The test that launched 100 co-branded locations may have put one Cold Stone Creamery franchisee out of business.
Last February, Cold Stone Creamery announced that they had concluded a successful test co-branding two stores with Tim Horton’s, Canada’s largest coffee and doughnut chain.
The results of the two Rhode Island test stores were so impressive that Cold Stone Creamery and Tim Horton’s were initiating a 100-store co-brand expansion nationwide.
However, not everyone was pleased with the co-branding test or initiative. According to a post on Unhappy Franchisee, (COLD STONE CREAMERY: Bitter Franchisee Alleges Encroachment) an established Cold Stone Creamery franchisee in Providence, Rhode Island blames the recent failure of her previously successful franchise on encroachment from one of the initial Cold Stone Creamery – Tim Horton’s co-branded locations.
“I am bitter…” franchisee Kristina Gedutis reportedly said. “It wasn’t really fair.”
Read why Kristina & Craig believe Cold Stone Creamery cannibalized their sales and destroyed their business here:
COLD STONE CREAMERY: Bitter Franchisee Alleges Encroachment
Franchise tip: Encroachment is one of the most often litigated complaints by franchisees. Before you sign a franchise agreement, be sure you understand whether you have an exclusive territory and where that territory begins and ends. If you don’t have it in writing, you may find yourself competing with another franchisee or company-owned location.
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Photo: A closed Cold Stone Creamery franchise location, Lancaster, PA (FranBest Photo library)
Post from: Franchise Pick