CUPPY’S COFFEE Franchise Graveyard

128 thoughts on “CUPPY’S COFFEE Franchise Graveyard”

• Criston –

  I’m one of the 42 people listed on the complaint. Do you know of any website that can link up to the info on case number #4607FR000060A? I’ve searched a variety of Florida court sites and haven’t been able to find anything. I’d like to get any available info for me and my attorney.

• Maria,

  It’s not a complaint and it isn’t in any court. This is simply a case number that they have assigned. There is no info available yet and i don’t think that they would release that info to you or your attorney even if they had it, because it would be confidential.

• I understand it is not a court and no legal action has been taken. But understand that it is more ACTION than many of us have had in years, literally, regarding the issue at hand. I am just trying to get people to call and get their name added. I also got an email regarding a conference call regarding our legal options at this point. If interested email me at cmenz@comcast.net and I will get you the details.

• Maria & Criston, I also have the same case #. George Simpon- please email me that attorneys name, i would love to have it! thank you

• I just got this email, so apparantly Dale Nabor is still taking peoples money and operating as Cuppy’s:

  Good afternoon everyone,

  I’ve read everyone’s mail about what’s going on how they can’t get this
  and that. I’m currently under construction and Cuppy’s is Back”! No lie,
  I’m currently getting the rest of my financing. We’re looking at an
  opening date sometime in April or May. Mr. Mancuso, of Caffe D’arte,
  Brian Hayes of Specialty Build Outs, and Mr. Dale are some wonderful
  people to get in contact with. Cuppy’s of Alexandria/Pineville
  Louisiana, coming soon!!!!!!
  So do your research and find out what’s really happening instead of
  listening to all the cyber via-emails lies………………Everything
  you need to have is right there, look, and contact the right people. I
  have!

• Whoever sent that e-mail is either a schill for Cuppy’s or a complete rube. If the former – shame on you. If the latter, prepare for heartache, dissapointment and ultimately bankruptcy.

  I will never cease to be amazed at how STUPID people can be. Wake up, dude, it’s a scam – was from the start.

• I have a docket number for a case filed in Florida in Oct. 2008, http://dockets.justia.com/docket/court-flndce/case_no-3:2008cv00457/case_id-51868, I am interested in joining a lawsuit against Cuppy’s et.al. They owe me $37,900. Do you have Dale’s e-mail address? I would love to contact him myself.

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• Suzy,

  That was a former employee that sued him for breach of contract. Has nothing to do with being a franchisee. There are a LARGE number of lawsuits against the entities in Okaloosa County (http://www.clerkofcourts.cc/court/courtsearch.htm).

• I have learned that a number of attorneys are up-to-speed and interested in discussing options with victims of Cuppy’s Coffee. One is Dady & Garner in Minneapolis – someone post the name and contact info if they’ve got it.
  Another is:
  Alejandro Brito, Esq.,
  & Melissa Bernheim, Esq.
  Zarco Einhorn Salkowski & Brito, P.A.
  100 S.E. 2nd Street
  Suite 2700
  Miami, FL 33131
  Tel. (305) 374-5418
  Fax (305) 374-5428

• Scott Korzenowski 612-359-5486 at Dady & Garner

• Another attorney looking at Cuppy’s was posted at FranchisePick.com:

  Aylstock, Witkin and Sasser 1-877-810-4808
  Mr D Thornburgh ”

• To Mike Wallace (most recent post on February 3rd, 2009 4:47 pm)

  Dude, you really need to come on back to the asylum. If you don’t have a ride, at least remember to take your medicine. Your woo woo is showing. Everybody out there knows…

• Betty:
  Mike Wallace is crazy because he calls THIS company a scam?
  http://www.franchisepick.com/franchise-controversies/cuppys-coffee-java-joz-elite-manufacturing-medina-blogliography/

  I could see how he could be criticized for restating the obvious… but amazingly it seems to need restating…

  Please, Betty. What am I missing?

• Yes Admin., you are missing a lot of details. Mike Wallace basically never paid Cuppy’s for anything after his down payment. He got lots and lots of freebies, from product to extra training-including plane fare and a free $15K sign. He was the first Java Joz to switch to Cuppy’s and he got a lot of perks for doing it. According to his wife, Mike basically dropped out of life during their buildout process and his wife, Danielle, was having a hard time trying to teach school, take care of their kids, monitor Mike’s violent outbursts and get their store open. From what we got, he refused to ever go to their store and stayed home in a dark room all day on the computer. Danielle even talked about Mike and a shot gun once, but I’ll skip the details. Mike and Daniel both know. The truth is that Mike Wallace is a real unstable guy who gets on here, spouting off and calling Morg out on his Christianity. I remember when Morg went to tx for a family funeral and spent a lot of time with the Wallace’s at their store in McKinney. At the time, that didn’t sound right to us at the office that Morg would be spending his time with the Wallace’s instead of his family, but that was just what Morg did. I’ve read Mike’s posts before complaining that he didn’t get his calls returned. It was the other way around. All I do know is that we really tried to help Mike and his wife get their store going and after a while they just dropped off the map and the next thing I heard was that they switched their name. The Wallace’s picked a real bad location against our advice in the first place and it just got worse from there. All they ever did was complain. I used to feel sorry for Danielle, but I don’t anymore. She has twisted the facts around just as bad as Mike has. Some franchise owners have legitimate complaints, but not the Wallace’s.

• Hello Betty Boop, I’m assuming you work for Cuppy’s. First, I will start by saying that you need to seriously think about what you are posting regarding my personal character and behavior. Much of what you say in your post is absolute calumny (i.e., defamation), and if you persist, I will find out who you are and sue you.

  Now, on to the facts. Let me just take apart your assertions one-by-one:

  1. Mike Wallace basically never paid Cuppy’s for anything after his down payment.
  Wrong – I paid Cuppy’s/Elite $238K and spent much more of my personal money to fix what was botched from the start.

  2. He got lots and lots of freebies, from product to extra training-including plane fare and a free $15K sign.
  Wrong – I got nothing for free. My wife and I never flew to FL for training, we drove (and paid for our own gas, food and lodging). As for the sign, I simply made Cuppy’s replace the sign that was incorrectly built under Susan Boyd’s project management.

  3. Mike basically dropped out of life during their buildout process and his wife, Danielle, was having a hard time trying to teach school, take care of their kids, monitor Mike’s violent outbursts and get their store open.
  Wrong – I continued to work at the coffee shop and my full-time job throughout the time we were open. It was me that picked my daugher up from school everyday (I even fell asleep in the car line once from exhaustion). It was me, the whole way, who fought Cuppy’s to try and get what we paid for – maybe you think that constitutes “violent” behavior, I don’t know.

  4. [Mike] he refused to ever go to their store and stayed home in a dark room all day on the computer. Danielle even talked about Mike and a shot gun once, but I’ll skip the details.
  Wrong – First, you are treading thin ice here. This is the one comment you make that I am seriously considering legal action over. If you are so sure of what you know, let’s see some details coward. Now, to correct. I don’t own ANY weapons. I worked in that store EVERYDAY until we finally had to declare bankruptcy.

  5. The Wallace’s picked a real bad location against our advice in the first place and it just got worse from there.
  Wrong – Our location was RECOMMENDED to us by Cuppy’s. They told us what a marvelous location it will be, as the traffic counts were “phenomenal.”

  6. Some franchise owners have legitimate complaints, but not the Wallace’s.
  Wrong – I have documentation and considerable work that was done by my attorney that clearly shows the many violations of state and federal law perpetrated by Cuppy’s.

  What I didn’t address in Miss Boop’s post has been covered in other places and I’m not going to rehash it all.

  To sum up: Cuppy’s (Robert Morgan et. al.) took our money and left us with an aboslute mess that we couldn’t clean up. The results have been devastating for us financially (over $230K lost). At this point, I don’t care who gives those crooks their money. At this point, anyone who doesn’t see Cuppy’s for what it is deserves to be ripped off.

  Regards,
  Mike Wallace

• betty boop must be amy hiller – fat and busty

• Anyone no anything else about those so called “wonderful people” Mr. Dale, Brian Hayes and Caffe Darte Joe?

• Cafe Darte has been working closely with all of the franchisees that were open before the collapse (and have opened since) continuing to supply them with product. They have been a pleasure to work with. Brian Hayes has been working with a number of franchisees that Dale left holding the bag (deposit in, lease signed, NO buildout) to help get their stores built and open. Mr. Dale has fallen off the face of the earth. No communication from him since September.

• Yes, Joe from Cafe Darte did contact me also. The email I am referring to stated something to the effect “Cuppys is back” and listed Mr. Dale along with Brain and Joe. Kinda threw a red flag up for me. I sure hope Cafe Darte isn’t enlisting/associating with Mr. Dale behind the scenes. I would hate to see a great family run coffee (Cafe Darte) go down the tubes.

• I have a question for those Cuppy’s still in business: I am wondering how many Cuppy’s have changed their name? And if there may be legal rammifications by those of us who still have the Cuppy’s name on our buildings??

• I have a bigger question. Since Cuppys has not legally, nor officially halted operations, How could an existing franchisee change their name? How could an existing franchisee discontinue paying royalties? They must go through the legal process. Two wrongs don’t make a right. If I was an existing operating franchisee, I would be making sure I followed the agreement to the T until no longer legally bound. Unfortunately for me I have lost more money than most and did not even get a chance to build out, but I can guarantee you I am following the legal process to resolve the mess I am currently in.

• 
  

• The franchisor would be in default of the franchise agreement. The franchisee would need to follow the procedures outlined in the FA to declare the franchisor in default and cancel the agreement. I’m sure it would involve sending a certified letter to the franchisor establishing the conditions of the breach, allowing a period to cure and failing the cure, would result in the breach.

• CA , SHASTA LAKE CITY paid –never opened

• Cuppy’s Coffee: Who’s suing them now
  http://www.unhappyfranchisee.com/2009/02/cuppys-coffee-whos-suing-them-now/

  Please add any status updates or contact information to that post.

• I’m from Rialto California, I paid for the Cuppy’s franchise but never get to open or even to win a bid for a location, at this time I’m filing a case along with othe franchisee’s.

• Where exactly would these Cuppy’s be sending royalties since they feel off the face of the earth???

• Cuppy’s has never collected royalties. In fact, it’s been reported they never even set up the procedures to collect royalties.

  Legit franchise companies make their money by collecting royalties long term from successful franchise owners. Wonder what this indicates?

• Actually, they did collect royalties from those franchisees dumb enough to send them in without asking. The early group of java joz to Cuppy’s converts had a flat royalty (in some cases as low as $50 per month) and some of the franchisees just sent in a check every month. In terms of a system for collection, they had an excel spreadsheet, does that count?

• Regardless if there is an address to send the payments to or not , a contract is a contract until mutually / legally void. My thought is at some point an existing operating franchise may get a call stating “oh by the way” your royalties we have not recieved for the past year are now due.

• My question had nothing at all to do with royalties. It had to do with other lawsuits going on and if per way off chance if we franchisees might could be held to something associated with the Corporate Cuppys. I have had several other business people state that I should disassociate with Cuppys’ due to legality – thats all.

  And who is to say that we couldn’t become liable for future revenues?? Wondering if anyone else had something to know about that?

  Probably better to change my name than to have more go wrong.

• Amy:
  There are franchisees who planned to sue even before their stores were opened. I was surprised that they still opened using the name “Cuppy’s Coffee” and asked them about it. They said that their attorneys had told them that it was better for their case to be operating under that name until they sued.
  Honestly, I don’t know what that reason is, but you should find out. My initial reaction would have been the same as the businesspeople you spoke to – but the lawyers opinion is what counts in this circumstance.
  Does anyone know the reason its better to keep operating under the Cuppy’s Coffee name if one plans to litigate?

• Admin,

  Technically they are still a franchisee of Cuppy’s Coffee until such time as their franchise agreement is terminated. Clearly, the franchisor has breached the agreement but I’m sure there is a process in the agreement to first notify the franchisor of the alleged breach, a chance for the zor to reply and cure and failing that, to notify them of their default and your intention to void the agreement. That would be the best course of action. What happens if the zor files bankruptcy and someone “buys” the assets. Among the assets would be the projected royalty stream. Unless that agreement is terminated the acquiror would be entitled to royalties going forward.

• Cuppy’s Coffee is a fraud. We were the National sign company for Cuppy’s Coffee and we have been completely ripped off. We were constantly lied to from all of the employees from Cuppy’s and especially the so called owner Dale. Where has Dale gone? The man with supposed high morals has dissappeared. I do feel bad for some of the franchisee and feel nothing for others. There are many open stores out there with signs that were never paid for. We asked these stores to pay for the signs and they refused saying it was not their problem. Cuppy’s did more than rip people off. They turned good people into people like themselves. Franchisees who got ripped off now feel since they were ripped off they should screw other people as well. There are stores open with signs that were never paid for and the franchisees don’t even care. We kept shipping signs because we di not want to hurt these franchisees but in the end they could care less and hurt us.

• Let me tell you about my experiences with Choice signs…. they hired the firm to install a sign at my location while my buildout was taking place (which was fine). The project manager watched them come in, setup and try and drill “one” hole for 5 minutes. They apparently didn’t bring the right equipment to drill through regular tile (why I don’t know – they had the plans and new what the underlayment was made of). After the 5 minutes were up, they packed up their stuff and never came back. I had to chase them down through cuppy’s to try and get them back. They refused to come back unless all “100” holes were pre-drilled (by the way, they designed the sign and the installation of it) . The drilling of the holes is part of their installation procedure which I paid for. I, personally, tore down about 60 sq ft of tile from the wall, paid for more tile and then had to pay a tile-installer “again” to re-install the tile. This time, he pre-cut all the holes because they don’t know how to use a drill-bit. This mis-hap on their management cost me about $3,000.

  Bottom line: Choice signs – I don’t want to here you complaining. Your business practices are far from stellar. Perhaps you should spend more time subbing out to the right people.

• Joe didn’t “ask” franchisees to pay for the signs they already paid Cuppy’s for, he threatened them with liens if they didn’t. He made a poor business decision in continuing to produce signs for Cuppy’s when the company was not paying the bills and franchisees got screwed yet again.

• Cuppy’s mobile in Elyria is alive and thriving. I refuse to lose. I figure if you have a kiosk, drive-thru, or cafe, you are at the mercy of the economy. If you have a mobile, you are at the mercy of your own ambition. I have already been to the Indy 500, Allstate 400, Moto GP at Indy, and the best part is that a certain company noticed my ambition, and invited me to work at this years’ Super Bowl with them, in Tampa, Florida, just not as Cuppy’s. Good Luck to all of you.

• Another reason to change our names.

• Beth:

  awesome! I just signed a contract with ISC to do Daytona, Homestead, Bristol, Atlanta and Talledega with my mobile unit

• WHAT A MESS! I am so sorry that so many people became victims of this horrible situation. I invested in Cuppy’s back in 2007 and opened and started operating my mobile cafe in March of 2008. Unlike alot of the mobile cafes, I have done relatively well. I am still operating but I have significantly reduced the events that I participate in as well as where I will go. I have upgraded the machine in many ways and put other investments into it. The machine is a great machine but it requires alot of hard work and dedication. I have a contract with Lowe’s Motor Speedway in Concord, NC and have contracts with other larger venues/events. I still would like to team up with another mobile unit. The product if a great product and speaks for itself. Go to my website and you will be amazed at what you can do with a little ambition!

• By the way, I’m the Mobile Cafe of Greensboro, North Carolina.

• Hettion Booker:
  Thanks for the update and congratulations.
  Operating a mobile business at events is tough and takes a lot of energy… good for you and Beth and the others still toughing it out!

• We paid money to Cuppys for Cafe to be opened in HOUMA, LA in Feb 2007. The list is showing the cuppys drive thru in Houma, LA, which is closed now but we were supposed to open CAFE in the same city on different location. On cuppys website it was showing coming soon for longer time and when we started asking our money back, they just took our location out of their website in August 2008.

• Poonam Khapra:
  Sorry to hear that. That makes at least 3 that lost money in Houma, LA from these guys. Robyn & Corey Rivera were the first… they lost money when it was called Java Jo’z. Here’s their interview:
  http://www.unhappyfranchisee.com/seeking-my-30k-deposit-from-morg-morgan-cuppys-coffee-java-joz/

• The IA – Des Moines: store opened in April 2008 – Closed December 2008
  The IA – Ames operation is a mobile unit

• Dale N. Is an idiot! I am glad he was caught after all the frustration it took to get open and then have to deal with him. I hope you all can get your money back. We are still going in Westminster, Colorado. Good luck to all of you

• Jim, glad to hear that you and Renae are still open.

• Thanks, read your story on another site, hope you are doing better! Was glad to see you guys get open

• I am trying to add my name. I am in Metairie Louisiana and I paid and never opened, never received any assistance….NOTHING!!!!