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American franchisor Cold Stone Creamery is looking to chill the Australian market. While operating in 18 countries, the brand’s horrific franchising reputation in the U.S. ensures slow growth in a tough Down Under market.
Despite the recent high-profile struggles of US food franchises Baskin Robbins and Krispy Kreme in Australia, Kahala Franchising, the franchisor of Cold Stone Creamery, insists the newcomer will not suffer the same fate. StartUpSmart
In recent times Australia has seen US brands struggle to grow against similar established home-grown brands with typically lower entry costs. Cold Stone has chosen to enter the Australian market at a time when franchisors are struggling with low franchisee inquiry evidenced by a plethora of franchisee enticements.
Thorough due diligence obviously isn’t a Kahala strength.
In the event that we find a master partner who chooses to sub-franchise some of the stores we would go through great lengths to ensure that the partner is familiar with franchising and has the right infrastructure in place to support the development of the brand through sub-franchising. Eddy Jimenez, VP of international development and logistics for Kahala
One US expert commented on the Cold Stone move to Australia;
Goody, Australia gets America's rejects.
What is mildly amusing is that the Australian government sees entry of overseas franchise brands as those franchisors investing in Australia.