In the June 16 issue of The Wall Street Journal’s small business report, a very good story discussed how Cold Stone Creamery has led many of its franchisees into financial ruin. This is not shocking because I have personally stopped patronizing the franchise because of price and inferior taste compared to other ice creams. (It’s not really ice cream folks - it is mostly fillers that hold your “add-ins” together)

The article discusses how many franchisees dove in head first 8 years ago and have since sold their business. The article brings up an excellent point about fads. The reality is they come and go. One cannot sustain a business on a fad alone.

When it comes to franchises stick with the ones that are tried and true and rely only on customer needs like lunch, dinner, janitorial services, or dry cleaning. And yes, we all need ice cream now and again but at the cost of $4 for a 2.5oz. cup of Cold Stone Creamery how bad will you need it when you are paying the same price for a gallon of gas? I think many franchise owners of Cold Stone are seeing customers buying gas instead. Be smart with your choice of business venture.

Filed under: Marketing 4 Newbies