CENTURY 21 Claims Franchise Lawsuit is “Without Merit”

Century 21 fired off a quick response to opposing counsel’s press release (read CENTURY 21: Franchise Lawsuit Granted Class Action Status) regarding class-action status being granted to its franchisee lawsuit.

In the lawsuit, current and former Century 21 franchise owners allege that after purchasing Century 21 in 1995, parent company Cendant misused franchisee proceeds and resources.  The Defendants claim “The assertions put forth in this litigation are unfounded and without merit.”

Here is the press release issued by the Realogy, the Cendant spin-off that currently owns Century 21.  Comments and opinions are invited below.

Realogy Rejects Plaintiffs’ Comments on Eight-Year-Old Lawsuit Filed in New Jersey

PARSIPPANY, NJ, Aug 18, 2010 (MARKETWIRE via COMTEX) — Realogy Corporation, a global provider of real estate and relocation services, issued the following response to a press release issued by opposing counsel for pending litigation in the New Jersey Superior Court:

The assertions put forth in this litigation are unfounded and without merit. We have capably managed the CENTURY 21 brand since its acquisition in 1995 and have continuously enhanced the brand through many market cycles, including the worst downturn in housing in the history of our country. Throughout, Century 21 Real Estate LLC has maintained its position as the world’s largest residential real estate brand with the most recognized name in real estate. The company has remained focused on the continued growth and development of its CENTURY 21 franchise system.

The claims in this 2002 lawsuit were without merit, and they remain so today. We will aggressively defend against these erroneous claims. This is a class action in which the complaint does not properly reflect the strong relationships we have with our current franchisees.

About Realogy Corporation Realogy Corporation, a global provider of real estate and relocation services, has a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy’s world-renowned brands and business units include Better Homes and Gardens(R) Real Estate, CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), The Corcoran Group(R), ERA(R), Sotheby’s International Realty(R), NRT LLC, Cartus and Title Resource Group. Collectively, Realogy’s franchise systems have approximately 14,400 offices and 264,000 sales associates doing business in 99 countries around the world. Headquartered in Parsippany, N.J., Realogy (www.realogy.com) is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor.

ARE YOU FAMILIAR WITH THE CENTURY 21 FRANCHISE, CENDANT CORP. OR REALOGY CORP.?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

CENTURY 21: Franchise Lawsuit Granted Class Action Status

Former Century 21 franchisees suing their franchisor, Century 21 Real Estate Corp., and its parent company, Cendant Corp. have won class-action status for their lawsuit.

[Read the Realogy / Century 21 response:  CENTURY 21 Claims Franchise Lawsuit is “Without Merit”]

The former Century 21 franchise owners allege that after purchasing Century 21 in 1995, Cendant misused franchisee proceeds and resources.

Here is the press release issued by the plaintiff’s law firm, Zwerling, Schachter & Zwerling, LLP.  Comments and opinions are invited below.

Century 21 Real Estate Franchisees Win Nationwide Class Certification in Cendant Lawsuit

Franchisees Say Parent Company Misappropriated Millions
MORRISTOWN, N.J., Aug. 18 /PRNewswire/ — A New Jersey Superior Court judge has certified a class of current and former Century 21 real estate franchisees in a lawsuit alleging breach of contract and other claims against their franchisor, Century 21 Real Estate Corp., as well as its parent company, consumer and business services provider, Cendant Corp.

The lawsuit, filed in 2002 by attorneys from New York’s Zwerling, Schachter & Zwerling, LLP, details how Cendant misused franchisee proceeds and resources after purchasing Century 21 in 1995. Century 21 is currently owned by Cendant spin-off Realogy Corp.

On Aug. 17, New Jersey Superior Court Judge Robert J. Brennan issued the ruling certifying a nationwide class of current and former Century 21 franchisees during the period from August 1995 to April 2002, whose franchise agreements contain a New Jersey jurisdiction clause. The class is estimated to include no fewer than 1,000 franchisees, but could exceed 4,000 franchisees.

Under a Master Franchise Agreement, Century 21 franchisees were required to contribute 2 percent of their gross revenue to the central National Advertising Fund (NAF) in addition to a 6 percent franchise service fee.

According to the lawsuit, Cendant failed to provide the level of services to Century 21 franchisees required by their agreements. Additionally, the lawsuit claims that NAF proceeds, which topped more than $40 million annually, were misappropriated and diverted to uses other than the benefit of Century 21, including the promotion of Century 21′s Cendant-owned real estate competitors. Shortly after the purchase of Century 21, Cendant also acquired Coldwell Banker and ERA.

“When Cendant purchased Century 21, they were the unquestioned leader of the real estate industry, however, by 2002 the ranking dropped to sixth in the country,” says Dan Drachler of Zwerling, Schachter & Zwerling, one of the attorneys who represents the plaintiffs. “As a result of Cendant’s actions, Century 21 franchisees have suffered damages which may total in the hundreds of millions of dollars,” adds Robert S. Schachter, also of Zwerling, Schachter & Zwerling.

Plaintiffs are also represented by New Jersey-based Keefe Bartels LLC and the Ft. Lauderdale, Fla., office of Adorno & Yoss.

Zwerling, Schachter & Zwerling, LLP represents clients nationwide in financial-related class action lawsuits.  With offices in New York City; Garden City, N.Y.; and Seattle, the firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts.

SOURCE Zwerling, Schachter & Zwerling, LLP

ARE YOU FAMILIAR WITH THE CENTURY 21 FRANCHISE, CENDANT CORP. OR REALOGY CORP.?  SHARE A COMMENT BELOW.

CUPPY’S COFFEE: Dale Nabors Divorce Filing

It seems that the business debacle of Cuppy’s Coffee has claimed another victim:  The marriage of Natalie & Dale Nabors.

The Lauderdale County, AL Divorce Filings dated 07.29.2010, reported on the website ShoalsInsider.com, included names familiar to those who have followed the story of Cuppy’s Coffee:  Natalie Kocian Nabors vs. Robert Dale Nabors.

Robert Dale Nabors was first a franchise consultant to the Ponzi-scheme-like Cuppy’s Coffee, then actually acquired the franchisor Medina Enterprises and all its related entities.  He attempted to relocate the embattled company from Fort Walton Beach, FL to his hometown of Muscle Shoals, AL.  The company soon imploded in a cloud of scandal, lawsuits and controversy.  It’s likely more than 300 franchise purchasers lost investments ranging from tens of thousands to hundreds of thousands of dollars.

Dale Nabors has been named in multiple lawsuits, and he and his wife Natalie have been arrested for passing bad checks.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Related reading:

CUPPY’S: Dale & Natalie Nabors “have done nothing wrong”  December 22, 2009

CUPPY’S COFFEE: Dale & Natalie Nabors Arrested  December 14, 2009

CUPPY’S COFFEE: Employees Bid Fond Farewell to Dale Nabors

CUPPY’S COFFEE: Dale Nabors’ Private Conference Call

CUPPY’S COFFEE: Employees Plenty Steamed at Nabors, Hiller

CUPPY’S COFFEE: Dale Nabors Tells Purvin, AAFD to Buzz Off  August 19, 2008

CUPPY’S COFFEE: SWEET HOME SCAM-A-BAMA  August 4, 2008

CUPPY’S COFFEE FRANCHISEES CALL DALE NABORS  July 8, 2008

Cynthia Sweeley Amnell of Menu Masters aka Proof of Life Smites Her Foes!

Cynthia Sweeley Amnell is one of the more colorful franchise characters this side of Crazytown.

Until recently, Cynthia Sweeley ran a restaurant placemat advertising franchise company named Menu Master (The Excalibur of Advertising) based in Spring Mills, PA.

Now divorced from Robert Sweeley, she goes by the name Cynthia Amnell* and runs a restaurant placemat advertising company named Proof of Life Productions (The Excalibur of Advertising) based in Spring Mills, PA.

Cynthia Sweeley Amnell is a self-described Christian businesswoman who receives her instructions directly from God, who portrays herself on horseback in the garb of Arthurian legend, and who claims her many online detractors are “losers” jealous of her success and beauty.

Through her newly formed Proof of Life Productions LLC, Cynthia Sweeley Amnell offers advertising sales opportunities and “distributorships” using virtually the same website and company history as the now-defunct Menu Master franchise company.

[Photo, Cynthia Sweeley Amnell as portrayed on the ProofofLife.biz website.]

Menu Master franchisees, employees, vendors & customers Warn about Cynthia Amnell & Proof of Life

Unhappy Menu Master franchisees, employees, vendors & customers have posted numerous complaints & warnings on gripe sites such as Rip-offReport.com, ComplaintsBoard.com and MyWoes.com.

They claim that Cynthia Sweeley has recently reinvented her allegedly shady placemat business using the names Cynthia Amnell & Proof of Life both to duck prior responsibilities and to dissassociate herself from the widespread criticism of the failed Menu Master.

On Rip-Off Report, Menu Masters Franchisee wrote:

This lady, Cynthia Sweeley, claims to be a prophet of God. She claims that God tells her who to sell franchises to. She uses “faith” to lure people into giving her and her husband money for a franchise that is ultimately nothing more than the ability to use their trademark. The business opportunity is nothing more than them wanting to sue anyone that tries to compete with them… They want you to do the leg work finding local restaurants – then once you are established – they rip the franchise deal out from under you based on some stupid technicality…
THESE PEOPLE ARE DEMONIC!
MENU MASTER IS DEMONIC!

Menu Master customer Cathie of San Diego wrote:

The specified date for advertising came and went and never even received the promised proof… When I complained on several occasions, all I got was ‘I am the Prophetess of God and he has spoken to me about your problems’ and on and on…BEWARE! Menu Master is run by a wacko professing to sit at the right hand of God. And God has spoken – no refund for this bad girl!

Vendor Wade Glossner, owner of Penny Press in York, PA wrote:

I own a printing company and have done extensive business with Cynthia and Robert Sweeley and Menu Master in the past. They are nothing but dead beat scam artists…. Finally this June, I was awarded my $31,424.52 judgement. I later found out that I am just another in a long line of printers they stiffed.

After years of silence, Cynthia Sweeley Amnell strikes back!

Cynthia Sweeley’s triumphant return as Cynthia Amnell, a successful Christian businesswoman who also runs a non-profit ranch ministry called Wildfire Ranch (A safe Haven for those who need to heal and find Gods purpose for their lives), was thwarted by a renewed spate of critical warnings and posts on numerous complaint sites.

[Photo, left, Cynthia Sweeley Amnell as portrayed on the now-defunct MenuMaster1.Com website.]

Finally, Cynthia had had enough.  She put away her prayerbook, unsheathed her sword and smited her detractors:

Wrote Cynthia Sweeley Amnell on her critics:

They are JEALOUS of my life, of my company, my beautiful log home, my beauty as a model,  my unusual spirituality.

To a disgruntled ex-employee, Cynthia Sweeley Amnell wrote:

GET REAL  IDIOT!! …I know EXACTLY who this psychotic freak is …Mary Emel is FAMOUS in the Penns Valley, Pa. area for being a patholigcal LIAR and THIEF.  She was fired for STEALING, caught red-handed.  Ever since this 250 pound Cynthia-wannabe has been vindictively trying to ruin my life… Mary Emel is OBSESSED with Cynthia Amnell – like FATAL ATTRACTION!

Cynthia Sweeley Amnell to a failed Menu Master franchise owner:

“Another one bites the dust folks… We went over and above the call of duty to make this self-centered loser successful but he was so angry over the lack of instant results that he accused us of selling him a business that was not ‘duplicatable’…. GROW UP you immature loser!

Cynthia Sweeley Amnell on another failed franchisee:

“Michael Trunko of Ohio purchased a franchise from me in 2006.  Michael suffered from having two children with relatively rare diseases… The medical bills overwhelmed Michael with depression and he finally quit his franchise because he simply could not work his franchise when depressed.  Yet somehow Michael decided that it was MY fault that he didn’t get instantly rich from his franchise?!”

Christian counselor Cynthia Sweeley Amnell on her ex-employees:

I am in constant amazement at how many illiterate, white trash women I have had the MISFORTUNE of not only meeting, but hiring in my successful business, Menu Master Incorporated.  People like you are wastes of good human skin… Selfish, greedy,  manipulating…You remind me of inbred hillbillies from the back hills of Kentucky; evil and stupid to the bone.

Cynthia Sweeley Amnell to another ex-employee:

You are nothing more than another WHITE TRASH LIAR,  insane with JEALOUSY over my life.  Watch and Weep loser:  my life is getting better every single day!

“I am moving forward like a steam engine into a wonderful future!” Cynthia Sweeley Amnell

With her foes smited and her Proof of Life website up and running, Cynthia Sweeley Amnell says she is “moving forward like a steam engine into a wonderful future!”  She claims “Proof Of Life is not only doing well,  I am already in 7 states and steadily going nationwide.”

On the personal front, Cynthia reports “I have had three marriage proposals in the last 6 months and am already planning a wedding to one of these wonderful men within a year.”

Looks like the legend will have a happy ending after all!

WHAT DO YOU THINK?

ARE YOU FAMILIAR WITH THE MENU MASTER FRANCHISE?  PROOF OF LIFE DISTRIBUTORSHIP?  CYNTHIA SWEELEY AMNELL?  SHARE A COMMENT BELOW.

* According to Ms. Sweeley Amnell, she reverted back to her maiden name of “Amnell” after her divorce.  Her detractors disagree, maintaining that her maiden name is actually Cynthia Jean Bucher, and that she named herself “Amnell” after the Confessor character Kahlan Amnell on the medieval fantasy TV show “The Legend of the Seeker,” with whom she is obsessed. [See press photo]

EDIBLE ARRANGEMENTS, Tariq Farid Franchise Complaints

Edible Arrangements, a gift retailer that delivers fresh fruit arrangements and chocolate dipped fruit to business and residential areas, claims its franchise opportunity is The Freshest Idea in Franchising®.

According to the Edible Arrangements franchise website: “Tariq Farid started Edible Arrangements with one goal in mind and that was to make people’s day, every day. Through Tariq’s vision came unprecedented growth and success. Now with $350 million in sales and over 950 locations around the world, the focus remains on our franchisees and on our customers to continue delivering happiness around the world.

“Edible Arrangements® helps people around the world celebrate the times of their lives by training and supporting talented franchisees who provide beautifully arranged, natural, healthy food that makes occasions special.”

However, a recent rise in complaints about the Edible Arrangements franchise may indicate that the sweet franchise deal may be going sour for franchisees.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

On ComplaintsBoard, 4/29/10 Unhappy Edible Arrangements Owner wrote:

DO NOT BUY THIS FRANCHISE!!! THEY ARE LIARS AND MANIPULATORS!

We currently have 35 stores closed down due to corporate continuing to take more money from us all. Every franchisee worries that they will lose their stores due to corporate greed. They currently take 7% plus another 4% for tv advertising which they contribute nothing to. They put out coupons and do not refund the money back to the stores that accept them. They have now released new hours mandating we have to be open on Sundays, however they allow Jewish owned stores to be closed on Saturday and Muslim owned stores to be closed Friday. Christian owned stores are told they have to be open on Sunday…NO EXCEPTIONS will be made. This is Religious Discrimination!

Corporate does not care about their franchisees at all. Due to their greed and the franchisees concern for their investments 120 stores have entered into a lawsuit against them. These guys will stop at nothing to get you to invest in their concept and then shut you down so they can buy your store on the cheap and then resale it a 3 times what they paid for it. They will take your delivery areas away from you and give them to another store which is either a corporate owned store or the owner is related to the CEO.

Again, SAVE YOUR MONEY!!! Find a franchise that cares about the owners that make it successful! As an owner you will work 60 plus hours and you will not be able to pull a check unless you get rid of all your staff. Sadly, you will tell corporate your problem and they will just blame it on your fruit expense and not on all the rebates they get for you purchasing your product through their supplier. Cost of goods has yet to go down over the past 5 years and we have added 700 stores. The reason why is due to them wanting to continue the rebate and not passing the savings down to the store owners.

SAVE YOUR MONEY, FIND ANOTHER FRANCHISE, ONLY BUY FROM US AND SAVE YOURSELF THE HEADACHE OF OWING ONE.

On Franchisee Law Blog, July 27, 2010, Edible Arrangements franchise owner Tom Downes wrote:

I am a franchisee of Edible Arrangements…  At first the CEO told us that we were critical pieces of the entire franchise system. He was right at the time, we were store #59 and the franchisor gave us much latitude as we built our business to break even and small profit after 2 long years and more infusion of capital. Now, 5 years later all that has changed and the CEO/founder does not care if franchisees make money, he has followed the familiar template offered by IFA* and Michael Seidman** [sic]. Get to a critical mass of stores and start implementing dictatorial measures to extract as much money from their franchisees as possible by mandating capital expenditures for “upgrades” and increasing material costs through vendors.

By the way, the franchisor has established distribution companies that you are mandated to buy all these materials from, adding more money to his cash flows. The franchisor is taught to create as much cash flow into the parent company so that when he sells his company, he will maximize the price. Also, the franchise agreement stipulates that any dispute is dealt with by arbitration only in Connecticut.

On a domain name discussion blog on July 29th, 2010 Edible Franchisee wrote:

Tariq Farid (CEO Edible Arrangements) tries to use the American Legal system to his advantage at every turn. He is a dishonest, unethical criminal who tries to hind behind his so called religious faith. He tries to build a mosque in the middle of a residential neighborhood in CT and when the neighbors cry foul, he claims that his religious freedoms are being trampled by a ‘Sad Agenda” against islam. He continually rapes his franchisees with new fees, mandatory purchases from vendors he owns and unreasonable and unsustainable business models. As EA staores are closing all across the country, he claims the system has never been stronger. He is a snake oil saleman, its as simple as that.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

* International Franchise Association, a trade and lobbying group representing the political and economic interests of, primarily, franchisors.

** Michael Seid, a pro-franchisor consultant heavily involved with the IFA