Independent Joe Magazine Issue #12 for Dunkin Donut Franchose Owners

February 2012 • Issue 12

We Communicate, We Educate, We Advocate!

Actor Finds New Role as

Dunkin’ Donuts Expands to Louisiana

by Cheré Coen

Kenny Bordes: Actor Turned Franchise Owner

The DCP Deal Keeps Dunkin’ Donuts in the Family

From Deal Maker to Coffee Maker... Alex

also isnue Sweet Returns Up Your Profits... this is Warm with Valentine’s Day Promotions

by Linda Formichelli

by Matt Ellis

Profit Building Building Profit with with Perry Perry

Rowzani

by Betsy Lawson

Financing Sponsors Rustle Success for Every Niche

by Susan Minichiello

Sweet Returns 



Warm Up Your Profits This Winter with Valentine’s Day Promotions by Linda Formichelli

After the buying frenzy of the December holidays, the rest of the winter can be slow for Dunkin’ Donuts stores. “January going into February is typically the slowest time of the year,” says Peter Martins, co-owner of JNS Commissary in Springfield, MA, whose family owns 45 Dunkin’ Donuts stores.

The good news is that franchise owners bring business back in by taking advantage of another winter holiday: Valentine’s Day. “The beautiful thing about Valentine’s Day is that it’s about emotional connection,” says Shrita Sterlin, chief executive and brand officer of Penn Strategies, a full-service communications firm. “Any good marketer will tell you that people buy based on emotion.” Valentine’s Day treats -- especially sweets like donuts and soothing beverages like hot cocoa and coffee, served in a warm and friendly atmosphere -- also give consumers a much-needed break from the long, cold winter.

The heart-shaped donuts Dunkin’ Donuts stores offer for this holiday help people treat their loved ones on a budget. “On Valentine’s Day, there’s a lot of pressure, especially on men, to make a big romantic gesture -- but in our economy, not everyone can do that,” says Karen Mishra, Ph.D., a marketing professor at Meredith College. “They want to do something that’s fun or cute or different and romantic, and a heart-shaped donut is a way to do something romantic and fun without spending a lot of money.”

Valentine’s Day promotions also attract people looking to do something nice for themselves. The sagging economy plays into what trend guru Faith Popcorn calls “small indulgences,” says Mishra: When money is tight, people like to indulge in small treats. They may not be able to afford a trip to Hawaii, they think, but they can enjoy a heart-shaped donut and a mocha.

A Heart-Shaped Success While Dunkin’ Brands has approved the heart-shaped donuts with pink frosting and sprinkles, they give franchisees the option to make any other shell-shaped donut a heart shape as well. Martins took this opportunity to turn every filled donut into a heart -and reaped the rewards.

“It was most definitely a big hit,” Martins says. “We started making them about two weeks prior. Leading up to Valentine’s they picked up steam, and then they really went wild through Valentine’s Day. People obviously liked them because they bought a lot of them.”

Martins doesn’t think that a lot of people came in specifically for the heart-shaped donuts, but people who were already there to buy different products would typically pick up a box of the holiday treats as well.

He estimates that his stores sold 30 percent more donuts than usual on Valentine’s Day. Want some of that success? Martins recommends going all out and making all your filled donuts heart-shaped for the holiday. “A tip for that promotion I

03 05 07 08 11 12 20 23

Sweet Returns Linda Formicelli

Today’s Agreement Benefits Tomorrow’s Generations Matt Ellis

Resolve to Reach Your 2012 Labor Goals Perry Ludy

DDIFO Directory of Sponsors From Deal Maker to Coffee Maker Betsy Lawson

Actor Finds New Role as Dunkin’ Donuts Expands to Louisiana Cheré Coen

Financing Sponsors Rustle Up Success for Every Nich Susan Minichiello

Index of Advertisers

think would be to do all of them heart shaped, and have fun with it leading up to that day,” he says. “Build the momentum up to it so that day really pops.”

Making It Work If you’re looking for the perfect time to start promoting your holiday specials, the time to start is early in January; according to Sterlin, Valentine’s Day promotions can start as early as just after Christmas.

The trick to creating a Valentine’s Day promotion that really boosts sales is to appeal to a wide variety of customers. While you could simply play up the lovebird visual, this can limit your sales to those buying treats for their sweethearts. You can broaden your market, Sterlin says, by marketing your promotional item as something that lets customers show not only love for their Sweet continued on page 19 FEBRUARY 2012 • INDEPENDENT JOE

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4

INDEPENDENT JOE • FEBRUARY 2012

Today’s Agreement Benefits Tomorrow’s Generations

by Matt Ellis

The DCP deal keeps Dunkin’ Donuts in the family.

From the beginning, Dunkin’ Donuts has always been a family business. Longtime franchise owners remember the sense of family Bill Rosenberg brought to the early days of Dunkin’ Donuts. As the company grew, franchise owners developed close, lasting relationships— like family. Now, families run networks of stores and second and third generation operators are taking over.

“Family is part of the core of Dunkin’ Donuts,” is how one long-time franchise owner puts it. So when franchise owners voted to ratify the merger agreement for the DCP system—creating the National DCP (NDCP)—they weren’t just voting to improve their supply chain; they were voting to improve the business for the next generations of franchisees.

“My son will bring this business to a new level, way past what I did in 24 years,” said Barkat Gillani a Chicago-area franchise owner and Vice-Chair of the NDCP. Fayyaz Gillani is working toward the completion of his MBA at Loyola University Chicago while he’s working in the family Dunkin’ Donuts business.

Chris Prazeres worked in the family business while growing up in Rhode Island. Today, he has assumed day to day operations from his father, Joe. And recently Chris had the unique opportunity to help guide the creation of the NDCP knowing full well he was doing something to insure his children could benefit even more than he did.

“This agreement will be in play long after my kids are in this business,” said Prazeres, who was a member of both the National and Northeast DCP boards through the end of 2011.

“It totally sets up the next generation and that was one of the principles that guided us through this,” said Rhode Island franchise owner and former National DCP Board Member John Justo.”Longevity was very important in this.”

A Seat at the Table Throughout the process that created the blueprint for a new, national, Distributor Commitment Program, which was first envisioned by Rosenberg in the early 1970s, franchise owners saw the opportunity to truly change

Dwar Patel with his father Dipak who serves on the NDCP Board of Directors.

the dynamic between themselves and Dunkin’ Brands. One vitally important piece of the Relationship Agreement

at the core of the new NDCP is the unique ability of the franchisee-owned cooperative to participate in new product development. According to Jason Williams, an attorney with Frost Brown Todd, who represented the co-op in the creation of the NDCP agreement, “We were never in the room when those decisions were being made.” But, now with the new agreement, the NDCP expands from distribution into procurement through which, Williams says, “the potential savings are astronomical.”

“Now, we have a seat at the table, early inclusion. The NDCP is involved in the development of new products and can find multiple vendors to secure the best price. We didn’t have that ability before. That is what this agreement gives us,” said Dipak Patel, who was co-Chair of the National DCP Board from 2008-2011 and still serves on the NDCP Board of Directors.

Deal continued on page 18

Independent Joe ® is published by DD Independent Franchise Owners, Inc. Editors: Jim Coen, Matt Ellis Contributors: Cheré Coen, Linda Formichelli, Betsy Lawson, Perry Ludy, Susan Minichiello Advertising: Joan Gould • Graphic Design/Production: Susan Petersen

Direct all inquiries to:

DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019 508-422-1160 • 800-732-2706 • info@ddifo.org • www.ddifo.org DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners.

INDEPENDENT JOE®, INDY JOE®, and DDIFO® are registered trademarks of DD Independent Franchise Owners, Inc. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2012 • Printed in the U.S.A. Cover photos: Kenny Bordes ©2007 Liz Dunham; SB ‘83 Production Stills – ©Spring Break ‘83 (Kenny Bordes and John Goodman) FEBRUARY 2012 • INDEPENDENT JOE

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6

INDEPENDENT JOE • FEBRUARY 2012

Resolve to Reach Your 2012 Labor Goals

By the author of Profit Building: Cutting Costs without Cutting People

Every New Year begins with people making New Year’s Resolutions. Generally, when we commit ourselves to a New Year’s resolution we intend for it to last the entire year or at least until we have reached a particular goal. However, in most cases, our resolutions fall by the wayside long before the year has ended.

Why is it that we are successful in achieving certain goals and not others?

Perhaps it is partly because we tend to choose goals that are too far from our reach.

effective measures for labor management, you must have the right information on which to base your goal setting decisions. A good place to start is to get a better understanding of your labor costs. Most of us seek to run labor below 20 percent. Yet, too often, when faced with rising operating costs, anxious franchise owners will immediately decide to reduce hourly labor expenses. But, simply paying employees less will not solve labor cost issues. The keys to controlling labor costs are improving workplace productivity and scheduling your employees wisely.

We often set goals and objectives that are too high and require too much organizational time and energy.

Profit improvement is one of those areas where we often set goals and objectives that are too high and require too much time and organizational energy. Labor management, in particular, can be challenging when it comes to setting goals that are in alignment with an organization’s overall profit goals. While we might think that we are setting the right goals to control labor costs, often they are not realistic goals and we when we fail to reach them we cut corners and take unnecessary risks.

Profit improvement is often achieved by taking small steps.

It is important to be specific in goal setting. For example, setting the goal of losing 15 pounds is a more specific goal than saying that you want to “lose some weight.” It gives you a clear understanding of what you want to achieve and keeps you motivated. Also consider the specific actions required to reach your goal. Just promising you’ll “eat less” or “sleep more” is too vague. Be clear and precise. “I’ll be in bed by 10:00 PM on weeknights” leaves no room for doubt about what you need to do and whether you’ve actually done it. Goals have a better chance for success when they are specific, realistic and measurable.

Before you can develop appropriate and

Here’s an example of how you could reduce one hour of labor from each work day during FY 2012:

Assumptions

a) Assume that your business was open 365 days during FY 2011 and that you will be open for business 365 days during FY 2012. b) General Manager salaried hours do not apply. c) Calculate the average non-management hourly labor rate by adding the hourly labor rates for each full-time and part-time employee and dividing by the total number of employees.

This calculation gives the average cost for each hour of labor spent

Process

1. Determine the number of non-management labor hours worked at your individual shops in FY 2011. This information can be found in your labor management reports, schedules or payroll records.

2. Divide the total hours by the total number of days the shop was open during FY 2011. In this example, the

total number of days would be 365.

3. Challenge your managers to reduce one hour from their schedules every day during FY 2012. This would give each shop a reduction of 365 labor hours compared to the previous year and you would have reached your goal.

In this example, a franchise with 10 locations would have reduced labor by 3,650 hours, which is a significant achievement. If you then multiply the 3,650 hours by the average cost per labor hour you will see the number of dollars saved.

Here are some ways you can reach the goal to reduce your labor by one hour each day: 1. Schedule opening hours in quarterhour increments. For example, start one employee at 6:45AM, the next one at 7:00AM, then 7:15AM, and so forth.

2. Schedule closing hours in quarter hour increments. For example, 9:30PM, 9:45PM, and 10:00PM. 3. Schedule your salaried General Manager to a 55-hour work week. If your managers are working less than 55 hours, schedule them to replace nonmanagement hours. For example, if the manager is scheduled to work 45 hours and a part-time employee is scheduled to work 30 hours, add 10 hours to the manager’s schedule and reduce the part-time employee’s hours to 20.

4. Make sure managers are building staggered schedules based on a quarter-hour increments. This ensures better control and makes it easier to do the math when calculating the total number of hours scheduled.

Profits continued on page 17 FEBRUARY 2012 • INDEPENDENT JOE

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Directory of Sponsors Accounting Adrian A. Gaspar & Company, LLP, CPAs 1035 Cambridge Street, Suite 14, Cambridge, MA 02141 Robert Costello • cpas@gasparco.com 617-621-0500 • www.gasparco.com Bederson & Company LLP - CPAs and Consultants 405 Northfield Avenue, West Orange, NJ 07052 Steven Bortnick, CPA • sbortnick@bederson.com 973-736-3333 • www.bederson.com Bedford Cost Segregation 60 State Street, Suite 700, Boston, MA 02109 Bill Cusato • bcusato@bedfordcostseg.com 978-263-5055 • www.bedfordcostseg.com/who_we_serve/ddifo.asp Cynthia A. Capobianco, CPA 60 Quaker Lane, Suite 61, Warwick, RI 02886-0114 Cynthia Capobianco • 401-822-1990 cynthia@capobianco.necoxmail.com

Duro-Last Roofing 525 Morley Drive, Saginaw, MI 48601 Jim Schriber • jschribe@duro-last.com 800-248-0280 • www.duro-last.com Royston, LLC - Cabinetry and Merchandising One Pickroy Road, Jasper, GA 30143 Bonnie Padgett • bonnie.padgett@roystonllc.com 800-334-1766 • www.roystonfordunkin.com Secure Energy Solutions, LLC 12-14 Somers Road, East Longmeadow, MA 01028 Mike Schmidt • mschmidt@sesenergy.org 413-733-2571 ext. 223 • www.sesenergysolutions.org ViewPoint Sign and Awning 35 Lyman Street, Northboro, MA 01532 Bill Gavigan • billg@viewpointsign.com 508-393-8200 • www.viewpointsign.com

Business Broker

James P. Ventriglia, CPA, Inc. 145 Phenix Avenue, 2nd Floor, Cranston, RI 02920 Jim Ventriglia • jimv@jpvcpa.com 401-942-0008 • www.jpvcpa.com

Kensington Company & Affiliates 185 Roslyn Road, Roslyn Heights, NY 11577 David Stein • kstein@kensingtoncompany.com W: 516-626-2211 • M: 718-490-2218 • www.kensingtoncompany.com

Gray, Gray & Gray, CPA 34 Southwest Park, Westwood, MA 02090 Paul Gerry, CPA • pgerry@gggcpas.com 781-407-0300 • www.gggcpas.com

Finance

Performance Business Solutions, LLC 87 Lafayette Road, Suite 11, Hampton Falls, NH 03844 Jeff Hiatt • jdh@revenuebanking.com 508-878-4846 • www.revenuebanking.com Rubiano & Company, CPA’s 5 Austin Avenue, Suite 1, Greenville, RI 02828 Daniel J. Rubiano, CPA • dan@rubianocpa.com 401-949-2600 • www.rubianocpa.com Sansiveri, Kimball & Co., LLP 55 Dorrance Street, Providence, RI 02903 Joseph Mansour • jmansour@sansiveri.com 401-331-0500 • www.sansiveri.com Thomas Colitsas and Associates, CPA 103 Carnegie Center, Suite 309, Princeton, NJ 08540 Tom Colitsas • tcolitsas@tcacpa.com • 609-452-0889 “A Member of Franchise Pros”

Advertising

Business Financial Services 3111 N. University Drive, Suite 800, Coral Springs, FL 33065 Scott Kantor • skantor@businessfinancialsservices.com 954-509-8019 • www.businessfinancialservices.com Capital One Bank 499 Thornall Street, 11th Floor, Edison, NJ 08837 George Ziminski •george.ziminski@capitalone.com 732-767-4115 • www.capitalone.com Cashmaster Cash Solutions 2108 Trving Blvd., Dallas, TX 75207 Jayson Dunston • jdunston@cashmaster-us.com 214-747-1982 ext. 2 • www.cashmaster-us.com Direct Capital Franchise Group 155 Commerce Way, Portsmouth, NH 03823 Robyn Gault • rgault@directcapital.com 603-433-9476 • www.franchise.lendedge.com Fidelity Bank 465 Shrewsbury Street, Worcester, MA 01604 Sally Buffum • sbuffum@fidelitybankonline.com 508-762-3604 • www.fidelitybankonline.com

Access Rewards 1012 W Beardsley Place, Salt Lake City, UT 84119 Doug Jentzsch • dougj@accesscashrewards.com 866-681-2427 • www.accesscashrewards.com

GE Capital, Franchise Finance 201 Merritt 7, 2nd Floor, Norwalk, CT 06851 Ab Igram • ab.igram@ge.com 203-229-1885 • www.gefranchisefinance.com

Back Office

Joyal Capital Management Franchise Development 50 Resnik Road, Plymouth, MA 02360 Daniel Connelly • dconnelly@joycapmgt.com 508-747-2237 • www.jcmfranchise.com

IKMS Group, Inc. PO Box 6221, Manchester, NH 03108 Cliff Pratt • ctp@ikmsgroup.com 603-644-4683 • www.ikmsgroup.com

Building Absolut Contracting 4346 Route 27, Princeton, NJ 08540 William Lako • blako@absolutlycan.com • 609-655-0800 “A Member of Franchise Pros”

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INDEPENDENT JOE • FEBRUARY 2012

Merchant Cash & Capital 450 Park Avenue South, 11th Floor, New York, NY 10016 Seth Broman • sethb@merchantcashandcapital.com 212-545-3185 • www.merchantcashandcapital.com Susquehanna Commercial Finance 2 Country View Road, Suite 300, Malvern, PA 19355 Brian Colburn • brian.colburn@susquehanna.net 443-996-1792 • www.susquehanna.com

Directory of Sponsors Trust Capital Funding 132 Adams Street, Suite 1, Newton, MA 02458 Mark Wesalowski • Mwesalowski@trustcapitalfunding.com 800-LENDER1 • www.trustcapitalfunding.com

Lisa & Sousa Attorneys at Law 5 Benefit Street, Providence, RI 02904 Carl Lisa, Sr. • clisa@lisasousa.com 401-274-0600 • www.lisasousa.com

United Capital Business Lending 215 Schilling Circle Suite 100, Hunt Valley, MD 21031 Trey Grimm • tgrimm@ucbl-inc.com 410-771-9600 • www.unitedcapitalbusinesslending.com

Paris Ackerman & Schmierer LLP 101 Eisenhower Parkway, Roseland, NJ 07068 David Paris • david@paslawfirm.com • 973-228-6667 www.paslawfirm.com “A Member of Franchise Pros”

Food Products

Zarco, Einhorn, Salkowski & Brito, PA 100 SE 2nd Street, 27th Floor, Miami, FL 33131 Robert Zarco, Esq. • rzarco@zarcolaw.com Robert Salkowski, Esq. • rsalkowski@zarcolaw.com 305-374-5418 • www.zarcolaw.com

CSM Bakery Products 1901 Montreal Road, Suite 121, Tucker, GA 30084 Marla Cushing • marla.cushing@csmglobal.com 770-723-2083 • www.csmbakeryproducts.com PepsiCo 315 Norwood Park South, Norwood, MA 02062 Bryan Gruttadauria • bryan.gruttadauria@pepsi.com 781-255-2663 • www.pepsico.com

Human Resources CareerBuilder.Com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169 Erica Basso • erica.basso@careerbuilder.com 781-453-3581 • www.careerbuilder.com Diversified Solutions, Inc. 412 Long Pond Road, Plymouth, MA 02360 Chrishelle Gavoni • jkerchgavoni@comcast.net 508-746-6995 • www.diversified-solutions.com/dsi_dd.html The PCI Group 303 Molner Drive, Elmwood Park, NJ 07407 Robert Boffa, Sr. • rgb@pcihr.com 201-797-8000 ext. 223 • www.pcihr.com

Insurance The Hill Agency 5 Washington Avenue, Endicott, NY 13760 Rita Frailey • rfrailey.hilla01@insuremail.net 800-446-1775 • www.thehillagencyinc.org KK Insurance Agency 541 Broadway, Long Branch, NJ 07740 Ashish Vadya • ashish@kkinsuranceagency.com 866-554-6799 • www.kkquote.com Paris-Kirwan Insurance 1040 University Avenue, Rochester, NY 14607 John Mulcahy • johnm@paris-kirwan.com 585-473-8000 • www.paris-kirwan.com Sinclair Insurance Group - Risk Management 4 Tower Drive, Wallingford, CT 06492 Matt Ottaviano • mottaviano@sinclair-insurance.com 203-284-3235 • www.srfm.com Starkweather & Shepley Insurance Brokerage, Inc. 60 Catamore Boulevard, East Providence, RI 02914 Sabrina San Martino • ssanmartino@starshep.com 800-854-4625 ext. 1121 • www.starkweathershepley.com

Legal Law Office of Carmen D. Caruson, PC 77 West Wacker Drive, Suite 4800, Chicago, IL 60601 Carmen D. Caruso • cdc@cdcaruso.com 312-606-8640 • www.cdcaruso.com

Operations Access to Money, Inc. 628 Route 10 - Suite 8, Whippany, NJ 07981 Doug Falcone • dougf@accesstomoney.com 973-599-0600 • www.accesstomoney.com Belshaw Adamatic Bakery Group 814 44th Street NW, Suite 103, Auburn, WA 98001 Fran Kauth • fran_kauth@belshaw.com 206-718-3573 • www.belshaw-adamatic.com Bunn-O-Matic Corporation 1400 Stevenson Drive, Springfield, IL 62703 Todd Rouse • Todd.Rouse@bunn.com 800-637-8606 • www.bunn.com Comcast Business Services 500 South Gravers Road, Plymouth Meeting, PA 19462 Comcast National Sales • Dunkin_National_Sales@comcast.com 866-407-6338 • www.business.comcast.com/internet/index.aspx Delphi/Fast Track 2+2 Drive-Thru Timer 3500 West Moore Avenue, Suite M, Santa Ana, CA 92704 Mike Pierce • mike@phaseresearch.com 714-850-1320 • www.fasttracktimer.com DTT Surveillance 1755 North Main Street, Los Angeles, CA 90031 Mira Diza • mdiza@dttusa.com 800-933-8388 ext. 1441 • www.dttusa.com Ecolab 8300 Capital Drive, Greensboro, NC 27409 Arliene Bird • arliene.bird@ecolab.com www.ecolab.com/Businesses/ eCube 5 Cold Hill Road, Building 20, Mendham, NJ 07945 Cardie Saunders • cardie.saunders@getecube.com 888-99-ECUBE • www.getecube.com Energy Gateway, Inc. 451 Worcester Road, Charlton, MA 01507 Christopher Tremblay • Chris@energygateway.org 508-207-9740 • www.energygateway.com FireKing Security Group 101 Security Parkway, New Albany, IN 47150 Rick Uren • ricku@fireking.com 800-457-2424 • www.Fireking.com

Thank You to Our Sponsors!

Sponsors continued on page 15 FEBRUARY 2012 • INDEPENDENT JOE

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INDEPENDENT JOE • FEBRUARY 2012

From Deal Maker to Coffee Maker by Betsy Lawson Alex Rowzani Loved the Dunkin’ Model So Much, He Bought Four Shops In the process of brokering the sale of dozens of Dunkin’ Donuts and many other QSR franchises in and around the New York City area, Alex Rowzani decided he liked the Dunkin’ Donuts business model so much that he’d buy four of his own. In only his first year as a franchisee, two of his stores in Jamaica, NY, earned “top #1 and #2 awards” for greatest growth in guest visits. Bob Wiggins, Operations Vice President for Dunkin’ Brands, personally delivered the awards during a visit to New York.

Rowzani has now set his sights on expansion – and his employees, family members, and business associates are all for it.

To recognize the hard work and contributions of their employees, Rowzani and his wife, Sue – who is his business partner and runs the stores’ day-to-day operations – hosted two separate parties for employees during the holidays. They selected two different dates because they knew work schedules would not allow all employees to attend a single event. In total, they awarded about $20,000 in employee bonuses throughout the year.

After the party, employees sent the couple thank you notes; these are just two of the comments they received: Alex & Sue have given me a new life, a new challenge, earned me name and fame. And now, when I look back, I feel the difference – where I was and where I am now.”

Kabirul Alam - Store Manager # 1 Award Winner I am pleased to work for Alex & Sue because they believe in and reward employees (like, this New Year’s bonus)... It has been an exceptional year under Alex’s direction and I look

“Mantra of Five”

Alex Rowzani’s Steps to Success 1. Customer/Client/Guest is always first.

2. Provide excellent service under all circumstances.

3. Always be ready to help our Guests or associates or employees 24/7/365.

4. Honesty, hard work, helping desire & keep up-to-date with new technology.

5. Take blessings from elders and best wishes from all.

forward to a successful future. I will try ... to fulfill the dreams expressed in your eyes, to make the company larger and more successful.

Dalia Chowdhury - Crew Member

American Success Story Alex Rowzani came to this country in 1983 from the high tech city of Hyderabad, the capital of the state of Andhra Pradesh on the southeastern coast of India. The eldest of nine siblings, Rowzani recalled that when he was young, he “used to hang around with the business owners, accountants, and lawyers,” learning how they did business. His father died when he was 15.

When he was old enough, he decided he would travel the world. He knew that the U.S. was the land of opportunity and chose New York as the right place to settle. Rowzani became a sales agent with New York Life

Insurance Company. Within one year he was promoted to sales manager and rose to become the top sales manager in the country; then he was promoted again to the job of associate general manager.

As a result of his hard, work he earned enough money to bring all his siblings to New York and to help establish them. In 1987 he returned to India and married Asraf “Sue” Farishta, from Raipur, Chattisgarh, in the central part of the country. Her background is in developmental psychology and she worked as a secondary school teacher.

Alex and Sue have a son, 23 year-old Yaseen, and a daughter Sana, who is 21. Yaseen assists his father in his brokerage business and works at Chase Bank. Sana is in school studying to be a speech pathologist. Both the children are well versed in the family businesses of brokerage and Dunkin’ Donuts, even as they pursue their own career interests.

Rowzani started learning the brokerage business in 2002 and later founded Quick Business Network, Inc. in New Hyde Park, NY. The brokerage assists in the buying and selling of small- and medium-size QSR businesses such as Dunkin’ Donuts, Popeye’s, Subway, IHOP, KFC, and many other franchises in the New York metropolitan area.

Rowzani continued on page 16 FEBRUARY 2012 • INDEPENDENT JOE

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Actor Finds New Role as Dunkin’ Donuts Expands

by Cheré Coen to Louisiana Kenny Bordes remembers attending Mardi Gras parades as a kid, his parents carrying a bag of Munchkins and a Box O’ Joe to warm themselves during the chilly February days in New Orleans.

When he left his native Louisiana to attend Catholic University in Washington, D.C., Bordes was reintroduced to Dunkin’ coffee, when he joined his East Coast friends on their runs to the local D.C. franchise.

After college, Bordes worked in restaurant and bar management while also pursuing his love of film and acting. He moved back to his hometown of Metairie, a suburb of New Orleans, three days before Hurricane Katrina and started a film production company shortly after the disaster to help rebuild the local film economy.

But film work can be unsteady and Bordes began searching for the right opportunity to bring him back to the restaurant business. When he heard that Dunkin’ Donuts was expanding west of the Mississippi River, he looked into the possibility that he could secure the rights to develop new territories near New Orleans As part of its ongoing expansion effort, Dunkin’ Donuts recently announced plans to open 25 new shops in Louisiana between 2012 and 2018.

New Orleans, the nation’s 46th largest city, has only one Dunkin’ location now, but is expected to have four more by 2016, according to Grant Benson, Dunkin’s vice president of franchising and market planning.

Benson told the New Orleans TimesPicayune, “The state of Louisiana has been a priority growth market for Dunkin’ Brands in 2011 and we’re excited to expand our footprint in Baton Rouge, Shreveport and New Orleans.”

12

INDEPENDENT JOE • FEBRUARY 2012

For Bordes, getting into the coffee and donut game meant securing the necessary finances. He says he has signed an agreement with “strong financial partners,” developed a business plan and negotiated a territory on the east bank of the Mississippi River in Jefferson

Bordes chose the East Bank of Jefferson Parish which neighbors New Orleans and includes his hometown of Metarie.

Dunkin’ Donuts recently announced plans to open 25 new shops in Louisiana.

Parish, which neighbors New Orleans and includes Bordes’ home town of Metairie.

“I chose the territory because of my familiarity with it,” he explained. “The East Bank of Jefferson Parish is what I’m comfortable with. I wouldn’t have had it any other way.”

He says he has several locations in mind that appear prime for commuting traffic, strong visibility and “a good client base” ranging from commuters to businesses who may want future catering options.

“There’s a lot of good opportunity,” he said.

His history as a Dunkin’ coffee drinker while in college gives Bordes an insight some new franchise owners may not have, especially here where

consumers have an historic fondness for a different kind of coffee.

New Orleans has long been a major port for coffee bean imports because of its proximity to Central and South America and easy transportation access through the Mississippi River. The city’s French and Spanish residents historically brewed their coffee strong—in the European tradition. Then, during the Civil War when Expansion continued on page 13

Expansion continued from page 12 Bordes, however, is not deterred by Union blockades created coffee shortthe competition. He says he knows ages, inventive Louisianans began many people who grew up drinking adding chicory to stretch their coffee Community Coffee but have, “have supplies. Food historians site instancfallen in love with Dunkin’s coffee.” es of chicory being used in coffee before this time One of Dunkin’ Bordes sees an opportunity Donuts’ advan(mostly in times of shortages), but in the market to sell a good tages, Bordes many agree the believes, is “regular coffee” which, in combination of offering a rich coffee and chicory the South, means a cup of plain coffee took hold in New black coffee, unflavored that’s delicious Orleans during the without all the and unsweetened.

1860s and has added flavors. remained strong Not a fan of “fancy coffees,” Bordes ever since. sees an opportunity in the market to Competition for coffee dollars is also strong in Louisiana. Community Coffee of Baton Rouge commands the South Louisiana market with a popular dark roast blend as well as a coffee and chicory blend. The company calls itself the “State Coffee of Louisiana” and has trademarked the phrase.

PJ’s Coffee of New Orleans operates dozens of shops in Louisiana, including 16 in New Orleans, proper. PJ’s also operates a large coffee roasting facility near Bourbon Street in the famous French Quarter.

selling a good “regular coffee” which, in the South, means a cup of black coffee, unflavored and unsweetened.

“I feel that is a huge advantage, to appeal to the everyday guy,” Bordes said. “It’s not exclusive. They (Dunkin’ Donuts) do offer higher end drinks, but also cater to the guy who likes his black coffee. One person may love regular coffee but everyone else can choose items off the menu.”

Bordes believes his new Metairie location will be a draw not just for

commuters; but also for people in the neighborhood. He’s designing the interior with comfortable spaces for people to relax and use their computers and a small conference room.

He’s considering an outside seating area plus a drive-through.

“It’ll be a relaxing, comfortable accommodating feeling as opposed to the rushed atmosphere,” he said.

Bordes says he’s on schedule to open his first shop within the year, with three more to follow in the next few years.

“Realistically, we’re looking at six to nine months from here on out,” he said. “In the meantime, another location might come up and we can start on that. I feel that once it gets going we will be in really good shape.”

This month Mardi Gras parades will roll through the streets of New Orleans. As always, Bordes will be reminded of his childhood, those yummy Munchkins and boxes of Joe. He’s hoping next year, parents will stop by his new Dunkin’ Donuts shop make it a Mardi Gras tradition - just like his mom and dad did.

FEBRUARY 2012 • INDEPENDENT JOE

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INDEPENDENT JOE • FEBRUARY 2012

Directory of Sponsors Sponsors continued from page 9 Glacial Energy 24 Route 6A, Sandwich, MA 02563 Kristy Solt • kristy.solt@glacialenergy.com 340-201-4323 • www.glacialsales.com/dunkindonuts Hi-Tech Sound 53 Brigham Street, Unit 8, Marlborough, MA 01752 Gary Hanna • gary@hitechsound.com 508-624-7479 • www.hitechsound.com HME Drive-Thru Headsets 14110 Stowe Drive, Poway, CA 92064 Brady Campbell • bcampbell@hme.com 858-535-6034 • www.hme.com HS Brands International 500 Myles Standish Boulevard, Taunton, MA 02780 Michael Mershimer • mike@mershimer.com 800-723-1150 • www.hsbrands.com iTech Digital 4287 West 96th Street, Indianapolis, IN 46268 Natalie Himmel • natalie@itechdigital.com 317-704-0440 ext. 104 • www.itechdigital.com Jarrett Services ATM, Inc. 1315 Stelton Road, Piscataway, NJ 08832 Eric Johnston • ej@jarrettforcash.com 732-572-0706 • www.jarrettforcash.com Jera Concepts - Order and Production Management Software 17 Fruit Street, Hopkinton, MA 01748 Wynne Barrett • wynne@jeraconcepts.com 508-686-8786 • www.jeraconcepts.com

Payless Shoe Source 3231 SE 6th Avenue, Topeka, KS 66607 Matt Lemke • matt.lemke@payless.com 785-368-7530 • www.payless.com R.F. Technologies 542 South Prairie Street, Bethalto, IL 62010 Jennifer Morales • jenm@rftechno.com 618-377-4063 ext. 121 • www.rftechno.com SKAL East, Inc PO Box 303, 31 Eastman Street, Easton, MA 02334 Jim Zafirson • jim@skaleast.com 800-966-0106 • www.skaleast.com/index.cfm?keyword=dunkin Sprint 3 Van De Graaff Drive, Burlington, MA 01803 Caroline Fedele • caroline.fedele@sprint.com 781-367-1057 • www.sprint.com/ddifomembers SureShot Dispensing Systems 100 Dispensing Way, Lower Sackville, NS Canada B4C 4H2 Deanna MacKinnon • dmackinnon@sureshotdispensing.com 902-865-9602 ext. 144 • www.sureshotdispensing.com TredSafe/WalMart 450 West 33rd Street, New York, NY 10001 Ted Travis • ttravis@esoriginals.com 909-949-0495 • www.walmart.com Waste Management 107 Silvia Street, Ewing, NJ 08628 JoAnn Bradbury • jbradbury@wm.com 215-378-1417 • www.wm.com

Macdonald Restaurant Repair Service, Inc. PO Box 61, 83 Pond Street, Norfolk, MA 02056 Mark & Debi Macdonald • debi@macdonaldcompany.com 508-384-9361 • www.macdonaldcompany.com Metromedia Energy 200 West Park Avenue, Suite 125, Westborough, MA 01581 Scott Werman • swerman@mmenergy.com 508-329-0186 • www.mmenergy.com Muzak 3318 Lakemont Boulevard, Fort Mill, SC 29708 Joanna Barrett • joanna_barrett@muzak.com 803-396-1656 • www.muzak.com New England Acquisitions 7 Babcock Street, Pawcatuck, CT 06379 Jim Calash • mrpapijim2002@comcast.net 860-235-1344 New England Drive-Thru Communications 12 Wildwood Road, Auburn, NH 03032 Angela Bechard • angela@nedrivethru.com 888-966-6337 • www.nedrivethru.com New England Repair Service - a div. of New England Coffee Co. 100 Charles Street, Malden, MA 02148 Jerry Brown • jerry.brown@necoffeeco.com 781-873-1536 • www.nerepairservice.com DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement

by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

FEBRUARY 2012 • INDEPENDENT JOE

15

Rowzani continued from page 11 He says he was always impressed the most with Dunkin’ Donuts and when four stores in Jamaica, NY came up for sale he decided he would make the investment – going from “deal maker to coffee maker.”

In his first year as a franchise owner, Alex Rowzani (2nd from right) received Guest Count Awards Top 1 and Top 2.

Rowzani conducts crew member training himself, calling it “an investment”.

Dunkin’ training pays off At the Dunkin’ Donuts training centers in Orlando, Boston, and Long Island, the days were long: 6am to 5pm. But Rowzani routinely stayed an additional half hour at the facility, gaining mastery over the content covered that day.

During the training he was required to all the chores from sweeping and mopping to cashier and management.

He watched the online training videos and took the tests.

He learned all the calibrations and to dump any product

It’s Not The Moon Landing.

that hadn’t sold within the requisite time. His wife, Sue, completed the same training.

Now, Rowzani is heavily involved in the training of his employees and firmly believes in the benefits Dunkin’ Donuts provides through its Online University training program. Watching training videos and learning how to make products from start to finish–before ever touching the live product–is a costefficient and effective way of maintaining quality control for the Dunkin’ brand, he says.

“There are no short cuts to quality,” Rowzani said. This philosophy is what has made and kept the Dunkin’ Donuts and Baskin-Robbins brands successful on an international level. Every new employee should be given online training, Rowzani said, as “this is Rowzani continued on page 17

The NEMA 4 Certified HyperView® Order Confirmation Display (OCD) has landed. And things might never be the same for QSRs. With a lifetime warranty on display seals — a critical point of concern on other systems — you’ll rest easy knowing that with HyperView, “failure is not an option”. Since HyperView has a display rated up to 100,000 hours, has low power consumption, doesn’t require heaters or cooling fans and operates in a temperature range of -40°F to +176°F, it’s obvious that HyperView offers a clearly superior way to confirm orders and increase profits, with the lowest cost of ownership.

What’s more, HyperView OCDs are just the first step into a larger universe of solutions from HyperActive Technologies. From dynamic drive-thru management and reporting with QTimer®, to kitchen management, inventory monitoring and reporting with HyperActive Bob®, our QSR solutions are making an impression that won’t soon be forgotten.

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INDEPENDENT JOE • FEBRUARY 2012

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Rowzani continued from page 16 an investment and helps to keep the customers and growth of the sales.”

It was precisely the consistent look and quality you see in all Dunkin’ franchises that attracted Rowzani’s attention in the first place. “After 18 minutes, if a pot of coffee hasn’t sold, you dump it out,” Rowzani said. To outsiders, it may seem like money down the drain. But those on the inside know that this basic policy provides customers the confidence that no matter where in the world they get their Dunkin’ Donuts coffee, it will be hot and fresh.

His commitment to quality is one of the reasons he and his team have been able to transform underperforming locations into highly profitable ones. “Customers know how they want it to taste,” he emphasized.

So if a customer ever complains about a product in any one of his four locations, that customer gets a free replacement, “no questions asked.”

Rowzani says he and his employees

know some customers may take advantage of this policy, in fact Rowzani estimates, that across his four locations, they give away between $5,000 and $10,000 worth of free products a year. But, he balances that cost with the 100 percent satisfaction goal he has for all his franchises.

“That will keep them coming back,” Rowzani said. And he¬–and the entire team at Jamaica DD Networks– have the awards to prove it.

Jamaica DD Network prides itself in always staying ahead of the curve with product and service offerings that are specifically tailored to the needs of each customer.

–Alex Rowzani

Profits continued from page 7 5. Study each shop’s operating hours to be sure that they are open when they need to be open and that they are closed when they need to be closed.

6. Assign closing tasks throughout the day to minimize the number of closing hours required. Make sure these tasks do not negatively impact your customer service standards or affect product availability.

As you can see, labor management goals can be achieved without having to take

It’s Not Peary Reaching The North Pole.

complicated action steps. When you set simple, specific goals that require little time and allow you to take small steps, you have ensured that your goals are within your reach and you will be successful in achieving them.

Perry Ludy is a senior executive, business consultant, and author of business books. He is president of LudyCo International. Contact Perry at perryludy@earthlink.net.

In the race to the top of drive-thru domination, there’s one clear frontrunner—QTimer® from HyperActive Technologies.

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17

Deal continued from page 5 Scott Carter, Managing Member of Supply Chain Associates, LLC the consulting firm representing the DCP in the creation, design and implementation of the new DCP is an expert on supply chain operations and a former chief executive of the DCP. He says that by participating in product development, the DCP will play a greater role in the full product development life cycle. “Now the NDCP has the ability to apply expertise to find the lowest cost, highest value product to match a Dunkin’ functional spec.”

Every Dunkin’ Donuts shop in the (lower 48) United States is served by the National DCP. According to Chief Executive Officer Kevin Bruce, the NDCP makes tens of thousands of deliveries per year to 6,200 restaurants in the system. Bruce estimates last year the DCP delivered 57 million cases of cups, napkins, coffee and more; he fully expects the number of cases delivered to grow in 2012.

Revenue for the cooperative topped $1.4 billion in 2011 and, by implementing new efficiencies made possible by the merger, franchise owners will realize a higher patronage dividend, along with lower product costs.

But, running a successful supply chain means more than delivering boxes to the back door, according to Michael Batista, who became Chairman of the National DCP Board of Directors in January 2012. “It’s a best in class operation and service. I think everybody sees this as building the DCP of the future and maintaining excellence for years to come and maintaining the obligations we have to our members. That goes beyond what we are obligated to do for DBI—we have to deliver for our franchisees—that’s the most important thing.”

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INDEPENDENT JOE • FEBRUARY 2012

Distribution. Commitment. Partnership.®

And, while the merger benefits franchise owners through efficiencies, economies of scale and control over procurement, it also sets the stage for an expansion plan unlike any Dunkin’ has ever undertaken.

More than Double Even before news of this historic merger was reported in business and industry press, DBI had announced its plan to more than double the company’s existing footprint in the next 20 years. Expansion west of the Mississippi River was a central theme of DBI’s pre-IPO story to Wall Street. But, because the investment for new stores comes from franchise owners, DBI knew it needed a way to make development more appealing to franchisees outside the traditional Northeast-to-Midwest-to-Southeast triangle.

According to Justo, the merger gives franchisees the ability to secure the lowest cost of sales possible, with savings coming from many platforms.

“We’ll have unified control over our operations, and be able to leverage the synergies of a billion dollar supply chain.

Ultimately, that means the elimination of cost variations across the system and the introduction of flat pricing so a franchise owner in New Hampshire will pay the same cost of goods as a franchise owner in Nebraska even though the cost of getting those goods to them differs.

“Franchisees are now able to expand to other regions with the comfort of knowing there is a roadmap to flat pricing by year three, and that service levels and processes will be consistent regardless of where their shops are,” said Justo.

“That removes a major obstacle to new expansion,” said Carter, who points out that within Dunkin’s existing footprint there is tremendous saturation. “If those franchisees want new stores they have to go west and south. This [the merger] gives a franchisee a solid foundation for his business plan going west. It removes the fluctuations in food costs.”

According to Carter, Dunkin’ recognizes that expansion will come, in large part, from existing franchisees who until now have struggled to expand outside their area. But, with flat pricing, there will be greater incentive and support to invest in new markets.

Over the last year many existing franchisees have announced plans to develop new markets, like the group Deal continued on page 19

Deal continued from page 18

Sweet continued from page 3

of New England franchise owners which created the Milwaukee Coffee Brewing Company to own and operate 36 new locations in and around Milwaukee.

Gillani calls level pricing a “recipe for success” for existing franchisees—who have the will and capacity to expand beyond their market—and an advantage for DBI to attract new investors to develop new territories. “They can sell the idea of opening stores in new areas because, level pricing or lower cost of goods, will be attractive for new investors.” he said.

ger, national marketing and advertising buys. At this scale, he says, it’s easier to utilize value menus and other marketing tools that increase business.

partners but also love for their kids, appreciation for their employees, gratitude to a client, or even appreciation for themselves.

Once you get new customers in the door, you have an opportunity to get them interested in your other delicious products. “This is the time for Dunkin’ Donuts to grab those new people and to steer them towards coffee, since that’s a huge thing for them,” says Mishra. You know how people say, ‘Do you want fries with that?’ You say, ‘Would you like some Dunkin’ Donuts coffee with that?’”

David Carvalho and his father Duke in their office

The agreement shows the Brand’s commitment to franchisee relations and future development, says attorney Williams. “And all those things provide stability to invest in a franchise system.”

More Marketing Money Franchisees we interviewed say Dunkin’s expansion will create a tremendous benefit to franchise owners and their families because when the company doubles its size it will increase the value of the brand which will strengthen the investments owners have made in their shops.

And then there is the marketing. In 20 years, when 20,000 shops are making contributions to the corporate advertising fund, Dunkin’ will have greater leverage to drive new business through advertising—a strategy that helped build brand loyalty in the Northeast and Midwest during the 1970s and 80s.

“One day we will have 20,000 stores in US that will double marketing budget so we can compete on a level field with McDonald’s and Starbuck’s,” said Patel. “Franchisees will have more marketing dollars and people will recognize the product nationally. These are direct benefits to all of us in franchise community.”

Carter says once Dunkin’ reaches a greater national scale, the company will have the capability to make big-

“This is already a national brand but it doesn’t have a national store presence to leverage in marketing and advertising,” said Carter.

Franchisees are hoping the dominoeffect of an expanded presence triggering expanded recognition, triggering greater profitability will provide even greater financial security for their sons and daughters. In Patel’s words, setting up the next generation is “priceless”, and that was a definite goal of the NDCP agreement.

In many markets, Dunkin’ Donuts is so ubiquitous that many franchise owners make the mistake of assuming that everyone is familiar with their offerings. But, according to Mishra, “The reality is, whenever you have a special holiday promotion, you are going to get new people in who don’t know anything about you and who are trying you for the first time. It’s an opportunity to introduce your business to new people.”

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19

Financing Sponsors Rustle Up

by Susan Minichiello Success for Every Niche Every Dunkin’ Donuts franchise owner is unique—indeed, every shop is—and as such, each has different financing needs. With a dozen financing Sponsors currently on board and more in the pipeline, DDIFO is delivering connections to a variety of lenders that offer particular specialties to meet the diverse and distinct funding demands of its members.

Whether a franchise owner needs limited, short-term funding or longterm, large project support, there is a DDIFO Sponsor who can help. Here are just a few examples.

Fidelity Bank Based in Central Massachusetts, Fidelity Bank is one of the oldest, strongest and continually growing independent community banks in the region.

Fidelity Bank offers the experience of a big bank with the personal service of a community lender. Franchise owner clients deal directly with the decision makers who are committed to responding quickly and knowledgably from day one of the relationship.

Fidelity Bank offers mid-to-large scale financing to franchisees throughout New England and New York State.

The lender provides network financing for new stores, store acquisitions, expansions, remodels and related real estate. Fidelity Bank tends to work with franchise owners or owner networks with at least four or five shops. Its minimum transaction amount is $500,000 and the maximum is $10 million. The bank is a “relationship lender,” meaning its aim is to finance the relationship and be the primary lender for an operation, not just to fund a single transaction.

Fidelity Bank can fit the bill no matter the size of the network, serving all of the needs of a network with a handful of stores or helping franchise owners with more than 100 stores to diversify their banking relationships.

While Fidelity Bank just initiated its Dunkin’ Donuts Commercial Lending Program six months ago, President

20

INDEPENDENT JOE • FEBRUARY 2012

and Chief Lending Officer John Merrill and Senior Business Banking Officer Sally Buffum each has more than 10 years experience providing financing to Dunkin’ franchise owners.

Throughout the process, the assigned Relationship Manager is there to walk the franchise owner and associates (e.g., accountant) through the steps and/or to answer any questions.

“We may be small, but we’re experienced. We understand the capital needs of a growing or existing network of Dunkin’ Donuts stores, but also recognize that each network is different and we’re nimble in our customization of services for individual franchise owners,” said Merrill. “We’re putting a lot of effort into growing our lending program, and we’ve had a number of early successes.”

To find out more, visit www.fidelitybankonline.com or contact Sally Buffum at 508-762-3604 or sbuffum@fidelitybankonline.com.

Direct Capital Franchise Group Headquartered in Portsmouth, New Hampshire, Direct Capital is a national direct lender that has worked with Dunkin’ Donuts and Baskin-Robbins franchise owners for more than a decade. In fact, the lender has a team of Franchise Finance Managers specifically trained to work with the Dunkin’ Donuts community. Offering small-to-mid scale financing for new store development, equipment and Financing continued on page 21

Through Fidelity Bank’s LifeDesign approach, the client relationship typically begins with a conversation with one of the bank’s commercial lending Relationship Managers to discuss specific goals and capital needs. The Relationship Manager would require financial statements and other documentation to fully grasp how these needs and goals fit into the franchisee’s overall business plan.

When it comes to the application and decisionmaking process, everything is Our lending specialists understand the complexities tailored to the of today’s business environment. Using our LifeDesign transaction type approach we get to know you and your business and and complexity as we can help you turn obstacles into opportunities and well as the franhelp you get where you want to be- that’s the chisee’s needs. FiLifeDesign difference. delity Bank would ask for a project Call Today timetable upfront Sally Buffum and design a plan John Merrill to meet that time800.581.5363 table. This would be part of the complete financial package and transaction outline 800.581.5363 fidelitybankonline.com FITCHBURG GARDNER LEOMINSTER MILLBURY SHIRLEY WORCESTER ultimately provided Equal Housing Lender. Member FDIC. Member SIF. by the lender.

Bank With a Heart

Financing continued from page 20 technology replacement and upgrades, remodels, store acquisitions and even relocations; Direct Capital’s typical minimum transaction amount is $2,500 and the maximum is $1 million.

In addition to traditional finance structures, working capital loans are available. Direct Capital has a brand new program exclusively for Dunkin’ Donuts and Baskin-Robbins franchise owners: All are automatically pre-approved for $25,000 of working capital financing per location and may be eligible for higher amounts.

These short-term, unsecured loans can be used to boost liquidity and cover general business expenses such as inventory, labor, advertising and taxes.

Express underwriting and approval services streamline financing for Dunkin’ Donuts clients. A one-page application is all that is required for loans under $100,000, and approvals and documentation are processed the day of the application. For larger

loans, the process is initiated with that same application, but additional financial review is required. Once financials are received, Direct Capital typically makes decisions within two business days on remodels, new stores, acquisitions and relocations in two business days. What’s more, the lender’s ClickFund™ electronic documentation system allows franchisees to review and sign financial documents through a secure website, significantly reducing the turn-around time of “hard copy” processing. For multi-unit franchise owners, Direct Capital designed a Master Finance Agreement to simplify applications for subsequent financing with the completion of a one-page addendum to simplify the process of securing additional funds over time. Direct Capital also can consolidate all invoicing and offers flexible payment options (deferred and seasonal).

“We have grown so comfortable with the Brand and are so confident in the ability of franchise owners to perform

that, even in a generally tight lending climate, we’ve had a wider credit window for franchisees in the Dunkin’ system,” said Robyn Gault, Vice President of Strategic Accounts. “In 2012, we are looking to expand our programs and allocate even more funding to the Dunkin’ Donuts community because it has been so successful.”

For more information check out http://franchise.lendedge.com or contact Robyn Gault at 603-433-9476 or rgault@directcapital.com.

GE Capital, Franchise Finance GE Capital, Franchise Finance (GE Capital) has more than 30 years experience serving mid-market owner/ operators with multiple stores in the restaurant and hospitality industries.

In January of 2010, GE Capital reorganized to a regional model and put a major focus on Dunkin’ Donuts becoming a core brand. While headquartered in Scottsdale, Arizona, GE Capital is dedicated to lending to franchisees Financing continued on page 22

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Financing continued from page 21 across the country with originations teams embedded in the East, Central and West regions.

“We have the expertise in the restaurant space to understand key issues for franchise owners, and our regional focuses give us a better grasp of each client’s local marketplace,” said Brian Frank, Managing Director, East Region. “And because GE has the knowledge and expertise in a variety of industries, we not only provide the capital but also the insight on topics such as market competition, energy costs, local and global economies, healthcare and government. Our experts can tap into these and other areas to help a franchise owner grow their business.”

GE Capital stands true to its tagline, “We’re not just bankers. We’re builders.” The lender is committed to helping franchisees do more than maintain their business; it aims to facilitate each owner’s growth vision. GE Capital offers term loans,

SINCE 1989

refinancing, real estate mortgages, sales leaseback, acquisition financing and development lines for new stores and remodels. It predominantly does financing across the board for an entire business, working with seasoned owner/operators with at least three to five years experience and six to 10 stores. Decisions are made on a case-by-case basis, however, so the lender is always open to speaking with franchisees who might not fit this exact profile.

GE Capital has more than 300 employees nationwide who are solely dedicated to the restaurant finance business, so it can truly provide a national perspective. The lender also has a Brand Manager, Christine Keating, who works with Dunkin’ Brands directly to ensure GE Capital understands all of the brand’s issues and expectations, and to forge a triangle partnership since it works best when the franchisee, franchisor and lender are all working together to grow the business.

While GE Capital clearly has expansive operations, it remains committed to serving each franchise owner client as an individual. Usually the process begins by talking with an account executive in the appropriate region to establish the groundwork. The regional account executive gathers basic information about the business such as history and performance, scope of anticipated projects, overall business plan, financial history and documentation. The account executive then brings in an underwriter and closer to form a “Deal Team” specifically dedicated to the franchisee.

This team subsequently walks the franchisee through the transactions step-by-step.

Learn more at www.gefranchisefinance.com or contact Ab Igram at 203-229-1885 or ab.igram@ge.com.

Financing continued on page 23

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Live, Free, 24/7 customer service & technical support is provided for the life of the product, by calling 1-800-598-2370.

Financing continued from page 22

Joyal Capital Management For 25 years, Joyal Capital Management, LLC (JCM) and its affiliates have provided financial services to Dunkin’ Donuts franchisees. This longstanding association began with estate, business and financial planning and evolved into lending-related services. Today, JCM offers exclusive financing arrangements to Dunkin’ Donuts franchisees along with outstanding personalized service, including a dedicated team that handles transactions in a 100% turnkey process requiring minimal franchisee involvement.

Based in Plymouth, Massachusetts, JCM primarily serves franchise owners on the East Coast, supplying traditional franchise financing for new store development, acquisitions, expansions, remodels, refinancing, and so on. What makes JCM unique, however, are the funding and debt structuring services available only to Dunkin’ Donuts clients. If a client needs immediate access to capital, JCM can help. The firm has very substantial secured funds set aside to provide the capital now and subsequently structure that debt, meaning franchisees can get the money they need today, literally.

JCM also offers exceptional debt restructuring. When franchise owners have loans with more than one bank, often the banks and loan covenants make it impossible to access additional capital. In this situation, JCM works with franchisees to restructure loans, getting rid of the other banks and terming out the existing debt in ways that meet ongoing cash flow needs.

“We are proud to offer services to our Dunkin’ Donuts clients that go ‘above and beyond.’ It’s our mission to be there as a resource they can rely on to help grow their business,” said JCM Chairman and CEO Gary Joyal.

“We currently serve the full spectrum—from franchisees who own just one shop to the largest franchisee in the system—and we believe in developing long-term relationships, not transactional-based relationships.”

In fact, JCM stood by its Dunkin’ Donuts clients through a serious crisis. In 2007, while managing the Dunkin’ Donuts Lending Program created by Sovereign Bank in the early 1990s, JCM began getting panicked calls from franchisees: Sovereign was calling in loans that were technically in default solely due to not meeting growth criteria stipulated in the loan agreements. Gary Joyal immediately contacted Northern Bank & Trust Company (a small, privately owned community bank) to explore solutions.

Joyal wanted: simple loan approval, no financial covenants and no overly burdensome cross-collateralization provisions—a key component that would allow larger franchisee networks to grow and prosper. Northern Bank President and CEO James Mawn agreed and further said the only criteria would be that franchisees make their monthly payments.

In addition, Mawn would meet clients

face-to-face and share his home phone number for use in case of an emergency. JCM established a partnership with Northern Bank in 2008 and began transferring business from Sovereign. The program has been extremely successful and, whenever a franchisee has faced an urgent problem, Mawn has come through with a resolution.

To find out more, see www.jcmfranchise.com or contact Manager of Client Services Kathy Rebello at 508-747-2237 or krebello@joycapmgt.com.

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Independent Joe Advertisers Adrian A. Gaspar & Company, LLP Comcast Business Services Direct Capital Franchise Group Fidelity Bank Hyperactive Technologies Hyperactive Technologies

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Jarrett Services ATM, Inc. Joyal Capital Management, LLC Kensington Company & Affiliates Lisa & Sousa Attorneys at Law

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Performance Business Solutions, LLC RF Technologies Sprint Starkweather & Shepley Insurance

FEBRUARY 2012 • INDEPENDENT JOE

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