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Cold Stone Creamery Forms Franchise Conglomerate
By: Tamara Schweitzer

The former Inc. 500 company is joining forces with Kahala, which manages Blimpie and 10 other franchise brands. Cold Stone Creamery, a former Inc. 500 company with more than 1,400 ice-cream shops worldwide, has merged with Kahala, a franchiser and developer whose brands include Blimpie and Ranch1, the companies announced Friday.

The merger creates Kahala Cold Stone, a holding company for 13 fast-food brands — including Cold Stone, Blimpie, The Great Steak & Potato Company, and Johnnie’s NY Pizzeria, among others — that generate more than $1.1 billion in system-wide sales, the companies said. The new partnership will comprise more than 3,000 franchisees and 4,600 retail locations in 15 countries worldwide. Both Cold Stone and Kahala are based in Scottsdale, Ariz. …
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Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops.
 

Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005

The AAFD Awards Cuppy’s Coffee Franchise with Contract Accreditation!

Los Angeles - The American Association of Franchisees and Dealers (AAFD) announced today that Cuppy’s Coffee & More, Inc. (Cuppy’s) has been added to the AAFD’s roster of companies earning AAFD Accredited Contract status. This special distinction is available to recognize new franchise systems, or new ownership and management teams, whose franchise agreements substantially conform to the AAFD Fair Franchising Standards, but that lack operating history to evaluate franchise relationships.

Cuppy’s is a specialty coffee drive thru franchise business that offers coffee, lattes, espresso and smoothie drinks. Cuppy’s is a new brand that is arising from the ashes of a much troubled brand known as Java Jo’z. As part of its response to rebuff suggestions that its new ownership is still connected to Java Jo’z problems, Cuppy’s management has committed itself to a collaborative franchise culture that adopts high standards of mutual respect between franchisor and franchisees.

Cuppy’s franchise agreement earned nearly perfect score of 99.5% conformity with the AAFD Fair Franchising Standards, the highest grade ever achieved. Cuppy’s Coffee & More, Inc. is a Texas corporation wholly owned by Mr. Doug Hibbing and is headquartered in Fort Walton Beach, Florida. Medina Enterprises, Inc., an affiliated company which is owned by Mr. Robert Morgan, is the contractor for the system’s restaurants and other units, as well as a provider of office and staffing services to Cuppy’s.

In May 2006, Medina acquired some of the Java Jo’z assets, including the Java Jo’z brand, which was later assigned to Cuppy’s. The Java Jo’z brand was confronted with major issues regarding Trademark ownership, allegations of unfulfilled contracts and personal problems of its prior owner. Cuppy’s new management team assessed that the myriad of inherited problems required a radical approach to change. That approach involved re-branding, a fresh start on training and support, and most importantly a fresh start with its franchisee community. Cuppy’s intends to build its new brand on a foundation of respect for the AAFD’s vision of Total Quality Franchising, and Cuppy’s management has committed itself to a collaborative franchise culture, and one that sets a new standard of mutual respect between franchisors and franchisees.

Doug Hibbing, the President of Cuppy’s Coffee is excited about the AAFD Accreditation, he states, “we are committed to support our franchisees, we have great products, and a great staff. Our primary goal at Cuppy’s is to build a business with a reputation for integrity; the AAFD Accreditation is a giant step in that direction.”

AAFD Chairman, Robert Purvin praised Cuppy’s Coffee for setting a new standard in fair franchising agreements, "Cuppy’s Coffee has demonstrated its commitment to fair franchising, the AAFD is delighted to welcome Cuppy’s Coffee to its list of Accredited Franchises.”

The story of Cuppy’s is a testament to the AAFD’s efforts to improve the franchising community and to reward Total Quality Franchising practices. The management team of Cuppy’s showed unprecedented willingness to accept the recommendations of the AAFD’s Fair Franchising Standards Committee.

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About the AAFD: The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. Formed in 1992, the AAFD is focused on market driven reform to achieve its mission to define and promote collaborative franchise cultures that the AAFD describes as Total Quality Franchising. Since its formation the AAFD has grown to represent more than 50,000 franchised businesses throughout the United States. The AAFD currently has members in all 50 states and represents more than 100 different franchise systems. The AAFD’s Fair Franchising Standards, Fair Franchising Seal, Trademark Chapters, and emphasis on Marketplace Solutions led to the Association’s recognition as a growing force in franchising. The AAFD Purchasing Co-op and e-Commerce Marketplace add a new dimension to the value of AAFD membership. The AAFD’s Branded Partner Program provides a broad range of member services designed to help franchisees build market power, create legislative support of interest to franchisees, provide legal and financial support, and provide a wide range of general member benefits. For more information about the AAFD, please call toll free - 800-733-9858 or visit www.AAFD.com.