Cold Rock franchise stores closing down.
They say the stores are being forced to close because high product costs and marketing charges are making it hard to stay afloat.
Cold Rock’s website currently lists 77 stores across Australia.
Franchisees say store numbers have fallen recently from a peak of 108, however, a spokesperson for FFCo denied there were any problems with the franchise and said he was surprised it had been mentioned so often at a recent parliamentary inquiry, reports SMH.
“If a franchisee has a problem let them air their grievances and work together with us. I have a brand and other franchisees to protect and I will do that,” the spokesperson said.
Franchisees say under FFCo, store owners had been required to buy certain products at inflated prices and to pay into a marketing fund for which they saw little return.
Franchisees are also concerned about high charges for marketing with little to account for the royalties paid. No television, radio or newspaper advertising only a few store posters and social media.
“I am just sick and tired of giving them all this extra money,” one franchisee said. “There are people in the group who just want to get out but they can’t afford to get out.
“That’s what upsets me is stores going backwards and [FFCo] still get paid royalties. If it goes pear- shaped they don’t lose anything.”
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