Cold Stone Creamery teams up with Kahala.

Cold Stone Creamery and Kahala Corp. have gotten together to create a fast food and ice cream empire that aims at challenging private equity inroads into the industry.

Meanwhile, the upscale ice cream and dairy treats chain continues to think outside the frozen box with innovations like French Toast with the Most[TM] ice cream and three sundaes: Banana Split Decision, Hunka Chunka Burnin' Fudge and Who You Callin' Shortcake?

Already part of Kahala before the latest deal were submarine sandwich shop operator Blimpie, cheese-steak chain The Great Steak & Potato Co., chicken sandwich maker Ranch 1 and Mexican fast food chain Taco Time, among others.

Both Kahala and Cold Stone Creamery were privately held companies before they agreed to form a joint holding company, and didn't disclose terms. But the headquarters will be at Kahala's digs in Scottsdale, Arizona, USA--and Kahala founder Kevin Blackwell is chairman of the merged operation.

"If you look at the portfolio, you could basically build an entire food court with all the brands in Kahala Cold Stone," said Blackwell. The combined operation is expected to generate more than $1.1 billion in sales with more than 3,000 franchisees and about 4,600 retail locations in 15 countries.

Blackwell and CEO Doug Ducey--the former Cold Stone Creamery chief executive and chairman--are looking to turn the holding company into a brand-building franchise firm. "Once we get the two companies integrated ... we're clearly going to look at any other opportunities," he said.

Ray Karam, Cold Stone Creamery's "tastemaster," is the man behind such bizarre creations as French Toast with the Most[TM], made with french toast ice cream mixed together with apple pie filling, pecans and cinnamon. But that's nothing compared to the sundaes.

Banana Split Decision[TM] is made with sweet cream ice cream, banana, almonds, strawberries, whipped topping and fudge; Hunka Chunka Burnin' Fudge[TM] with chocolate ice cream, brownie, almonds, whipped topping and fudge; and Who You Callin' Shortcake?[TM] with strawberry ice cream, yellow cake, graham cracker pie crusts, strawberries and whipped topping.

For those who want to eat ice cream in the comfort of their own home, Cold Stone Creamery now offers a line of Grab-n-Go Creations available in retail freezer cases. One new product in the range is Shock-A-Cone[TM], made with crunchy sugar cone pieces, cookie dough and chocolate chunks mixed in a luxurious sweet cream ice cream.