CUPPY’S COFFEE

Cuppy’s Coffee and its previous and related entities (Java Jo’z, Emerald Coast Manufacturing, Elite Manufacturing, Medina Enterprises, Medina Management, Specialty Coffee Coop, and now FranSynergy) has been a controversial producer of unhappy franchisees throughout its few years of existence.

Criston Menz - Read Criston’s Story

In March, 2007, we sent a letter requesting the return of out $35,900 refundable deposit, per our agreement. Instead of sending us a check, they sent us a settlement agreement that stated they would keep the franchise fee of $15k and pay us $20,900 in 8 equal installments over 8 months. They stated that they had invested our monies in their “new” company. We found that unacceptable and unethical. We thought they had our refundable deposit set aside in escrow, as a professional company would have.

Robin & Corey Rivera - Read Robin & Corey’s Story

All we want is our $30,000 back. We gave it in good faith and under a written agreement… Why not return our money as agreed? …I called the company and left many messages. When I finally reached someone named Andrea, she hung up on me. What kind of way to run a business is this?

The company started out under the name Java Jo’z, and was run by founder Roy Snowden, Ben Doyle, Robert “Morg” Morgan, and Doug Hibbing. In 2005 and 2006, the company marketed Java Jo’z drive thru coffee business opportunities to individuals and collected $30,000 refundable deposits from dozens of prospective licensees, contingent upon their securing locations for their Java Jo’z drive up kiosks. When many of them returned for their deposits, they learned that Roy Snowden was going to prison for tax fraud, and “Morg” Morgan had created a new corporation (Medina Enterprises), purchased the “assets” but not the liabilities of Java Jo’z, and changed the name to Cuppy’s Coffee. Cuppy’s Coffee consisted of the same staff as Java Jo’z, occupied the same offices, and transitioned Java Jo’z licensees into Cuppy’s Coffee franchisees when possible, but refused to honor the refunds.

Unhappy Cuppy’s Coffee Franchisees:

Criston Menz - Cuppy’s Coffee
Robyn & Corey Rivera - Java Jo’z / Cuppy’s Coffee
Lina & Lee
Cuppy’s Coffee Franchise, Elite Manufacturing, Medina Complaints
CUPPY’S COFFEE, Java Jo’z, Elite Manufacturing, Medina Blogliography

The unhappy depositers included Ben Scoble, brother of prominent tech blogger Robert Scoble. Scoble blogged about the situation on his widely read Scobleizer.com. Franchise industry blogger Sean Kelly began publishing the story on his FranchisePick.Com, Franbest.com and FranchisorMarketing.com blogs, which featured complaints from the angry depositers themselves. From there, BlueMau Mau, about.Com, Franchise Times, and other outlets publicized the story. Despite hiring expensive attorneys, Public Relations and Internet “reputation management” firms, the negative press stalled the sale of new Cuppy’s Coffee franchises, and the company was forced to make settlements to many of the depositers in return for their silence. It’s unknown what the payment term were or whether they were honored by Cuppy’s Coffee.

Observers were shocked when the controversial Cuppy’s Coffee was given a “Fair Franchising” accreditation by the American Association of Franchisees and Dealers (AAFD) immediately following the controversy. The AAFD claimed the award was in recognition of their newly drafted contract, which had never been used at the time of the award. Some believed the AAFD was trying to incentivize Cuppy’s Coffee to break with its controversial past. If so, it didn’t work. Less than a year later, a new wave of victims appeared, alleging that Cuppy’s Coffee affiliate, Medina-owned Elite Manufacturing, had taken $35,900 “refundable” deposits from “pre-approved” Cuppy’s Coffee franchisees and refused to return them. Once again, they voiced their complaints on FranchisePick.Com, Rip-Off Report, and Blue Mau Mau.

Once again, angry depositers were forced to accept partial payments and/or extended payment schedules in exchange for their silence. Weeks before the annual AAFD conference, Cuppy’s Coffee again announced an ownership change, this time to company consultant Dale Nabors and FranSynergy. The AAFD inexplicably continued to defend Cuppy’s Coffee, and again honored its executives at their annual meeting.

While most of their detractors have been effectively gagged, others have yet to see a single dime of the money they gave to Morg Morgan and Cuppy’s Coffee.