CUPPY’S COFFEE: Franchise Sales Video & Earnings Claim Primer
September 5, 2008 by Sean Kelly
Filed under Business
Don’t put off watching this video. I doubt it will be up long.
Those who have been following the Cuppy’s Coffee franchise train wreck will appreciate the irony of the happy happy video compared with the actual nightmarish experiences of Cuppy’s Coffee franchisees.
Even if you have not followed the Cuppy’s Coffee alleged scam (or that of it’s predecessor and inspiration,Java Jo’z), this Cuppy’s Coffee franchise sales video demonstrates some sneaky examples of illegal earnings claims. Franchisors are prohibited from making any claims regarding past or future sales or profits, except in the context of the Item 19 section of the Franchise Disclosure Document (or, previously, the UFOC). This video, however, subtly indicates repeat business of 70% – 80%, customers who purchase 4-5 times per week, and a system that “keeps profit high.” While established franchisees are free to share their sales numbers one-on-one, in the context of a franchise marketing document these statements are essentially sales claims coming from the franchisor (or so I’ve been told by franchise attorneys).
They pack so many questionable claims into 7 minutes, it’s hard to pick a favorite. What’s yours?
Personally, I want to know more about the “proprietary system” for gathering email addresses. Sounds high-tech.
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Guest writes: Well Martha Merrit has a hard time making it in her store, she was also a Corporate Trainer opening stores and that didn’t go real well.
Ted who was in marketing and did web work is in the car.
Danny Jones and old employee Janice were sitting at the desk
Janice and long time employee James Anderson were at the Coming Soon sign (which was supposed to be a corporate location, never happened)
The support staff is ?, blond Amy Hiller, and then long time employees Heather and Jeni in the room together.
Rachel was the one speaking.