International Law

Cuppy's Franchisor Suspended by AAFD

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At  BMM, the AAFD announced that it was suspending the AAFD's accreditation of the Cuppy's Coffee Franchisor:

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a determination of the Association's Board of Directors that AAFD's Accreditation of the Cuppy's contract should be withdrawn."

I am a long time member of the AAFD, and a recent Board member.

The AAFD's goal is to bring about collaborative franchising by having franchisors adopt franchise agreements that respect the genuine business interests of both parties.

And integral to that goal, is the establishment of an independent Franchisee Association, and IndFA, and the commitment to meaningful alternative dispute resolution.

Bob Purvin goes on to state:

"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.

As part of its commitment to collaborative franchising practices, Cuppy's adopted a new franchise agreement that substantially complied with the AAFD's Fair Franchising Standards and further agreed to support the formation of an independent franchisee association, to collaborate with the development of a purchasing cooperative to be jointly owned by Cuppy's and its franchisees, and to submit claims and disputes to mediation upon the request of any party."

Unfortunately, the commitment to these grand goals were not met.  

The AAFD then suspended the accreditation, pending a full Board meeting scheduled for September 4th.

Full post as published by Misleading Advertising Law on August 08, 2008 (boomark / email).