CUPPY’s Founder Robert “Morg” Morgan Apologizes to Franchisees
December 31, 2010
CUPPY’s Founder Robert “Morg” Morgan Apologizes to FranchiseesIn just a few short years, Cuppy’s Coffee burst onto the franchise scene, caused a stir, recruited a few hundred prospective franchisees, collected millions in fees, then collapsed… leaving a wake of personal and professional devastation.
(See Cuppy’s Coffee Overview for story links)
Many Cuppy’s Coffee franchisees were “preapproved” for financing from the company and gave its Elite Manufacturing affiliate $30K – $52K “refundable” deposits. When the franchisees were unable to secure funding, Elite refused (or was unable) to return their money.
Those who did get funding (often through SBA-backed loans secured with their homes) and a location have worse stories of construction delays, lack of support, and individual losses in the hundreds of thousands of dollars. Today, only a handful of Cuppy’s Coffee locations remain in business, some under other names. (See CUPPY’S COFFEE: List of Locations, Status)
UnhappyFranchisee.com has been a harsh critic of Cuppy’s founder Robert “Morg” Morgan, and Morgan’s hired consultant (who subsequently purchased, then abandoned, the company) Robert Dale Nabors. In recent months, Morg Morgan has been in communication with UnhappyFranchisee.com, and has expressed his remorse for the outcome of the failed franchise effort and the devastation and pain it caused.
As financial remuneration is not viable (Morgan is reportedly working for subsistence wages at a 501 c3 non-profit organization), UnhappyFranchisee.com suggested an apology. Robert “Morg” Morgan’s apology is posted in its entirety, below:
“Dear Cuppy’s Coffee franchisees, prospective franchisees or anyone else who lost money with Cuppy’s Coffee:
“I deeply apologize for any pain, financial and/or personal losses you and your families may have suffered by pursuing ownership of a Cuppy’s Coffee franchise.
“I am not apologizing in the hope of gaining your forgiveness, or gaining sympathy. I’ll never forgive myself for the pain and hardship I’ve caused not only you, but the employees, vendors and my family members. Not a day goes by that I don’t wish I could turn back the hands of time so things could have worked out differently.
“Some have characterized Cuppy’s Coffee as a scam from the start. I can assure you that my intention from the beginning was to build a world-class company that enriched the lives of all involved. To say I am deeply regretful for the many bad business decisions I made would be an understatement. I know now that I was ill-prepared to take on the responsibility of caring for the people that depended on me to make the right decisions. My sorrow for the pain I caused is beyond measure.
“My decisions were never intended to cause harm. I had believed in myself, my staff, the franchisees, and the Cuppy’s Coffee concept. My dream was to do something that would make a positive difference in other people’s lives, not to profit at their expense. That dream turned into a nightmare that permeates the lives of so many and continues to wound and harm the lives of hundreds of franchisees, employees, friends and family.
“I search my heart everyday and most of my nights are filled with tears and sorrow over what has happened to the franchisees, my family, staff and friends. I really thought I could make a difference with Medina and the other companies that I led. I was wrong about that, but there was not a day that I did not try to make things work for everyone. I just plain failed and thereby caused terrible suffering for everyone. Perhaps it does not matter that I did not intentionally do harm. The harm is evident and I was the leader of the company.
“I don’t know if my apology will help some of you or not, but it’s all I have to give. If I could restore your finances, I would. Despite what’s been reported, this venture left me and many of my family members penniless as well. I have no savings, business or personal property, and no, I have not moved my assets off shore or into anyone else’s name. However, I know my losses and hardship do not compare to what some of you have endured.
“I have left the business world with no plans to ever return. I will never again be involved with selling franchises or business opportunities. I have tried to take the money equation out of my life. It seems that for me money and the charge it holds confuses what I really am about, as a human being.
“I cannot adequately apologize or express my deepest sorrow for my bad decisions. I know that I will never get a second chance to erase the pain I have caused. I know it’s not possible to do, but I would give my very soul if I could turn back the hands of time and do things differently.
“Robert “Morg” Morgan”
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