Accoding to the New York Post, the Dunkin Donuts franchise is pressuring franchisees to install a surveillance system that it says will curb employee theft and boost profitability.
While franchisees can log into the system remotely through the Internet and keep tabs on their employees, Dunkin' also can access the system through which it can monitor all of the franchisees activities which is pretty scary.
The company has told franchisees that it won't use the system to monitor them unless there is a "major incident" that would affect the brand, such as a robbery or shooting. We find this hard to believe.
Dunkin' franchisees are required either to allow Dunkin' to monitor the stores 24 hours a day, 7 days a week or pay to have each store inspected every other week at a cost of $350 a visit.
Either Dunkin' Donuts has taken the whole franchisor / franchisee relationship way too far or it is setting a standard for other franchisors to follow. I guess we will have to stayed tuned to see how this "pans out."
Read the full article: Donut in the sky
It is commendable for a franchisor to really find means to increase the franchise profitability but extreme care should be exercised in conceptualizing these ways such that the franchisee-franchisor relationship won’t be negatively affected. Before choosing a franchise, refer to a franchise guide, to start right and avoid problems concerning the franchise, franchisor, and the investment.
Wow. Next time a new edition of the dictionary comes out, I fully expect to see a photo of a Dunkin’ Donuts cruller nestled up to the word “chutzpah.” That $350 “or else” fee? Strongarm tactics do not engender love from your franchisees.
Full disclosure: when we were in the early stages of developing our own pet franchise, we had several long meetings on the topic of franchisee theft. A consultant actually suggested the exact system that Dunkin’ Donuts is now using. Install internet-enabled security cameras in all locations, telling the franchisees that the cameras are there as part of their security system, but then we, the franchisor, are able to keep tabs on any misconduct by the franchisees. Brilliant, right?
We fired the consultant the following week. We instead have opted for a path of mutual trust, openness and transparency. We wish to work with franchisees we genuinely like, and it’s thus easy for us to treat them like royalty and help them succeed however we can. If this doesn’t engender goodwill toward us, and honesty, then we’ll learn our lesson the hard way. But for us, this is the ONLY way to run a franchise.
Dunkin’ Donuts can keep the Big Brother set-up. It’s just not the world we choose to live in, and not the world we’re going to help to create.
s92bKD Good point. I hadn’t thought about it quite that way.