Joel LibavaThe franchise industry seems to be abuzz about a new saga over at Dunkin’ Donuts. Dunkin’ Donuts, known for their flavorful donuts, and fresh brewed coffee is being accused of hammering on their franchisees-for things like cracked floor tiles, and the like.
In other words, Dunkin’ Donuts corporate is suing franchisees.
From Boston.com;
“Dunkin’ Brands has never pursued litigation against a franchisee
without clear cause, nor will we,’’ Dunkin’ Brands chief executive
Nigel Travis wrote in a letter to franchisees. Dunkin’ spokesman Andrew
Mastrangelo said in a statement: “It is also irresponsible and
incorrect to imply that litigation is in any way part of Dunkin’
Donuts’ strategy for profitability. In 2008, despite the economic down
cycle, Dunkin’ Donuts global system-wide sales were up 5 percent and we
opened more than 1,300 new stores worldwide.’’
Jim Coen, a franchise friend of mine, and president of the Dunkin’ Donuts Independent Franchise Owners,
said yesterday that he does not understand the company’s legal strategy
and that it is difficult to find another franchisor targeting shop
owners to this extent.
My friend Sean Kelly over at Franchise Pick asks;
Is Dunkin’ Donuts aggressively litigating it’s own franchisees for profit?”
Interesting question. Is that possible? What do you think?
Now, if you’ll excuse me, I’m going to find a donut hole or two…
Update– (October 2nd)- Dunkin’ Donuts President Is Leaving
About the Author
The Franchise King®, Joel Libava, is a leading franchise expert, author of "Become a Franchise Owner!" and "The Definitive Guide to Franchise Research." Featured in outlets like The New York Times, CNBC, and Franchise Direct, Joel’s no-nonsense approach as a trusted Franchise Ownership Advisor helps aspiring franchisees make smart, informed decisions in their journey to franchise ownership. He owns and operates this franchise blog.
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