News

CNBC gets icy response from Cold Stone Creamery

December 28, 2010

CNBC’s documentary “Behind the Counter: The Untold Story of Franchising,” which aired Dec. 15, seemed to peel back the layers of the $1.3 trillion franchising industry. One of the five company's featured, however, doesn’t seem comfortable with the exposure.

According to the New York Post, Cold Stone Creamery and one of its franchise groups is threatening legal action against the business network, claiming the special erroneously portrayed the company as corrupt.

The Scottsdale, Ariz.-based chain is questioning the documentary’s angle that was presented by one of its former franchisees, Cecil Rolle. Rolle told CNBC reporter Darren Rovell that Cold Stone charges franchisees hidden expenses and requires them to purchase equipment from a company it controls, and also relies on kickbacks from vendors.

Rolle said the situation with Cold Stone was a no-win and that he wasn’t alone, having talked five other franchisees out of suicide attempts. He was the only one interviewed for the documentary.

Cold Stone’s lawyer said the story was unfair as it didn’t flesh out the fact that Rolle lost a legal battle against the company after making similar charges.

CNBC claims that Cold Stone – which is owned by Kahala – was asked to present its side of the story in the documentary, but declined.

Since it initial airing, CNBC has edited the program to mention Rolle’s lost lawsuit against Cold Stone. On Dec. 25, the network pulled the program from its documentary rotation. Whether or not this action was a result of lawsuit pressure is unknown.
 
Other franchise businesses highlighted during the documentary were Five Guys Burgers and Fries, Procter & Gamble, Camp Bow Wow and Dunkin’ Donuts. The latter company was explored for its immigrant-friendly franchise base.