Cold Stone Creamery Franchise Owners Caught Between a Cold Stone and a Hard Place
(FranchisePick.Com) See also:
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How ‘Bout a Stone Cold Bowl of Reality?
In his comment left last night on my post Cold Stone Creamery Franchise: Hell Hath no Fury Like a Franchisee Scorned, unhappy Cold Stone Creamery franchise owner Cecil Rolle states:
a recent review of Cold Stone’s website indicated that the company had 392 of its approximate 1,400 stores for sale (that’s a whopping 28% of its total franchises)…
…a recent review of bizbuysell.com and other sites revealed several Cold Stone stores with asking prices of less than $100,000 and one as low as $29,000. There is even a listing for a location that was opened in 2006 where Cold Stone corporate is attempting to sell a store that was apparently closed by the local taxing authority just last Thursday when the owner was unable to pay his taxes…
It cost me nearly $400,000 to start my campus location. If you invest $400,000 to develop a new Cold Stone and within a relatively short period, you are offering to sell it for $100,000, I doubt you will consider “Cold Stone’s franchise opportunities are about as solid as they come” as they claim on their website.
Rolle includes a link to this story (Cold Stone franchise gets served cold facts, by Ben Moger-Williams) of a Colorado Cold Stone Creamery franchise owner who is caught between a cold stone and a hard place:
The franchisee of Brighton’s Cold Stone Creamery must appear in Brighton Municipal Court to face charges
Timothy J. Dailey, 42, of Thornton, was served a summons by the Brighton Police Department on March 13, according to BPD spokesman John Bradley. Bradley said Dailey was not arrested but he was charged with failure to pay taxes and failure to renew a sales tax license.
City Manager John Bramble said Dailey had not paid his Federal Insurance Contributions Act taxes, which cover Social Security and Medicare taxes for employees.
Moger-Williams reports that Dailey’s shop will be closed for a “few weeks” while “Cold Stone Creamery’s corporate offices look for someone to take over the franchise.” He notes that the franchise was listed for sale on broker site Bizquest.com as having gross revenue was $281,000 and an asking price of $99,000. “The reason for selling was listed as ‘Corp location looking for a franchisee.’”
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POSTED IN: COLD STONE CREAM., xBuyer Beware
2 opinions for Cold Stone Creamery Franchise Owners Caught Between a Cold Stone and a Hard Place
jerry bo berry
Apr 22, 2008 at 5:28 pm
Cold stone creamery is nasty stuff. In our “campus location” we don’t want some nasty chain ice cream store.
sean
Apr 22, 2008 at 5:57 pm
jerry bo berry
That’s a great name for an ice cream joint.
I think you should start it right there on your campus.
jerry bo berry
Here’s the gimmick: You sell entire gallons of vanilla ice cream in a big pail that customers carry to flavor and mix-in stations where they can add in whatever they want for no extra charge.
jerry bo berry
The catch is: they have to finish the entire gallon before they leave or pay a $10 fine.
jerry bo berry
You open a fitness club on one side and a weight loss place on the other. And you provide free tanning while they eat.
jerry bo berry
I’ll even give you a free slogan:
jerry jerry bo berry. Fun to say. Fun to eat.
Now go forth and prosper… and don’t forget to send me my 10%
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