Waterloo Marble Slab profits melting away as franchisee launches legal battle

The sweltering conditions across Waterloo region make reaching for a way to cool down an enticing thought.

But, if you are looking to get a scoop at the Marble Slab on University Avenue in Waterloo, you are out of luck.

For the last month and a half, the franchisee has been locked out of her store by the parent company.

Now, she is calling for major legal changes in how the franchise system operates.

Franchisee Andrea Schlegel-Parsons said the parent company changed the locks on the doors on June 19, effectively removing her from her store.

Andrea Schlegel-Parsons, who identified herself as the franchise owner and leaseholder of the Marble Slab Creamery in Waterloo, says she and 13 employees are locked out of work. (Terry Kelly/CTV News)

“There's a better way of resolving things rather than taking such a retaliatory and an extreme consequence that has a negative impact,” she said.

“I was an exemplary franchisee and I worked directly with head office in order to incorporate different marketing and operational efficiencies into the organization.”

In June, Cam Inglis, the president of Marble Slab Creamery, told CTV News Kitchener via email the corporation plans to reopen the Waterloo location in the coming weeks.

"Unfortunately, circumstances out of our control have led us to the difficult decision to transfer ownership of the store to maintain the high operating standards we hold our locations to. We plan to reopen in the coming weeks and will offer all Waterloo employees the option to retain their positions," Inglis said.

He said the company is eager to reopen its doors for customers.

On June 22, 2023, security guards could be seen stationed outside the Marble Slab Creamery location in Waterloo. (Dan Lauckner/CTV News Kitchener)

Unable to figure this out, Schlegel-Parsons has turned to the courts in hopes a judge can settle the matter.

She has since filed a notice of defamation against the parent company and owner. 

There is also a hearing for Schlegel-Parsons to get back into her store, with the first court date set for early August.

She said a long legal fight is something she is prepared to undertake.

“We have placed an order with the judge. He has agreed that this matter is urgent,” she said. “Unfortunately, because of COVID and so many other things, the courts are backed up.”

Schlegel-Parsons says she hopes what happened to her does not happen to others.

“We can collectively lobby the government because what is needed is legislative change,” she added.

While she waits for the legal process to unfold, Schlegel-Parsons is left to watch her profits melt away.

“So, typically in the summertime, we would do about $90,000 in the month. So, if we are locked out for six weeks, that's about $135,000 of revenue that we've lost,” she noted.

She believes this action is retaliation for starting a franchisee association.

FRANCHISEE ASSOCIATION RESPONDS

Dave Lush, a former franchise executive that works with franchisees, is attempting to start a nationwide franchisee association.

“It's a David and Goliath thing to begin with because you've got the power held by the franchisor,” said Lush, who is an executive director with the Alliance of Canadian Franchisees.

He says what is happening to Schlegel-Parsons is becoming more frequent.

“I think over certainly last 10 to 15 years the relationship with franchisees and franchisors has changed,” he said. “Again, the caveat is that [it's] not all situations, not all you know, not all franchise systems. Some are great, but others have taken a little bit of a more aggressive tone, and more aggressive toward the franchisee.”

He noted that the franchisor wields a majority of the power in these relationships.

“Right now, in some systems, it is very difficult for the franchisee to flourish and to grow, and they don’t feel like their voices are heard.”

Lush said association efforts are often met with pushback, and while there is currently no real association to represent franchisees, the organization is working to change that.