Three Cold Rock franchise stores asked to close down for contract breach
“The three franchisees unilaterally decided not to comply with their ongoing obligations,” said Stan Gordon, managing director of Franchised Food Company (FFCo).
FFCo, a Melbourne-based company, sought an injunction against its three Townsville Cold Rock franchisees after their attempt to rebrand the stores under the name If Icecream Factory.
Mr. 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 Consumer Act.
The franchisees, Paul Bailey and Tammy Hawkins-Bailey, operated three Cold Rock stores at The Strand, Cannon Park and Magnetic Island.
“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, these rogue 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.
“We remain committed to work with the administrators and the landlords to try to minimise any losses that will be suffered through this transaction.”
Mr Gordon said Cold Rock management was negotiating with the administrators to take the stores back under its control before new Cold Rock franchisees would be sought.
