Franchise Bait-and-Switch: Daniel's Coffee Investors Lost Millions of Pesos, but Franchisor Won't Give Their Money Back
Cavite, Philippines — Chrisostomo Manalo and Rolet Manalo, a deacon couple of the Members Church of God International (MCGI), revealed the inside story of the Daniel's Coffee franchise business. The venture involved about 7 million pesos collected from church members, including a 2.5 million peso franchise fee and ongoing royalty obligations.
The couple claimed that after the Cavite franchise branch closed around mid-2023, investors suffered huge financial losses, and the financial support they had expected and the refund proposed by MCGI leader Daniel Razon never materialized.
The business began in 2019, when MCGI members from Cavite and several other areas pooled their money and set up a Daniel's Coffee branch at Robinsons Place Dasmariñas. They consulted with MCGI minister Nori Zabala about the franchise agreement.
According to the Manalos, investors paid an initial franchise fee of 2.5 million pesos, separate from monthly royalties and operating costs.
Franchisor Denied Knowing About the Agreement
The couple said that before the branch even opened, the investors were summoned to Apalit, where Daniel Razon, the franchisor, scolded them for bringing in too many investors and objected to their use of the Daniel's Coffee trademark and products.
Rolet said Razon acted as though he had no prior knowledge of the franchise agreement, even though he had already received the money.
She recalled that Razon asked whether it might be better to return the money, but no refund was ever made afterward.
The franchise branch was also reportedly prohibited from selling any products outside the approved menu, which limited the operators' room to adjust the menu and broaden their customer base.
By mid-2023, the business could no longer keep operating. The couple said employee salaries went unpaid, and they could not make their SSS, Pag-IBIG, and PhilHealth contributions.
Despite these difficulties, they claimed Zabala kept demanding money, including a demand for at least 1 million pesos more during the pandemic.
The remaining equipment was eventually sold to help pay off unpaid bills, including debts related to the store premises.
Sources
1. [Public interview with Chrisostomo Manalo and Rolet Manalo](https://www.youtube.com/watch?v=aFVMy2Wyc-Q&t=78s), October 10, 2025, especially 00:51:05–01:03:27.