California cease and desist order

http://www.corp.ca.gov/ENF/pdf/2006/beyondjuice.pdf


DESIST AND REFRAIN ORDER

State of California - Department of Corporations
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
TO: David Funk, President
Sally Kline, Vice President
Beyond Juice, dba Beyond Juice Inc.
10170 Splendor Ridge Avenue
Las Vegas, Nevada 89135
O.L.D., Incorporated
3155 E. Patrick Lane, Suite 1
Las Vegas, Nevada 89120-3481
Morrie Friedman, President, Secretary and Treasurer
O.L.D., Incorporated
6075 South Eastern Avenue, Suite 1,
Las Vegas, Nevada 89119-3146

DESIST AND REFRAIN ORDER
(For violations of section 31110 of the Corporations Code)
The California Corporations Commissioner finds that:
1. Beyond Juice, a Nevada corporation, which does business as Beyond Juice Inc., (referred to
hereafter as “Beyond Juice”) has a registered place of business at 10170 Splendor Ridge Avenue, Las
Vegas, Nevada 89135. David Funk is the President and Sally Kline is the Vice President of Beyond
Juice. Beyond Juice also has or had places of business at 22615 Mobile Street, West Hills, California
91307 and 7750 East Gelding Street, Suite 2, Scottsdale, Arizona, 85260.
2. O.L.D., Incorporated is a Nevada corporation with a registered place of business at 3155 E.
Patrick Lane, Suite 1, Las Vegas, Nevada 89120-3481. Morrie Friedman is the President, Secretary
and Treasurer of O.L.D., Incorporated whose registered address is 6075 South Eastern Avenue, Suite
1, Las Vegas, Nevada 89119. The Beyond Juice Website describes Morrie Friedman as one of the








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DESIST AND REFRAIN ORDER

State of California - Department of Corporations
original founders of Beyond Juice and states that he is “still fully active in the venture.” Morrie
Friedman and O.L.D., Incorporated act as agents on behalf of Beyond Juice in the sales of Beyond
Juice retail restaurant franchises and in leasing space for the restaurants.
3. Beyond Juice are the sellers of franchise opportunities described as “licenses” to own and
operate retail restaurants, called Beyond Juice Cafés that serve blended juice drinks also referred to in
promotional literature as “Meal In A Cup”. The Beyond Juice Website (www.beyondjuice.com)
advertises the franchise opportunity and indicates that the franchise can be purchased for between
$199,500 and $275,000 depending on local construction and real estate considerations.
4. A Beyond Juice License Agreement entered into with a California resident provided for a
total purchase price of $235,000. For this amount Beyond Juice promised to provide a complete
“turnkey” operation including a complete retail facility including lease deposits, leasehold
improvements, equipment and inventory consisting of 120 lbs of “Basic Blend Formula”. The
purchaser was required to pay “License Fees” of $3,500 the first year, $4,900 the second and
increasing each year until payments of $12,500 are required for years 6-10 and $13,000 for all
additional years. The agreement provided that the purchaser deliver to Beyond Juice an initial
payment of $30,000 with an additional payment of $28,750 to be paid upon the finding of an
acceptable location.
5. The agreement specified Beyond Juice will “immediately begin lease negotiations on the
mutually agreed site(s) chosen by the parties” and Beyond Juice “are totally responsible for these
lease negotiations as well as the contingent liability thereto, and will at the time of the occupancy
provide an ‘Occupancy Agreement’” to the purchaser. The agreement also provided that at the
conclusion of the lease negotiations the purchaser would pay another $30,000 to Beyond Juice. The
“Disclosure” section of the license agreement states “the store owner must purchase all Company
Formulas at all times from Company. Store is leased by O.L.D. Inc. and must be operated as a
Beyond Juice unit. If it is not operated as a Beyond Juice unit, O.L.D. may act independently to
protect its liability.”

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DESIST AND REFRAIN ORDER

State of California - Department of Corporations
6. Beyond Juice provides purchasers with training, as well as start up support that includes
assistance in selecting wholesale suppliers, selection and preparation of store location, hiring and
training personnel, handling and establishing protocol, and merchandising. Purchasers are also
entitled to ongoing assistance and advice relating to operation of the business. Purchasers are entitled
to use the marks and associated trade names, trademarks, service marks, logotypes and other
commercial symbols associated with Beyond Juice. Purchasers must comply with graphics
standardization, basic menus, conceptual integrity, and standards of service to the general public and
purchase ingredients for the various juice drinks from Beyond Juice.
7. Beyond Juice has offered and sold franchises to residents of California. The offer of
franchises by Beyond Juice has not been registered under the California Franchise Investment Law
and is not exempt under Chapter 1, beginning with Corporations Code section 31100 of that law.
Based upon the foregoing findings, the California Corporations Commissioner is of the
opinion that Beyond Juice, doing business as Beyond Juice Inc., O.L.D. Incorporated, Morris
Friedman, David Funk and Sally Kline have offered and sold franchises in California that were
subject to registration under the Franchise Investment Law without the offers first being registered, in
violation of Corporations Code section 31110. Pursuant to section 31402 of the Corporations Code,
Beyond Juice doing business as Beyond Juice Inc., O.L.D. Incorporated, Morrie Friedman, David
Funk and Sally Kline are hereby ordered to desist and refrain from the further offer or sale of
franchises, including but not limited to Beyond Juice franchises in California unless and until the

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DESIST AND REFRAIN ORDER

State of California - Department of Corporations
offers have been duly registered under the Franchise Investment Law or unless exempt.
This Order is necessary, in the public interest, for the protection of investors and consistent
with the purposes, policies and provisions of the Franchise Investment Law.
Dated: April 28, 2006
Los Angeles, California
WAYNE STRUMPFER
Acting California Corporations Commissioner
By
ALAN S. WEINGER
Acting Deputy Commissioner
Enforcement Division

Another store that has closed!

http://www.beta.travelok.com/toEat/foodDetail.asp?id=1-3RLU5

Beyond Juice
3209 S Broadway
Edmond, OK 73013

I talked to this owner when I was researching my store, He was struggling then. I wish he would have told me the facts. That he had not found a successful store and to save my money.

Paul of Redding

A detailed account of a typical Morrie Friedman deal

http://www.dfi.wa.gov/sd/orders/S-07-028-07-SC01.pdf

Carefully read point 12 in this order. I should asked those questions before I invested my life saving and because no answer would be forth coming, I would have avoided loosing our home, our returement, and a bankrupcy.

Paul of Redding