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

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• In the past, some drive-throughs in CA were not built out by Elite but built out by the franchisees using local contractors. They were not modular units but site built. I believe this had to do with licensing issues with Elite and their subcontractors.

  I am a little confused on the roles of council people. Shouldn’t they be considering at the functionality of the design with respect to purpose, whether traffic flow is sufficient, whether pedestrian access is safe, whether the business itself is appropriate for the community and does the community need or want it, and things along those lines? What exactly does “not being impressed with the design mean”?

  The units themselves are attractive, at least initially. An empty failed Cuppy’s drive-throughs that is falling apart because of poor construction (according to some owners) isn’t attractive at all.

• Dale,

  Nice to see you post....think maybe you can call or email us!

• Rick - I am not Dale, I am one of the franchisees who are out $150,000. Ask the admin for my email if you want to confirm. Your apology is accepted.

• OK, sorry Rick, my apology is due. Now I see what you are talking about, Dale responded to that article. I guess without a cup of that great Cuppy's coffee I came to the wrong conclusion. I really wish I had a cup of that great Cuppy's coffee Dale keeps talking about to keep my mind clear. Too bad there isn't one in my town.

• Who is opening the Lake Elsinore location?

  Why would anyone in their right mind proceed with an investment with this company?

  Would this modular unit be financed via an SBA loan? Does that mean the taxpayers will eventually foot the bill for its failure?

• Admin - Chances are the owners did not close on their loan yet. They most likely paid a deposit to Elite and spent a ton of money on engineering work and rent. There is one major SBA lender who is no longer closing on Cuppy's loans and I suspect a few others will follow suit. Some owners are personally finanicing their stores and that may be the case here.

  Again, sorry Rick for my rude response this morning. I have a much clearer mind after my morning cup (not Caffe D'Arte, of course).

• No apology needed...if it is not Dale than I owe the poster an apology...just don't know of anyone who would post a positive Cuppy's remark on this blog...

• Prozac:

  The UFOC registered in CA in 2007 has a list of "Franchisees who have not yet opened their restaurant as of December 31, 2006"

  Franchisee Bruce Holland of 133 S. Woodlake Rd, Lake Elsinore, CA is on that list.

  That means that Bruce Holland signed up in 2006 (at the latest) and is just getting zoning approval NOW... 2 years later...?

  There is a question as to who is even building the modular Drive-thru units at this point. Doesn't it seem crazy to go through with it - especially when another drive-thru coffee place failed there 8 months ago?

• I hope you don't mine me crashin ya'lls coffee klatch, but when Admin made the comment about the SBA and taxpayers I had to chime in!
  Yes, we(the paying taxpayin g public ) will end up footing the bill for the tens millions of default on loans, as well as all the ancillary defaults on home loans, car loans and bankruptcy's, not only for this sorry company but many others. Someon got drunk with giddy it would seem because many loans for "businesses" were given out that were secured by the franchisee using their homes, home equity and other real property. Those who believe that if you form a LLC it iwll protect your assests you are mistaken, because it will not if you willingly sign a paper that makes you personally responsible by using your home or other real property as collateral. Buyer beware.
  I would suggest that anyone who has lost money on these types of venture contact your State Attoreny General and file a formal complaint, the more effected x-franchisees to file, the better.

• Hi Bella - Welcome to the coffee klatch. You are correct, unless the LLC has significant assets then Cuppy's owners personally guarenteed their loans with collateral, such as their house. I also personally guarenteed my lease. I am at risk of losing my home with no store to show for it. It is one thing if I opened and failed even with the added burden of expensive delays caused by Cuppy's, and more likely because of them, but totally another thing to be bankrupted without a store being built.