Tough break. It looks like the AAFD won’t be getting a share of the blood, sweat or tears of Cuppy’s Coffee franchise owners unless they extract it themselves.
Like many of the Cuppy’s Coffee employees fired after Dale Nabors bought the company, the American Association of Franchisees & Dealers (AAFD) surely misses the good old days when previous owner Morg Morgan cut them in on a share of the plunder.
In 2007, Morg Morgan’s Cuppy’s Coffee paid the AAFD what’s been called a “considerable sum of money” in exchange for an AAFD fair franchising award, for the ability to be paraded on stage at the AAFD annual franchise fairness-festival, and for AAFD Chairman Bob Purvin’s defense of the organization despite widespread complaints and indications that Cuppy’s Coffee was engaged in fraudulent, unethical and likely illegal franchise practices.
Calls for suspension of the fair franchising award were always met with assurances that some never-ending investigation was taking place while dozens more investors poured their savings down the AAFD-approved well of Cuppy’s Coffee. Then Dale Nabors’ Fransynergy purchased the Cuppy’s ragtag collection of companies in April, 2008. All was well with the AAFD until it became clear that the new owner was not going to continue to pay the rental fee for the AAFD’s halo of fairness. The AAFD boldly grew a pair and suspended Cuppy’s Coffee fair franchising status… several months after franchise sales ceased anyway.
In Janet Spark’s interview with the new owner, Nabors outlines what it would cost Cuppy’s Coffee to be named a fair franchise once again and to win back its place in the chorus line on the AAFD stage:
– The AAFD wants $100 per location the first year and the $300 per unit the second and third years, to run the Cuppy’s Coffee “independent” franchisee advisory council.
– The AAFD wants to receive 1.5% of all purchases made through a buying co-op that it would form and administer.
– The AAFD wants the exclusive right to mediate for franchisee disputes… at $350 an hour.
Read Dale Nabor’s reactions to Bob Purvin and the AAFD’s shake-down demands here: CUPPY’S COFFEE: AAFD Not Getting Its Share of the Spoils
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