AAFD’s Statement Regarding the Suspension of Cuppy’s Coffee Accredited Contract Status

FranchiseWire:

The American Association of Franchisees and Dealers (AAFD) 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a determination of the Association’s Board of Directors that AAFD’s Accreditation of the Cuppy’s contract should be withdrawn.

In an Email to Cuppy’s CEO, Dale Nabors, AAFD Chairman Robert L. Purvin stated, “Due to the serious allegations that have been raised [regarding Cuppy’s failure to honor various contractual commitments], and your apparent decision to cease our communications, I have determined to suspend your Accredited status with the AAFD pending consideration and action of the AAFD Board of Directors.”

In a formal notice being delivered today to Cuppy’s Coffee, Purvin added, “In that the AAFD Board of Directors next meeting is set for September 4, 2008, I am acting to immediately to suspend Cuppy’s Accredited Contract status pending action of the AAFD Board. I am causing this action to be published on the AAFD Website, and to appropriate media. All listings of Cuppy’s Coffee will forthwith be removed from the AAFD Website, and we are instructing Cuppy’s management to remove all references to the AAFD from its Website and franchise marketing literature.”

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.

In February of this year, the AAFD became aware of several claims that Cuppy’s or its affiliate, Elite Manufacturing, was not honoring promised construction deposit refunds. The AAFD commenced a publicly announced investigation of these ‘refund’ claims, including tracking some 22 refund demands that had been made between October, 2007 and April 2008. The AAFD reported that if it was determined that Cuppy’s was not honoring the provisions of its Accredited Contract that the AAFD would act to suspend or withdraw AAFD Accredited status to the company.

Logo from Cuppy’s Coffee.