It looks like the AAFD won’t be getting a share of the blood, sweat or tears of Cuppy’s Coffee franchise owners unless they extract it themselves.
Like many of the Cuppy’s Coffee employees fired after Dale Nabors bought the company, the American Association of Franchisees & Dealers (AAFD) surely misses the good old days when previous owner Morg Morgan cut them in on a share of the plunder. In 2007, Morg Morgan’s Cuppy’s Coffee paid the AAFD what’s been called a "considerable sum of money" in exchange for an AAFD fair franchising award, for the ability to be paraded on stage at the AAFD annual franchise fairness-festival, and for AAFD Chairman Bob Purvin’s defense of the organization despite widespread complaints and indications that Cuppy’s Coffee was engaged in fraudulent, unethical and likely illegal franchise practices.
Once it was clear that the new owner was not going to continue to pay the rental fee for the AAFD’s halo of fairness, the AAFD boldly suspended its fair franchising status.
In Janet Spark’s interview with new owner Dale Nabors, Nabors outlines what it would cost Cuppy’s Coffee to be named a fair franchise once again and for a place in the chorus line on the AAFD stage:
- The AAFD wants $100 per location the first year and the $300 per unit the second and third years, to run the Cuppy’s Coffee "independent" franchisee advisory council.
- The AAFD wants to receive 1.5% of all purchases made through a buying co-op that it would form and administer.
- The AAFD wants the exclusive right to mediate for franchisee disputes… at $350 an hour.
Janet details Dale Nabor’s reaction to Bob Purvin and the AAFD’s demands:
Suspension of AAFD Contract Accreditation: According to Sparks: "Nabors said the franchise agreement is as fair today as it was when Purvin’s group approved it. He said nothing had changed there." The AAFD’s accreditation award was supposedly based solely on the fairness of its franchise contract, but was suspended because Purvin’s calls were not being returned and Nabors was not rendering unto the AAFD that which was the AAFD’s.
AAFD-Run Advisory Councils: "After doing the math, Nabors said he just didn’t want to commit the franchisees to that expense. Besides, he added, he had already started his own franchisee advisory council to get feedback and share it with other franchisees. "
AAFD-Administered Buying Co-op: "’To increase the cost of the products to the franchisees so that the AAFD could earn a percent and a half was not what I felt was in the best interest of the franchisees, so I said no.’ Nabors saw no need to have AAFD manage the cooperative."
AAFD Mediation: "He said they have used [the free mediation program of the International Franchise association] and it worked successfully for them at no cost. He concluded on the subject, ‘So it came back to whether I wanted to commit to $350 an hour for an unknown number of hours to Bob Purvin or AAFD when I could get the same service rendered for less money or no money.’"
AAFD’s Real Interest in Cuppy’s Coffee: "I understand the AAFD’s business model. I understand that even though it’s a non-profit organization they do have employees who make good money…. Bob Purvin and I had a three hour conversation about a month ago where I was constantly being asked for my support. And the support came down to economic support. I made the decision that at this time it was not the best utilization of the company’s money to pay the AAFD.""
So it looks like Cuppy’s will have muddle through without thier now-discredited award. It looks like the AAFD won’t be getting a share of the blood, sweat or tears of Cuppy’s Coffee franchise owners unless they extract it themselves.
It looks like Nabors is more interested in running with the big boys at the IFA… who at least are good at what they do.