User:Propaniac/scoop

KaleidoScoops is an American chain of ice cream shops. As of 2003, there were 80 Kaleidoscoops locations operating in 19 states.

Company history
KaleidoScoops was formed in 1999 by several former Baskin-Robbins franchisees after the latter company terminated approximately 200 domestic franchisee agreements in Southern markets they deemed "nonstrategic." The terminated shop owners were all notified of the agreement cancellation via a conference call. Over forty of the former franchisees united to form the new company, KaleidoScoops, which operates as a cooperative and is based in Aurora, Illinois. Other former Baskin-Robbins franchisees converted their stores to franchises of McConnell's of Santa Barbara and The Ice Cream Club.

Many KaleidoScoops owners were among the plaintiffs in a $40 million breach of contract lawsuit filed against Baskin-Robbins by former franchisees in December of 1999. The lawsuit sought to bar the company from operating in their region in the future.

According to KaleidoScoops president Tom Fletcher, a former chief operating officer for Big Apple Bagels and executive with Dean Foods and Baskin-Robbins, the costs of converting a former Baskin-Robbins location into a KaleidoScoops store could vary from $5,000 to $150,000. The first stores to be converted experienced a drop in initial sales of about 20 percent on average, but sales have since improved. Between 2000 and 2003, KaleidoScoops doubled in size, with many of its members entering the cooperative with no prior experience owning ice cream shops.

Operations
As of 2003, membership in the KaleidoScoops co-op cost a $2,500 entry fee and $600 annual dues. The co-op takes no percentage of sales revenue, although it does levy a $2 surcharge per each tub of ice cream, which made up the bulk of its earnings in 2001. Even with the surcharge, ice cream costs about 30% less for store owners buying from KaleidoScoops than from Baskin-Robbins, according to Fletcher. The co-op offers help with site selection, construction, and advertising, but use of all of those services is voluntary. A portion of any profits generated by the co-op is split among members in the form of patronage dividends.

KaleidoScoops members are given significantly more freedom in running their store than Baskin-Robbins permits its franchisees. Co-op members are allowed to choose their own operating hours, decor, and menu, apart from ice cream. Ice cream flavors are decided upon by a committee.