Cuppy’s & Java Jo’z: A Cautionary Tale

Here is a quick (and carefully worded) recap:  A number of individuals claim that they paid refundable fees of $20K & $30K to a company (Java Jo’z) contingent upon finding a location.  They can’t find locations & ask for their money back.  They are told that the assets of the company the individuals paid have been sold to another company (Cuppy’s), and their money is gone.  Sorry.  The individuals are confused because the new company looks like the same people sitting in the same desks in the same office as the old company, but now their logoed shirts say “Cuppy’s” instead of “Java Jo’z.”  The new, improved company hires high-powered lawyers to patiently and emphatically explain to these people that the new shirts mean they should go away quietly and leave them alone.

What are the lessons here for prospective franchisees?  Don’t ever put money down on a franchise, even if refundable?  Insist on an escrow account?  What are the lessons would-be franchise buyers can take away from this unfortunate situation?

What are the lessons here for franchisors?  Can you really transfer assets without the bad will and unresolved complaints coming along?  Is it cheaper in the long run to make amends and show good faith, or to use legal and PR efforts to silence the debate?  Has blogging made tactics of the past obsolete?

What positive lessons can we learn from this debacle?

Related Posts:  Why Java Jo’z problems are Cuppy’s problems


One reply on “Cuppy’s & Java Jo’z: A Cautionary Tale”

When a thing ceases to be a subject of controversy, it ceases to be a subject of interest.

I am so really extremly shocked to see all of the post on the matter I discussed earlier are gone. Everything I have posted on this matter has been deleted. Someone tell me there has got to be something I can do about this. Cuppy’s is/ has to be breaking some law by deleting these post and redirecting URL’s. I fully plan to look into this, I spoke to the IT guy At work today and he says it is a break of federal law. That these people seem to just be getting themselves into more trouble. This really has my attention now. And anyone interested in free speach or even the gift we have been given to blog our thoughts and opinions should be deeply concerned by this company’s obviouse attempt at silencing it’s criticts. I can not believe that any lawyer representing this company would give them this advice. I know one thing I am not Scoble , I will set up a 1000 different blogs and let them delete them so that I can sue. Not for money but principal. How dare they think they have some power over the internet.

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