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”
What do you think? Feel free to share a comment below.
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View Comments
Robert Morgan is an ordinary confidence criminal. Not a great one. He built an adoring audience in Florida, and now can afford to "work" at minimum wage. Wonderful.
I prefer Sam Antar's, a convicted confidence criminal, view on apologies from confidence criminals.
"Apologies for my crimes are irrelevant. It is my view that “apologies do not bring back the dead or undo the losses suffered by the victims of my crimes.” As I told Wall Street Journal reporter Herb Greenberg for his March 3, 2007 Wall Street Journal column entitled, “My Lunch with 2 Fraudsters: Food for Thought for Investors”:
"I don't want to be held up on the pedestal of redemption. I would rather people learn from my vile, ugly and vicious crimes. It is most important that they understand the ugly nature of criminality. My life is a mistake of history."
Robert Morgan will never be forgiven for his crimes.
I want to know what happened to Rawman Walkin, looked like another scam to me.
Gee whiz. Thanks for that. I'll print it and take it to my next hearing. Maybe then TD Bank will cancel all their efforts to take my house. Or maybe they won't. What do ya'll think?
Robert Morgan is a lying, self-serving P.O.S. who cares nothing about the damage he wrought, lives he ruined or bank accounts he drained. From the beginning, he had no intention of ensuring franchisees' success. His main concern was always being paid. Once he was paid, you were on your own.
This apology is an insult to those of us who lost our financial security, homes, savings, home equity, etc. Nobody wants to hear anything from this fraudster, especially not some lame, meaningless and empty apology. Furthermore, no one believes for one second that he and his family are "penniless...with no savings, business or personal property..." Morgan is a scammer and con man and will be until the day he dies (side note to Mr. Morgan: it's easy to "... take the money equation out of [your] life" after getting rich by stealing other people's money).
Mr. Morgan deserves every bit of misery, hardship, loss and suffering he endures in this lifetime and the next.
Michael Webster writes: "Robert Morgan is an ordinary confidence criminal."
I used to believe that, Mike, but I'm not so sure anymore. We've seen plenty of franchise scams in the last 5 years where slick franchisors built a well-hyped house of cards then exited with the cash as it started to collapse. This seems different to me.
I could be wrong, but it looks like the money lost here went to bloated overhead, a staff of 100 for a company that wasn't yet selling coffee, a daycare center, sales & real estate commissions, etc. It doesn't look like the work of a shrewd, calculated scammer. It looks more like an ill-advised, grandiose pipe-dream by people who did not have the experience, talent or judgement to pull it off. In that way, Morgan's admissions in the apology ring true.
I'm not defending his actions in any way. And whether it was intentional or not doesn't matter in the least to fred, who's trying to keep his house, or others who lost their savings and homes. But it does change the nature of the "lesson" others can take away from all of this.
The lesson in the other franchise scams seems to be "Don't get scammed by slick confidence men." In this case, I believe there's a lesson of "Don't get sucked into the alluring dreams by people who may mean well, but can't deliver."
Looking back, what indications were there that this group of people had the wherewithal to build a 300 unit chain of coffee shops overnight? Was there anyone at Cuppy's, Medina or Elite that had serious development experience at Starbucks, Dunkin Donuts or any other chain? I mean, their main operational consultant was former telemarketer Dale Nabors. Yet people handed over their life savings and put it all on the line for people with no track record of doing what they were counting on them to do.
Was this a case of a coldhearted scammer extracting money from innocent victims? Or was this a case of mass delusion? Was this a case of a company with a dream scenario and a crack sales staff but no ability to deliver... and franchisee investors so eager to believe that they turned off the critical thinking they applied in every other other area of their lives?
Just asking.
Admin, well before star Dale Nabors appeared on the scene, the experience of Cuppy's staff was outlined, trumpeted even. Ben Doyle, Morg and others all supposedly had experience in the restaurant business and franchising. Enough experience to supposedly get someone open in 5-7 months from signing. They got the financing approved fast enough. At the point I signed on there were multiple drive-throughs open. Didn't that show they knew what they were doing? They knew exactly what they were doing. But you never can ask too many questions, especially when you're told you're exactly what Cuppy's needs. What exactly do you mean by that?
"What exactly do you mean by that?"
By what?
What do you mean that I am exactly what Cuppy's needs? That I have what it takes to run a business? That I have reasonable expectations of what it means to start a business? That I will look good in the Cuppy's polo shirt? That my SBA loan will be easily approved, providing you with a source of funds to do whatever you want? That when I have had enough BS and don't open, I will just go away? That if I actually open, I will be successful in recruiting or encouraging more depositors?
Morg's apology means absolutely nothing to me or my family. We ended up having to file bankruptcy, and at this point are a few months away from losing our home. Aside from the monetary losses we incurred, we lost our dreams, our retirement and our children's future. But hey, thanks for thinking of us anyway. Your forgiveness will only come from He who makes the final judgement. I have faith that knows right where to send you.
Morgan was an ordinary con criminal because he spent as quickly as he stole.
Robert "Morg" Morgan is, was and always will be a con man. His appology is also a con. Who cares that he feels (supposedly) bad for what he did? All I want is my money back, you creep.
My experience with his entire organization was that they were trained to lie, cheat and steal people's money. When all hell broke loose, I sent Morg a letter, directly. Did he have enough business savy then to reply? NO! Where was my letter of response then that he was a bumbling jerk and that my money would not be returned? I received nothing from him. No letter, no returned money and certainly, NO appology.
All I received was grief from his expert con staff telling me to go away I wasn't getting my money back cause they spent it on "their" expenses. His contract was a ruse and not worth the paper it was written on. I spent the next year and a half and a lot of money pursuing legal ways to sue the bastard in getting my money back. Actually, I won in court. I have another worthless, expensive piece of paper saying I won from a Judge and Cuppy's/Morgan was suppose to pay me back, MY MONEY.
You guessed it. Never got a penny cause this A-hole skipped town, sold the company to another con man, whatever. No I was not totally stupid going into this. I did much research into the company. In the beginning Cuppy's was clean per the BBB etc. Plus, I have business experience. So don't anyone tell me it was ALL my fault for this and that. ALL of his staff were liars from the start. ALL!! Bar none.
I spoke with many others that Cuppy's screwed too. It was always the same story. They were lied to. Morgan's applolgy means NOTHING to me or anyone else he stole money and lives from. Penniless? As he states. I very much doubt it. Why the Attorney General of Florida didn't put this creep in a dark jail cell I will NEVER understand.
Robert "Morg" Morgan, I hope and wish the worst for you. Even Hell is too good for you.