1. Money
Yesterday, I wrote a blog post about the Dunkin' Donuts franchise and received the following comment:

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?

Comment by Jim — May 6, 2008
I was just going to reply to this comment but as I was writing back my reply I realized the importance of this topic and decided to post it to my blog. I want to start off by saying that the following statement... "I am not sure if opening a Dunkin' Donuts franchise is such a great idea" is just my opinion based on what the company is doing to their franchisees.

If you want to understand the story in full I suggest you read the article Dunkin' Donuts business practices have lots of holes on the New York Daily News website and make your own judgement.

I do want to answer Jim's question by saying...

A franchisee / franchisor relationship should be a solid relationship with one goal, the success of the franchise. Would you want to tie up $750,000 in cash to open a Dunkin' Donuts, take the risk of being sued by them and possibly be forced to sell your locations?

Just to give you an idea of how many times Dunkin' Donuts has sued their franchisees in comparison to other franchises I have provided the information below:

Lawsuits between franchisor and franchise:

  • Subway - Aprox. 29,000 locations - 12 lawsuits since 2006
  • McDonald's - Aprox. 22,500 locations - 5 lawsuits since 2006
  • Dunkin' Donuts - Aprox. 7,900 locations - 154 lawsuits since 2006
Dunkin' Donuts has about 21,000 less locations than Subway and 14,500 less than McDonald's but has been involved in over 140 more lawsuits than both companies.

To answer Jim's other question, I do not "sell" franchises. I provide information on many different franchise companies and other small businesses to help individuals open their own franchise or small business.

You can read more about the benefits of opening a Dunkin' Donuts franchise by reading my Dunkin' Donuts Franchise Review.

Also, I have added a poll to our Franchise Forums called Is a Dunkin' Donuts Franchise a Good Investment? where you can vote and also view what others have to say about opening a Dunkin' Donuts franchise.

Other Great Topics:
Is Buying a Franchise Buying a Job?
How Safe is Buying a Franchise?
Dunkin’ Donuts Franchise Review
Dunkin' Donuts Coffee Review

Comments
September 19, 2009 at 3:30 pm
(1) jen says:

Ouch!!! And to think I actually looked into buying a Duncan Donuts. I love the coffee at Duncan Donuts so much that I thought it could be a good idea for me to bring it out West. However, at the end of the day being a health conscience girl I thought serving donuts was the wrong idea for me, even though the coffee is good. So I have decided to look into opening a fitness franchise which I found at http://www.illuminategym.com. After reading this article I am so happy that I didn’t open a Duncan Donuts. I had no idea!!!

September 25, 2009 at 12:27 pm
(2) bob spiro says:

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October 17, 2009 at 7:26 am
(3) bar says:

Don your article on Dunkin Donuts is very informative & I thank you & I guess u shut john up

May 11, 2010 at 4:13 pm
(4) Bushnell Yardage Pro Scout Laser Rangefinder says:

To see it on paper is staggering! I cannot believe how many more lawsuits Dunkin’ has!

August 23, 2010 at 5:11 pm
(5) frank says:

I worked for Dunkin Donuts for 9 yrs and let me tell you what i tell every potential Franschisee. DONT DO IT. Your money can be better spent elsewhere. You will be just a number to the Corporate Office. They do the bare minimum to help a new store get off the ground but want their hands into everything. Example the majority of owners pay their rent to corporate and they pay the landlord. Of course Dunkin takes their cut. Trust me when i say go elsewhere in these days of hard times

September 19, 2010 at 2:27 pm
(6) shawn says:

i visit south carolina and from[ north philly[ phila. pa. there a small town doesn,t have d. donuts no movies theater my question is how can i get help to get have they want up front but who investor willing to help

November 30, 2010 at 2:53 pm
(7) Hampton Long says:

Dunk N Donuts definetly makes profit. It takes 10cents to make a donut (if that) and they sell it for how much? 50cent. My parents owned two when I was younger, one of them was a franchise Dunk N Donut and the other one was a start up business named after my little brother and I. At the end of the month, with all the bills paid off- it’s around $10,000 per month for them. Not bad, and it didn’t take them too long to build up their clients- just make sure you pick the right location- that’s very important.

On the safe side, you’re better off buying a business from someone else. That way you already have your daily clients coming in.

December 3, 2010 at 2:16 pm
(8) Joel Libava says:

Thanks, Don.

Dunkin’ Donuts is one of those opportunities that’s very, very visible.

That makes it very, very popular.

For someone with deep pockets, and a food service background, it may be a good fit.

Research. Research. Research.

Knowledge is power in any situation.

The Franchise King®

May 14, 2011 at 2:54 am
(9) kevin says:

i know everyone has said don’t do it, but the point of view i have is that the current location i have and all the commotion about having no dunkin donuts located near us has made me think that even having $750,000 tied up would be worth it as long as i keep from being sued.. what does everyone think about a legitimate “perfect” location along with a good business sense.

June 1, 2011 at 4:22 pm
(10) Jim Noone says:

Dunkin Donut franchises have that many lawsuits! Its staggering.

June 22, 2011 at 10:40 am
(11) franchise opportunities says:

Franchise Review Board is the premier source of the review is a franchise, FDDs, Franchise disclosure documents, corporate sales and business opportunities

July 4, 2011 at 5:43 pm
(12) B says:

i understand the “Stats” that your giving but you have to look at it their way. the lawsuits are to owners that break the guidelines of the biz, you can’t just run it anyway you want…..its a FRANCHISE…..ITS THEIR WAY OR THE HIGHWAY!!! they are suing deadbeats that keep dirty stores and such….not the hardworking team which makes them such a great company. I know we have all been to a place that we wait for 10 minutes before being helped or just say “wow these people do not know what their doing!!!!! that’s why they are sued, they are given advice on what they are doing wrong and fail to fix the problem!!! so don’t make it seem like the are just filing suit on random people……..that’s just stupid

August 22, 2011 at 11:10 am
(13) matt says:

I see all the negative comments and would like to say, yes they sue, however thats because the franchises dont follow the rules, do not sign a contract if you do not agree to it, DUNKIN DONUTS IS A VERY VERY VERY LUCRATIVE BRAND NAME, everyone knows Dunkin Donuts, and over time it will pay for its self, do not invest money you cannot afford to lose, thats why so many businesses fail

October 22, 2011 at 5:16 pm
(14) Alex says:

The stats only show that most of the other restraunts go to arbitration instead of filing an actual lawsuit, thats all

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