Squabble Sours Java Brewing
Three years ago, the sweet smell of success at Louisville’s Java Brewing Co. had the aroma of freshly roasted coffee.
These days, it’s more like yesterday’s soggy grounds. Once on the verge of becoming a regional player in the specialty coffeehouse segment, Java has closed several Louisville stores and has a lawsuit brewing in federal court.
The litigation pits Java co-founder Mike Safai against John Bollinger, whom Safai chose in 2003 to handle an ambitious plan to franchise Java-branded outlets nationwide.
On behalf of his Java Brewing Franchise Development Co., Bollinger has sued Safai and several of his business entities, claiming they want to end Bollinger’s relationship with Java in violation of a franchise development agreement.
The complaint includes civil charges of breach of contract, trademark infringement and more than a dozen other federal and state law violations.
A letter from one of Bollinger’s lawyers included in the complaint alleges that Safai is planning to open his own line of coffee shops.
“It’s just an extremely sad situation,” said Bollinger, who declined to comment further.
Safai did not return calls seeking comment. His lawyer, Cynthia Stewart, said she couldn’t comment without Safai’s permission.
Mike Safai and his wife, Medora, spent years developing their coffeehouse concept, from roasting their own beans to creating a comfy, living-room feel in their stores. Their shop on Frankfort Avenue and drive-through on Shelbyville Road toasted Louisville with coffees named Crescent Hill and Cherokee Triangle.
In May 2003, they signed a franchise development agreement with Bollinger, a restaurant veteran and co-owner of Pizzeria Uno Chicago Grill in Fern Creek. It gave Bollinger’s new company exclusive rights to sell Java Brewing franchises and the “irrevocable, perpetual and exclusive right” to use the Java trademarks.
The agreement granted Safai 5 percent of the $25,000 fee from each franchise sold and a small royalty on store sales. Safai would be the sole provider of coffee and equipment to franchised stores.
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