Cuppy’s
Coffee Emerges with Spirit Undeterred After Mis-Association with Troubled
Coffee Chain
( Fort Walton Beach, Fla.)---
When Cuppy’s Coffee & More,
Inc., was formed in 2006, it hoped to capitalize on Americans’ never-ending
thirst for specialty coffee. Cuppy’s Coffee & More and its
new associates, however, never expected to dodge obstacles intended
for another company. Cuppy’s Coffee & More awards franchises
to its franchisees who purchase either a double drive-up building, an
in-line coffee café or a “tow-behind your automobile” mobile
unit from Cuppy’s approved vendor, Elite Manufacturing, LLC. Elite
Manufacturing is a wholly-owned subsidiary of Medina Enterprises Inc.
Medina Enterprises purchased
equipment, telephones and assumed the leases from another company that
licenses coffee businesses. Adding to
the public confusion, Cuppy’s Coffee leased offices in the same
business complex and some of the employees from the former coffee business
were offered positions and are now employed at Cuppy’s Coffee.
That’s how Cuppy’s problems began. Although the other
coffee company, Java Jo’z, still exists as a licensing company,
the owners of Java Jo’z have no financial, operational or legal
association with Cuppy’s Coffee, Elite Manufacturing or Medina. The
legal relationship separating the businesses is clearly defined, but
some individuals who have had disputes with Java Jo’z didn’t
readily understand the distinction.
“They would say we’re at the same location, we have the
same phone number and we have a similar looking logo, so therefore we
must be the same company,” said Doug Hibbing, president of Cuppy’s. “But
that’s simply not the case. Whenever I talk to a CPA or an attorney
and provide documentation, that CPA or attorney clearly realizes that
we are two separate unrelated entities. This confusion even lead
to the IRS initially thinking that we were the same business. Fortunately
for us, even that initial perception was corrected by the IRS’s
review of our documentation. Hibbing and Robert Morgan (owner of Medina
Enterprises, Inc.) believed that if the business model was operated as
a franchise, the core ideas behind Java Jo’z would surpass all
expectations. When the previous ownership decided to sell its assets,
the two set out to build a viable, well-managed business with Hibbing
at the helm of Cuppy’s and Morgan at Elite Manufacturing. Even
though Cuppy’s Coffee has no legal liability to the previous licensees
of Java Jo’z, Hibbing and Morgan have worked to accommodate their
concerns. They have arranged a no-cost conversion option to former Java
Jo’z licensees. In addition, Hibbing has offered a personal invitation
and complimentary accommodations to licensees who want to visit the corporate
headquarters in Fort Walton Beach, Fla. to see and learn first-hand the
opportunities at Cuppy’s Coffee. Hibbing candidly admits he should
have performed better due diligence. But there is a calm and determined
demeanor that emanates from his voice and one can sense it isn’t
the first time his determination has proved to be one of his strongest
traits. “With the incredible staff that we have supporting our
franchisees, I have no doubt that we can overcome any obstacles. We’re
doing that everyday.” Hibbing said.
Hibbing’s openness seems to mesh naturally with one of his primary
goals with Cuppy’s Coffee: Build a business with a reputation for
integrity. “Despite inheriting the misdirected criticisms, the
affable Hibbing hasn’t let it affect his enthusiasm for Cuppy’s
Coffee. Cuppy’s has opened 11 new locations since last May, has
70 stores in development and another 114 franchisees with leases or letters
of intent. “I saw an opportunity that was phenomenal in the QSR
(quick service restaurant) specialty coffee industry,” Hibbing
said. “It’s one of the fastest-growing segments of the coffee
industry. I wanted to step in and take a share of that market.”
