Three Cold Rock Ice Creamery stores in north Queensland have been forced into administration over franchise agreement breaches.
Melbourne-based Franchised Food Company (FFCo), which owns the ice cream chain, sought an injunction against the franchisees of the Townsville stores in the Australian Federal Court after they attempted to rebrand the outlets under the name If Icecream Factory.
The franchisees, Paul Bailey and Tammy Hawkins-Bailey, operated three Cold Rock stores at The Strand, Cannon Park and Magnetic Island.
FFCo managing director Stan Gordon said the move to rename the stores while continuing to use the Cold Rock concept was a breach of trademark and intellectual property rights under the Competition and Consumers Act.
“When one enters into any contract there are obligations on all parties, and the ex-franchisees unilaterally decided not to comply with their ongoing obligations under their various agreements,” Mr Gordon said.
“This resulted in Cold Rock management seeking a court injunction to stop the blatant copying of the Cold Rock system.
“At the eleventh hour, the businesses were placed into administration in order to avoid the ramifications of infringement of our brand.”
Insolvency firm KordaMentha has been appointed administrators.
Mr Gordon said the group unsuccessfully tried to negotiate with the franchisees before the matter was taken to court.
“While we are saddened that anyone loses their assets, we have to at all costs protect our brand, not only for the owners, but for all Cold Rock franchisees,” he said.
“We remain committed to work with the administrators and the landlords to try minimise any losses that will be suffered through this transaction.”
Mr Gordon said Cold Rock management was in the process of negotiating with administrators to take the stores back under its control before new Cold Rock franchisees would be sought.
Cold Rock has almost 100 stores nationwide.
Its concept is based on the “create your own” experience of adding chocolate, fruit, nut and lolly mix-ins into ice cream. The creation is then mixed together on a refrigerated granite slab known as the Cold Rock.
FFCo also owns franchise brands Mr Whippy, Nutshack and Pretzel World.
