New Cold Stone Group Explains Purpose, Zarco Role

MIAMI – The National Independent Association of Cold Stone Creamery Franchisees emailed another letter to all franchisees in the system to further explain when and how their organization was established, how it is funded, and what its goals are.

This week’s correspondence states, “It is the NIACCF’s goal to improve profitability and value of all of its member stores. We will do this by working every avenue possible to lower costs and increase store sales.” The letter also explains Kahala/Cold Stone’s funding of the association’s attorney Robert Zarco. It says “it is solely for the purpose of defending against the damaging CNBC documentary and those involved in order to protect our existing assets as CSC [Cold Stone Creamery] Owners.”

In closing, they say, “We feel the time is ripe to engage with Kahala in an active and productive discussion about what is best for this system’s franchisees like never before.”

Below is the NIACCF letter which Blue MauMau received from sources:

National Independent Association of Cold Stone Creamery Franchisees 

To All Cold Stone Creamery Franchisees:

One week ago we sent an email to the entire current Cold Stone franchisee community inviting you to learn more about the National Independent Association of Cold Stone Creamery Franchisees.  We hope this email will help to further answer any questions that you may have regarding our organization, its goals, origin, and commitment to working as one powerful voice for its member’s common interests.

First, let us be clear that the NIACCF was formed months ago by franchisees and area developers.  Our Association is 100% funded by dues from its members to work toward clearly defined Association objectives.  Current objectives and the strategies to achieve them come directly from members.  Present and future members will have the ongoing opportunity to participate at whatever level they desire to help shape the future of the NIACCF and our relationship with the franchisor.

It is the NIACCF’s goal to improve profitability and value of all of its member stores.  We will do this by working every avenue possible to lower costs and increase store sales.  The plan is to achieve our goal through purchasing initiatives and opportunities for members in addition to discussion with the franchisor on a more equitable purchasing system for the benefit of franchisees.  As a member franchisee, you should have every expectation to make up the cost of the membership fee in direct member benefits as these initiatives take shape.

As current franchisees that want a profitable future with this brand, it is also vital that this Association helps to protect and build the brand’s public image to the benefit of its members.  Our request in a previous email is simply to not do further damage to your own store or any of ours by speaking to the media before hearing our message first hand.  We believe that publicly damaging the brand name only hurts our stores’ value and future sales and actually takes us further away from our common goals that the Association believes it can achieve.

As stated, the formation and ongoing operation of NIACCF is 100% funded by members and is wholly independent of the franchisor.  Kahala was not aware of the NIACCF for more than 2 months after the Association’s formation and hiring of the Zarco law group, long before Kahala or our charter members had any idea of CNBC’s plans to air it’s show.  Kahala still has no role whatsoever in our operation nor will it in the future.

The specific act of Kahala/Cold Stone’s funding of our Attorney, Robert Zarco, on behalf of the NIACCF and NAB is solely for the purpose of defending against the damaging CNBC documentary and those involved in order to protect our existing assets as CSC Owners.  The decision to permit Kahala to fund the NIACCF and NAB legal fees in the CNBC case came about when Zarco refused to allow franchisees to be burdened by the substantial fees that would be incurred through participating in this lawsuit.  Only after receiving a commitment from Kahala that it would pay the NIACCF’s fees and the NAB’s fees, and only after receiving explicit and express approval from NIACCF and the NAB for Zarco to accept such payments on behalf of the franchisees, was Zarco permitted to work in conjunction with Kahala.  Furthermore, Kahala has agreed in writing that this alignment of interest will create no conflict of interest.  And if one were to appear, they specifically have waived it in writing.  We are already seeing direct benefits from this alliance.  Kahala has recognized the NIACCF publicly and set forth it’s willingness to work with franchisees in addressing any challenges that exist in the relationship on a reasonable basis.  We are confident of a new and improved relationship with management in the coming years. 

It is also important to clarify that not now or ever has there been a Kahala or Creamery Executive serving on the National Advisory Board, who is the Association’s partner in this defense against the tarnishing of our own business’s public perception.  As our association plans to continue to utilize Zarco law long after this issue has passed, we have every assurance that our interests are the top priority.

We all have a unique opportunity ahead of us.  We feel the time is ripe to engage with Kahala in an active and productive discussion about what is best for this system’s franchisees like never before.  We also have the legal backing and understanding to protect and advocate for our rights as franchisees where necessary utilizing the extensive experience of our legal resource.  With that we hope you join us.

Please visit our website, www.niaccf.com, and fill out “Want to know more?” to speak directly to a charter member in more detail about the Association’s objectives.  Decide for yourself if you want to work with other franchisees toward a more profitable future.

Sincerely,

Your fellow dedicated franchisees

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