Java Jo’z Snowden Is Granted Second Motion to Continue Sentencing

FranBest FRANCHISE WATCH has been keeping tabs on the story of Java Jo’z franchisor Roy Snowden, who has been convicted of Tax Evasion & Fraud charges.  Numerous Java Jo’z franchisees have allegedly been unable to recover deposits of $20K & $30K made to Java Jo’z.  This is an excerpt from Janet Spark’s post on Blue MauMau:

First Motion to Refinance Home Denied

In an Order from the U.S. District Court, Northern District of Florida, Pensacola Division, Senior U.S. District Judge granted the Second Motion to Continue Sentencing in United States of America v. Roy P. Snowden. The motion, filed January 16, had requested that the sentencing scheduled for January 23, be continued due to a family medical crisis of Snowden’s counsel, preventing him to attend the sentencing.

Snowden’s first Motion to Continue Sentencing, filed January 10, had been denied by the court.  The motion was mainly on the grounds that Snowden had been in the process of refinancing his residential home, which had been approved in the amount of $1.4 million, which was less than 70% of the appraised value. 

The motion states that the defendant is in the process of seeking additional lenders that would loan up to approximately $1.7 or $1.8 million in the refinance. The refinance would eliminate a first and second mortgage and it states, “. . . it should leave sufficient funds to eliminate all of the back taxes, interest, and penalties.” The $1.4 million would eliminate the two mortgages and the balance of approximately $850,000 to $900,000 would be left to be payable to the I.R.S. against the taxes, penalties, and interest.

READ THE WHOLE POST HERE

Franchisors Extend Goodwill Offers to Java Jo’z Victims

The widespread coverage throughout the blogosphere regarding the franchise owners who lost the downpayments they made for Java Jo’z coffee franchises has caught the attention of some sympathetic franchisors. These franchisors have made the goodwill gesture to waive upfront fees or extend deep discounts to the approximately 10 individuals who were seeking to open franchises in their home towns.

Franchise owners must, of course, meet all franchisor requirements to join the system, but if they could be eligible to receive waived fees and significant discounts to help offset the money they lost. Franchisors are invited to contact seankelly@ideafarm.net if they wish to extend an offer.

According to FranBest.Com’s Sean Kelly: “This is a great opportunity for franchisors to step forward and show that franchising is not all about money. The best franchises are about creating win-win situations, and working together as a team toward a common goal. When they achieve that, the money follows.”

The first franchisor to extend an offer is Mark Deloury, Founder of Parrot Pizza, who offered to waive the $25,000 franchise fee for anyone who lost $20,000 or more to Java Jo’z.

Parrot Pizza: Will waive $25,000 franchise fee

Bad Ass Coffee Co.: Discount & Special Terms

In appreciation of their generous offers, FranBest.Com will provide a year of free franchise advertising on the FranBest.Com network to any franchise company that provides the fee waivers and/or discount to the victims of Java Jo’z.

For background information on the Java Jo’z & Cuppy’s coffee controversy, click here:

Franchise Pick Overview of Java Jo’z/ Cuppy’s Controversy

Java Jo’z, Emerald Coast Mfgr., Roy Snowden

Cuppy’s/Java Jo’z discussion on BlueMauMau.Com

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

 

Cuppy’s Coffee Issues Statement Regarding Java Jo’z Controversy

This official statement from Cuppy’s Coffee & More regarding the Java Jo’z controversy was posted in the comments section of a FranBest.Com post:

Company says Java Jo’z is NOT Cuppy’s Coffee & More

According to a recent wikipedia entry and in company correspondence, Cuppy’s Coffee & More emphatically states that it is a separate entity and not connected in any significant way (other than a shared logo) to Java Jo’z or the recently convicted Roy Snowden.

Confusion seems to be widespread, perhaps since Java Jo’z and Cuppy’s have the same corporate address, their domain names are registered to the same owner, they seem to have similar business concepts, some of the same corporate employees and they seem to share modified versions of the same logo.  However, according to Cuppy’s, the only relationship presently existing between Java Jo’z and Cuppy’s Coffee & More is a mutual right to use a certain logo  (visible at the Java Jo’z and Cuppy’s websites).  According to a Cuppy’s spokesperson, Roy Snowden has no ownership, control or affiliation with them, and the widely publicized dispute between Ben Scoble and Java Jo’z does not involve them.  According to Cuppy’s, they have never had a contractual relationship with Ben Scoble. 

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