A long-time manager of a national ice cream franchise in downtown Traverse City is ready to take the operation local after its owners declined to renew their franchise agreement.

Cold Stone Creamery general manager Joe Welsh, who's been employed at the specialty ice cream shop at 240 East Front Street for the past eight years, is in the process of purchasing the company's assets and taking over the building's lease after learning owners planned to walk away from the business once their franchise agreement expired this month. (Cold Stone has one of the highest franchise default rates in the country and has had some legal troubles with franchisees, according to the Wall Street Journal.)

Passionate about the ice cream industry and his fellow Cold Stone employees, Welsh worked with commercial lender Chris Wendel at Northern Initiatives to finance transitioning the franchise into a locally owned, independent ice cream shop called Cherry Cone. Welsh plans to open the new store in early March.

“Working in the franchise business, I started to see all of the ways you're hamstrung as a company in what you can do,” says Welsh. “We're going to do something totally different. We're going to localize our products and our business as much as possible.”

That Michigan focus begins first and foremost with the ice cream, according to Welsh. The new owner is sourcing his cream base from Country Dairy in New Era, which guarantees its products are rBST-free (or free of growth hormones). Welsh plans to partner with area companies including Leelanau Fruit Company and Brownwood Farms to procure fresh, local toppings and ingredients for the store's concoctions, and will feature Great Northern Roasting Company at Cherry Cone's new custom seven-seat coffee bar.

“We are featuring products that Grandma would recognize as real food,” explains Welsh of his menu philosophy. “Real syrup, real fruit, real ice cream...no GMOs.” The owner hopes to convert some of his counter space into a sandwich preparation area in the fall, and is currently on the hunt for an “old-school soda fountain tap” to install at the store.

Currently undergoing an interior facelift, Cherry Cone will also serve as an occasional local gathering spot, home to rotating art displays and family-friendly events. Key, too, to Welsh's "local" emphasis is retaining local jobs. “Everybody from Cold Stone will be offered jobs at the new company,” he affirms. “And we're also hiring (new staff).”

For Wendel, whose job it is to analyze the riskiness of Welsh's venture and who acknowledges transitioning from a franchise to an independent store “comes with challenges,” Welsh's community focus – combined with his years of experience and his close relationship with staff and customers – “put the deal over the top” for him.

“You can't get better than that location downtown,” says Wendel. “Even though it's a competitive atmosphere down there, Joe is focused on having his own niche and brand. Any business lost from not being a Cold Stone anymore will hopefully be replaced and then some by business from being a local store.”

Welsh is also confident. Planning to operate 7 days a week, from 7am-9pm (an hour later on the weekends), the entrepreneur believes the shop's variety of offerings can keep old customers happy – and ideally attract new ones.

“I honestly believe we can do two to three times the business Cold Stone was doing here,” he says. “We have the freedom to be pliable now. We can make things better."