Dunkin' Donuts Expansion Plan Will Hurt Some Existing Franchisees
According to a New York Daily News article by Cindy Gluck, a franchisee of Dunkin' Donuts, the company is looking for reasons to sue existing single-unit franchisees in order to replace them with multi-unit franchisees.
"America may run on Dunkin', but Dunkin' Donuts is running me out of business. I wanted our store manager to share in our success, I offered to sell him a 15% stake. I wanted everything to be upfront, so I immediately notified Dunkin' Donuts. Dunkin' said that even though the transaction had yet to be completed - and even though I had notified the company beforehand - I had still violated their policies." Says Cindy Gluck, Dunkin' Donuts franchisee.
Dunkin' Donuts is suing Cindy and her partner and trying to force them to sell their 2 locations for 50% of what the stores are actually worth. Dunkin’ Donuts plans to sell these stores to multi-unit franchisees who have the capability of opening 5 or more locations..
In order to compete with Starbucks, Dunkin' Donuts has announced a plan to open 15,000 stores by 2016. The fastest way to do this is to have their multi-unit franchise owners expand by opening more locations. To become a Dunkin' Donuts franchisee, you are now required to have a net worth for 5 restaurants at a minimum of $1.5 million and $750,000 in cash reserves. If you are thinking about a partnership, go ahead, but there is one caveat; one single candidate must personally meet the financial qualifications. Also, if you want more units you have to expand at the rate of 5 at a time. Based on all this information, I am not sure if opening a Dunkin' Donuts franchise is such a great idea.
Photo: Tim Boyle / Getty Images
Wow, they want people to sell their locations for half price? That’s cold.
You are “not sure if opening a Dunkin Donuts is such a good idea”.
Why because they require 1.5 Million Net worth?
Or is because it’s not one of the deals you sell?
It is too bad that some big businesses today are running the real american entrepenuers out of business.
They are actually loosing credibility by doing this. Everyone deserve a chance to come up. I hope they will stop pushing down those who are coming up
That’s Dunkin Madness. It smacks of greed and desperation if you ask me…
multi-unit franchisees maybe efective…
Buzz News
Makes it almost impossible for the small entrepreneur if you ask me…
makes it almost impossible for the small entrepreneur if you ask me..
Good to hear but not an affect of me…
forex autopilot beat maker
Is the reason of suiing in itself not bad enough for them to lose all the lawsuits?
Everyone deserve a chance to come up. I do not think they are loosing credibility by doing this. I hope they will grow more as their plan are very aggressive.
Winter Backpacking
I think dunkin donuts has expanded too much. Even the mighty starbucks is not doing so well, the recession will shake out the poor performers
i love dunkin donuts
I can’t believe dunkin id prospering and krispy creme is scaling back. Krispy creme came up way too fast!
Managed Futures
I used to work at a Dunkin Doughnuts years ago lol. Shame they treat their franchises like this.
This is kinda old news but I remember a long time back thinking about how long the Dunkin Donuts thing can go on with this new health craze sneaking through.
Im eating donuts as Im reading this..
From what I can see, dunkin donuts sales have been on a slightly negative trend. I attribute this to growing health-consciousness.
I love those things, one store opened by my house not to log ago, the line was mile long.