RICKY’S: Summit, NJ Store Equipment Auction

Another sad milestone for the dying Ricky’s Candy, Cones & Chaos franchise dream.  

Equipment for the defunct Ricky’s Candy, Cones & Chaos franchise in Summit, NJ will be auctioned by A.J. Willner’s Auctions on Monday, December 14, 2009 at 11:00 AM. 

 

Here is the information from A.J. Willner’s auction page:

ABSOLUTE AUCTION
Like New Gelato, Ice Cream & Candy Equipment 
re: Ricky’s Candy, Cones & Chaos of Summit
By Retention of Landlord. Everything Must Be Sold Regardless of Price!

Auction Date(s):     Monday, December 14, 2009  Time: 11:00 AM

Address:
333 Springfield Ave.    
Rt. 24 to Exit 9A    
Summit, NJ  07901

Inspection Date(s):
Monday, December 14, 2009
Time: 9:30 AM to 11:00 AM
Pickup Date(s): 
Monday, December 14, 2009  Time: 1:00 PM to 4:00 PM
Tuesday, December 15, 2009  Time: 9:00 AM to 1:00 PM

LIKE NEW ICE CREAM, GELATO, CANDY & RESTAURANT EQUIPMENT:
# "New" Prima 18 PLUSA 5 Ft. Glass Front Gelato Showcase (s/n L40002; Recently purchased for $25,000!)
# Master-Bilt Glass Ice Cream Showcase
# Scotsman Undercounter Ice Machine
# True Undercounter Rolling Refrigerator
# 47 Compartment Candy Dispening Unit
# 3 well S.S. Sink w/ Sprayer
# Single Head SaniServe Ice Cream Dispenser & (3) 5 Ft. S.S. Tables
# Bunn CWTF35 Coffeemaker & 6 Head Coke Soda Dispenser
# Beautiful Free Standing & Custom Built Store Fixtures Including Wonka Mobile, Cabinets, Menu Board w/ TV, Outside Lighted Sign, Wall Signage, Decorations, etc.
# 8 Sections of Metro Racks, Small Sentry Safe & Samsung SF 560 Fax
# Large Qty. of Paper Goods, Supplies, Accessories, Tables, Chairs, Hot Fudge Disp., Hand Sinks, etc.

Featured Items:

Prima 18 Self Contained Gelato Showcase
Master Bilt Self Contained Display Freezer Case
Scotsman Under Counter Ice Machine
SaniServ Frozen Beverage Machine
True Under Counter Single Door Refrigerator
Stainless Steel Prep Tables
Stainless Steel Triple Well Sink
Hot Topping Dispensers
6 Flavor Soda Fountain
Dial Face Safe & Fax Machine
Interior Signage
Exterior Signage
Bulk Candy Merchandising Unit
"Wonka" Store Fixture
Animated Store Fixtures
Tables & Chairs

For Complete Catalog please click on "download catalog" at the A.J. Willner’s auction page.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

photos:  A.J. Willner

RICKY’S CANDY, CONES & CHAOS FRANCHISE

Read more

RICKY’S CANDY: Why’d the Princeton Store Close?

Thanks to Krystal Knapp, writer for the Times of Trenton, for citing UnhappyFranchisee.com as a source for her recent article on the closing of the corporate-owned flagship Ricky’s Candy, Cones & Chaos store in Princeton, NJ (Princeton Borough sweetshop closes on a sour economic note).

Knapp’s article quotes comments left here and on the retired Franchise Pick  website in which Ricky’s new president Donald Cheng blamed the economy for the struggles of the Princeton store and the chain as a whole.  “The current economy has impacted the retail sector much more heavily than others. The Ricky’s model was heavily dependent on a robust economy where parents splurge on their children and friends,” wrote Cheng.  “However, as the economy worsened, more people became budget conscious and retailers have to react by providing better value and Ricky’s did not adjust fast enough."

Cheng had promised a repositioning of the Ricky’s concept to adapt to current economic climate, starting with the Princeton store.  After his short burst of comments here were questioned by current and former franchisees, Cheng was never seen nor heard here again.

The Times article includes some telling details of the financial woes of the failing chain, and its unsuccessful attempt at gaining bankruptcy protection:

In December 2008, the company filed for Chapter 11 bankruptcy. Among other creditors, court records show Ricky’s owed thousands of dollars in back rent to Nassau Tower Realty and $100,000 to the state in sales tax.

Ricky’s struggled to pay rent of $14,590 a month that increased to $15,673 a month in April, court records show. Ricky’s made a partial payment of $2,000 for September 2008, and the realtor tapped into a $75,000 deposit to pay for rent in the coming months. That money was exhausted and Ricky’s owed Nassau Tower $42,301 for March, April and most of February.

The bankruptcy was rejected by a judge and dismissed in May.

According to Knapp, “The Willy Wonka-esque franchise that sold candy, ice cream and other sweets went sour along with the economy, records show.”

Ricky’s demise may have occured “along with” the decline of the economy, but some argue not because of the tough economic times.  According to Guest, commenting on a related Ricky’s Candy post:

…The one flaw of the article is the idea that the economic conditions were a factor in the fall of Ricky’s. NO, IT WAS NOT…… Court documents from the Ch 11 attempt clearly showed that even when the economy was roaring and Toll Brothers couldn’t build a McMansion fast enough Ricky’s was not making any money and the only income supporting the shell was the franchise fees and royalties paid by people who thought they were buying into a successful business model. The house of cards began to crumble once the store owners began to communicate directly and the fact checking began.

Was the Princeton store simply a franchise sales tool from the start?

Ricky’s Candy, Cones & Chaos franchisees have alleged that the Ricky’s concept was not viable from the start and the company’s – and founder’s – main goal was to sell franchises.  Nearly all franchise stores have failed and closed, and angry franchisees are suing. 

The shockingly high rent of the Princeton store suggests that it perhaps was designed to be a brand showcase and franchise sales vehicle rather than a profitable candy store.  Could a candy store in Princeton, NJ, even in good economic times, realistically sell enough candy and cones to justify rent of more than $175,000 per year? 

Or did Ricky’s corporate assume the high rent and high overhead would be recouped not by selling candy, but by selling the dream of owning a successful Ricky’s franchise?

Related Posts on Ricky’s Candy, Cones, & Chaos:

RICKY’S CANDY: Message from Donald William Cheng

RICKY’S CANDY, CONES & CHAOS: Summit, NJ Store to Close

RICKY’S: Princeton, NJ Store Eviction Notice

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

RICKY’S: Princeton, NJ Store Eviction Notice

The sweet dream that was Ricky’s continues to sour.

Back in July of this year, Donald William Cheng expressed confidence that better times were to come for Ricky’s Candy, Cones & Chaos, commenting:

Rickys Candy Cones and Chaos is now run by Mr. Donald William Cheng as of May, 2009. The Princeton store is undergoing a restructuring and is out of bankruptcy. New changes are being effected to combat the changes in the business environment… New management and marketing have been brought in to ensure that future partners and franchisees will be able to sustain a dip in the economy by providing long term financing and stronger financial management and brand management

The same month, an article commemorated the 5th anniversary of the Princeton, NJ corporate store:

Opened by owner Rick Barber in 2004, Ricky’s has continued to grow and evolve, notes Mr. Cheng. “The original idea was to have ice cream and candy for a party. Then, plush toys were added. Now, we want to expand our focus and include more events and parties at the store. Not only birthday parties, but baby showers, graduation parties, bar/bat mitzvahs, even having favors and candies for wedding receptions. We really want to emphasize the service category….

“In addition,” he continues, “we are going forward with an international expansion of our candy line. We’ll have Godiva chocolate as well as candy from Japan and Korea. We will still have all our bulk candy, chocolate bars, and other candy, but we will become a specialty candy store. We plan to reconfigure the store and make it more international.

After his initial comments, Mr. Cheng ceased communicating.  This week, Former owner wrote that “Ricky’s Candy, Cones & Chaos Princeton Flagship Store (Corporate Office) has an eviction notice on their front door.” 

We received these photos from an anonymous Unhappy Franchisee reader.  This may be the end of the line for Ricky’s.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

RICKY’S CANDY, CONES & CHAOS: Summit, NJ Store to Close

We received the following sad message via email from Liliana Carvalho, the owner of the Ricky’s Candy, Cones & Chaos franchise location in Summit, NJ:

Ricky’s Candy,Cones and Chaos of Summit will be closing its doors forever after Nov 15th.

I am the current owner Liliana Carvalho and within the last 20 months have lost over $400k in this Franchise.

It is sadly coming to an end, since I cannot any longer afford to continue to pour money into a failed business concept, which was sold to me as a Sweet profitable Candy and Ice Cream Franchise, early 2008 by Rick Barber ( Franchise owner) and by Mike Kapp (former owner of the Ricky’s Summit location).

I would like to thank all my clients for their patronage during the last 20 months. Wishing them and their families the best and hopefully our  paths will cross again in the near future.

Thank you,

Liliana Carvalho

According to a May, 2004 press release posted on the Ricky’s website,

As a retail chain, Ricky’s Candy, Cones & Chaos is a new version of the “Old Time Candy and Ice Cream Store” with scheduled openings starting in May 2004. With three concurrent store openings starting with Summit NJ ; Princeton NJ ; and Rockefeller Center , NYC, Ricky’s Candy, Cones & Chaos is focusing its future growth on upscale suburban downtowns where retail activity is on the rise.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

RICKY’S CANDY: Message from Donald William Cheng

Donald William Cheng has taken over the role of President of the once-promising & now-troubled Ricky’s Candy Cones and Chaos franchise chain.  Cheng, a real estate broker, left a series of messages (see below) on UnhappyFranchisee.com for his few remaining franchisees and former franchisees (some of whom are suing the franchisor).  In his messages, Cheng announced that founder Rick Barber is no longer involved with day-to-day operations, that he’s temporarily halted franchise sales and has hired a General Counsel to help resolve disputes.

The announcement is a sharp contrast to what was stated in a grammatically challenged press release posted just last month.  In the release, posted on Bison.com, stated Cheng was embarking on a new franchising initiative for the franchised retail candy chain.

Ricky’s Candy, Cones & Chaos press release June 7, 2009:

Rickys Candy Cones and Chaos, the premiere Franchise for bulk candy and Ice Cream has brung on a new president.  Donald William Cheng will be taking the helm of this new and fast growing franchise and moving operations headquarters to New York City.

A new Franchise growth plan as well as a new focus on helping current franchisees will be implemented by Mr. Cheng.  Mr. Cheng is an experienced real estate developer and well known in the retail real estate world and has advised numerous Franchises including Nathan’s Famous, Shiseido, Chock Full of Nuts and was owner of the Shake-a-Paw puppy franchise in New Jersey.

The company is looking to start Franchising in New York City and has selected several locations including Times Square, Port Auhthority Bus Terminal, and other high traffic locations.

Donald William Cheng messages Sunday, July 19th, 2009 on UnhappyFranchisee.com:

Submitted on 2009/07/19 at 6:59am

Rickys Candy Cones and Chaos, including the Princeton Store is now run by Mr. Cheng. Mr. Cheng is an experienced corporate turnaround strategist and experienced in finance, marketing, real estate, and food service. Mr. Cheng came on board in May of 2009 and was appointed by the Board of the holding company to turn the Princeton Store around financially and the Franchise firm. Mr. Cheng’s former and current clients include Nathan’s Famous and large multinationals.

As current operating President, Mr. Cheng regrets to say that there are best of times and there are the worst of times. The current economy has impacted the fortunes of million of lives and the the Rickys chain has not fared well.

However, going going forward, the Ice cream, candy and food service business is still a stable business and I hope to make changes to the firm which will enable the future success of existing stores.

My background in construction and coupled with my mass media and food service skills will enable a faster and less expensive building out while providing a better investment for future franchisees.

In Regards to any questions about Rick Barber, he is out of the picture on day to day operating procedures.

In Regards to current litigation, a chief counsel is being brought on board to handle the complaints in a fair and equitable manner.

*  *  *  *  *

In Regards to the existing stores, we would like to reach out to the existing stores to come forward and talk about issues which may be of mutual benefit. However, I have been unable to get through to the franchisees and the owners are red bank, summit, and Oceanside.

We are planning some regional advertising on TV and would like to get the cooperation of the other existing stores.

*  *  *  *  *

Rickys Candy Cones and Chaos will not be selling any more franchises until current issues , problems and litigation with the holding company and Princeton stores and existing stores are resolved. We will continue to honor current franchise agreements in place. Many apologies to those that have suffered losses .

Regards

Donald William Cheng

This message from Donald William Cheng left the same day on Franchise Pick:

Rickys Candy Cones and Chaos is now run by Mr. Donald William Cheng as of May, 2009. The Princeton store is undergoing a restructuring and is out of bankruptcy. New changes are being effected to combat the changes in the business environment. The current economy has impacted the retail sector much more heavily than others.

The Ricky’s candy, cones and chaos model was heavily dependent on a robust economy where parents splurge on their children and friends. However, as the economy worsened, more people became budget conscious and retailers have to react by providing better value and Rickys did not adjust fast enough.

New management and marketing have been brought in to ensure that future partners and franchisees will be able to sustain a dip in the economy by providing long term financing and stronger financial management and brand management

Relevant Links:

Donald William Cheng – LinkedIn profile

Donald William Cheng bio

Shake-A-Paw trademark dispute

Shake-A-Paw franchise puppymill controversy prior to closing

RICKY’S CANDY, Cones & Chaos Franchise Update

Ricky’s Candy, Cones & Chaos Franchise

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.