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purchasing cold stone creamery

recently lost job and looking at a cold stone creamery. can anyone lend any advice?... what % of sales can i expect to take home? any info would be greatly appreciated.

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Jul 5, 2017
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Soclof Business Brokers
Bergen County, NJ

Good Evening
I would be very cautious with this concept. I only speak on the following observations. One it takes to long to serve customers and move customers. I have seen many of these stores around the Mid West and NY - NJ Tri State closed as well. Used to have one that we went to by our home, long gone.
Pricing was also an issue< i was never a owner of these stores but have watched the concept and know a few people who did open a franchise and are wishing they did not. If you are looking for a franchise business as we all know their are many - what do you like to do and how much do you have to spend.
I was a franchisor for over 15 years and I know the business very well. You must like what you are doing in general and especially in the franchise business. Remember in the franchise business you may think you are the one in control but you are not. The franchisor has the ultimate decision in and how the concept should be run. I wish you the best of luck, if you have a ny further questions please feel free to reach out.

Jun 22, 2009
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hi David,

I cannot speak specifically to your question but I wanted to recommend this website to anyone considering a franchise: http://www.BlueMauMau.org Especially check out their page that contains "Franchise loan portfolio data for the period of Y2001-2005:" - see description below:
(http://www.bluemaumau.org/failurerate)

This information is ascertained through the Freedom of Information Act from the Small Business Association. It is a list that the SBA gives out to its preferred lenders to help them ascertain the business risk of various franchise systems. When a failure rate for paying back a loan is high, a banker typically requests additional capital injection from the would-be franchise owner -- even if the franchiser is listed on the franchise registry. It should be noted that this is ONLY a list of franchises that have received SBA loans. It does not account for non-SBA loans. The SBA notes that the failure rate equals the number of liquidation plus number charged off divided by total number disbursed. The Disbursement dollars are for the total amount of loans disbursed x $1,000.

Franchise networks that have received less than 10 disbursements (small business loans) have been taken out to leave a list of some 365 franchise systems from October 1, 2000 to September 30, 2005.

This information is a little dated but you can draw a lot of conclusions from trends!!

Good Luck!
Julie A. Barnes, CPA
President, SBX Inc.
www.SmallBusinessExchange.net
www.AustinBusinessesForSaleBlog.com

Jun 22, 2009

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