Three rogue Cold Rock Ice Creamery stores in north Queensland that have breached their franchise agreements have been placed into administration after being taken to court.
The owner of the ice cream chain Franchised Food Company (FFCo) sought an injunction against the franchisees – Paul Bailey and Tammy Hawkins-Bailey – of the Townsville stores in the federal court after they attempted to rebrand the outlets under the name ‘If Icecream Factory’.
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 Consumer 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,” he 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.
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.