HONEY DEW DONUTS Franchise Complaints
July 21, 2012
Honey Dew Donuts franchise opportunity: Are you considering it?
Be aware that data released by the Small Business Administration (SBA) indicates that Dunn Bros Coffee franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 20%.
That qualifies the Honey Dew Donuts franchise for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Honey Dew Donuts franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Honey Dew Donuts franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Honey Dew Donuts franchise owners have a 20% SBA loan failure rate.
| Honey Dew Donuts Franchise | |
| SBA loans granted since 2001: | 39 |
| SBA loan failure rate: | 20% |
| Sources: Entrepreneur (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Honey Dew Donuts franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Honey Dew Donuts franchise opportunity?
What do you think accounts for the SBA loan failure rate of Honey Dew Donuts franchise owners?
What steps should Honey Dew Donuts be taking to stop further franchise failures?
Has Honey Dew Donuts taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE HONEY DEW DONUTS FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Honey Dew Donuts, Honey Dew Donuts franchise, Honey Dew Donuts franchise complaints, Honey Dew Donuts complaints, coffee franchise, bakery franchise, food franchise, donut franchise, franchise failure rates, SBA franchise loans, worst franchises, unhappy franchisee, Richard Bowen
DUNN BROS COFFEE Franchise Complaints
July 21, 2012
Dunn Bros Coffee franchise opportunity: Are you considering it?
The Dunn Bros Coffee franchise website states “When the next step in your journey leads you to think of business ownership… Consider Dunn Bros Coffee, a leader in Specialty Coffee with a proven track record as a strong partner in helping you achieve success in a growing and dynamic industry.”
However, data released by the Small Business Administration (SBA) indicates that Dunn Bros Coffee franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 23%.
That qualifies the Dunn Bros Coffee franchise for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Dunn Bros Coffee franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Dunn Bros Coffee franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Dunn Bros Coffee franchise owners have a 23% SBA loan failure rate.
The apparent drop in Dunn Bros Coffee franchises in recent years is also a franchise red flag.
| Dunn Bros Coffee Franchise | |
| Dunn Bros Coffee U.S. franchises in 2008: | 95 |
| Dunn Bros Coffee U.S. franchises in 2012: | 78 |
| Growth in franchise units 2008 – 2012 (#) | -17 |
| Growth in franchise units 2008 – 2012 (%): | -18% |
| SBA loans granted since 2001: | 58 |
| SBA loan failure rate: | 23% |
| Sources: Entrepreneur (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Dunn Bros Coffee franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Dunn Bros Coffee franchise opportunity?
What do you think accounts for the SBA loan failure rate of Dunn Bros Coffee franchise owners?
What steps should Dunn Bros Coffee be taking to stop further franchise failures?
Has Dunn Bros Coffee taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE DUNN BROS COFFEE FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Dunn Bros Coffee, Dunn Bros Coffee franchise, Dunn Bros Coffee franchise complaints, Dunn Bros Coffee complaints, coffee franchise, coffee shop franchise, food franchise, retail franchise, franchise failure rates, SBA franchise loans, worst franchises, unhappy franchisee
IT’S A GRIND COFFEE Franchise Complaints
July 21, 2012
It’s a Grind Coffee franchise: what happened?
Are you familiar with the It’s a Grind Coffee franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a It’s a Grind Coffee franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Data released by the Small Business Administration (SBA) indicates that It’s a Grind Coffee franchise owners who qualified for SBA-backed franchise loans have an extremely high loan failure rate of 36%.
That qualifies It’s a Grind Coffee for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
It’s a Grind Coffee franchise owners have an alarming 36% SBA default rate.
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that It’s a Grind Coffee franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
On GlassDoor.com, Former N/A in Long Beach, CA wrote:
It’s A Grind was a rising star in the specialty food business as a franchise…one of perhaps a handful out of 100′s that was worth consideration…strong business model, great product, but alas they lacked leadership and did not communicate at all with their directors and vice-presidents let alone manager levels…as the challenges of operating a nationwide business grew the Founder, CEO and CFO simply became more and more clandestine and unapproachable. When you hire into an organization the expertise you believe you need, those team members expect to be part of the process…
Cons – Poor to non-existent communication and feedback from senior management. Later on, lack of funding and management compentency created huge challenges in product distribution making it next to impossible for their franchise units that were more than 500 miles away to create a profitable business…if you can’t get the products needed to fulfill the customers requirements, even in a market that isn’t price sensitive you still have a formula for doom! In a franchise the one thing you can never do is expect to make up your financial losses by increasing franchise fee’s and other internal fixed costs. It’s A Grind ran frightened. They did all the classic things a sinking franchise ship would do. It was sad to watch.
Are you familiar with the It’s A Grind franchise opportunity?
What do you think accounts for the SBA loan failure rate of It’s A Grind franchise owners?
What steps should It’s A Grind have taken to stop further franchise failures?
Did It’s A Grind take serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE IT’S A GRIND COFFEE FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
It’s A Grind, It’s A Grind franchise, It’s A Grind franchise complaints, It’s A Grind complaints, coffee franchise, coffee shop franchise, food franchise, retail franchise, franchise failure rates, SBA franchise loans, worst franchises, unhappy franchisee,
COFFEE BEANERY Franchise Complaints
July 21, 2012
Coffee Beanery franchise opportunity: Are you considering it?
Be aware that data released by the Small Business Administration (SBA) indicates that Coffee Beanery franchise owners who qualified for SBA-backed franchise loans have an extremely high loan failure rate of 48%.
That qualifies Coffee Beanery for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Coffee Beanery franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Coffee Beanery franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Coffee Beanery franchise owners have an alarming 48% SBA default rate.
The apparent drop in Coffee Beanery franchises in recent years is also a franchise red flag.
| Coffee Beanery Franchise | |
| Coffee Beanery U.S. franchises in 2008: | 91 |
| Coffee Beanery U.S. franchises in 2012: | 76 |
| Growth in franchise units 2008 – 2012 (#) | -15 |
| Growth in franchise units 2008 – 2012 (%): | -16% |
| SBA loans granted since 2001: | 33 |
| SBA loan failure rate: | 48% |
| Sources: Entrepreneur (growth), company website (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Coffee Beanery franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Coffee Beanery Franchise Complaints
There is extensive coverage of the franchisee legal battle against Coffee Beanery on the excellent website Bluemaumau.org.
Also read:
COFFEE BEANERY: Secret Justice Franchisee Interview Part 1
COFFEE BEANERY: Secret Justice Franchisee Interview Part 2
Are you familiar with the Coffee Beanery franchise opportunity?
What do you think accounts for the SBA loan failure rate of Coffee Beanery franchise owners?
What steps should Coffee Beanery be taking to stop further franchise failures?
Has Coffee Beanery taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE COFFEE BEANERY FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Coffee Beanery, Coffee Beanery franchise, Coffee Beanery franchise complaints, Coffee Beanery complaints, coffee franchise, coffee shop franchise, food franchise, retail franchise, franchise failure rates, SBA franchise loans, worst franchises, unhappy franchisee, Kevin Shaw, Joanne Shaw, coffee beanery lawsuits, coffee beanery litigation
VENDING SCAMS Coffee Vending Scammer Found Guilty
October 12, 2011
VENDING SCAMS FL Coffee Vending Scammer Found Guilty. Another win for the US Department of Justice and the The Postal Inspection Service.
Here’s the press release from the USDOJ:
“WASHINGTON – A federal jury in Fort Lauderdale, Fla ., yesterday found Manuel Rodriguez guilty of fraud in connection with a coffee machine business opportunity scheme, the Justice Department and the United States Postal Inspection Service announced. After a two-week trial in which 14 witnesses took the stand, the jury found Rodriguez guilty on all seven counts submitted to it, one count of conspiracy and six counts of wire fraud. Rodriguez was taken into federal custody upon the jury’s verdict. Sentencing is scheduled for December 7, 2011.
“At trial, witnesses testified that Rodriguez engaged in his scheme through the operation of three companies: M & D Gourmet Coffee Inc. of Boca Raton, Fla ., Coffee Heaven LLC of Deerfield Beach, Fla ., and Divino Trio Coffee & Vending Company of Ft. Lauderdale. The jury heard testimony that the defendant and a co-conspirator made similar misrepresentations to consumers in connection with each of these companies with the same effect – a loss of tens of thousands of dollars per consumer.
“Specifically, victims at trial testified that the defendant and his businesses offered a business package that included coffee machines, locations in which to place those machines, and on-going support and assistance in the operation of a coffee machine business. Witnesses explained that they lost amounts from $15,000 to $192,000 in the scheme. They testified that the defendant told them that their machines would sell enough coffee to recoup their investment in 12 to 18 months, and that this representation was false. Victims also told the jury that while the defendant promised that the coffee machines would be placed in high-quality locations that would generate numerous sales, what was delivered were poor locations which generated few, if any, sales. Some victims testified that they received no machines at all.
“Protecting consumers from financial fraud is one of our top priorities,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “As the jury’s verdict shows, those who prey on people trying to run a small business will be held accountable.”
“We are committed to vigorously prosecuting financial fraud,” said Wifredo Ferrer, United States Attorney for the Southern District of Florida. “Fraudulent telemarketers must realize that they will be pursued and brought to justice.”
“The Postal Inspection Service has investigated scores of individuals and dozens of companies like the ones involved here, said United States Postal Inspector in Charge, Henry Gutierrez, based in Miami. Those investigations have led to felony convictions and significant terms of incarceration. The American Public must remain vigilant to avoid sophisticated schemes that try to take advantage of our natural desire to prosper by owning businesses like this one.
“Assistant Attorney General West commended the investigative efforts of the United States Postal Inspection Service and the Federal Trade Commission. The case was prosecuted by attorneys John Claud and Matthew Ebert of the Department of Justice’s Consumer Protection Branch.”
ARE YOU FAMILIAR WITH ANY VENDING BUSINESS OPPORTUNITY OR FRANCHISE SCAMS? LEAVE A COMMENT BELOW OR EMAIL US.
Contact the author of site admin at UnhappyFranchisee[at]gmail.com
CUPPY’S COFFEE U.S. Department of Justice, FBI Investigating Cuppy’s Coffee Franchise / Java Jo’z
April 22, 2011
(Unhappy Franchisee) Cuppy’s Coffee franchise owners and Java Jo’z licensees and depositers: The Federal Bureau of Investigation wants your help.
Numerous victims of the Cuppy’s Coffee franchise fiasco report having recently received letters requesting information and documentation regarding alleged wrongdoing and allegations of fraud in connection with the sale of Java Jo’z and Cuppy’s Coffee business opportunities.
The letter and accompanying questionaire was sent by SBA Victim Specialist [redacted], U.S. Department of Justice, Federal Bureau of Investigation, FBI-Jacksonville, FL. [If you'd like [redacted] full contact information, please email ADMIN at unhappyfranchisee[at]gmail.com]
Whether you received a letter or not, if you believe you are a victim of Java Jo’z or Medina Enterprises Cuppy’s Coffee, you are invited to call [redacted] or go to a designated website to register. Victims will be provided a pin # which they can use to access case information and updates.
FBI Agent [redacted]‘s voicemail greeting at the provided number seems to indicate that the Cuppy’s Coffee / Java Jo’z investigation is her priority:
You have reached [redacted] of the Jacksonville Division…
If you have received a questionaire pertaining to Cuppy’s Coffee and/or Java Jo’z, please complete the questionaire to the best of your ability. Once completed, please return the questionaire to the Federal Bureau of Investigation… Attention [redacted]. If you are in need of financial assistance, please listen to the entire recording. To leave a message, please press 1 and leave your name, case number, and a number where you can be reached and I’ll return your call as soon as I can…
Are you a franchise owner or depositer of Cuppy’s Coffee or Java Jo’z? Have you received correspondence from Federal investigators? Please share a comment or message below.
Not familiar with Java Jo’z or Cuppy’s Coffee? Franchise writer Sean Kelly first began reporting early in 2007 about allegations of fraud regarding the sale of Java Jo’z drive thru coffee licensing opportunities by businessman Roy Snowden. When Roy Snowden was convicted of tax fraud later that year, he sold the assets of Java Jo’z to Medina Enterprises Inc., owned by Robert “Morg” Morgan. Sean Kelly’s UnhappyFranchisee.Com website and franchise news site BlueMauMau.org aggressively reported on allegations of fraud, deception and outright theft by Morgan’s Medina Enterprises, Inc. and its subsidiaries, including Cuppy’s Coffee and Elite Manufacturing.
In April, 2008 Fransynergy, Inc., owned by franchise consultant Robert Dale Nabors, purchased the assets and liabilities of the troubled Medina Enterprises, Inc., Cuppy’s Coffee, and its subsidiaries. UnhappyFranchisee.com and BlueMauMau.org continued to report on ongoing allegations of fraud and theft under Nabor’s ownership Lawsuits ensued. Shortly thereafter, Nabors abandoned the company, leaving scores of franchisees on the hook for millions in loans and lease payments but no stores, equipment or support with which to repay them. Dale Nabors and his wife Natalie Nabors were arrested in 2009 in Muscle Shoals, AL for passing worthless checks.
Michael Webster, franchise attorney and contributer to both UnhappyFranchisee.com and BlueMauMau.org’s Cuppy’s Coffee reports, has estimated that “there are some 200 or more franchise owners out there who have been convinced to hand over $30 million of their money to Cuppy’s [Coffee].”
Read our Blogiliography of Cuppy’s Coffee posts at: CUPPY’S COFFEE OVERVIEW
WHAT DO YOU THINK? ARE YOU A VICTIM OF CUPPY’S COFFEE OR JAVA JO’Z? SHARE A COMMENT BELOW.
CUPPY’s Founder Robert “Morg” Morgan Apologizes to Franchisees
December 31, 2010
CUPPY’s Founder Robert “Morg” Morgan Apologizes to Franchisees Read more
CUPPY’S COFFEE: Dale Nabors Divorce Filing
August 5, 2010
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
CUPPY’S: Help Update the List of Locations, Status
March 9, 2010
Here is the list of Cuppy’s Coffee Locations dated 03/09/11
Please add any updates, new names and/or status of any locations you may know about in the comments below. Thanks.
Here is the list of Cuppy’s Coffee franchisees as listed in the latest UFOC: Cuppy’s Coffee Franchisee list from 12/08 UFOC
Here is the list of locations, as they appeared on the Cuppy’s Coffee website as of 8/26/08. Please share any additions, corrections, clarifications that you know about in the comment section below. Please also list any failed or closed locations that appear or do not appear on this list. [This list reflects VERY few of the many closed or paid never opened franchises]
AL Huntsville Drive Thru [OPEN] website
AL Tuscaloosa Drive Thru [CLOSED] Gordon
AL Tuscaloosa Drive Thru ?
AK None
AZ Pearce Mobile Cafe
AZ Arizona Kiosk [CLOSED] Sierra Vista – Paul Davis
AZ Tucson Cafe [CLOSED] Closed per Yelp. Last review January, 2010
AZ Tucson Mobile Cafe
AR Sheridan Mobile Cafe
AR Stuttgart Mobile Cafe
CA Apple Valley Cafe [Paid Never Opened] miranda
CA Chino Cafe [CLOSED] monica
CA Fairfield Cafe Coming Soon
CA Lincoln Cafe [CLOSED] 12/30/09 Owner: Paul Criswell
CA Mammoth Lakes Drive Thru
CA Modesto Mobile Cafe
CA Moorpark Cafe [CLOSED]
CA Oceanside Cafe [OPEN]
CA Rancho Cucamonga Cafe [CLOSED]
CA Riverside Cafe [OPEN]
CA Santa Clarita Cafe [CLOSED]
CA Wheatland/Lincoln Drive Thru [OPEN] Paul C. Opened 2006
CA Temecula Cafe (JJ) [CLOSED]
CA North Hollywood [Paid Never Opened] binford
CA Long Beach [Paid Never Opened] alcafaras
CO Fort Collins Cafe [Paid Never Opened] Noem
CO Longmont Drive Thru [OPEN] Opened March 2008 Owner: Joe Mivshek
CO Westminster Cafe [OPEN] (Owner: Jim Julian)
CO Fort Collins Cafe [PAID NEVER OPENED] Noem
CT Manchester [CLOSED]
DE Wilmington Cafe [CLOSED] – Robbins
FL Beverly Hills Mobile Cafe
FL Beverly Hills Mobile Cafe
FL Brooksville Drive Thru [OPEN] Owners: Carol and Joe Roberts
FL Brooksville Cafe [OPEN] Owners: Carol and Joe Roberts opened 2008
FL Casselberry Cafe Coming Soon
FL Holiday Mobile Cafe
FL Jacksonville Beach Drive Thru [CLOSED]
FL Kissimmee Mobile Cafe
FL Maitland Cafe Coming Soon
FL Miami Mobile Cafe
FL Miami-Quail Roost Cafe Coming Soon
FL Navarre Drive Thru [CLOSED]
FL Niceville Mobile Cafe
FL Pace Drive Thru
FL Pace Mobile Cafe
FL Panama City Beach Drive Thru
FL Port Charlotte Drive Thru [CLOSED]
FL Port St. Lucie Mobile Cafe
FL Ruskin Mobile Cafe
FL San Antonio Cart
FL Shalimar Drive Thru [CLOSED]
FL Venice Drive Thru
FL Venice Drive Thru [CLOSED]
FL Wellington Mobile Cafe
FL Orlando Cafe [CLOSED]
FL Oviedo JJ Cafe [CLOSED]
FL Niceville [PAID NEVER OPENED]
GA Carrollton Cafe [DEBRANDED] [CLOSED] Benefield Coffee Co. Carrollton, Georgia
Opened 11/3/08 Closed 7/3/09 Filed Chapter 7 Bankruptcy
GA Cumming Cafe Coming Soon
GA Kennesaw Cafe w/ DriveThru
GA Savannah Mobile Cafe
GA Sugar Hill Cafe
GA Tyrone Cafe w/ DriveThru [CLOSED] Closed September, 2010 Owner: Pinky Legaspi
ID Eagle Cafe [OPEN] (Owners Larry and Marci Addleston opened December 8, 2008)
IL Normal Drive Thru Coming Soon
IL Rockford Drive Thru [CLOSED]
IL Woodstock Drive Thru
IL Chgo/Midway Drive Thru [CLOSED]
IA Ames Mobile Cafe [OPEN]
IA Des Moines Drive Thru [CLOSED] (Opened: April 2008 Closed: December 2008)
IN Shelbyville Drive Thru
KY Frankfort Mobile Cafe
LA Covington Cafe w/ DriveThru Coming Soon
LA Monroe Drive Thru
LA Houma Drive Thru [CLOSED]
LA Houma Drive Thru [PAID NEVER OPENED] Rivera
LA Houma Cafe [PAID NEVER OPENED] (Owner: Poonam Khapra)
LA Metairie [PAID NEVER OPENED]
MD Bel Air Cafe Coming Soon
MA Chicopee Drive Thru
MA Hanover Cafe [OPEN]
MA Lawrence Mobile Cafe
MA Leominster Cafe [OPEN]
MI Augusta Mobile Cafe
MI Battle Creek Drive Thru
MI Clawson Cafe w/ DriveThru [CLOSED] (Owners: Otts)
MI Clinton Township Cafe [CLOSED]
MI Jackson Kiosk [CLOSED]
MI Taylor Kiosk [CLOSED]
MI [Paid Never Opened] Reisner
MS Gulfport Drive Thru
MS Ocean Springs Drive Thru
MS Petal Drive Thru [OPEN]
MO St. Louis Cafe Coming Soon
NV Las Vegas Mobile Cafe
NJ Voorhees [Paid Never Opened]
NM Albuquerque Drive Thru [PAID NEVER OPENED] Menz
NY Greece Drive Thru [CLOSED] D. Check
NY Yorktown Heights Kiosk Coming Soon
NC Charlotte Cafe Coming Soon
NC Greensboro Mobile Cafe [OPEN] (Owner: Hettion Booker)
NC Hampstead Mobile Cafe
NC Hendersonville Kiosk
NC Raleigh Cafe Coming Soon
NC Spring Lake Cafe w/ DriveThru [OPEN] (Owner: Fulgham)
NC Wilmington Cafe [CLOSED]
OH Columbus Cafe [CLOSED] Open 7/2008 Closed 9/16/2009 Steve Firouzian
OH Elyria Mobile Cafe [OPEN] (Owner: Beth Wright)
OH Mansfield Cafe w/ DriveThru [CLOSED] Closed 7/3/10 Franchisee: Bill Lewis
OK Duncan Drive Thru [CLOSED] Closed 5/15/09
OR Salem Cafe [CLOSED] (Owner: Womack. Opened 5/11/08 Closed: 12/31/08)
OR Woodburn Drive Thru Coming Soon
PA Bridgeville Drive Thru [CLOSED] [9/8/07 - 8/21/08]
PA Easton Kiosk Coming Soon
PA Mechanicsburg Cafe [CLOSED]
SC Greenville Drive Thru [CLOSED]
TN Athens Mobile Cafe
TN Athens Drive Thru
TN Knoxville Drive Thru
TN Knoxville Drive Thru [CLOSED] Building auctioned here
TX Edinburg Cafe
TX Longview Kiosk
TX Temple Cafe
TX Colleyville Opened 2009 as “Espressios” Owner: Christy Shaw
TX Midland [CLOSED]
TX Houston [CLOSED]
TX Arlington [CLOSED]
TX Copperas Cove [CLOSED]
TX [PAID NEVER OPENED] beasley
VA Fredericksburg Drive Thru
VA Gainesville Cafe Coming Soon
VA Richmond Mobile Cafe
VA Springfield Kiosk [OPEN]
VA Midlothian [CLOSED]
VA Christianburg [CLOSED]
VA [PAID NEVER OPENED]
WA Richland [PAID NEVER OPENED] (Heber)
WV Falling Waters Mobile Cafe
WI Madison Cafe Coming Soon
BEAR CLAW COFFEE: Dexter Shop Leaves Franchise
January 21, 2010
As the recession continues to pressure small business owners, some franchise owners are finding the restrictions placed on them by their franchisors are impairing their ability to compete. Several stories have cropped up in the news recently about franchise owners taking down their franchise signs in favor of going it alone.
In a recent story in the Dexter Leader, Sean Dalton reports that a couple who’ve operated the Dexter, MI Bear Claw Coffee since September, 2007 have gone independent, changing the name of their coffee shop to Corner Cup Café. Evidentally, franchisor and franchisee parted ways amiably; the agreement is undisclosed.
According to the Dexter Leader article:
The Horvaths were tight lipped about the details behind the parting of ways with the company that had impressed them so much initially, as part of an agreement between the two parties.
"We were just going in a different direction than they were … there had been some breakdowns in communication," Tracy Horvath said. "We wanted to go one path and they were heading in a different one."
…The Horvaths said they expect to have greater freedom in a partnership with [coffee distributor] Great Lakes Coffee. Coffee will be served in unique Great Lakes Coffee cups, but branding has been minimal and flexible, and the company has been "very willing to help every step of the way" without franchise restrictions….
The franchise owners cited that having the freedom to expand their food offerings and seating space that caused them to reject the restrictions put on them by the franchisor:
Being a Bear Claw franchisee, in contrast, involves bearing a copyright logo and name, carrying specific products and paying monthly royalties. Even signage for events was subject to Bear Claw approval.
"They were trying to keep their brand tight so they had control over it," Tracy said. "We are the only store that has a sit down sandwich section. The Bear Claw in Chelsea has a smaller sit down section, but they don’t serve any sandwiches, so you sit down and eat your Bear Claw and have your coffee and go.
"We’re more of a sit down, bring your laptop, get some work done, have some lunch, have a work meeting … it was a non-Bear Claw section of the store that the franchise did not approve of."
In the post Are More Franchisees De-branding, Going Independent?, UnhappyFranchisee.com recently reported on two hair stylists who bought their successful Great Clips hair salon and decided to debrand it and go independent. Their motivation was not only to avoid the Great Clips franchise fees, royalties and ad contributions, but also to gain the freedom to expand their products and salon services at their own discretion.
Will debranding be the next hot franchise trend?
One wonders if this may be a trend brought on by a tough economy and competitive pressure.
Some franchisees are getting frustrated by their inability to make what they believe are changes necessary to their own survival. On a recent post (CURVES: Can Indie Clubs Thrive Where Curves Failed?), a Curves franchise owner complained that the franchisor would not allow him to add treadmills despite the fact that nearly a quarter of his members stated (in writing) that they’d walk out the door and go to a competitor unless treadmills were added.
As increased pressure is put on franchisors to allow creative solutions, we may see franchisors getting more permissive and flexible with what they’ll allow… or we’ll see more franchisees trying to go independent so they can call their own shots.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
