Official Statement from Cuppy's Coffee & More
In May 2006, Medina Enterprises, a Nevada based company, purchased the assets of Java Jo’z Coffee & More, LLC, and Emerald Coast Manufacturing Inc. From this transaction, the principle owner of Medina formed an association with another individual, and Cuppy’s Coffee & More, an international coffee franchise, emerged. Through this transaction, Cuppy’s Coffee obtained the rights to the logos, assumed the leases and acquired a majority of the equipment. A majority of the former employees of Java Jo’z were offered positions and are now employed at Cuppy’s. Java Jo’z still exists as a licensing company and is owned by Kim Snowden. Roy and Kim Snowden have no financial, operational, or legal association with Cuppy’s Coffee.
Although Cuppy’s Coffee holds no legal obligation to provide marketing, operational, or product support to the Java Jo’z customers, Cuppy’s has chosen to offer these services to the Java Jo’z owners.
Since August 2006, Cuppy’s Coffee has been inviting any coffee business (including Java Jo’z customers) the opportunity to convert into a Cuppy’s franchise. For conversion details please contact Rudy Harper at rudy@medinamgt.com
(2 votes)
- Franchise topic:
Having gotten the money, Franchisor "A" now transfers the intellectual property and the back-office personnel and the marketing expertise to Franchisor "B", leaving Franchisor "A" as a shell entity and now Franchisor "B" disclaims any "legal obligation to provide marketing, operational or product support" to those folks who gave money to the (now judgment-proof) Franchisor "A".
That's the story in a nutshell, yes?
Oh wait, I forgot your generous offer: having lost all their money once to Franchisor "A", they are now invited to give more money and become franchisees of Franchisor "B."
As they say in Brooklyn, that's chutzpah.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
How stupid do these people think blog readers are? Who is telling them such cheezy tactics are better than just telling the truth? This is even more clownish than the botched attack on Paul S.
Has anyone noticed that the Cuppy's detractors have gone silent? The mooresinflorida.blogspot.com has erased their angry posts and all mentions. bscoble.blogspot.com hasn't updated any posts, and probably won't appear to confirm or refute his alleged authorship of the aforementioned post. A chilling effect... hopefully they are getting money for their silence... and hopefully they'll see it in their lifetimes.
Steve: Fransynergy posted this on bluemaumau.com:
FYI TO THOSE CUPPY'S EMPLOYEE'S POSTING ON HERE.I know that fact is greater then fiction. I know how easy it is to be "brainwshed by these people. Do your selves a favor and get out now. Before he takes you with him. I could not buy my first home, due to a tax lien on mty credit report. Roy said he was payng and reporting our taxes and never did. Thats the facts about the people you are dealing woth. I am sure they were sitting over your shpulder as you wrote your wonderful review of "THIER" company. Get a clue fast.Trisha A. Paliotti“…I took a look at the Nevada Secretary of States website and searched out Medina Enterprises were we learn that the corporate entity was formed 12/16/2003 and is Active and in good standing. Their officers all have the last name of Morgan (Alyssa R, Christina F, and Robert C) and use the address of 2533 N. Carson St, Carson City, NV 89706. This address is also the address of their Resident Agent Laughlin International, Inc. When you view all the companies which Laughlin serves as resident agent there are MANY!!!!. When you view the records for Laughlin International, Inc. you find that a Lee Morgan held all the officer positions AND they were dissolved on 4/24/2002. However they may somehow be tied to Laughlin & Associates, Inc. at the same 2533 N. Carson address whose file date is 3/25/77 and are currently an active NV corporation with Michelle Young holding all officers positions. If you jump over to the Florida Secretary of State site and take a look at Medina Enterprises you find that they’re active as a Foreign Profit corporation (Date Filed 5/8/06) with a principle address of 348 Miracle Strip Parkway SW, BLDG D Suite 16A, FT. Walton Beach FL 32548. Robert C. Morgan listed as both Registered Agent and Officer/Director.”
I do not practice law in Florida, where Cuppy's / Java Jo'z is/was located.
My suggestion is that you contact Robert Salkowski at www.zarcolaw.com. They are in Miami, and have a solid legal track record from Massachusets to Australian cases, and have won several landmark cases in franchise law.
(And no, they didn't pay me to say that!)
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Well, I had lost $30,000 from my deposit in Java Jo’z. I just wanted my $ back. I’ve spent the last week or so meeting with a local laywer, he got a bunch of information from Cuppy’s, and we went over everything. My lawyer in Florida had told me as much…so for the second time the lawyer’s tell me I am out of luck, so to speak.
Here’s what I learned: Cuppy’s is a totally separate company from Java Jo’z. Cuppy’s didn’t buy the company, they just bought some of the assets when it went out of business, which is like a real estate company buying Enrons building. It doesn’t mean they owe Enrons debts. I still think they could have made that clearer to those of us screwed by Java Jo’z.
So, I guess I need to set the record strait, or so the Richmond lawyer told me.
#1….Cuppy’s is not Java Jo’z. Different company entirely.
#2….Java Jo’z has my deposit and unless I want to go to a bankruptcy attorney (which is expensive) I cannot enforce my agreement against Java Jo’z.
#3….Cuppy’s appears to be running an above board operation. (Their franchises seem to be happy, and there is one right down the street from me.)
#4...Cuppy’s even offered to discount a building in their system so that I wouldn’t lose the money outright, but I don’t even want to deal with these issues anymore.
Here is a link to some background information on Cuppy’s
www.cuppys.com
I will, however, not conclude this without making some suggestions to everyone out there investing in a franchise.
Do your due diligence. Review the company financials, drop in unexpected on the company HQ, get a complete list of franchises. And don’t get caught up in what others are saying online, either pro or con. Use your brain and figure out whether a franchise opportunity is right for you. I am out of this whole situation now. Lesson learned.
Check with your state regulator to see if the state required the franchisor to place money in escrow. Also ask the state regulator to find out what happened to any monies which may have been held in escrow. (Again, the regulator's addresses are in the CCH Business Franchise Guide, or contact www.franchisee.org or the AFA President Susan Kezios at spkezios@franchisee.org and get help from them-- and remember to support the AFA, they are a non-profit but they have to pay the rent and staff too!)
And for the future: if you are giving money conditionally, try to have it held in an attorney escrow account until the conditions are fulfilled.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
It's in the nature of personal loss to focus exclusively on the injury. That will change with time if the pain is recognized as a grieving. Pain, also, sometimes forces positive change.
As someone who lost $140,000 in 18 months, I have tried to turn lemons into lemonade by having my losses count for something. I guess it all depends on how you view it.
In my case, I did have a lawyer review the contract before signing or giving any deposit. That is a must. Period.
Duty of Care: Fraud and Lesser Offenses
If there was a credible information mechanism that measured franchise industry quality, any attorney providing pre-sale advice would be obliged to use it.
If a lawyer failed to use the search tool and his client suffered a loss, the attorney may become vulnerable to a lawsuit claiming he failed to exercise his duty.
This is one way to reduce investing risk through better information sharing.
Les Stewart, MBA
Industry Investment Analyst
FranchiseFool.com :: the wise learn to say No
www.cafo.net :: apprenticeship
Les Stewart MBA FranchiseFool :: WikidFranchise
Yes your analysis is correct and it brings no one any satisfaction. Without a way of telling the wolves from the sheep, everyone's assumed to be a wolf.
There maybe a way out with better information management.
Question: Professional Duty
Just a quick question though: Did you have an attorney work with you before you cut the check? If you did, did he or she do any online background searching on the franchisor(s), owners, tradenames, executives, etc?
If you could respond back, I'll maybe show away that your losses could be prevented in the future. Not much consolation, I know, but I think it has some merit.
Thanks for reporting back. By doing that, it's been put on the "record" and can help those of us who are into promoting quality.
Les Stewart, MBA
Industry Investment Analyst
FranchiseFool.com :: the wise learn to say No
www.cafo.net :: apprenticeship
Les Stewart MBA FranchiseFool :: WikidFranchise
How stupid do these people think blog readers are? Who is telling them such cheezy tactics are better than just telling the truth? This is even more clownish than the botched attack on Paul S.
Has anyone noticed that the Cuppy's detractors have gone silent? The mooresinflorida.blogspot.com has erased their angry posts and all mentions. bscoble.blogspot.com hasn't updated any posts, and probably won't appear to confirm or refute his alleged authorship of the aforementioned post. A chilling effect... hopefully they are getting money for their silence... and hopefully they'll see it in their lifetimes.
How stupid do these people think blog readers are? Who is telling them such cheezy tactics are better than just telling the truth? This is even more clownish than the botched attack on Paul S.
Has anyone noticed that the Cuppy's detractors have gone silent? The mooresinflorida.blogspot.com has erased their angry posts and all mentions. bscoble.blogspot.com hasn't updated any posts, and probably won't appear to confirm or refute his alleged authorship of the aforementioned post. A chilling effect... hopefully they are getting money for their silence... and hopefully they'll see it in their lifetimes.
Dear Guest:
Being that I know (I believe) your identity I want to acknowledge my respect for you in coming forward and sharing you findings.
I get upset if and when I lose a 20 dollar bill which I've carelessly shoved into my pocket. I've also lost many dollars in business at no fault my of own, and of course some which I was the only one at fault. So I do understand your Anger! I also respect you for sharing your findings and setting the record straight.
I believe that there is much too be learned for ALL PARTIES CONCERNED in this fiasco! There have been many victims in this entire situation, as I see it. Including innocent Cuppy's Franchisees who are simply trying to live the American Dream. Therefore, I'd like to ask anyone who has a Cuppy's in their market to drive by and enjoy a cup of coffee today. I'll expempt our guest here because I do understand why Java may not be your beverage of choice at this time. Perhaps a smoothie is in order. Best of Luck to you, in whatever your future may hold.
Believe & Succeed,
FranSynergy
Synergizing Franchising 1 Franchisee at a time!
www.fransynergy.com
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com
Good advice and good recommendation by Les Stewart. How could a credible information mechanism be set up?
As has been stated before on Blue Mau Mau, many franchisees feel that they can't afford to spend $1500 to $2500 for an attorney to review the UFOC and give them a written critique on the franchisor's business plan and the contract terms that will put the franchisee at special risk if the business fails. .
Whether or not due diligence experts and franchise-purchase advisors provide this service at less money, I don't know. Perhaps there could be some discussion on this point and perhaps there could be some discussion on which source produces the fullest and most accurate assessment of the franchisor for the franchisee.
If a prospective franchisee is going to spend money for this advice, it might be the best money he/she/they have ever spent, if they get it ion writing. An attorney or a Franchise Investment Advisor who puts the critique into writing will protect themselves by presenting the truth that they have discovered through their EDUCATED research on their client's behalf. The "search tool" that Les Stewart proposes would be invaluable to both the Attorney and the Franchise Investment Advisor.
Unfortunately, the printed GUIDES put out by the federal government and the state governments will not SUFFICIENTLY educate the franchise buyer. But, unfortunately, the franchise buyer puts his trust in the APPEARANCE of full disclosure provided by the UFOC and the Consumer Guides that are printed by the government and is often led by his own enthusiasm into "an unsafe brand" investment.
The average franchise investor cannot possible understand the terms of the written franchise agreement in terms of their execution at termination.of the agreement of the parties. The fact is. they aren't even interested because most franchise investors don't think in terms of "failure" when they begin to investigate the franchise and when they sign on the dotted line. This is the nature of human beings and the franchisors know this and the franchise-franchisor agreement is heavily weighted to give every advantage to the franchisor in "success" and "in failure"!
It has been indicated on this site that these franchise agreements are negotiable but I don't think this is the case. This would mean that there could be "discrimination" against a class, the class being "prospective franchisees"! It is true, however, that the franchisor generally gives himself the right to negotiate change of the terms of the contract franchise agreement after it has been signed, if it is to the franchisor's advantasge. Perhaps, the regulars, Paul and Michael, and others, could weigh in on this.
If this site is to be of real use to both franchisees and franchisors, those who use it will have to be fair minded and will have to come down on the RIGHT side of the truth -----the complete truth ----- to be of service to both the franchisee and the franchisor.
I agree with Joe ----- let's have a gentler tone and work together to tell the truth. .
Second: Les Stewart, who has been one of the rabid opponents of franchisors and advises people not to buy any franchise, has suddenly dropped his opposition and is now wanting to assist people seeking to buy franchises.
Third: Compare the Les Stewart post with previous postings by the man. Does it even sound like him, or like a press release drafted by a franchisor pr firm?
Fourth: What made Les Stewart change his mind all of a sudden? Does anyone out there have any idea? Send us all an email. Actually, that's not a bad idea-- one email alone would be sufficient if it is the right email... know what I mean, Les?
Fifth: The "Guest" comment posted here is actually attributed on a different blog to Ben Scoble: see http://bscoble.blogspot.com/index.html
The Scoble blog not only sounds like a Cuppy's press release, it even helpfully contains a link to the corporate website and says how wonderful these people are. Just as the Les Stewart post sounds almost like it was written by a different person, ditto the "Guest" (Scoble) post.
Sixth: Ben Scoble may certainly have reason to want to be made whole, and none of us should criticize him for that. But what about Les Stewart? What made him change his tune?
Seventh: I was contacted by a frequent poster on MauMau. The individual spoke obliquely of a "business opportunity" and asked me to refrain from "pouring fuel on the fire" regarding Cuppy's "for a period of 10 days". I firmly declined and gave specific instructions as to what was to be conveyed back to the source. I also spoke to a franchise regulator about the exchange.
Finally, I am quite honored that the folks in the Destin, Florida area are so worried about the truth that they are investigating me.
Speaking of covert investigations, the folks at Cuppy's (and their lawyers) might do well to remember the verse inscribed at the CIA:
"Ye shall know the truth, and the truth shall set you free"
--- a sentiment that would have been echoed by some Canadian MauMauers up until recently.
I will repost my blog entry from last night shortly.
--Paul Steinberg, pwsteinberg@msn.com
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400