Two Denver coffee shops have defected from Dazbog Coffee.

After closing Tuesday night as franchise locations for the Russian-themed company, the coffee shops at 110 16th St. and 1200 Clayton St. reopened Wednesday morning as Genessee Coffee stores.

Under the cover of night, workers removed the red-and-black Dazbog signs, tiled and painted over the Denver-based firm’s signature Russian-language writing on the walls, and replaced the menu boards to reflect an all-local lineup of food and coffee.

Now filling the pastry cases are baked goods from Denver’s City Bakery, and the coffee beans are from local roasters Corvus and Novo.

“Financially, we couldn’t go any longer, so we decided to debrand and rebrand and face the consequences,” said Jim Burridge, a Dazbog franchisee who owned the two locations with his late son, Brian, for six years. “We told them we were going to do it. We called their bluff.”

How long the coffee shops will remain Genessee Coffee locations remains to be seen.

Dazbog president and chief operating officer Leonid Yuffa said Wednesday the company plans to take “immediate possession” of the store locations.

“We were surprised to see our former franchisee Jim Burridge and his company, Padbros Enterprises LLC, step outside of the legal process and violate their franchise agreement with us by rebranding our two Dazbog stores in violation of Dazbog’s rights,” Yuffa said in a prepared statement. “Some of the issues are currently pending in Denver District Court in an action first initiated by Padbros, and we believe that they should be resolved, as needed, through that process.”

Dazbog has terminated Padbros’ franchise agreements and told the stores’ landlords that it plans to take possession of the locations, he said.

Padbros sued Dazbog Coffee in Denver District Court in December to get out of its franchise agreement, claiming the company engages in unfair business practices, including overcharging its franchisees for goods. That case has been in the motions stage for more than four months, records show.

Other franchisees had filed similar lawsuits, which were resolved in arbitration in October with owners being let out of their contracts.

Those owners included Genessee Elinoff, who converted her Denver Tech Center Dazbog to Genessee Coffee, featuring small-batch coffee and goods from companies with ethical and eco-conscious bents, she said.

“I think we deserve more out of our cup of coffee,” said Elinoff, who is consulting with Burridge on his stores and may become a part owner.

Bruce Van Zandt, a morning regular at the 110 16th St. coffee shop for nearly 10 years, has seen the location change from a Diedrich Coffee to a Dazbog and now to a Genessee.

The location and the friendly staff, including longtime barista Megan Lamothe, are what keep him coming back, he said.

“This is a great transition for me,” he said, noting the small-batch coffees. “I am moving onto the big time. I love it.”

Alicia Wallace: 303-954-1939, awallace@denverpost.com or twitter.com/aliciawallace