Cold Stone is a troubled company that is growing negatively, as is their parent company, Kahala Corp. Cold Stone has been closing a lot of stores in recent years. Their troubles have been documented in the Wall Street Journal and on CNBC. Cold Stone's franchise owners have been complaining for years that they cannot make a profit due to kickbacks. Their franchise owners have in fact filed a lawsuit against them.
Banks consider collateral sources based upon the collateral's value. Because a Cold Stone franchise appears to have little or no value, a bank is not likely to accept a Cold Stone franchise for collateral assignment.
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