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
- Franchise topic:

I would remind guests that Blue MauMau has posting guidelines; specifically:
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.
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.
Mr. Blue MauMau
Moderator
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
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
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:
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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.
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?
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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
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
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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 ]
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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.]
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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
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
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
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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
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
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
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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
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
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
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
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?
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
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.
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"
If Mr Hayes was one of the key people at Elite, that means that he knew:
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
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
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
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
Ok, I'll Fedex a bale of straw, some apple butter and a slab of scrapple.
seankelly@ideafarm.net
IdeaFarm, Franchise Pick
Franchisor Marketing
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
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
Um...yeah, that's one of my points.
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
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?
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"
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:
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
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"
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
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
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
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
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
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"
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.
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
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 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
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
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"
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
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
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:
Fast forward:
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