Four years of warnings, ignored.

From the first store audit in December 2022 through formal legal notices, critical inspections, and the eventual termination, every step was documented.

1. December 1–3, 2022Store Audit

   First warning issued

   Initial compliance issues identified during store visit:

   • Digital menu system not updated (Raspberry Pi not installed)

   • Oven not cleaned — fire hazard and quality issue

   • Limited inventory management; price tags missing

   • Incomplete artwork and signage

   • Hand sink in back area non-operational

   • Ice machine leaking — safety hazard

   • Staff uniforms not properly maintained

   Corrective actions required with deadlines (Dec 16–23, 2022).

2. April 24, 2025Legal Notice of Default

   Formal default notice issued by counsel

   Attorney Schuyler “Rocky” Reidel issued a formal Notice of Default:

   • Health/Safety: non-branded plastic cups and french-fry bags used for food packaging

   • Equipment delays: required oven and machines still not installed (delayed since Feb 2025)

   • Communication failures: repeated failure to respond to franchisor emails and directives

   A 7-day cure period was provided. The franchisee acknowledged the defaults but failed to fully correct them.

3. May 21 & 29, 2025Critical Audit

   Catastrophic non-compliance documented

   Corporate inspection revealed critical health, safety and brand violations:

   • Food/beverages stored IN THE RESTROOM

   • Cold-brew machine with visible MOLD

   • Ice machine covered in grime

   • No expiration labeling on food items

   • Stale and improperly assembled sandwiches

   • Rusted equipment and utensils; trash can next to coffee grinder

   • Non-approved beverages (Yoga Nectar), unauthorized teas and syrups (expired 6+ months)

   • Wrong dairy and non-dairy milk brands; non-Qargo recipe manual in Chinese

   • Unbranded cups and napkins; incomplete/dirty staff uniforms

   • Unauthorized webcams instead of required Solink system

   Audit Score: 6 / 92 (6.52%) — 36 items flagged.

4. July 1, 2025Compliance Report

   Comprehensive 23-point compliance report issued

   Mandatory immediate actions required across product, sanitation, equipment, branding, security and personnel.

   Despite extensive corporate support, non-compliance continued.

5. January 15, 2026Termination

   Franchise Agreement Terminated

   After nearly four years of violations, multiple warnings, extensive support, and continued non-compliance, Qargo Coffee terminated the franchise agreement effective immediately under Section 15.2.1.18.

   Legal representation: Javier L. Esteve, Esq.