. I would be more than willing to discuss the company if Mr. Webster would agree to cover my legal bills and assume any potential liability... Mr. Webster?
Who owns Cuppys? by Paul Steinberg
Paul Steinberg's picture

Guest writes:As a member of the Cuppy's staff, I and everyone else signed nondisclosure agreements. As anyone who has worked in the corporate world knows, this is COMMON corporate practice. These agreements survive the term of employment.

  1. An agreement between you and Cuppy's is just that-- between you and Cuppy's. Not Morgan, or Hibbing, or SBT, etc... Cuppy's.
  2. Since Dale Nabors owns Cuppy's, he can waive on behalf of the corporate entity, just as he can waive attorney-client privilege.
  3. A nondisclosure agreement won't impress the FBI or the US Attorney's Office. For years, a lot of dubious and likely fraudulent practices were going on; most notably the disappearance of money which was supposed to be in the custody of Elite. Meanwhile, the bloated Cuppy's staff enjoyed their daycare center and collected paychecks while dodging calls from now-peniless franchisees. And of course, none of you knew anything or wondered how it was that that wonderful day care center was being paid for.

If you don't want to speak with Webster, try speaking with the FBI or US Attorney's office. That solves your liability question.

Now... what's your next excuse for not coming forward?

You all were part and parcel of this and turned a blind eye to what was happening. And now everyone is blaming Dale Nabors/Bob Purvin/the man in the moon/etc.

Yeah, yeah: Morg and Hibbing were wonderful god-fearing christian men, and Nabors is the evil taskmaster with no soul.

Well, at least Nabors didn't make bunches of cash disappear without a trace.

Try looking in the mirror.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Re:Who owns Cuppys? by Guest
You seem to be focusing in an awful lot on the daycare thing.I was an employee at Cuppy's and yes the daycare was great.It was not something we asked for rather something that was started to try to help us.It seems like you are trying to blame those of us with children for the money disappearing! They started charging for the daycare and I thought it was a good thing because of how much money it used..so not all of us were greedy about it. As far as the turning a blind eye,not everyone knew what was really going on.Most knew what they were told and nothing else.That is something that can not be held against them. Naivety is a downfall but does not make them guilty by any means. I would love to be able to get on here and post everything I know,but can't.However,the appropriate people know that if they need me to be contacted then to hand out my number.
The Good German by Paul Steinberg
Paul Steinberg's picture

You didn't "know" what was going on because you chose not to.

You chose to ignore the overnight transformation from Java Joz to Cuppys.

You chose to ignore the franchisees who called daily asking where their money was.

You chose to ignore the franchisees who showed up in person to complain.

You chose to ignore the blog sites from Australia to Virginia to Switzerland which followed the Cuppy's story.

You chose to ignore the John Dozier threats, and the Nixon Peabody threats.

You chose to ignore the postings on BMM and FranchisePundit and FranchisePick which detailed a 15 year long history of Snowden/Morgan/Hibbing.

You chose to ignore the Elite/SBT transactions and the shady ownership structure of both entities.

You chose to ignore the fact that the franchisor (you! your office! your employer! your co-workers!) were telling people to not wire transfer money to the franchisor, but rather to a construction company.

You chose to ignore the incoming phones ringing off the hook with people demanding their money back but instead spent your days on outbound calls shaking down people and hounding them to send more money to the "construction company".

For more than a year and a half, the saga of JavaJozCuppysEmeraldEliteMedinaSBTModularbuilding...et cetera

has been playing out as internet tragicomedy.

But a lot of people have been hurt. They have lost their life savings, had strain on their marriages, face legal action, and had sleepless nights.

Meanwhile, all of you Cuppys/etc employees profited from the blood money you sucked from gullible franchisees.

Having been caught, with Morgan et al heading for the hills... Do you feel any embarrasment? Any shame? Any sense of responsibility? Any remorse? Do you go down to the US Attorney's office and spill the beans?

No, no, no, no.

What you do feel is a need to defend Hayes/Hibbing/Morgan/etc, and slam Dale Nabors because he cut off the gravy train for you.

Cry me a river.

You and your fellow ex-employees are out of a job, but you are not having your house foreclosed on or a lien placed on your property. So after you kick back on the beach while the unemployment checks flow, you will dust off your resume and get a new job.

Try Quizno's or UPS Store. I hear they are looking for people of your character.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Q for John Rodesiler by Paul Steinberg
Paul Steinberg's picture

Guest writes: Hayes was the president of Elite yet is also apparently an owner of SBT, which actually was doing the work

If this statement is true, then when Rodesiler does "begin exercising our lien rights to protect our position" this would be one of the prime avenues of examination at deposition by the Cuppy's franchisees-- and somehow I doubt that Nabors is stupid enough to have the old Cuppy's attorney defending this case, so Rodesiler can't count on an attorney pulling punches in the SBT/Elite litigation.

And if criminal investigations commence, there will likely be injuries as the culpable parties collide rushing to be first thru the doors of the District Attorney.

It would be ironic if after this multi-year chaos the truth comes out because a hitherto-obscure participant decided to get greedy. 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Hayes Bros & Hibbing Allegedly Owned a stake in SBT by Guest
"Guest writes: Hayes was the president of Elite yet is also apparently an owner of SBT, which actually was doing the work" Ask John Rodesiler: How long have you been 100% owner of SBT? Didn't Doug Hibbing, Brian Hayes, & Brice Hayes have ownership interest in Supreme Building Technologies? Wasn't that why Dale Nabors fired them? John? Hello? Are you there?
Capacity @ Love Shack by Paul Steinberg
Paul Steinberg's picture

This is the answer to Sean Kelly's question about "how many Hoosiers does it take to build a kiosk"--

A: as many as the sucker franchisee will pay for.

And given what has come to light about SBT since they filed their suit, there may be grounds for the "depositors" to name SBT as a party defendant when they commence litigation.

The Angola Love Shack is getting mighty crowded!

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Wow, we didn't know that by Guest
Do you know why he was fired?
Take issue with "honest man".... by Guest
He stole almost $40,000! They caught him. He was canned. That threatened future work. He owns a part of SBT. Abra-kadabra SBT sues.
Re:Take issue with "honest man".... by Guest
That is the most insane thing I have ever heard! They owed SBT almost 2 million dollars and they "claim" he stole 40K? NUTS! Until someone can produce PROOF that this isn't just one big snow job..it's to hard for me to swallow!
Whoa by Guest
Hayes owns part of SBT? BUt Rodesiler said he was 100% owner. Who else owns a part of SBT? How do u know he stole $40000?
OK Don't Believe It by Guest
He was president of Elite. Elite is just a shell company and doesn't really do anything. Think of them as a GC who sub-contracts all the work. Only in this case all the work goes to one sub.... can you guess??? SBT Correct! Now this gets stickier than Brian's underwear, he also owns a chunk of SBT with some others... but not Medina(who owns elite). As far as who else really owns SBT , find that out on your own. Now if there was something that may have caused him to be terminated from elite(whatever that is). The relationship is still complicated by his ownership in SBT. So if it was all going to hell for them anyway, now is the perfect time to sue Elite(which he formerly ran). OK there is a really good chance that they are really owned this from elite. So as far as the lawsuit goes I have no idea who was really screwing who.
No honor among thieves by Paul Steinberg
Paul Steinberg's picture

Guest writes: So as far as the lawsuit goes I have no idea who was really screwing who.

Let me clarify:

The depositor franchisees. That's who got screwed.

 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Who Lost Money by michael webster
michael webster's picture

There appear to be people who have lost more than their deposits.  I was informed that at least one person alleges to have paid Elite 200k and has received nothing.

If this describes you, or you know anything about this, could you contact me. 

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


I lost money - and continue to lose more by Guest
I for one have paid Elite $180K and continue to burn cash on rent, insurance, bills, and SBA loan payment. I have a vanilla shell store that I paid my general contractor for. I have not received a schedule on when Elite will come and paint my walls and put tiles on my floors. Much more for the equipment, cabinets and furniture that should follow. I spoke to 7 other franchisees that are in the exact same situation as I am. I don't know how many more there are out there. Empty promises from Elite and two weeks later, your calls get unanswered, emails ignored. What can we do in this situation?
What can you do?? by jd

1.  Call an experienced franchise attorney.

2.  Call your state's attorney general's office and file a complaint.  I've read stories of contractor's that get paid but don't do any work, and the attorney generals go after them.  It can be good 'pr' especially in an election year.

3.  Did you authorize your SBA lender to send Elite money?  If so, that wasn't the smartest thing in the world to do.  If you didn't, ask them why the hell the money was sent to them without authorization. 

4.  Finally, reconsider whether you want to work as a zee of this franchisor.  If you think you have problems now, just wait until later when you are losing money and getting no support from them.  Then talk to a franchise attorney about getting you out of the franchise agreement and going it on your own.  Cuppy's is not a household name.  Pay someone half as much for your buildout and use the rest of the money saved on the buildout to market yourself and build a customer base. 

or, you can sit on your ass and do nothing and post here every two weeks about how they are giving you empty promises.  At this point you've gotta be forceful with them, just as they were when they were trying to get you to sign up.

 

Brian Hayes in another suit by Guest
Brian Hayes and his brother owned Superior Canopy Corporation. They are being sued for 1,600,000.00 by C & S Managment LLC.This guy is as dishonest as the day is long. He and Morg, Roy and Ben all deserve each other.
Who really owns SBT? by Paul Steinberg
Paul Steinberg's picture

If some of the old Morgan/Hibbing/Snowden group are in fact getting pecuniary benefit from the SBT contracts (whether by ownership interest or otherwise), then everything else makes sense.

When the gravy train runs off the rails, people are prone to sue.

My guess is that Nabors has uncovered more about the past practices of this gang than he's disclosing, and it will be interesting to see if Nabors or Rodesiler blinks first.

Given that Rodesiler & Morgan were in this up to their eyeballs long before Nabors took over, there may be some interesting twists if Nabors decides to draw the line in the sand and put the facts on the public record.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Dale and John by Guest
Does Dale have evidence against John?
SBT Lawsuit by michael webster
michael webster's picture

John, a few questions, if you can.

1.  How many Cuppy's franchisee's did SBT do the build out for?

2.  How many were done after May, 2007?

3.  How does the $1.7 million in damages claimed relate to amounts secured by construction liens?  Is there a set-off here? 

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


Perhaps I can help by Paul Steinberg
Paul Steinberg's picture

Perhaps I can help Mr. Webster.

Since SBT finds my post "defamatory," I take it that we will be commencing discovery shortly after I get their suit for defamation. Nothing like a juicy deposition (or 2 or 3 or as many as it takes) to bring some clarity into the dark crevices of the Cuppy's Coffee labyrinth.

Since SBT assures us there is nothing fishy, let us believe for a moment that some of my observations about factual errors in the pleading can be ascribed to crappy lawyering by SBT.

Still, the fact remains that SBT did not answer the specific questions raised in my post about the formation of SBT, the odd "Exhibit D", and the curious timing of the suit.

There is a long history of Morgan and his business dealings, and a pattern which is familiar to anyone with knowledge of that history.

I've had my issues with Mr. Nabors, but given a Hobson's choice in an integrity contest my money would be on Nabors' veracity as against the gang that brought us the Elite/SBT marriage.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Hey Paul.... by RichardSolomon
RichardSolomon's picture

If you would like representation in that lawsuit, I would be honored.--

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


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
Exhibit D by michael webster
michael webster's picture

What Paul is pointing out, is that Exhibit D to the SBT lawsuit against Elite is very odd.

Dale bought Elite through his company Fran Synergy.

But apparently as a condition of the sale, Dale agreed that Elite would continue doing business with SBT.

This is very odd: why would SBT even know of the sale of Elite as a mere supplier?  Further, why would SBT be able to demand that it continue as the supplier of Elite?

These are the questions that Paul is raising.

They seem to me good questions.  But, if Paul is going to be sued for defamation, I suppose we all look forward to the answers.

My knowledge of US law is weak, but I believe that there are some sanctions for starting a frivolous lawsuit, some Federal Rule of Civil Procedure  - what would those be again, Paul? 

Michael Webster PhD LLB
Franchise News


Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"


I'm a puddy cat by Paul Steinberg
Paul Steinberg's picture

Far be it from me to bring a motion for sanctions.

If the lawsuit filing is any indication of SBT counsel's legal acumen, a defamation filing would be downright entertaining. Solomon can defend me, and we'll even have my nephew second chair; his teacher says he's bright but fights a lot--kind of like a 3rd grade version of Solomon.

The whole SBT tale smells like old Fulton Fish Market at 8am on a hot day.

And if you believe the "100% owner" of SBT, I've got a quitclaim deed to the Brooklyn Bridge--real cheap.

As everyone knows, 2 of Cuppy's previous attorneys threatened to sue me for defamation as well (why is it every time these Cuppy-related folks get upset, they accuse critics of defamation? Did SBT get advice from Morgan on how to respond to my post?).

At least Nixon Peabody had a sense of humor when I posted their nastygram on the Internet...plus NP is actually a competent firm that knows what a franchisor is and what a d/b/a is.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Exhibit D, deux by Paul Steinberg
Paul Steinberg's picture

On a serious note, another Q about "Exhibit D" is why the "Buyer" (FranSynergy Inc) would have "obligations" which not only go beyond the legal requirements but also create an intended 3rd party beneficiary.

And having created a TPB, why don't you name the TPB as a party defendant?

I don't really think the SBT lawyers are that incompetent. I do think they are firing a warning shot across Nabors' bow.

There are similarities to the Snowden-Morgan agreement, and I suspect the underlying reason for "Exhibit D" is similar to what I suspect the underlying reason for the "Promissory Note" to have been.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Re: Exhibit D, deux by Guest
What did the Snowden-Morgan agreement state and why are the reasons for that agreement and Exhibit D similar?
SBT & Elite: History repeating? by Paul Steinberg
Paul Steinberg's picture

Guest writes: What did the Snowden-Morgan agreement state and why are the reasons for that agreement and Exhibit D similar?

I refer to the alleged arms-length "sale" from Snowden to Morgan. That has been discussed at great length here on BMM (and elsewhere).

As to why there are similarities:

  • Many observers suspected that the "promissory note" at the time of the "asset sale" (ha, ha) from Java Joz to Cuppy's was not genuine but an "insurance policy" of sorts to ensure that Snowden could avoid asset seizure but still come back when the heat died down (or at least, get a revenue stream on the side).
  • But the publicity arising from the Scobleizer blog resulted in the lien creditor finding out.
  • Of course, the parties at that point could not very well deny the accuracy of the written document (both for estoppel reasons and fear of incriminating themselves in a federal matter), and so...
  • Snowden was cut out and Morgan was left paying out on the Note.

Fast forward:

  • We have a mysterious purported contract between SBT & Elite. (Curiously, that contract between SBT & Elite is not in the pleadings, but part of a contract between Dale Nabors' & Morg Morgan's company is in the pleadings).
  • We have this Exhibit D (to a different contract not involving SBT) which is not (for the reasons previously discussed in detail) something which would normally be found in an agreement for the purchase/sale of LLC membership interests.
  • SBT permits a huge purported debt to accumulate under the tenure of Morgan, and then...
  • The heat forces Morgan to ostensibly sell his interests to an entity controlled by Dale Nabors.
  • Dale Nabors appears to obligate FranSynergy Inc to non-party SBT.
  • Subsequently, we have that odd admission of account stated, which Sean Kelly has pointed out.
  • Nabors stops sending business to SBT, and then...
  • SBT sues Elite but does not name Fransynergy, despite that odd discussion of Exhibit D and even the annexation of said Exhibit as part of the pleadings.

Might this "Exhibit D" be Morgan's insurance policy so that Morgan can ostensibly disappear (now that the heat is on) but still get greased via SBT? The facts would not be incompatible with that hypothesis.

Given the likely involvement of the Cuppy's in-house counsel in the whole chain of events, it is quite likely he will end up being deposed and shed light on aspects of this mess. Bear in mind that conversations with non-clients are not privileged and that in any event the privilege belongs to the client, not the attorney.

And to the extent that the privilege belongs to an entity client (as opposed to a natural person) the current owner of the entity can waive the privilege. More than one corporate attorney has forgotten that fact and lived to regret it. Morgan had an interest in asserting privilege on behalf of the entities when he controlled them.

Dale Nabors may not have the same interest as Morgan had in asserting the privilege.

If I were any of the old Cuppy's/Medina/Elite/etc attorneys, I would be getting a bit nervous now that Nabors has woken up and smelled the coffee. 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400