An Ocala, Florida ice cream store has discontinued using the following mascot, after some area residents complained that it resembled - can you believe it - a KKK robe.
While I've never seen a Grand Wizard with sprinkles (heck, I've never seen an actual Grand Wizard or any Klan member in person, for that matter), there's no way they wouldn't have recognized the similarity.
Knowing just enough about guerrilla marketing to be dangerous, it's my considered opinion that this was intentional, and got them free pub the two month old store would never have had the capital to afford.