WE INVITE INDIVIDUALS WHO ARE CONSIDERING AN INVESTMENT IN AN MTY FRANCHISE OR WHO ARE CURRENT MTY FRANCHISEES TO CONTACT US. WE ARE HAPPY TO RESPOND TO YOUR QUESTIONS TO AVOID OR MINIMIZE PUTTING YOU AND YOUR FAMILY AT FINANCIAL RISK. WE ALSO REGULARLY DISTRIBUTE A FREE NEWSLETTER TO A GROUP OF APPROXIMATELY 2,000 PROSPECTIVE AND CURRENT MTY FRANCHISEES AND OTHER INTERESTED INDIVIDUALS AS WELL AS A DIFFERENT NEWSLETTER TO SECURITIES INVESTORS AND OTHER FINANCE PROFESSIONALS. WE ONLY NEED YOUR EMAIL ADDRESS.

CURRENT AND FORMER MTY FRANCHISEES WHO WOULD LIKE TO SPEAK WITH A REPORTER FROM ONE OF THE LEADING AND MOST RECOGNIZABLE FINANCE PUBLICATIONS ABOUT THEIR FRANCHISING EXPERIENCE SHOULD ALSO CONTACT US.

MTY/Cold Stone Reported False Data to Entrepreneur.com

Updated on January 28, 2022

MTY/Cold Stone reported 1,252 total franchises to Entrepreneur.com for 2020. This data is inaccurate and grossly overstated! This false report was later used to propel the ice cream concept to a top 400 ranking on the prestigious Franchise 500 after failing to qualify for the list since 2016. Cold Stone quickly fell completely off the list the following year.

Pinning down MTY/Cold Stone’s global franchise totals is challenging. Consider this: within a span of weeks and as recently as April 5, 2021, the company reported it had “nearly 1,500”, “1,252” and “nearly 1,000” global locations in various mediums that speak to potential investors.

We believe MTY/Cold Stone has published false locations data to various federal disclosures (see Item 3). As a result, we think its federal disclosures are an unreliable and misleading resource for location totals, one of the most important categories used by prospective franchisees to measure a franchisor’s success. (This article suggests that making or using certain documents containing false statements may be a federal violation. This law was used to convict Martha Stewart and Bernie Madoff.)

Because MTY/Cold Stone has recently admitted it has fewer than 1,000 locations—we know the company has 999 global locations or less. Therefore, having reported a total of 1,252 global locations to Entrepreneur.com, we know the company reported false data that overstates its global locations by at least 253 locations.

MTY/Cold Stone’s growth data also varies widely depending on the source. MTY/Cold Stone has reported to Entrepreneur.com that it grew its franchise network by 44 global franchise locations during the 2020 pandemic year. MTY/Cold Stone also published an article to its franchisee recruitment website titled “Cold Stone Creamery® Ice Cream Franchise Celebrates Growth in 2020” claiming “the iconic ice cream franchise, experienced growth in 2020 despite the pandemic.”

How unlikely that MTY/Cold Stone grew its franchise network after it failed to grow in the U.S. during a 13-year span beginning in 2007. Such a feat is even more unbelievable when one considers the financial impact of the pandemic, numerous 2020 U.S. MTY/Cold Stone closures (e.g. here, here, here, etc.), the Singapore franchisee folded, MTY/Cold Stone’s closest competitors lost double-digit and triple-digit locations in 2020 (here and here), etc.

In fact, MTY/Cold Stone’s most recent federal disclosures reflect that the company did not grow during 2020 but declined in locations. According to these documents, the company had “1,239 franchises” at the end of 2019 (PDF pg. 8), and “1,227 franchises” at the end of 2020 (PDF pg. 8). Thus, the company’s own federal disclosures confirm that it did not grow by 44 locations as it reported to Entrepreneur.com, but instead, loss a net 12 franchises during 2020—a difference of 56 locations.

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