Archive for the “Networking” Category

pbkid2 (FranchisePick.Com)

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lapdog(FranchisePick.Com)

Is the American Association of Franchisees & Dealers (AAFD) the franchisee’s watchdog or the questionable franchisor’s lapdog?

Will the next edition of AAFD Founder Bob Purvin’s The Franchise Fraud be subtitled A How-To Guide?

Is one-time franchisee advocate Bob Purvin being held against his will in a tiny modular coffee kiosk, being coffee-boarded by some brutal barista until he writes emails like the one you’re about to read?

These were the questions that went through my mind after reading this correspondence left in the comment section of a recent blog post on the Cuppy’s “We’re not Java Jo’z” Coffee & More franchise opportunity.

After reading disturbing allegations about Cuppy’s Coffee and its affiliate Elite “We’re not Emerald Coast” Manufacturing, a prospective franchisee emailed the AAFD to inquire before she wire-transferred in her $39,500 “refundable” deposit.

Hi AAFD,
I am currently researching Cuppy’s to potentially buy a franchise. As you know, they earned AAFD accreditation last year with the highest score ever reached. There are now allegations showing up on blogs that Cuppy’s is indeed not playing by the rules with potential franchisees (see example link below). Considering I’m early in the process with Cuppy’s, the negative press they are still receiving is weighing heavily on my decision.
Can you please comment if you have received any communication from people with similar concerns? Has AAFD been aware of the allegations? If so, what’s AAFD doing about it?
Your help is greatly appreciated. I’ll look forward to your reply!

Sunday, March 16, she states received this reply:

Thank you for your inquiry regarding your prospective investment Cuppy’s Coffee. We have recently received several similar complaints registered IndexOpen-1114698 with us regarding Cuppy’s Coffee or an affiliated company, Elite Manufacturing, that handles build outs for Cuppy’s franchised units. Each of these complaints has involved demands for refunds when the prospective franchisee failed to be approved for franchising.

Our investigation has revealed that financing for Cuppy’s franchises has been affected by the national mortgage crisis. Recently, prospects who have been routinely approved have been declined for financing because lending sources have dried up. Cuppy’s has been unable fulfill cash refunds on a cash basis, and has been negotiating repayment terms. All of the complaints we have received have involved franchisees who declined to accept monthly payments for these refunds.

We’ve not received any complaints from Cuppy’s franchisees who are in business.

Last year Cuppy’s applied to receive AAFD Accredited Contract status from the AAFD. Cuppy’s dramatically amended their franchise agreement to earn AAFD Accreditation. This isn’t an award that a company earns for good deeds; it is an accreditation that the AAFD provides to companies whose franchise agreements conform to the AAFD’s Fair Franchising Standards.

If you signed the franchise agreement that was approved by the AAFD, you legal rights are far better to those of almost any franchise agreement in the world today. I would assume your legal counsel has advised you of this fact. FYI, the complaints we have received has to do with an agreement signed with Elite Manufacturing, which is not the franchise agreement, and is a document that we’ve no knowledge of.

I would be happy to visit with your legal counsel to see if I can be of assistance.

Best regards,

Bob Purvin
AAFD The Center for Total Quality Franchising!

From the AAFD website:

Fair Franchising Seal Recipients


The Fair Franchising Seal is a powerful marketing tool rewarding fair franchising practices. The AAFD honors Seal recipients in the marketplace and thereby encourages negotiated franchised relationships and ethical franchising practices. Only franchisors that earn the Fair Franchising Seal are eligible to market their franchise opportunities through the AAFD, and through AAFD sponsored trade shows. The AAFD Fair Franchising Seal sets a new standard for franchise selection.

VIVA FAIR FRANCHISING!

Sean Kelly

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(FranchisePick.Com) Pure Weight Loss & sole owner Vahan Karian go to Bankruptcy Court this morning. There will be a “Meeting of Creditors” at 10 am, March 14th at the William J. Green Federal Building in Philadelphia (600 Arch St., 2nd floor conference room, 10:00 am).

Check out this story on Pure Weight Loss and the lavish lifestyle of Vahan Karian from CT station NBC30

NBC 30 visited the address [of Pure Weight Loss HQ] in Horsham, Pa.

Nobody was there when NBC 30 visited, but there were signs that an auction company was about to sell the remaining furnishings.

Under state laws in Pennsylvania and Connecticut, a company’s top executives — not just the company — could be held responsible for failing to pay an employee.

Attorney General Richard Blumenthal said these employees deserve to have someone held accountable. “We’re going to hold accountable the individual, if there were violations logged, not just the company which may be without assets, but also individuals who have participated in any illegalities,” he stated.

NBC 30 then drove to the home of Vahan Karian, the president and sole owner of Pure Weight Loss.

No one came to the door of the home, which is estimated at nearly $1 million in value, with an enclosed pool connected to the back.

He and his wife allegedly also own three south Florida beach-front condominiums — One he purchased for $2.3 million three years ago and another he bought just over a year ago for nearly $2.6 million.

NBC 30 discovered financial filings that put Karian first in line to be paid in bankruptcy court, saying in part he loaned the company a quarter-million dollars in its final days.

In that paperwork, it appears he signed for both himself and the company.

That’s all legal, but the timing is under investigation by the attorney general in Pennsylvania. Pure Weight Loss branches closed by Jan. 4. The transaction appears to have taken place three days later and a few days after that, Pure Weight Loss filed for bankruptcy. …

In Pennsylvania, both the labor department and the attorney general’s office are investigating the company and its executives….

NBC 30 repeatedly tried to reach Vahan Karian and his attorneys. The calls haven’t been returned.

The say of Pennsylvania has logged more than 1,800 complaints against Pure Weight Loss.

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(FranchisePick.Com) Susan Gunelius over at brandcurve has an interesting post on McDonald’s new employee blog, Station M. Check it out:

McDonald’s - BraMcDonald's Station M Employee Blognding from the Inside Out by Susan Gunelius on March 12th, 2008

What better way to boost your brand image than by starting from within? I always tell clients that one of the most important aspects of building a successful brand is making sure your employees understand and live your brand promise. McDonald’s (NYSE: MCD) is buying into that strategy with the launch of Station M, the McDonald’s employee blog.

Station M will connect employees at nearly 15,000 McDonald’s locations… READ ON

Other franchise stories on brandcurve:

Photo © AdamL212 via Flickr

WHAT DO YOU THINK? SHARE A COMMENT BELOW.

__________________________

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

.

top new franchise opportunitiesFranchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

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dogwash

Featured Pet Franchise:

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(FranchisePick.Com)Pure Weight Loss & sole owner Vahan Karian go to Bankruptcy Court this morning.  There will be a “Meeting of Creditors” at 10 am, March 14th at the William J. Green Federal Building in Philadelphia (600 Arch St., 2nd floor conference room, 10:00 am).

Check out this story on Pure Weight Loss and the lavish lifestyle of Vahan Karian from CT station NBC30

NBC 30 visited the address [of Pure Weight Loss HQ] in Horsham, Pa.

Nobody was there when NBC 30 visited, but there were signs that an auction company was about to sell the remaining furnishings.

Under state laws in Pennsylvania and Connecticut, a company’s top executives — not just the company — could be held responsible for failing to pay an employee.

Attorney General Richard Blumenthal stated these employees deserve to have someone held accountable. “We’re going to hold accountable the individual, if there were violations logged, not just the company which may be without assets, but also individuals who have participated in any illegalities,” he said.

NBC 30 then drove to the home of Vahan Karian, the president and sole owner of Pure Weight Loss.

No one came to the door of the home, which is estimated at nearly $1 million in value, with an enclosed pool connected to the back.

He and his wife allegedly also own three south Florida beach-front condominiums — One he purchased for $2.3 million three years ago and another he bought just over a year ago for almost $2.6 million.

NBC 30 discovered financial filings that put Karian first in line to be paid in bankruptcy court, saying in part he loaned the company a quarter-million dollars in its final days.

In that paperwork, it appears he signed for both himself and the company.

That is all legal, but the timing is under investigation by the attorney general in Pennsylvania. Pure Weight Loss branches shut by Jan. 4. The transaction appears to have taken place three days later and a few days after that, Pure Weight Loss filed for bankruptcy. …

In Pennsylvania, both the labor department and the attorney general’s office are investigating the company and its executives….

NBC 30 repeatedly tried to reach Vahan Karian and his attorneys. The calls have not been returned.

The say of Pennsylvania has logged more than 1,800 complaints against Pure Weight Loss.

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(FranchisePick.Com) Susan Gunelius over at brandcurve has an interesting post on McDonald’s new employee blog, Station M. Check it out:

McDonald’s - BraMcDonald's Station M Employee Blognding from the Inside Out by Susan Gunelius on March 12th, 2008

What better way to boost your brand image than by starting from within? I always tell clients that one of the most important aspects of building a successful brand is making sure your employees comprehend and live your brand promise. McDonald’s (NYSE: MCD) is buying into that strategy with the launch of Station M, the McDonald’s employee blog.

Station M will connect employees at nearly 15,000 McDonald’s locations… READ ON

Other franchise stories on brandcurve:

Pic © AdamL212 via Flickr

WHAT DO YOU THINK? SHARE A COMMENT BELOW.

__________________________

Visit FRANBEST’s: Unbiased franchise information, franchise interviews and detailed, searchable information on 400 franchise and business opportunities.

.

top new franchise opportunitiesFranchisees, customers & experts vote for their favorite new franchises at Top New Franchise: Who’s hot. Who’s not.

Share This

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Just Dogs! Barkery Franchise Opportunity

Current Pet Franchise Posts:

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(Franchisee Marketing) When an owner launches their new business, they’re generally enthusiastic, upbeat, hopeful, and appreciative of each customer that honors them with a buy or membership.

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Burger King Franchise (FranchisePick.Com) A bitter & high-priced battle with NY franchise owners forces Burger King to disclose its secret retail strategy:

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