July 3, 2007
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Commissioner to Be “New Pair of Eyes” to Look into Case
ANN ARBOR, Mich. (Blue MauMau) - After a lengthy exchange of emails and letters with the State of Maryland, Coffee Beanery franchisees Deborah Williams and Richard Welshans now have received new hope that the state will look deeper into the allegations they have brought against the franchisor. In her letter dated June 29, 2007, Securities Commissioner Melanie Senter Lubin assured the franchisees that the state was taking their claims against Coffee Beanery very seriously, and that the Attorney General had asked her to be the “new pair of eyes” to look into the case. Not only will they be looking to see if the company violated the Maryland Franchise Registration and Disclosure Law, but also its 2006 Consent Order issued against the company.
Franchisees Response: ’Shocked” at State Allowing UFOC Amendment
In their June 2 response to Commissioner Lubin’s letter, Williams and Welshans said they felt The Coffee Beanery was able to “get around” the issue of whether it disclosed its cafe concept on a timely basis. They wrote, “We are shocked . . . that Coffee Beanery was given an opportunity by the state to amend, this obvious violation of the Consent Order and Maryland Franchise Law.” They also stated that even though the franchisor was given the opportunity to skate by the law again, the amended version is still in violation of the 2006 Consent Order and Maryland franchise laws.
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