Disguising the True Risk ----Cold Stone

Thanks for the warning. It appears that the real risk of buying a franchise can be routinely disguised in the UFOC's under current laws.

Again, the franchisor can survive because of their ability to churn failing stores and sustain their visibility in American communities. This visibility helps them to continue to sell new franchises on the market. Customers who frequent Cold Stone think that these stores must be a gold mine for the owners, but, of course, a great portion of the public has no idea that these stores are not owned by Cold Stone.

Cold Stone sounds like the UPS and Quiznos scenario where it is hard to break-even amd there are many failures, but the franchisor is still pulling in profits from those who pay royalties when the frasnchisee is operating at a loss, a profit, or at breakeven.

The blurring of identities in the franchise world between the ZOR and the ZEE and the constant PR about the success of franchising and the failure of the UFOC's to require the ZORS to disclose the true and KNOWN risk of the investments results in much pain for ZEES who are really just a source of venture capital for ZORS.

Thanks for getting out here with your info. Not too long ago, we had someone who wanted to buy a Cold Stone because the wife liked Cold Stone so much. At least one of our readers warned them that the guy you might see mopping the floor at midnight was probably the owner and to Let the Buyer Beware.