Comments on: CUPPY’S COFFEE: Lake Elsinore, CA Disses Cuppy’s Coffee Modular Unit

By: prozac is kicking in

prozac is kicking in — Thu, 04 Sep 2008 20:34:48 +0000

You got me there! The only store I am aware of is the one in Columbus, OH which opened without any fanfare from Cuppy’s. Still, on paper, these stores do exist, purchase orders for some of them exist.

By: ADMIN

ADMIN — Thu, 04 Sep 2008 19:16:51 +0000

…there are 160 unopened stores in the system, 60 of which will be completed by end of first quarter 2009…

How many stores opened in June? July? August? Rather than take Dale’s word for how long it will take to open 60 stores, why don’t we divide 60 by the number of stores opening each month?

Now let’s adjust for the fact that there are no longer 100 employees, as there were for the development of those stores… and no franchisee depositers making involuntary contributions to cash flow… and hopefully lenders who are actually asking for proof that the work has been performed before disbursing payments.

Having to operate like a legitimate business will surely throw a wrench into the Cuppy’s way of doing business.

By: prozac is kicking in

prozac is kicking in — Thu, 04 Sep 2008 16:52:54 +0000

If his receivables are greater than his liabilities, can he declare bankruptcy? According to his BMM interview, there are 160 unopened stores in the system, 60 of which will be completed by end of first quarter 2009. Additionally, if there there has been fraud in the past, could bankruptcy forgive the liabilities resulting from that? Would a bankruptcy judge rule before any fraud investigations are completed? Could creditors (including involuntary investors) dispute the bankruptcy filing? Wouldn’t declaring bankruptcy and starting anew be an example of fraudulent conveyance or have I been overly influenced by Mr Webster and Mr Steinberg and now think I know something about law?

By: ADMIN

ADMIN — Thu, 04 Sep 2008 16:31:18 +0000

That’s the very definition of a Ponzi or pyramid scheme: keep taking in new money through the front door to hide the fact that it’s been flying out the back.

Or… perhaps he’s panning to clear out the old debts via bankruptcy and start anew in November.

Perhaps he’ll do what Morgan did: continue the shady practices of his predecessor but pretend he’s the savior and his hands are clean… as is his shiny new corporation.

By: Rick

Rick — Thu, 04 Sep 2008 13:00:31 +0000

Exactly.

By: prozac is kicking in

prozac is kicking in — Thu, 04 Sep 2008 12:26:49 +0000

How can Cuppy’s sell franchises when there are stores that have been paid for almost in full and not built out? Oh I get it, Dale will probably take those deposits and apply it to the build out of the unbuilt stores.

By: ADMIN

ADMIN — Thu, 04 Sep 2008 10:31:59 +0000

VC: Victims of Cuppy's Coffee need to speak out and be heard. This website and FranchisePick.com are tools for getting the word out collectively and bringing attention to this outrage. 1) Tell your story. Email unhappyfranchisee[at]gmail.com with a request for an interview questionaire. 2) Fill it out and return it with permission to post 3) Spread the word. Send emails and/or letters to state attorney generals, the FTC, the SBA, to the media, and whomever else will listen. Post on other sites. Include links to these pages to show that this is not an isolated incident but a major injustice involving many: Cuppy's Coffee Overview Cuppy's Coffee Blogliography 4) Email us or leave a comment about any locations you know that closed or that were Paid but Never Opened so we can update this page: List of Cuppy's Coffee locations, closures, never opened 5) Spread the word to keep this from happening again. It is rumored that Cuppy's plans to start selling franchises again in November. Why not? They've gotten away with your money so far!

By: Kelly

Kelly — Wed, 03 Sep 2008 22:33:35 +0000

VC,
What is happening here is VERY important, coupled with class-action suits by franchisees AND everyone involved should really consider making a complaint to your States Attorney General. Each State Attorney needs to hear from as many people as possible-with suits I think State A/G’s may to pay more attention especially if your attorney asks for an investigation rather than just a few complaints here and there (I’m not an attorney and don’t play one on TV)
So I’ll ask for a clarification if I’m incorrect-Am I correct Micheal Webster?
I think the solutions may take some time, but don’t discount the value and effect of shining the light of day by sharing your experiences here and on other forums.

By: Vc

Vc — Wed, 03 Sep 2008 21:33:40 +0000

Can someone tell me what everyone is doing about this problem?
People are losing there homes,others are not getting the money that they put in,
Cuppy’s/Elite are not coming foward/ clean they are not given us solutions so
the BIG ???????????? is WHO is doing anything about THIS? Lets find solutions to this mess.

By: ADMIN

ADMIN — Wed, 03 Sep 2008 20:40:09 +0000

Admin, What do you mean by “fraudulently acquired’?
Some have proposed that Elite Manufacturing/Cuppy’s Coffee was running a fraudulent scheme and were, in essence, getting payouts on the franchisee’s SBA loans by providing false information and claiming work was being performed and paid for when it was not.

So, a franchisee would come in and Cuppy’s/Elite via Funding Solutions would get them hooked up with an SBA loan for the buildout. Supposedly, Elite would keep requesting the staged payments as if the work was done when it wasn’t – and was not even paying the subcontractors who would later sue for nonpayment.