CUPPY’S COFFEE: Lawsuits Mounting Against Medina, Elite

135 thoughts on “CUPPY’S COFFEE: Lawsuits Mounting Against Medina, Elite”

• JavaGal wrote: Dale DID NOT collect ANY MONEY and then spend that money for his own personal benefit. All money collected was spent on construction, operating expenses or making refunds.
  First, there was Java Jo’z, a Snowden/Morgan production.
  Then there was Cuppy’s Coffee, a Morg Morgan production.
  Then there was Cuppy’s II: Believe & Succeed, a Dale Nabors production.
  What do they all have in common? They all had lots of money entrusted to them. None of them used the funds strictly for their intended purposes.
  It is hardly noble to use money given to you as a refundable deposit to pay someone else’s construction costs.
  It’s hardly noble (or legal) to use someone else’s construction funds to move offices, or pay legal bills, or pay for an office move.

  Dale hasn’t made money, he’s lost money.
  One more for the “hardly noble” file.

  Very few people have any idea of the battles which Dale has taken on — in an effort to save Cuppy’s. It’s easy to critique, when you only have a small bit of information.
  True and true. Please share some of these battles so that all can better understand. Many of us don’t have access to “Coffee Talk with Dale” so we remain somewhat in the dark.

  Cuppy’s has become THE MOST TALKED ABOUT COFFEE COMPANY ON THE PLANET….
  It’s true that Cuppy’s is widely discussed. However, most of the discussion has been confined to http://www.unhappyfranchisee.com, http://www.franchisepick.com, blue mau mau, and the conference rooms of litigation and bankruptcy attorneys nationwide.

  Is Cuppy’s truly a coffee company? What is their total sales, systemwide, of coffee year-to-date? How about all-time? What is the franchisor’s income from coffee sales and royalties on coffee sales?

  Now, compare that to the amount of money that they’ve brought in (directly or through Elite, etc.) via deposits, construction funds, franchise fees, etc.?

  To be a coffee company, shouldn’t you actually derive income from, say, the sale of coffee?

  …and when everything is said and done…. I believe that Dale will use this for the benefit of ALL CUPPY’S FRANCHISEES!
  I’m sure if there are any franchisees still around “when everything is said and done,” they’ll build a monument to him in what was the former parking lot of the Muscle Shoals Piggly Wiggly, but by then would be the FranSynergy World Headquarters… located at the corner of Believe Blvd. & Succeed St..

• Amy writes “The dismissal of the SBT Lawsuit is a positive because it opens up avenues for moving projects forward”:

  Again, just to reiterate, anyone foolish enough to seek, or continue, a project with SBT/Medina/Cuppy’s, get what they deserve. Please do not allow them to take more of your hard earned money for their personal gain. Take any capital you have left and open as an independent. Forget these con artists. Even if you are lucky enough to get built out, they will not be there for you in the future. They have no foundation, no employees, no morals.

  For those waiting to open, run away as fast as you can. For those of us still owed refunds, keep up the heat. Do not allow Dale and Amy to continue playing their games with people’s lives. Do not take their renewed promises of building your stores. It will not happen.

• Okay let me fill everybody in on what is going on-I have contacted an SBA investigator and given him the names of the banks that have disbursed the funds illegally. I have given him the names of the people that had control of where the money was spent [Dale/Morg/Brian ] and given him the names of the people that knew where the money was going [Frankie/Amy]. I have contacted the FBI and told him of the tactics used to get the initial downpayment from people.

  I have given them sworn testimony that Dale has committed fraud regarding the disbursements from the bank. Dale told all of the employees that all subcontractors would be paid which we in turn told the banks so they would release the funds.This is fraud-cut and dry!!The people waiting on their refunds NEED to contact the FBI. Fraud was committed when you were told you would get financing when in fact a lot of you did not have a chance. Morg had the finance people tell you this so he could get your money. If you don’t call the FBI then there’s nothing else that can be done.

  As for all you people that had SBA loans you NEED to contact your banks and refuse to pay your loan payments until an investigation is launched against Dale/Brian/Cuppy’s/SBT. The banks were not supposed to release funds to these people until they verified that said work had been performed. The banks disbursed anyway. They should be held liable. There is one ex-employee from the finance dept [Steve] that is cooperating with the investigations and he is also talking to some of the lawyers of the franchisees. He told me that he would be willing to talk to any of the lawyers that wish to contact him regarding any of the issues above. His e-mail address is [Del].

  [Note: Have Steve contact me at unhappyfranchisee[at]gmail.com if he wants to give permission to have his email address given out. Anyone who wants it, email me at the same addy]

• It’s easy to get deluded into thinking that when you are looking at something day in and day out that the rest of the world is looking at the same thing. Over the years, I’ve worked with many many companies who thought they had a devoted following and name recognition, despite the market research indicating their customers thought of them as “The pizza place in the food court” or the coffee place near the train station.

  Only insiders are talking about Cuppy’s… and that’s been a negative. The rest of the coffee-buying public doesn’t give a rat’s behind. In my opinion, the “Cuppy’s” brand is not a reason to stick with these guys or entrust them or their associates with any more money.

  Plus, many like to think of their coffee shops as unique locally owned establishments. I’d bend over backward to keep the identity if it were Starbucks or even Caribou Coffee, but certainly wouldn’t bend over (or get bent over, as it were) to have Cuppy’s Coffee or that bizarre Cuphead dude on my sign.

• Regarding the Ex-Employee post 10/31 @ 3:07 p.m. — Could you please provide the specific FBI office phone number and or contact name if available that we should call? We want to make sure we call the appropriate venue.

  Thanks.

• On a positive note, SBT lost their tax abatement because the entity had ceased operations. That was earlier this month.

  On a negative note, guess that means that they are going to increase the cost on the franchisee’s build-outs to cover those costs too.

  Also, you can’t lead me to believe that Dale didn’t know what was happening. he made a post on BMM last March when the new stories of Cuppy’s franchisees getting screwed came out. He knew there was a liability there. He knew by taking over this company he’d have rent to pay in Florida (which he didn’t do). He should’ve known about the outstanding debt to SBT, and if he didn’t should’ve had a contigency in any sales agreement to cover those expenses.

• Has anyone contacted Funding Solutions to get a look at the profit projections, etc that they supplied to the banks in order to get funding. If these are fraudulant and inflated, could they be held liable?

• Could you please provide the specific FBI office phone number to where we need to direct our complaints???

• Javagal wrote on Oct 31… “Dale DID NOT collect ANY MONEY and then spend that money for his own personal benefit. All money collected was spent on construction, operating expenses or making refunds.”

  This is a total LIE!!! Dale did collect money under his ownership. I’m an exemployee that heard Dale tell several franchisees that if they would send in more money he would get them their equipment, furniture, etc… the franchisees sent in their additional money & they are still not open nor have they received any of the above items.

  JavaGal is still trying to protect Dale. It must be Amy Hiller.

  JavaGal also wrote this… “but I know enough to know that CUPPY’S will come through this and be stronger than ever!”

  FALSE Again!!! The Cuppy’s name has such a bad tast in peoples mouth that only an idiot would still open a coffee cafe & use that name.

  JavaGal also wrote… “Cuppy’s has become THE MOST TALKED ABOUT COFFEE COMPANY ON THE PLANET …. ”

  Yes it has been very popular topic but NOT for the good.

• JavaGal wrote: “Dale DID NOT collect ANY MONEY and then spend that money for his own personal benefit. All money collected was spent on construction, operating expenses or making refunds.”

  This is a total lie!!! Dale did collect money and he did not pay any refunds. If everyone remembers… Dale instructed the legal department to send an email letter to all the zees that were in refund telling them about delays and had legal department sign T. St.Clair’s name as if she wrote the letter. Which she did not. Do Dale has collected money and NOT sent equipment,etc nor has he paid employees nor has he paid refunds. So he does have money hid somewhere.

• He doesn’t have money hidden somewhere. He stopped all franchise sales and had a few franchisees send in some money. Where do you think the rest of the money came from to pay salaries from May to August, the rent for the ridiculous beachfront offices, etc. When Morg left the company was broke. Dale didn’t fire that many people until August. Again, where did the operating money come from? He spent his last dime moving the company to Alabama. There is NO money to pay refunds or employees.

• So no one pays royalties anymore? Even if they are not making money, last time I checked each opened franchise owed at least 300.00 per month. If any one decided they do not want to pay those fees then they are in as much default as Cuppys.

• Sure… then if that’s REALLY true (which I doubt) then Dale & Morg can pay restitution & spend time in prison for fraud. They both DID take money & DID NOT put the money toward the projects that it was suppost to go to. And don’t forget that both men, if you can call them men, have several lawsuits against them.

• Is someone heading up a class action lawsuit on all of this? If so, how can we get the attorneys name.

• last time I checked each opened franchise owed at least 300.00 per month. If any one decided they do not want to pay those fees then they are in as much default as Cuppys.

  Someone had posted that Cuppy’s Coffee had never collected or charged royalties… or even has the systems set up to collect royalties. Is this not true?

• Clearly stated in the franchise agreement after 4 months in service, you will begin to pay a monthly minimum of $300.00 for a cafe or $200.00 for a drive up unit. Section B8 5.02 outlines this.The proclaimed 1%… later eventually stated 2% , national marketing fee was the one that never got ramped up. In my opinion if one did not or is not paying the monthly fee, then they unfortunately are in default of the franchise agreement. Section 5.03 explains the ramifications of that manuever. Regardless, everyone who keeps spouting there are no assets is wrong, There is money coming in (or money that is owed) and that is the money I expect my over 100K disbursed loss to be refunded with. FYI, Fraud is not covered under bankruptcty.

• They could not very well hold you in default of your franchise agreement if there is no where to send your royalty check. There is no corporate office to send it to. Not to mention if they owe you money, they are in as much default as you would be. I doubt any arbitrator or court would hold you liable.

• Richard, I’m no bankruptcy expert, but if these royalties haven’t been paid, but are technically owed, I would imagine that the bankruptcy trustee would consider these assets to the company and will try to collect those royalties.

  With that being said, if you’ve been open a year and no royalties have been collected, you may want to take that into consideration and think of that when you are looking at your finances going forward.

• Admin wrote: “Someone had posted that Cuppy’s Coffee had never collected or charged royalies… or even has the systems set up to collect royalties. Is this not true?”

  Yes, this is true. the first + year Cuppy’s was selling franchises, part of a promotion from Elite is that NO franchisee fee is paid by zee & NO royalties were to be paid by zee.

• Pay royalties? ……………. ROFLMAO! Cuppys/Elite breached contract, lease was negotiated based on Elite build-out timeline ……….. which never happened. Cuppys/Elite owe us our build out money back + damages ………………. @ $300.00/month ………….. it will be a L-O-N-G time before royalties are owed if ever! Want your royalties ……………….. SUE ME! Oh, sorry can’t do that since you don’t have an attorney.

• If you’ve check the Okaloosa County website recently you’d see that default judgements are starting to be placed against the entities. It’s my understanding that Dale will not be defending the Medina/Elite lawsuits because he has no money to hire an attorney. Folks better start getting in line because the default judgements will be piling up and there isn’t much furniture left to sell off in Alabama.

• It looks as if Robert Morgans Domestic Battery charge was dismissed today. Per the Okaloosa Clerk of Court website.

• Turns out it was a nothing charge. He got into a confrontation with his teenage son.

• Maybe he caught his son returning something that didn’t belong to him.

  I’d imagine that would be inexcusable in the Morgan household.

• The older brother of teenager refiled domestic violence charges against Morg Morgan. This is the children of his wife who is still with Morg. Not only is she still by his side after his failures in business but his scams in the insurance business, fitness business & coffee business… now he’s beating up on HER children and she is still with him. NUTS

• …she is still with him. NUTS

  Maybe she’s still hoping to get her $39,500 refundable dowry returned.

  Maybe Dale Nabors should step in and fix these domestic problems.

  Maybe there should be a new reality show: Keeping Up With the Morg-ashians.

  Like Dog the Bounty Hunter except no one ever gets brought to justice.

• Yep. Another episode of Keeping Up with The Morg-ashians. This week’s episode includes the reintroduction of young maverick lawyer Rudolf Harper, a principled young man dedicated to keeping Morg Morgan out of court so that he may continue his good works on behalf of humanity and the American Way.

  Kind of like Mother Theresa if Mother Theresa had been dedicated to creating, not helping, the poor.

  In this week’s episode, the initial case against the Morg was dropped, but charges were refiled. Search Robert Morgan here: http://www.clerkofcourts.cc/court/courtsearch.htm and you’ll see these two suits and the San Gelato one too.

  ROBERT CHRYSLER MORGAN YOB: 1951 Attorney: RUDOLF HARPER
  Arrest Date: 10/13/2008
  Initial Charge: DOMESTIC VIOLENCE BATTERY
  11/12/2008 NOTICE OF APPEARANCE, DEMAND FOR DISCOVERY AND PLEA OF NOT GUILTY FILED BY ATTORNEY Attorney: HARPER, RUDOLF (0044102)
  11/12/2008 JUDGE PRE-TRIAL SET Event: JUDGE PRETRIAL Date: 01/15/2009 Time: 9:00 am Judge: MANEY, T PATTERSON Location: COURTROOM “C”

  Don’t miss the Keeping Up With the Morgashians Christmas Special.
  Will the Morgan boys like the countersuits in their stockings?
  Will Morg’s restraining order be the right color?
  Is that Dale Nabors in the Santa Suit?
  Will Uncle Roy be home for the holidays?
  You’ll have to tune in to see.

• LOL All sounds like a Jerry Springer show.

  ADMIN you to FUNNY………………

• im glad to know Morg trusts his life to a brand new attorney with no criminal law experience. I hope Rudy reads the Florida Rules of Criminal Procedure at least. Also, according the to the Florida Bar website, Rudy is working from his house, and doesnt have a # or email listed on his records. However, if anyone wanted to know that info, you can also do a public records request with the Clerk of Court because he is required to list his phone number on the pleadings he filed.

• Rudy is a smart cookie. I’m sure he’ll suggest, among other things, that Morg be required to go to “Anger Management” meetings. But of course, Morg would just sweet talk his way through them.

• okaloosa county requires a hell of a lot more than just anger management for DOMV charges…..

• Rudy is a smart cookie.
  Evidently not smart enough to distance himself from shady associates.
  Why would a smart cookies start a law career representing a client featured in a book called “Masters of Deception,” …after he personally witnessed countless people losing millions of dollars?
  Then again… he’ll always be kept busy, won’t he?

• ADMIN… the difference now would probably be that Morg has to do what attorney advises him to do.

• I doubt Morg follows his attorney’s advice too often, unless he’s found an attorney who advises: “My advice is to take a lot of money from people… tell them they’re ‘refundable deposits’… tell’m if they don’t get their funding or find a location, they’ll get it back right away! We’re the Cuppy’s family! Like those people in the Olive Garden commercial!

  “Escrow? Nah… spend the money as soon as they give it to you on other stuff. Let the caring employees jerk’m around for 6 or 8 months then tell’m you got no money! Have’m sign a gag order to get their money back… make two lil payments to show good faith, then stop. You can always ‘sell the assets not the liabilities’ (The ol’ Snowden Snow-job) or dump the whole thing and blame the next rube (the ol’ Bail Nabors).

  “Don’t worry… as long as you still got some coin your old employees and associates will always be willing to work with you again.”

• Here’s what I propose for franchisees and depositers:

  Post your Cuppy’s Coffee or Java Jo’z story here, factually and in interview form.

  http://www.unhappyfranchisee.com/2008/08/cuppys-coffee-overview/

  We’ve got 8 posted and one coming soon.

  Once there are at least ten, we start a serious email campaign to get some attention brought to bear on this situation.

  Just because you might not get your money back doesn’t mean you’ve got to go away quietly. At least get your story told so they don’t get away with this all together.

  Franchisees & Depositers: If interested, email unhappyfranchisee[at]gmail.com for the interview questionaire.

  As Guest has said, it’s unlikely there’s much money to be had, but at least you’ll have had the guts to do what they don’t count on: victims demanding to be heard.