AAFD Terminates Accreditation of Cuppy’s Coffee Franchise Agreement

AAFD Chairman Robert L. Purvin issued the afterward academic apprehension accepting delivered today to Cuppy’s Coffee CEO, Dale Nabors:

Since backward July, the AAFD has accustomed several austere allegations that Cuppy’s Coffee and its accessory Elite Manufacturing accept advisedly bootless to account acknowledged commitments apropos abundance body outs and openings, causing actual abuse to franchisees. The AAFD has arrive Cuppy’s to acknowledge to these complaints, and Cuppy’s has bootless to abode these latest allegations. In backward August, I acted to append Cuppy’s Accredited Contract cachet with the AAFD awaiting action by the AAFD’s Board of Directors.

On September 4, 2008, the AAFD Board of Directors voted absolutely to abjure AAFD Accredited Contract cachet for the Cuppy’s Franchise Agreement, able immediately.

In adjustment to advance AAFD Accredited Contract status, a franchisor have to both accept and account the accoutrement of a authorization acceding that essentially conforms to the AAFD Fair Franchising Standards.

In accession to Cuppy’s abortion to acknowledge to the AAFD’s invitations to acknowledge to abundant accuse of acknowledged defaults, contempo accessible statements by Dale Nabors accept about accustomed the defaults, alms alone that the defaults by Cuppy’s and its affiliates is not the aftereffect of bent activity.

Purvin added, “Cuppy’s has aswell reneged on specific commitments to arbitrate acknowledged disputes with its franchisees and to abutment and angel the alignment of its franchisees, but it was the changing claims of actual aperture of arrangement that led to the AAFD’s action, alpha with my accommodation to append Cuppy’s accreditation endure month.”

The AAFD Board of Directors met by appointment alarm on September 4, 2008. Purvin and Board Member and attorney, Michael Webster, gave abundant letters about the AAFD’s efforts to investigate franchisee complaints adjoin Cuppy’s.

Michael Webster appear that there was affirmation of Cuppy’s actionable accompaniment authorization laws, and agreeable in practices which materially added the accident of absence on SBA accustomed loans to the franchisees.

Purvin appear that all listings of Cuppy’s Coffee accept been removed from the AAFD Website, and Purvin aswell appear that it appears Cuppy’s has complied with the AAFD apprenticeship to abolish all references to the AAFD from its Website and all authorization business literature, in book and on the Internet.

Purvin and the AAFD Board abide to accept in the amount of AAFD Accredited contracts. “We intend to abide to admit companies that action authorization agreements that accede with the AAFD Standards, but our acquaintance with Cuppy’s demonstrates that the AAFD have to acutely brainwash investors that a fair arrangement is alone one agency in allotment a franchise, and the AAFD will aswell attack to do added to assure that Accredited Contract recipients account their contracts.”

The AAFD offers two forms of accreditation. The AAFD’s Fair Franchising Seal is awarded to complete companies with an accustomed clue almanac of collaborative franchisor-franchisee relationships, top franchisee satisfaction, and a authorization acceding that respects the AAFD’s Standards.

On the added hand, the AAFD Accredited Contract acceptance is accessible to companies as a aboriginal footfall to accretion abounding accreditation.

For both awards, the AAFD disclaims that AAFD Accreditation is a abounding endorsement of a authorization system’s advantage or business model. The AAFD encourages individuals to accomplish their own pre-purchase analysis and area accessible to acquaintance the franchisor’s absolute franchisee affiliation for added data on the business model.

The American Association of Franchisees and Dealers is a civic non-profit barter affiliation committed to announcement its eyes of Total Quality Franchising through the abutment of able and able franchisee associations and collaborative franchising practices. The AAFD currently supports some 60 franchisee groups apery added than 50,000 franchised units. The AAFD seeks to abutment a brand specific affiliate or absolute franchisee affiliation for every authorization arrangement operating aural North America.

For added advice , amuse appointment www.AAFD.org.