CUPPY’S COFFEE: Federal Charges, Lawsuit & Other Rumors


Lots of rumors and conjecture about Dale Nabors, Elite Manufacturing, the Supreme Building Technologies lawsuit & poor treatment of employees. I’ll toss them out there… please share what you know with a comment below.

Federal criminal complaint filed against Dale Nabors?
I’ve received some vague but credible emails that Dale Nabors was served with Federal Charges yesterday in connection with Cuppy’s Coffee. This comment was also posted anonymously online:

“I was told that Federal charges were served to Dale Nabors yesterday. Does anyone know the particulars? Does this mean we will be getting our money back? Did it have anything to do with him not paying his employees and stealing from them? I understand there have been numerous resignations because of his dishonesty, and cowardly way of meeting with and following up with franchisees. Would be very interested in what happened yesterday when he was served with the Federal charges.”

Others have said that there are charges filed, but they have to do with franchising, not employment infractions.

SBT lawsuit against Elite settled?

Dale has reportedly stated that the SBT lawsuit against Elite Manufacturing has been settled amicably and is no longer an issue. Can anyone confirm or deny this?

Cuppy’s Employees sent packing

This week Cuppy’s HQ employees and soon-to-be-ex-employees are packing up the office for the big move from Ft. Walton Beach to Muscle Shoals, AL. Reportedly, laid-off employees were required to help pack if they wanted their unemployment compensation claims to go uncontested.

Additionally, several key employees have resigned as recently as yesterday. This means that there are many out there with lots and lots of inside information who no longer have any vested interest in protecting their higher-ups. If you’ve got a story to share, feel free to email us in confidence at unhappyfranchisee[at]gmail.com.

WHAT DO YOU THINK? SHARE A COMMENT BELOW.

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39 thoughts on “CUPPY’S COFFEE: Federal Charges, Lawsuit & Other Rumors

  • August 26, 2008 at 7:09 pm
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    as of last week sbt suit against elite was on docket so it has not been dropped

  • August 26, 2008 at 7:31 pm
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    dale told us to our face on August 6th that he was going to a meeting with the person that filed the SBT lawsuit (he had to, in order to get investors interested in Cuppy’s).

    On August 8th, we met again in person, dale said they came to a mutual decision to end the lawsuit. He said this would now attract investors, and he would now be in a better position to help us, financially, get our store open.

    We were supposed to have a telephone conference on the 12th to discuss our options, but he never called. We contacted our FSM, she said he was called away to sign the papers dissolving the lawsuit. meeting postponed until 13th. Well, the 13th came and went, no call. This time, our FSM said he would be in meetings all week, and cannot get to us until next week. Well, here it is, end of the month and he still has not called us.

    This lawsuit was supposed to have been settled. I dont suppose it takes weeks to get the suit off the docket (wishful thinking).

  • August 26, 2008 at 7:40 pm
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    …he was called away to sign the papers dissolving the lawsuit.

    What solution do you use to “dissolve” $1.3 million worth of unpaid invoices? Alabama Moonshine? Think he was going back to pick up some White Lightning from his Uncle Bill with the still on the hill?

    The only thing that dissolves a lawsuit like that is cold hard cash… probably yours.

    Sorry… did I say that out loud?

  • August 26, 2008 at 8:46 pm
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    Not mine, mine was spent a long time ago, by the previous owner.

    I have no idea what transpired between Dale and SBT. All I can pass along is what was said….thought I would share it.

    I wanted to believe what he was saying…….Guess I am ignorant.

  • August 27, 2008 at 4:17 pm
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    Maybe Bob Purvin of the AAFD has some insight, since he gave Cuppy’s an award for franchising at their last annual conference. I’d be curious to hear what Mr. Purvin has to say now. I think Bob Purvin needs to spend his time getting the FTC, the Dept. of Corp., and other legislators to stand by the laws they enacted to protect franchisees. Maybe he could redeem himself in the eyes of all franchisees in this country.

  • August 27, 2008 at 9:51 pm
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    FEDERAL CHARGES IF NOT ALREADY WILL BE AGAINST DALE, MORG, MEDINA, ELITE, CUPPY’S, SBT, MBM. EVERYONE IS SCREWED, INCLUDING MEDINA EMPLOYEES!! (WITH THE EXCEPTION OF THE BROWN NOISERS THAT ARE MOVING TO ALABAMA… NO, WAIT A MINUTE… THEY ARE PROBABLY SCREWED TOO. THEY JUST DON’T KNOW IT YET). NO ONE WILL RECEIVE ANY MONEY BACK… NOT EVER BECAUSE DALE HAS CONTINUED THE MORG TRADITION OF TAKING ADDITIONAL $ FROM FRANCHISEES & IS NOT BUILDING THEIR CAFE AND IS NOT SENDING THEM THEIR EQUIPMENT, FURNITURE, ETC… WAKE UP & SMELL THE BURNT COFFEE FRANCHISEES, VENDORS & ANYONE ELSE WHO HAS EVER GIVEN MORG OR DALE ANY MONEY! THEY HAVE OUT RIGHT STOLEN YOUR MONEY & YOU WILL NEVER SEE ANY OF IT AGAIN SO PLEASE DON’T GIVE THEM ANOTHER PENNY. BE SMART AND GET OUT WHILE YOU CAN & TRY TO SUE TO RECOUPE WHATEVER YOU CAN BEFORE IT RUINS YOUR WHOLE FAMILY LIFE!

  • August 28, 2008 at 4:37 pm
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    I need to know what’s going on with Cuppy’s. I have been dealing with them since June of 2006. They have stopped paying monthly installments (which were only some of them). This has put a great hardship on our family! What can we do next??

  • August 28, 2008 at 4:51 pm
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    Christy:
    When did they stop paying?
    Was it before or after Dale Nabors bought the company (April 2008)?
    How much of your settlement is still outstanding?

  • August 28, 2008 at 4:59 pm
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    Christy

    At this point in time, you should probably be contacting an attorney to protect your interests, as should anyone that has given money to Cuppy’s/Elite that is looking for a refund.

    If you’ve signed a contract with them for your refund, the attorney will be able to give you your options after reading that contract.

  • August 28, 2008 at 5:38 pm
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    Christy, please also contact aafd . Owners are organizing a trust for legal discovery and subsequent litigation.

  • August 28, 2008 at 6:16 pm
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    ladeedah:
    No offense, but the AAFD is the second-to-last place one would look for help with Cuppy’s (the first being Morg Morgan’s beachfront condo) AAFD gave Cuppy’s a Fair Franchising award and paraded them around on stage at the same time Cuppy’s was taking people’s money and whisking it away to God knows where (it obviously wasn’t going to the vendors).
    This is the second company the AAFD was involved in with Morg Morgan and both times franchisees got the shaft. Purvin helped foist unacceptable contracts on the franchise depositers, complete with gag orders to keep them quiet and terms so extended they’d never get repaid.
    AAFD was not only in bed with Cuppy’s, they picked out the sheets.
    Why not insist on paying Michael Webster to put together a trust through his private practice – completely separate from the AAFD.
    Why on earth would you want to hook up with Morg’s crony and apologist? At least pretend you’ve learned something from your mistakes thus far.

  • August 28, 2008 at 7:28 pm
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    Christy, and everyone involved in this SCAM please email me. Lets go after this people they don’t care if we are loosing our home or if our children have food on the table. We want answers and nobody is coming foward not even the NEW OWNERS where are they???
    Oh yes under there desk or maybe playing GOLF….

  • August 28, 2008 at 10:04 pm
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    Vivian, you can find the new owner at the following address: (Be sure to ask for Dale if he will get on the phone)

    Cuppy’s Coffee, Medina, Elite, Fransynergy New Corporate Address:

    919 Avalon Ave
    Muscle Shoals, AL 35661

    Tel: 256-381-6336 Alt tel: 256-381-6077
    Fax: 256-381-6461

  • August 28, 2008 at 11:48 pm
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    I would be happy to assist any attorney representing a Cuppy’s franchisee, in whatever way I can.

    However, I am not licensed to practice law -right now- in the US.

    This is a very complicated legal problem, and I urge you all to get competent franchise representation.

    It would be helpful for your group to pick one attorney or attorney firm.

  • August 29, 2008 at 3:19 pm
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    Rick,

    I just read that there has been no settlement as of today in the SBT case, but that settlement talks are still ongoing. Elite has asked for another 3 weeks to file their answer to the complaint and it was granted by the court.

    So, with that being said, it looks like you were lied to a few weeks back when he said that the lawsuit was settled.

  • August 29, 2008 at 4:08 pm
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    I guess I can just this one to my growing list of lies.

    Thank you for clarifying this.

    Rick

  • August 29, 2008 at 6:06 pm
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    I just want to clarify on a comment in this paragraph: Rudy and Desiree are NOT going to Alabama, they are going to be working with the company at Dale’s request until settlement issues are resolved — or at least that was the last known status.

  • August 29, 2008 at 6:08 pm
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    So there will still be an office in Ft. Walton Beach? Or are they working from home?

  • August 29, 2008 at 7:02 pm
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    If those brave souls that might be stupid enough to still work at the Florida office are going to do that… I suggest they get some serious pad locks on the doors; black out the windows and wear bullet proof vest because I can see several more pissed off zees showing up unanounced.

  • August 29, 2008 at 10:11 pm
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    From what I heard the rents have not been paid for all the suites in the offices and if they didn’t get out when they did, the doors would be padlocked. I guess all the money was spent on raises so the brown-nosers could afford new cars before they moved.

  • August 30, 2008 at 7:40 am
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    Don’t Be Stupid Enough To Continue Sending Dale Nabors Money!!!!
    Dale will not be opening any stores until he purchase’s what he wants first, and with your money. He has gone to Muscle Shoals and moved a few imbeciles there with him and on “your nickel.” He has no money to do this on his own. He has “Fat Frankie,” there because she knows the financial “underhandedness” of the companys history. Lou “the weasel” Manginello, he’s aware of all the past legal issues and he’s not even licensed to practice law in Florida or Alabama, which he has been doing for years. I will be interested in seeing what the FEDS have to say about this. Only recently did Rudy ( the third stooge) get his law degree and is indeed licensed now in the State Of Florida. But, it’s in the cards that Rudy has wisened up and will be working else where soon. Some of the top ranking officers of the company resigned because of Dale’s dishonesty, and his continuous lieing to franchisees. No, there won’t be any “brave souls” left in Florida. Dale has hung these people “out to dry,” as well as all the others he screwed along the way. I can’t wait to see a post on here as to where to contact authorities if you want to TESTIFY against Dale Nabors and his cronies.

  • August 30, 2008 at 8:41 am
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    It’s interesting that the employees unleash all this anger on Dale Nabors when – in all honesty – he didn’t create the situation, he just derailed the gravy train.

    Are Cuppy’s employees saying that they would rather still be involved with a criminal enterprise working for Morg Morgan?

    Did you like him better because he didn’t make you face the fact that you were paying your rent and buying your groceries with Rick’s money, Criston’s money, Robyn Rivera’s money, etc.?

    Are you angry because ignorance is bliss and Dale shattered your blissful illusion?

    Shouldn’t you be thanking him for giving you the chance to go work for a real company with real customers, where profit is made on customers paying for products and services that they actually receive?

    Shouldn’t you be more angry with the guy seems to have used you to perpetuate a scam, rather than the guy who (impolitely and clumsily) ended it?

  • August 30, 2008 at 10:08 am
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    Well said Admin…

  • August 30, 2008 at 12:58 pm
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    Dale is worse than Morg because he knew all of this bull was going on and he is continuing to do the same. Take zees money & give them nothing. Amy Hiller is such a brown nose that she breaks down in tears everytime an employee or zee tries to get answers from her.

  • August 30, 2008 at 1:35 pm
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    Dale is worse than Morg because he knew all of this bull was going on…
    He’s worse than the guy who created the scam…? I guess you lost me on that logic.

    Not that it matters which is more evil.

    Here’s an idea for a pirate move:
    There’s this pirate named that Morg – who is perhaps descended from the famed pirate Capt. Henry Morgan – and he captains a pirate ship that looks friendly (The Good Ship Cuppys’) but once it gets close, it turns dark and hoists the Jolly Roger (The dread ship the Elite). The cannons boom and the swords lay waste to the most secure bank accounts.

    The employees are kept down below in the galley, working the long oars while Morg called “Stroke! Stroke!” in a sweet voice. “Put yer back into it mateys! We’re sailing Cuppy’s for paradise! Pay no attention to those cannons, er, I mean, fireworks you hear!”

    Morg and a few mates at the top shipwreck hundreds and leave them and their wrecked boats stranded on the rocks, dead and dying or wandering around wondering where their valuables went. He heaps praise on his 1st mate Dale, telling him how smart he is, while his real mates giggle in the background. Once the wind stops blowing and the Armada is drawing close, though, Morg gives 1st mate Dale Nabors the wheel of the Elite and takes off in the longboat with his pals, loaded down with treasure.

    The first mate is delighted to be Captain, and for a while everyone calls him “Sir” Dale had a little time to scour the rocks for coins and jewels that had spilled from Morg’s pockets. He was able to distract the wounded victims by telling them he was going to save them.

    Meanwhile, the galley crew starts emerging into the light of day, wondering why they aren’t getting their biscuits and water and why the ship isn’t moving.

    They leave the ship shielding their eyes, foraging for food, and cursing the cabin boy turned first mate turned Captain for not keeping the ship moving… They remember Capt. Morgan fondly, get nostalgic for those delicious biscuits, and never once curse him for running them aground and abandoning them with the scurrilous cabin boy.

    Not sure how it will end… probably with Morg sipping a cocktail at the yacht club while his new crew puts a shine on his new ship, which is not yet named.

  • August 30, 2008 at 8:09 pm
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    If you remember Morg suposidly left due to his failing health. Employees found out that Morg’s departure had nothing to do with his health. He saw was about to happen & he abondandend ship to a fool (Dale) who thought he had $25+ millinons in Elite contract that he could squander away for himself. Dale told everyone he was bring in millions of dollars from investors and would get buildouts moving immediately. GUESS WHAT? HE LIED! HE CONTINUES TO LIE TODAY! The ship is going, going and pretty much gone and Dale is making everyone drown with him. He’s aselfish B@sTard. His wife and childred should be ashamed of him. I don’t know how Natalie looks him in the eyes.

  • August 30, 2008 at 10:19 pm
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    Morg told the staff all along that he planned on leaving, no matter what the conditions were, he admitted that he was a better “turn around” guy than a “company owner” guy. He admitted several times that he was looking for a new CEO to replace him so that he may either leave the company or go into a much smaller role with the company. He may not have always made the best decisions or have been honest about it, but at least he never tucked his tail between his legs and avoided his employees.

  • August 31, 2008 at 6:24 am
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    survivor He may not have …been honest about it, but at least he never tucked his tail between his legs and avoided his employees.

    It’s ok to defraud people out of their savings as long as you don’t avoid your employees?

    Are you serious? Don’t worry… with that high moral standard you should have no problem landing another job in franchising very quickly. Heck, Morg & Ben & Bruce Sharpe are probably cooking up something for the AAFD to endorse as we speak. You can always ride that unemployment and supplement with some under the table cash jobs til they come thru. Morgmight ruin lives, but he doesn’t avoid his employees!

    You all might want to ask yourself: How long would it take you to save $40,000? How many years of labor would you have to put in to put $40K in the bank? Do you put away $5K per year? $10K per year? If so, stealing $40K deposits is like stealing 4-8 years of hard work, 50 weeks a year, 5 days a week. Think about it.

    If you remember Morg suposidly left due to his failing health. Employees found out that Morg’s departure had nothing to do with his health.
    Good point. He may have manipulated people by using a past illness to get sympathy, but at least he schmoozed his employees.

    If you share here how you were fooled into overlooking the wrongs being committed and, looking back, how you were manipulated maybe the next people will see through the next scheme more quickly. I’m sure something else is being cooked up as we blog.

  • November 23, 2008 at 12:28 pm
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    All cuppys websites are down. Is everyone else having this problem? Is this the end?

  • November 23, 2008 at 5:10 pm
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    http://cuppyscoffee.net/ is still up, though it lacks the location list.
    MEDINAENTERPRISES.COM is still up.

    The domains haven’t expired. Think they haven’t paid their hosting bill? Or did someone seize their server?

  • November 24, 2008 at 10:37 am
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    I can’t get CuppysCoffee.com or Cuppys.net to come up and I have applicants info sitting on Cuppys.net that we are interviewing TODAY! eeeekkkkkk!

  • November 24, 2008 at 2:33 pm
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    Wait, isn’t cuppys.net how Dale was going to communicate? How is he going to be able to blog now?

  • November 24, 2008 at 4:23 pm
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    jd:
    Are you going through withdrawal since there’s no “Coffee with Dale” blog entries anymore?
    Where is Dale? Is there even a Cuppy’s Coffee franchisor anymore?
    Does Coffee College exist anymore? Coffee Junior High at least?

  • November 24, 2008 at 5:00 pm
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    With the monthly automatic charge to your credit card for your Fransynergy fee, Dale will throw in a correspondence course so you can teach yourself at home.

  • November 24, 2008 at 8:45 pm
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    seriously? there’s isn’t anyone still paying him, is there?

  • November 24, 2008 at 9:49 pm
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    has the FBI gotten involved yet if not they need to

  • November 24, 2008 at 10:43 pm
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    Sounds like he’s turned all Elite contracts to SBT. I hope zee’s aren’t opening as a Cuppy’s. If they do, it would be foolish.

  • November 28, 2008 at 7:09 pm
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    Oh Morg has ducked employees!
    I was hired to head Elite (once I got up to speed… Kim Scarbrough was still at the helm). I lasted barely a month…
    A franchiseee in Homma La. was in trouble due to a manufacturing flaw (some dumbass dry fitted a coupling on the water heater tank which eventually came loose). I was the “Technical guru” so I did all I could to get this resolved. First I sent a home inspection gent to assess the situation (being 3rd party I felt he would justly represent the company and help ascertain What needed to be done and to whom the bill should be eventually given). Long story short although the lady now had mold in her kiosk, water damaged flooring and walls, no hot water heater and thus was in violation of her health ordinances – Morg determined that her occupants insurance was were she needed to seek relief – after all thats what its there for – right? (quote) On top of that I heard Morg say to Doug that he didn’t have 90K to fix that unit unless Doug wanted to pony up the money himself?? (obviously not). BTW the unit was still less than a year old (one of the 1st things I checked when I asked if we were responsible to effect repairs I was told Yes.
    I am not a good judge of character but the few I came into contact with seemed like good people> I know from the All HAnds Meetings that Morg played the charismatic card quite heavily. The staff was sold pretty much as much as the clientele. It was also touted by Morg that some employees were also franchisees (the young blond gentleman who was a nurse in the air force and Tammy the red headed young lady who was in their marketing branch.
    I personally was asked to leave when Morg claimed (in a staff meeting) that he was going to bale out one of the modular manufacturers with about 1M to get the units moving. Now I and the staff had no confidence in this supplier… they had botched the Homma unit and had over charged and underperformed on all tasks. They were trying to deliver partially completed units etc. I approached another supplier with this info and we both reasoned that unless he and I developed a third option then Elite was screwed (Kim agreed) when this info got to Morg he had Kim fire me. She did and about a half hour later Morg came by and told a roomful of us that we needed to come outside and enjoy the sunset. I approached him with a thought I had shared with Kim (just before she fired me) andf he told me to run with it (giving no indication that I was to be let go). Confused, I went back to KIm wondering if that might trump by dismissal.. Nope, Morg just didn’t want any confrontation.
    So he is gutless as well….
    Also, he disputed my unemployment claim (gave out secrets supposedly) and did a number on me to a prospective employer (had a great interview and given a tentative offer only to have it recinded based on something Someone had said at Elite… Ah well.

    Hope that might fill in a blank or two

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