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.’’
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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
Joel Libava is The Franchise King® — an independent franchise advisor with 25+ years in the industry, two published books on franchising, and his writing has been featured in The New York Times, Forbes, CNBC, Entrepreneur® Magazine and others. In addition, he wrote exclusively for the U.S. Small Business Administration blog for eight years. He doesn't sell franchises. Instead, Joel helps you figure out if franchise ownership is actually right for you — and if it is, teaches you his powerful, proven-to-work franchise research techniques, so you can make a smart, informed decision on a franchise to own and be your own boss.
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