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January 17, 2011 - CNBC cable network may face legal action over a documentary it produced on the untold stories of franchising. One of its featured franchises, Cold Stone Creamery, felt it was inaccurately represented because the documentary focused on a single incident.
The New York Post reports that the ice cream company felt they were misrepresented when CNBC chose to focus the story of their franchise operations on one sour case involving former Florida franchisee Cecil Rolle. Rolle had previously filed a lawsuit against Cold Stone Creamery and lost.
Some of Rolle's less-than-positive comments on the franchise world involved him mentioning he had to talk 5 franchisees out of committing suicide. Cold Stone Creamery was given a chance to participate in the program but declined.
Aside from Rolle's comments, the CNBC documentary also portrayed Cold Stone Creamery as a ruthless firm that charged franchisees hidden expenses, relied on kickbacks from its vendors, and required franchisees to purchase equipment from specific companies also controlled by Cold Stone.
After the initial airing, Cold Stone Creamery contacted CNBC regarding their issues with the documentary. CNBC has requested an on-camera interview to allow Cold Stone Creamery to give their angle on the story, but so far the ice cream franchise has yet to respond. Meanwhile, the documentary was first edited and then recently pulled from rotation.
As a franchisor, protecting the reputation of your franchise is important to the continued growth and success of your business. When you find your franchise is being threatened by hostile franchisees or bad press you may need the help of a New York franchise attorney to set things straight. An experienced attorney can help you handle franchise litigation and mediate any problems that may arise between you and your franchisees.
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