Cuppy's Franchisor Suspended by AAFD
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At BMM, the AAFD announced that it was suspending the AAFD's accreditation of the Cuppy's Coffee Franchisor:
"The American Association of Franchisees and Dealers announced today that it has suspended its recognition of Cuppy's Coffee and More, LLC as an AAFD Accredited Contract recipient, pending a determination of the Association's Board of Directors that AAFD's Accreditation of the Cuppy's contract should be withdrawn."
I am a long time member of the AAFD, and a recent Board member.
The AAFD's goal is to bring about collaborative franchising by having franchisors adopt franchise agreements that respect the genuine business interests of both parties.
And integral to that goal, is the establishment of an independent Franchisee Association, and IndFA, and the commitment to meaningful alternative dispute resolution.
Bob Purvin goes on to state:
"Cuppy's earned AAFD Accredited Status in May of 2007 in an admitted effort to reinvent its corporate personal and 'arise from the ashes' from legal and economic difficulties of its predecessor brand, Java Jo'z.
As part of its commitment to collaborative franchising practices, Cuppy's adopted a new franchise agreement that substantially complied with the AAFD's Fair Franchising Standards and further agreed to support the formation of an independent franchisee association, to collaborate with the development of a purchasing cooperative to be jointly owned by Cuppy's and its franchisees, and to submit claims and disputes to mediation upon the request of any party."
Unfortunately, the commitment to these grand goals were not met.
The AAFD then suspended the accreditation, pending a full Board meeting scheduled for September 4th.
Read More From BizOp News
August 6, 2008
Does Cold Stone Churn Locations?
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Over at Sean Kelly's Unhappy Franchisee, an ex franchisee of Cold Stone Creamery complains that the franchisor turned down 3 legitimate buyers of his franchise, that he was forced to close, and that the franchisor immediately resold the location - pocketing the fees that they would not have got had there been a transfer.
1. The first buyer flunked the personality test.
2. The second buyer flunked the interview with the corporation.
3. The third buyer, a local CS franchisee, needed money from the franchisor to complete the transaction, when none was forthcoming he withdrew.
In six months, the franchisee had only 3 potential buyers and none of them were approved.
Finally, because of failing sales the franchise closed and the franchisor re-opened it for around $45k to a new prospect.
Here is what I want to know: was the franchisee selling it for $45k? I doubt it - I read this story as a typical unhappy franchisee desperately looking for the next sucker to off load his piece of poo to.
Sean, am I wrong?
