Independent August 2013
The Magazine for D D
Independent Franchise Owners
NJ Lieutenant Governor Kim Guadagno to Deliver Keynote Atlantic City Conference Could Be A Record Breaker Your Guide to
AC
Why Should You Go?
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History
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Agenda
Issue 21
TIME TO CHANGE – AND RE-ENGAGE!
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spent several days earlier this month at a convention for association professionals in Atlanta, Georgia (a city from which we recently signed up several new members). Like most industry or professional conventions, this one featured a session on change. We are all accustomed to hearing that “Change is inevitable and we must accept it or it will consume and devour us…” It’s a familiar message so, in that context, this convention was no different. What is different this time however, is how the message relates to DDIFO. First off, the conference was held in the home city of one of America’s most revered change agents, Dr. Martin Luther King, Jr. Yes, just a 15 minute walk from the King National Historic site and the birthplace of the late civil rights icon, we talked as professionals about the need to accept change to do whatever’s necessary to keep our organizations fresh and relevant. The discussion prompted me to look deeply into the relevance of DDIFO and what is necessary to keep it invigorated. Fortunately, we’re well positioned to accept change and adapt our organization to deliver value to its members. We have tremendous assets in our membership – dedicated and passionate professionals who know the business and are committed to the best interests of the entire Dunkin’ franchisee community. We are also fortunate to count among our members – present and future members – many forward thinkers who know that being prepared for a negative turn is necessary in order to get back on the path to more fruitful times. Many of our members have survived difficult challenges and are familiar with the ebb and flow of the franchisee/ franchisor relationship. Long-time members know only too well the benefits a strong and effective independent franchisee organization can bring to bear when circumstances
require. And, they recognize the costs and risks associated with nurturing just such an organization. Today DDIFO is a strong and effective independent organization, yet one that needs to nimbly adapt to an everchanging economic, regulatory and industry environment – while best serving our members, meeting our mission and staying true to our roots. So much of what was presented in Atlanta speaks directly to the leaders and members of DDIFO. One particular presentation from a young woman who had reached the pinnacle of the business world rather quickly – and, frankly, via an unorthodox route – centered on how important it is to stay focused on your mission and strategic goals, even while you are looking out for that next viable partnership or new revenue source. To me, her message said we need to focus inward while keeping our eyes looking outward. To survive and thrive, DDIFO must adapt to a changing environment, without losing sight of why this organization was founded in the first place. To get there, we must recognize that change is coming. Embrace it, effectuate it, usher it into our organization and, if necessary, refocus our core mission. We must take the necessary steps to create an environment that is conducive to the success of all Dunkin’ Donuts franchise owners. Toward that end, I ask existing members to recommit to the success of DDIFO. To those of you who have not yet joined, or are still considering rejoining, accept the challenge to change the organization for the better from within. Together, we will be our very own agents of change, and our entire system will be better for it. Ed Shanahan DDIFO Executive Director
DDIFO NATIONAL CONFERENCE IS:
“Beneficial for long-time franchises with a large network as well as newcomers to the system who are looking to expand their own business footprint” — Ed Shanahan, DDIFO Executive Director
R eg ister Today!
NATIONAL CONFER ENCE
Pl olfuFsame
Ha l ds Awar D inn er
A T L A N T I C C I T Y , N J SEPTE MBER 16–18 W W W.DDIFO.ORG/NATIONAL _ CONFER ENCE
SUB HEADLINE
CONTENTS
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From the Executive Director: Time to Change — And Re-engage! • • • • • • • • • 1 What’s Brewing: A Look at State Issues Around the Footprint• • • • • 5 The Fifth Annual CFA Day Forum• • • • • • • 8
DDIFO National Convention in Atlantic City N AT I O N A L CONFERE NCE
AT L A N T
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IC CITY , NJ
2013
Why it Matters• • • • • • • • • • • • • • • • • • 13 Agenda • • • • • • • • • • • • • • • • • • • • • • • 16 Conference Keynote Speaker: Kim Guadagno, New Jersey Lieutenant Governor• • • 17 The Boardwalk: A Fabled History and a World-Class Destination• • • • 18 Letter: Mayor Lorenzo T. Langford• • • • • • • • • • 32
Joe
Independent •
August 2013 Issue #21 Independent Joe® is published by DD Independent Franchise Owners, Inc. Editors: Edwin Shanahan, Matt Ellis Contributors: Cindy Atoji, Adam Goldman, Lisa Iannucci, Carl B. Lisa, Esq. Advertising: Joan Gould Graphic Design: Caroline Cohen
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New DCP Chief focused on franchisee profitability • • • • • • • • • • • • 22 Lisa on the Law: 7-Eleven Indictments a Cautionary Tale for all Franchisees • • • • • • • • • • • • • • • • 25 My Perspective: The Workforce • • • • • • • • • • • • • • • • • • • • 26 Directory of Sponsors • • • • • • • • • • • • • 28 The Magazine for DD Independent Franchise Owners 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 © 2013 Printed in the U.S.A.
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WHAT’S BREWING A LOOK AT STATE ISSUES
AROUND THE FOOTPRINT By Lisa Iannucci
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very day, franchise owners face the challenges and obstacles of owning a business, and every day, government officials are approving and vetoing legislation that affects those challenges. Independent Joe has been monitoring a number of bills, in several states, as they move through the halls of their state houses. Some of these initiatives were proverbial flashes in the pan, while others, present new challenges for franchisee profitability. Paid Sick Leave Fictional employee Mary Smith, a mother of two, is a part-time worker who doesn’t have health insurance. When she gets the flu and misses work, she also loses her daily wages, something she can’t afford to do. Mary works in Connecticut, which means she is able to receive paid sick leave. Connecticut’s law impacts all employers who employ 50 or more individuals in the state during any quarter in the previous year. It stipulates each employer shall provide paid sick leave annually at a rate of one hour of paid sick leave for each 40 hours worked by a service worker. This includes part-time workers.
Similar legislation has been debated in a number of states and several U.S. cities this year, with some approving some form of paid sick leave and others vetoing it. In September, employees in the City of Seattle begin to accrue paid sick and paid safe time, described on the City of Seattle website as, “for use when an employee or family member needs to take time off from work due to illness or a critical safety issue.” The ordinance applies to all employers with more than four full-time equivalent employees. All employees are eligible for the new benefit including full time, part-time and temporary workers. In Philadelphia, supporters of a Paid Sick Leave bill failed twice to make it law. Both times the measure was vetoed by Mayor Michael Nutter, who said it would, “hurt the city’s existing businesses and negatively impact its ability to attract new ones.” The effort to override the Mayor’s veto failed by one vote. The opposite outcome happened in New York City, where the City Council was able to override Mayor Michael Bloomberg’s veto
establishing sick leave pay for one million workers. Employers with more than 20 employees will have to cover the cost of as many as five sick days per worker. New York City Council member Gale Brewer called it a tremendous accomplishment. “No worker will be fired if they must stay home,” she said. Yuwen Chen and his brother Yu-Shin own three Dunkin’ Donuts shops in New York’s Hudson Valley, about 80 miles north of New York City. They have been closely
“Whenever the government gets involved in things like this it doesn’t help the employer. How we handle a situation like Mary’s should be up to us. You’re going to have people who are going to abuse the system and just call out to use the days up.” INDEPENDENT JOE
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That sentiment is shared by another franchise owner we interviewed in Newburgh, New York. We asked this owner, who wished to remain anonymous, to comment on the fictional employee named Mary, a part-timer who needed a day off to combat the flu. While he was empathetic to the employee’s situation, he said laws calling for paid sick leave hurt employers in the long run. “Whenever the government gets involved in things like this it doesn’t help the employer. How we handle a situation like Mary’s should be up to us,” he says. “You’re going to have people who are going to abuse the system and just call out to use the days up.”
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watching how the new paid sick leave law in New York City will affect franchise owners and remain hopeful it does not become a state law. “I wouldn’t want it to pass statewide, because not only do you have to pay for the employee to be out for the day, you have to pay the salary of their replacement,” Chen said. “If they call out last minute, then you might be putting in an employee who is about to go onto overtime, so the costs can really hurt the business owner.”
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BREWING it to the rate of inflation each year thereafter. Immediately, battle lines were drawn. On the one hand, there are those like Lynda Fote of the Ocean County, NJ Chapter for the National Organization for Women who said, “We need to support the increase in the minimum wage and give them that extra dollar to spend. Not only is it morally right but it is economically smart.” But, leading Republican lawmakers have voted down the federal proposal citing economists who argue that raising the cost of employing workers results in fewer workers. “What happens when you take away the first couple of rungs on the economic ladder, you make it harder for people to get on,” said U.S. House Speaker John A. Boehner. Still, 10 states have already increased their minimum wage rates: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington. A majority of franchise owners oppose mandating a higher minimum wage. Many already pay their long-tenured employees more than the minimum required. The Newburgh, New York franchise owner says a mandate is a threat to the business. “Increasing minimum wage would be detrimental unless it’s only 25 cents or 50 cents per hour,” he said.
Fast food workers organizing to demand higher minimum wage rates. Here, a protest staged by Action Now, an Illinois-based group. Regulations that impact franchisees are coming at the federal, state and local level. We have written many times in this space about how the Affordable Care Act–Obamacare–will increase costs and create compliance issues for franchisees. On the local level, Chelsea, Massachusetts is the latest community to enact a ban on the use of trans-fats, joining at least 15 other municipalities and the state of California. Important rules changes can come from a local board of health or a member of Congress. In either case, it’s vital that franchisees stay informed about laws and regulations that are coming down the pike. You can’t fight City Hall–or any federal mandate–unless you know what’s brewing.
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DDIFO SPONSOR ADVERTORIAL
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The Fifth Annual CFA Day Forum
CFA DAY FORUM JULY 9-10
2013
The fifth annual CFA Day Forum, held at the Fairmont in Washington, D.C. from July 9-10, was a huge success. Members of 14 associations gathered with vendors, franchise attorneys and government officials to talk about issues that affect franchisees and topics of pertinence to small business owners.
A contingent of CFA franchisees meet with Senator Kay Hagan (D-North Carolina) during the CFA Day Forum in Washington, DC. Hagan, wearing the red dress, is a member of the Senate Committee on Small Business and Entrepreneurship.
the FAIRMONT
WASHINGTON, D.C.
During their visit to Capitol Hill, CFA attendees visited 56 Congressional offices. Here, Whayne Hougland, Executive Director of the Long John Silver’s Franchisee Association, stands by a 7-foot high stack of regulations governing the Affordable Care Act.
“Our customers often tell us how much they value our speed of execution and strong relationships, supported by a deep understanding of their business and proprietary tools to help them grow,” said Managing Director of Brand Management Todd Jones. For more information, visit www.gefranchisefinance.com or contact Director of Brand Management Mike Klinko at michael.klinko@ge.com. DDIFO members with Rep. Darrell Issa (R-California), Chairman of the House Committee on Oversight and Government Reform. L to R: Executive Director Ed Shanahan, Ed Wolak, Congressman Issa, John Motta and Rob Branca.
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Register Now! NatioNal CoNfer eNCe
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SUB HEADLINE DDIFO SPONSOR ADVERTORIAL
More from the Fifth Annual CFA Day Forum CFA Executive Director Misty Chally (2nd from left) led a group of franchisees and CFA members to a meeting with Rep. Andy Barr (R-Kentucky), center in beige suit. Barr serves on the House Financial Services Committee.
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L to R: DDIFO Executive Director Ed Shanahan, Rep. Darrell Issa (R-California) and Dunkin’ Donuts franchisee John Motta at the CFA Day Forum Luncheon.
“We bring fresh perspectives on operations, help reduce administrative costs, increase after-tax profits and ease business and regulatory burdens for our clients,” said Director of Public Relations Susan Wernick. “Frequent client contact is one of the hallmarks of our firm and one of the most valued services we provide.” For more information, visit www. bederson.com. For accounting and tax questions, contact Robert Fischbein at 973-530-9100 or rfischbein@bederson.com. For matters concerning business valuation, contact Charles Persing at 973-530-9218 or cpersing@ bederson.com.
We bring fresh perspectives on operations 10 INDEPENDENT JOE
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L to R: Dunkin’ Donuts franchisees Dave Walck, Ed Wolak, John Motta and Rob Branca with Rep. Hank Johnson, in the red tie. Johnson is a member of the House Armed Services and House Judiciary Committees. DDIFO, at the Congressman’s request, is scheduling meetings so he can get to know franchise owners from around his district.
Senator Mike Lee (R-Utah) at lunch with Dunkin’ Donuts franchise owner and CFA Director John Motta. Senator Lee, the ranking minority member of the Senate Antitrust, Competition Policy and Consumer Rights Subcommittee, also serves on the Joint Economic Committee.
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NATIONAL SUB HEADLINE CONFER ENCE
I N AT L A N T I C CI T Y
s r e t t a M Why it Photos Top: Caesars Atlantic City/Left: Courtesy www.achotelexperts.com/Center & Right: Governor’s Office/Tim Larsen
By Cindy Atoji
I
t’s been called “The World’s Playground,” “Queen of the Resorts,” “Boardwalk Empire,” and “Monopoly City.” Atlantic City, the iconic seaside resort and undisputed gaming capital of the east coast, is world famous for its magnificent boardwalk, glitzy casinos and storied entertainers that headline this national showplace. But “AC” is indeed “Always Turned On” in other ways – more than $1.7 billion in investments in recent years has lured over 30 million visitors a year to attractions that range from championship golf, luxurious spas, fine cuisine, and trendy shopping outlets. It is apropos that Atlantic City is the location for the first DDIFO (Dunkin’ Donuts Independent Franchise Owners) meeting held outside of New England on Sept. 16-18. Although the
region has largely bounced back after last year’s devastating Hurricane Sandy, the business community continues to recover from both nature’s blow as well as a slow economic climate and increasing market competition. Atlantic City’s current mantra is “Stronger Than the Storm,” an echo of, “Boston Strong;” both cities share a determination to overcome adversity with an invincible spirit of unity. From Atlantic City to Morris Plains and Wallington, Dunkin’ Donuts also has a large presence in New Jersey. The 2013 National Conference and Hall of Fame Awards Gala is shaping up as DDIFO’s best ever as the independent association of Dunkin’ Donuts franchise owners meets to explore business issues and examine relevant regulatory and legal trends. Franchisees will be
buzzing about higher payroll taxes, soda bans, and paid sick leave. “Conferences are vital to establishing networks with fellow franchisees not only from a brand perspective but also a state and regional context,” said Anthony D’Amore, a New Jersey franchise owner who has 16 stores across the state’s Union and Middlesex Counties. “Making connections and getting informed is also the path to lowering prices and understanding profitability.” DDIFO is honored to have New Jersey Lt. Governor Kim Guadagno as this year’s keynote speaker. A prosecutor by training, Guadagno has developed a keen sense for New Jersey business. She leads the New Jersey Partnership for Action, a collaborative effort among four independent agencies: the New Jersey Business Action Center, New Jersey
Storm surges from Hurricane Sandy flooded 85 percent of Atlantic City. The storm destroyed a 50-foot section of the city’s iconic Boardwalk in the South Inlet, which had been slated for reconstruction.
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Economic Development Authority, and Choose New Jersey. Recently she kicked off a pro-tourism campaign called, “Show Your Love for the Jersey Shore” just in time for the DDIFO National Conference. Earlier this year, Lt. Governor Guadagno made the historic announcement that the Miss America Pageant would return to Atlantic City this September. “New Jersey is proud to once again host the Miss America Pageant here in Atlantic City. We are confident that Atlantic City’s famous boardwalk and variety of restaurants, shops and entertainment venues will showcase the city’s vibrancy and attraction to the participants and many visitors that will attend the Miss America Pageant every year.” (Preliminary competitions for the 2013 Pageant are September 10, 11 and 12; the finals are being held Sunday September 15). Franchise owners who have attended previous National Conferences can tell you they receive great insight from indepth talks like those from DDIFO Restaurant Analyst John Gordon. At last year’s conference, Gordon addressed Dunkin’s strategy for westward expansion and answered questions like, “Whether franchisees in new markets get to unit profitability fast enough to allow them to continue to expand and fulfill their development commitments?” and “What are best practices in new restaurant development?” This year, that important theme as well as regulatory and tax related issues will also come under discussion. “I have learned so much about the implications of the Affordable Care Act, changes in various labor laws and how I can be
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impacted by Dunkin’ Brands being a publicly traded company through the consultants and industry experts that the DDIFO engages to speak at the national conference,” said Steve Gabellieri, a four-unit Dunkin’ Donuts franchise owner in Rhode Island. The Obama administration has delayed the employer mandate but the Affordable Care Act continues to march closer to complete implementation. As various provisions are implemented, franchise owners continue to access and prepare for compliance. Alex Rowzani, franchisee owner of four Dunkin’ Donuts Restaurants in Jamaica, N.Y., said that he learned much about Obamacare at last year’s national sessions. “There were many questions running through my head before I attended the conference, including ‘How is Obamacare going to affect my four businesses?’ and, ‘What is going to be the bottom-line once the year closes?’ and, ‘Does Dunkin’ have a solution or a general answer to this pandemic?’ My various questions were answered throughout the presentation.” New National DCP Chief Executive Scott Carter will address the attendees after lunch on Tuesday September 17 on the topic of, “Next steps from here.” In a recent interview with Independent Joe, Carter discussed the declining cost of goods (COGS) and how that is already saving franchisees money. (Read our interview with Scott Carter on page 22). By holding the 2013 National Conference in New Jersey, Shanahan says he is hoping franchisees recognize the organization’s effort to focus the conference on issues that impact all regions. This year, DDIFO is unveiling
Left to Right: DDIFO Restaurant Analyst John Gordon will present “The view from the Street.” New Jersey Lt. Governor Kim Guadagno announcing the return of the Miss America Pageant to Atlantic City. John Justo speaking at the 2012 Hall of Fame Awards Gala a new panel discussion called, “Conversation with Dunkin’ Franchisee Stars!” which Shanahan believes will be one of the most talked-about events at the 2013 National Conference. “I think it will be beneficial for longtime franchisees with a large network as well as newcomers to the system who are looking to expand their own business footprint,” said Shanahan. Franchise owner Rob Branca will serve as moderator. He anticipates panelists sharing their unique perspective on the state of the business and navigating difficulties. “I’m looking forward to hearing from some of our most successful and dynamic franchisees from all different regions. I, for one, hope to gain valuable insights from these colleagues.” Gabellieri also enjoys comparing notes with other franchise owners at the Conference. “Challenging each other not to be complacent and consistently striving to get better at what we already do well is most important,” he said. Rowzani, the New York franchise owner who earned two awards for greatest growth in guest visits during his first year, agrees, saying he always enjoys asking others how they first got started in the industry. “I love listening to their stories and I love hearing what inspired them to stick with the brand. By listening to their stories I learn what struggles they went through and how they succeeded.”
Photos L-R By Caroline Cohen/Courtesy of NJ Office of Information Technology/DDIFO
Why it Matters
DDIFO NATIONAL CONFERENCE IS:
“Challenging each other not to be complacent and consistently striving to get better at what we already do well is most important”
— Steve Gabellieri, a four-unit Dunkin’ Donuts franchise owner
For many the highlight of the annual National Conference is the DDIFO Hall of Fame Awards and Recognition Dinner. Franchisees call it, “an inspirational and informative event that celebrates pioneers and visionaries who have helped establish the brand into the leading franchise it is today.” “Helping franchisees achieve their individual goals by collectively bringing everyone together is what DDIFO is all about, and this conference helps achieve that purpose,” said D’Amore. Listening to the latest products and services offered by DDIFO’s sponsors is also a vital part of the conference. This year, there will be many familiar faces displaying their companies’ products and discussing benefits of their services, and there will be new sponsors
as well. According to Shanahan, more exhibitor booths have been ordered for this National Conference than ever before. One thing that will definitely be different at this year’s National Conference is the presence of the Atlantic City boardwalk. An iconic and historic place, the 2013 boardwalk features a vibrant dining scene from famous names like Wolfgang Puck and Bobby Flay. It also features popular casino buffets, ethnic cuisine and the traditional boardwalk grab-and-go fare of hot dogs, pizza and pretzels. And, at the center of the boardwalk sits Caesars Atlantic City Hotel and Casino. The host hotel for the DDIFO National Conference is one of the largest in the city, and includes a luxury
drive thru
hotel, spa, shopping center, and of course, casino. Rhode Island franchisee Steve Gabellieri, whose father, Ralph, was inducted into the Hall of Fame two years ago in a tribute to some of the early franchise owners, is looking forward to another DDIFO conference. “It is very rewarding to see the success of Dunkin’ Donuts franchisees. I am proud to be associated with such an elite group of business people,” said Gabellieri. “The DDIFO National Conference provides a format where you can have candid discussions about business issues that are outside the scope of the brand’s support system. You really walk away feeling that you learned something that has tangible value and can be applied to your business to make a real difference.”
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a d n e g A
AGENDA
City, NJ 08401 2100 Pacific Avenue, Atlantic
18 r e b m te p e S — 16 r e b m te p e S y, Caesar’s Atlantic Cit • 3:00–4:30 PM National Conference Opens and Meeting of the DDIFO Roundtable • 4:30–6:00 PM Opening Welcome Reception at Mia, Caesar’s Atlantic City – open bar & hors d’oeuvres • Evening Open
TUESDAY SEPTEMBER 17, 2013 • 8:00 AM Breakfast with
Exhibitors, Palladium Ballroom • 8:30–9:30 AM Opening general session • 9:30–11:00 AM “Conversation with Dunkin’ Franchisee Stars!” • 11:00–Noon Keynote Address: New Jersey Lieutenant Governor Kim Guadagno • 12:00–2:00 PM Exhibit Hall Open – Lunch with Exhibitors • 2:00–3:00 PM “Next Steps from Here” - A conversation with National DCP Chief Executive Scott Carter • 3:00-4:00 PM “The View from The Street” – Presentation of Wall Street’s view of the restaurant industry, and Dunkin’ Donuts specifically • 4:00–5:00 PM “Keeping ‘Big Brother’ in Check” – Protecting your Interests from Government Over-reach • 5:00–5:30 PM “Exhibit Hall Open” • 6:00–7:15 PM Hall of Fame Reception – Open bar and hors d’oeuvres • 7:15–9:30 PM Hall of Dame Dinner and Awards Presentations
WEDNESDAY SEPTEMBER 18, 2013 • 8:00 AM Breakfast • 8:30–11:00 AM DDIFO Board of
Directors Meeting and Closing General Session
DDIFO NATIONAL CONFERENCE IS:
“Helping franchisees achieve their individual goals by collectively bringing everyone together is what DDIFO is all about, and this conference helps achieve that purpose”
— Anthony D’Amore, a sixteen-unit New Jersey Dunkin’ Donuts franchise owner
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Photos Courtesy of the Atlantic City Convention & Visitors Authority and Caesars Atlantic City
MONDAY SEPTEMBER 16, 2013
of this agenda could change depending on * Portions additional topics being discussed
Conference Keynote Speaker: r o rn e v o G t n a n te u e Li y e rs e J w e g for small business owners Kim Guadagno, N er crime fighter now fightin SUB HEADLINE
Photos Courtesy of Governor’s Office/Tim Larsen
New Jersey’s first Lieutenant
Governor, a form
K
im Guadagno is not just the first woman to serve as Lieutenant Governor in the state of New Jersey; she is also the first lieutenant governor since the Colonial Era. Originally from Iowa, Guadagno earned a reputation as a corruption fighter during her years as a United States Attorney, Assistant Attorney General and Deputy Director of the New Jersey’s Division of Criminal Justice. In 2007, she became the first female sheriff in Monmouth County, which is the fifth most populous county in New Jersey and is located just across the Hudson River from New York City. New Jersey voters approved a constitutional amendment in 2005 creating the position of lieutenant governor. The first gubernatorial election featuring
candidates for governor and lieutenant governor was in 2009 when candidate Chris Christie selected Guadagno as his running mate. New Jersey’s constitution calls for the lieutenant governor to be appointed head of a cabinet level department – which is determined by the governor. Guadagno serves as New Jersey’s Secretary of State and oversees the state’s economic development efforts. In February, Guadagno kicked off “Show Your Love for the Jersey Shore,” a publicprivate initiative designed to reinvigorate tourist activity in the region decimated by Hurricane Sandy. “Tourism is a critical economic engine for New Jersey, particularly along our shore.
It is an industry that contributes significantly to the health of our communities by creating jobs and bringing revenue into our shore towns,” Guadagno said. “I encourage residents and visitors to ‘Show Your Love for the Jersey Shore’ by supporting local shore area businesses through Valentine’s Day and the months ahead. Through this initiative, we will continue to demonstrate support for local businesses recovering from Sandy and show that the Jersey Shore is still a great place to have fun and create memories.”
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k l a w d r a o The B SUB HEADLINE
n io t a in t s e D s s la -C ld r o W a d n a y r o t is A Fabled H
▼ Boardwalk Hall was the site of the 1964 Democratic National Convention, at which Lyndon B. Johnson accepted the party’s nomination. Photos Courtesy of the Atlantic City Convention & Visitors Authority.
▲ Built between 1929 and 1932, the arched roof of Boardwalk Hall was modeled after the clear-span train sheds of Europe and Philadelphia’s Reading Terminal.
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reetings from Atlantic City!” It’s said that one of the first picture postcards in America was a color view of this fabled seaside resort. In those days, sending a missive from Atlantic City was an enviable coup that boasted of cavorting in the sand, strolling the magnificent boardwalk, and even watching diving horses or human cannonballs. In its heyday in the 19th century, Atlantic City truly lived up to its moniker as, “America’s Favorite Playground.”
The Rhode Island Supreme Court licenses all lawyers in general practice of law. The Court does not license or certify any lawyer as an expert or specialist in any field of practice.
Carl B. Lisa Sr. & Louis A. Sousa named Legal Eagles 2009 & 2010
Recently, the golden image of Atlantic City has been tarnished by reports of its demise post-Sandy. But contrary to what some news outlets have reported, Atlantic City is rebounding and better than ever, said Jeffrey Vasser, executive director of the Atlantic City Convention and Visitors Authority (CVA). “Today’s Atlantic City is hipper, younger and hopping with non-stop action. No matter what you want to do – water sports, ecotourism, nightclubs, shopping or entertainment – you will find it in Atlantic City.”
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And as further proof of Atlantic City’s current vitality, here she is, after an eight-year absence, Atlantic City has once again been crowned the host of the Miss America pageant. Come September,
Lisa & Sousa Ltd. is a firm with over 50 years of collective experience representing multi generational Dunkin Donuts franchisees in the acquisition, financing, development, structuring, transitions and transfer of franchised and other businesses. Specific example include: transfer of ownership of 100 locations in Northeast, Southeast and other parts of the United States; sale of 48 locations in NY; purchase of 15 stores in the Northeast; acquisition of multi-shop networks in Florida (18), Vermont (20) and Cape Cod, MA (20); Store Development Agreements (SDA’s) throughout the country; and formation of cooperative Central Production Locations (CPL’s). Lisa & Sousa Ltd. is general counsel for the Dunkin Donuts Independent Franchise Organization (DDIFO) with a membership of approximately 2000 Dunkin Donuts franchise units nationwide. Our clients have chosen to have an on-going relationship with Lisa & Sousa Ltd. because of experience, proficiency, determination and attention to detail.
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Photos Courtesy of the Atlantic City Convention & Visitors Authority.
The Boardwalk
SUB HEADLINE DDIFO SPONSOR ADVERTORIAL
Access to Money/Cardtronics offers a nationwide Dunkin’ Brands-approved ATM program to increase customer traffic and spending while generating additional revenue via franchisee commissions. At no cost, Access to Money/ Cardtronics can provide a Dunkin’-branded ATM terminal, cash-stocking service, wireless modem to facilitate transactions and signage as well as terminal service, maintenance and repairs. Alternatively, franchisees can lease or purchase terminals and stock the cash themselves. The difference is in the amount of commission franchisees receive. A software package allows franchisees to monitor each terminal in real time. A surcharge-free ATM network is available to attract even more customers.
Atlantic City features high-end stores and kitschy souvenir shops. This year Boardwalk Hall is hosting concerts, rodeos, sporting events and Miss America.
“We set up the surchargefree network to attract new customers to your restaurants,” said VP of Franchisee Sales Tom Spooner. “Our hope is that customers will buy coffee and food and get cash for the day all in one stop, not using a debit or credit card at the counter for which you are charged a fee.” For more information, visit www.dunkindough.com (username: dunkin, password: glaze) or call Tom Spooner at 973-452-4131.
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Atlantic City is often called the “Salt Water Taffy Capital of the World.” The treat was invented here in 1880. The Website Daily Meal.com rated Atlantic City number two on its recent list of 24 best boardwalks for food in the U.S.
DDIFO NATIONAL CONFERENCE the celebrated extravaganza will return to the place it was first launched in 1921.
Atlantic City continues to draw top stars. Beyonce, Jerry Seinfeld and Diana Ross are just three of the superstars performing there this summer. And those gorgeous flappers and heady jazz music you’ve seen in “Boardwalk Empire?” The national heroes of stage and film all considered Atlantic City a showbiz mecca in the 1920s and 30s, from Spencer Tracy and Clark Gable to Humphrey Bogart and the Marx Brothers. And a handful of decades later, famous celebrities such as Marilyn Monroe and Frank Sinatra walked the Boardwalk, which also hosted the Beatles who noshed on submarine sandwiches on the boards. Atlantic City continues to be listed by travel experts as a top authentic American experience that speaks to the “real U.S.” It also receives accolades for the unexpected: best art projects (outdoor exhibit Artlantic); best beachside paths and boardwalks; and top place for marquee boxing, thanks to famous fighters such as Mike Tyson who called Atlantic City home over the years. And of course, it’s no luck of the draw that Atlantic City is a top casino destination, whether it’s playing slots, poker, blackjack, roulette, or other non-stop gaming thrills. Stand on the Boardwalk, and breathe in the fresh salty ocean air. Beyond the surf, you might hear the echoes of long-gone vaudeville acts, hear the notes of a current big band playing on the Steel Pier, and catch a glimpse of the famous rolling chairs on the Boardwalk. The National Historic landmark and oh-so-tacky and fun Lucy the Elephant (a six-story, elephant shaped building) are steps away. This is the glorious Atlantic City – home to the 2013 DDIFO National Conference – and a place the executive director of the CVA is betting visitors will love. And this is a bet he’s sure to win.
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This is not the only “first” for Atlantic City: it also boosts the first boardwalk constructed in the U.S. Erected in 1870 so visitors would not track beach sand into the grand hotels that were springing up, today’s edition of the Boardwalk is roughly four miles long, offering a myriad of eating and entertainment options. According to local legend, salt-water taffy originated on the Boardwalk in the 1880s after seawater flooded a candy store. Atlantic City also reportedly was the inspiration for game inventor Charles Darrow’s “Monopoly” game because of his fondness for childhood vacations spent in the beachside city. Anyone want to trade Park Place for $500?
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New DCP Chief focused on franchisee profitability By Matt Ellis
S
cott Carter likes to drive. When he was 12 – a time when most kids dream of getting behind the wheel of a race car – Carter was already flying airplanes, following his father’s hobby. But, Carter never considered a career as an airline pilot; he got into supply chain management instead, taking a job as Logistics Manager in the McDonald’s system, where he learned transportation, warehousing, strategic sourcing and customer service. Supply chain management, after all, is a place where you literally, and figuratively, drive the business. By the time he was established professionally, Carter didn’t have time to fly planes. So he adapted his aviation skills for nautical – and personal – purposes, owning and operating many types of boats over the years. It’s how he decompresses. Being on the water is Carter’s favorite way to spend time with his wife Nicole and three children ages 12, 9 and 8, who he calls his “number one priority.” Back in the driver’s seat When the regional DCP’s entered into negotiations with Dunkin’ Brands to reformulate the franchisee-owned cooperative, Carter came on board as a consultant. He led the team that rewrote how goods would be procured, delivered and priced during his tenure as the organization’s interim CEO. Additionally he led negotiations with Dunkin’ Brands for a new relationship agreement; and conducted face-to-face meetings with franchisees from every region to address their concerns and help ensure a majority of owners would vote to dissolve the regional distribution centers and form one, national distribution and procurement entity. And when it was over and the historic agreement was executed, Carter was ready to move on. “I was headed to another system and the DCP board contacted me to see if I wanted to talk about joining full-time,” Carter told Independent Joe during a recent interview in his Bellingham, Mass. office. “I felt it was the right fit and the right time for me. So, I’m back and I’m committed to the long term success of the NDCP.” Focus on the big numbers Every morning Carter starts his day reviewing the daily service and cost metrics. “I’m really heavily focused on cost of goods. That’s where we drive value,” he said. Cost of goods, or COGS, represents 90 percent of the NDCP’s costs. Transportation and warehousing make up the other 10 percent. According to Carter, the logistics involved in running
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a national supply chain to keep up with Dunkin’ Brands’ westward expansion are challenging. Franchisees need products delivered on time, and they don’t care what hurdles have to be jumped over to ensure the boxes arrive. And because it’s a cooperative, any profits earned are distributed back to the members. “We’re focused on the best possible service levels at the lowest possible National DCP Chief Executive Scott Carter price,” said Carter. But, he knows the number one driver of franchisee profits is cost of goods. “Three points in COGS reduction is roughly $60 million to the franchisees,” he said. “Real estate, utilities, labor – for the most part – it’s all local market driven and managed tightly at the store level. Managing cost of goods requires national coordination and is the number they [franchisees] can truly impact in a big way by leveraging the cooperative.” Which is why Carter always saw sourcing as a critically important piece of the relationship agreement with Dunkin’ Brands. The opportunity in sourcing A unique component of the NDCP’s landmark 2012 agreement with Dunkin’ Brands gives the co-op the ability to participate in new product development. At the time it was announced, Carter told Independent Joe that by having a seat at the product development table, the supply chain and, therefore, the franchisees would play a greater role in how the ingredients for a product are sourced. During that 2012 interview he said, “Now the NDCP has the ability to apply expertise to find the lowest cost, highest value product to match a Dunkin’ functional spec.” When we sat in his Bellingham office this summer, Carter emphasized that much of the value franchisees will realize now and in the future comes from sourcing, not operations. That’s why Carter is expanding his sourcing team. By the end of 2014, the NDCP will more than triple the number of full time employees it has working on new product development. “One of these people is a food scientist who will help us really understand the management and cost of raw ingredients.” The goal, says Carter, is to position the NDCP at the center of the picture when new products are considered. “I want to be the resource to the brand when they say they want that next product, instead of waiting for them to say, ‘here’s the new product.’” That way, he says, value is built into the cost of a new product at
the onset – instead of trying to recoup value after the product is on the market. Accessibility to the marketplace According to Carter, since 2006, the DCP’s Board of Directors has considered moving the co-op’s administrative offices out of the Bellingham distribution facility. Once the National DCP was created – and Dunkin’ Brands signed more and more development deals in states west of the Mississippi – the board agreed it was time to find a new location. “It’s unusual to have the administrative offices located at a distribution center because you often change your distribution locations to optimize your distribution footprint and don’t want to relocate your shared services each time you make that decision,” he said. An outside analysis of potential new sites yielded a list of five for consideration. From there, Carter and his team examined several criteria including the cost of doing business in that particular location, its access to the supplier base, its access to the customer base, and its access to a competitive, supply chain oriented labor pool. Ultimately, the team chose Atlanta as the new home of the NDCP’s administrative offices. According to the Metro Atlanta Chamber, the region “has grown into a leading global logistics hub and center for supply chain management and technology due to its strong cluster of headquarters that demand efficient services, vital southeast geographic location and robust infrastructure.”
That means there are a lot of experienced, talented supply chain experts working in the area. Carter knew a place like Atlanta has marketplace mobility, meaning good people routinely move from one company to another, sharing knowledge and best practices. And, as Dunkin’ Donuts establishes itself as a national brand, this will provide access to people with experience sourcing and moving supplies across the nation. Measures of success Carter likes precision. It’s why he was drawn to supply chain management and why he always liked flying planes. He knows how his operation is running based on real-time analysis of the operating metrics. “If I can’t see it, I can’t measure it. If I can’t measure it, I can’t manage it and if I’m not managing it then I’m failing.” Proof of this is his perfect order measurement: how often products are delivered on-time, in¬ full and with a clean invoice. When he took over as CEO in February, perfect orders were delivered, on average, 63 percent of the time. Today, it’s 80 percent – meeting the requirements established in the relationship agreement with Dunkin’ Brands. And, Carter says the improvements came with no increase in operating costs. But there is another way of knowing how well the National DCP is meeting its customer’s needs: he can always can check the calls that come into member services. Lately, these complaint calls are way down. “Franchisees are happy,” Carter said.
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Limited time offer. Not available in all areas. Limited to Starter Internet and Business Class Voice service and service to a single outlet. Minimum 2 year contract required. Early termination fee applies. Custom installation charges may apply. Equipment, installation, taxes, franchise fees, the Regulatory Recovery Fee and other applicable charges (e.g., per-call or international charges) extra. May not be combined with other offers. Equipment required ($5/month). Internet: Actual speeds vary and are not guaranteed. Voice: $24.95 activation fee (per line, up to 4 lines) fee applies. Service (including 911/ emergency services) may not function after an extended power outage. Call clarity claim based upon August 2010 call clarity analysis by Tektronix. Call for restrictions and complete details. Comcast © 2012. All rights reserved.
Lisa on the Law
By Carl B. Lisa, Esq., DDIFO General Counsel
7-Eleven Indictments a Cautionary Tale for all Franchisees
W
e took great notice of the recent news coverage that several 7-Eleven franchisees were among those indicted in a far-reaching case of immigrant exploitation. According to the New York Times, franchisees “recruited more than 50 illegal immigrants and gave them identities stolen from American citizens, including children and dead people. The employees worked for 100 hours a week but were paid for a fraction of that time, and were forced to live in substandard housing owned by the operators of the convenience stores.”
Photo from The Smithtown News
The defendants, from Virginia and New York, were charged with conspiring to commit wire fraud, identity theft, providing false or stolen identities and harboring illegal immigrants. If convicted the
defendants face potential multi- year jail sentences. In a statement, 7-Eleven said it “will take aggressive actions to audit the employment status of all its franchisees’ employees. In addition to the criminal charges, the defendants will likely face termination charges by the franchisor. Franchisors invest huge sums of money to protect their brand image and are vigilant in enforcing activity which results in bad publicity for their brands. The case is a cautionary tale for all Dunkin’ Donuts franchise owners and should prompt operators to review the various requirements imposed in their Franchise Agreements, such as those requiring maintenance of business records – including employee files
containing social security numbers and tax withholding forms. As a general rule, franchisees must retain copies of state and federal tax returns for a period of 5 years and be prepared to produce these documents at the time of an audit. In announcing the 7-Eleven indictments, James T. Hayes, Jr., special agent in charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations division, said, “The franchise owners knowingly and repeatedly employed an illegal workforce and abused and exploited that workforce for more than 13 years.” News reports indicate 7-Eleven’s Chief Operating Officer, Darren Rebelez, already sent a letter to five thousand franchisees warning them that 7-Eleven would take legal steps to terminate franchise agreements of owners who continue to employ illegal aliens. Dunkin’ Brands can terminate a Franchise Agreement if the franchisee pleads guilty or no contest to a felony (a crime that is punishable by 1 year in jail or a fine of more than $1,000.00), a crime of moral turpitude, an offense that is injurious to the System or the good will enjoyed by Dunkin’s proprietary marks, a fraud upon company or if you use the franchised business or premises for an unauthorized purpose. This is commonly considered non-curable conduct—meaning that nonotice or opportunity to cure is provided. Several years ago Dunkin’ Brands introduced a standard requiring e verification of all prospective employees which is intended to prevent the kind of fraud allegedly perpetrated by the 7-Eleven franchisees. Nevertheless, the case is a reminder that all franchise owners, and their managers, must pay careful attention to employee hiring and management practices. Ignoring the details could cause disastrous consequences.
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SUB HEADLINE DDIFO SPONSOR ADVERTORIAL
For nearly 10 years, Jera Concepts has been providing order and production management software to the Dunkin’ Brands community with outstanding unlimited customer service that helps franchisees proactively manage their business. Jera Concept’s Supplyit Web-based platform allows franchisees to be connected to their business from any Internet-enabled device and manage their supply network in real time. With a 99.99% application run time, the data you need is always at your fingertips. The new survey module can be used to manage quality control, preventive maintenance and food safety. Supplyit works well for CML to Store, Just Baked, Store to Store and CML/Just Baked Hybrid configurations. “Since I’ve been using Jera Concepts I have a much better grasp on the day-to-day operation of my business,” said Dunkin’ Franchisee Milton Sobral. “The Supplyit program is very easy to learn and use, and they have a great support department that is always willing to help you when you need it.” For more information, visit www.jeraconcepts.com or call Sales Director Allison Cutts or VP of Business Development Wynne Barrett at 508-686-8090.
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My Perspective: The Workforce By Adam Goldman
W
ith summer fading, you can feel everyone’s focus turn to fall. The change in season brings about a change in schedules and, if you’re business is like ours, it also changes how you think about staffing. In past years, it seemed, we could predict the day when the summer sales dip would occur. That helped us plan our schedules accordingly. During the summer, when business was slower, we would use students to fill in the gaps when our regular employees took time off to travel or spend time with their families. Then, when the calendar changed, the college students would leave, the high school students would reduce their hours and the regular crews would take over just as sales returned to their pre-summer levels. But, this year was a little different. Only one of our shops had a summer downturn, which meant we couldn’t reduce our staffing levels at our two other stores. We also knew four of our regular part timers had graduated high school and, even though they were all planning on attending college locally, they would be cutting way back on their hours after the summer ended. Because we always try to keep our eyes up to look ahead, we convened a meeting of store managers and our general manager to brainstorm solutions to these staffing issues. 1. Traditional hours filled by our part time crew have to be covered through August; 2. Coverage was needed for crew vacations through August; 3. We needed to identify, hire, and train additional summer help; 4. We needed to also identify, hire, and train part time employees to supplement the fall crew; 5. We had an opening for a part time weekday morning shift at one shop starting in the fall; 6. We had a full time employee going out on maternity leave in the fall and would need to fill her shift – also in the fall.
“If you’re willing to think outside the box of a traditional workforce pool, you can expand your options and cultivate great employees you can count on for years to come.” The discussion centered on how we would tackle these staffing issues while still controlling labor costs and maintaining excellent customer service. We had to staff right so shifts were covered, customers were happy and we didn’t have an overabundance of people which would necessitate eliminating positions. Our network works very hard to keep employees part of the family, and we have been lucky over the years because our employee turnover was in the single digits, mostly resulting from graduations, pregnancies, or people making a different career choice. We have been doing this long enough to know that sometimes staffing is a complicated juggling act and all of us have to chip in. But, part of the strategy to ease our situation had to be filling the pipeline with great, new high school kids that we could develop into great crew members. In New Jersey, once a child turns 17 there is flexibility regarding the number of hours they can work during the school year. And, we have worked hard to train and cultivate those workers so we could have them for their senior year and possibly beyond. Of course, it can be hard to find reliable, hardworking employees, and that is especially true when you’re talking about high school students. Over the years, we have worked with the Guidance Office at the local high schools. With their assistance, we identify good students, with great attendance records, who also have an interest in retail or culinary. The guidance staff
Photo courtesy of Adam Goldman
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has also introduced me to work study programs where seniors earn credit for work. They are allowed to work a greater number of hours per week and, even leave school early on certain days to work the requisite number of hours. In return, you have to provide a regular evaluation of the student’s performance. But, high school students can’t help us fill that part time weekday morning shift, which is crucial to accommodating the daily three to four hour rush. Not too many people are willing to work 15–20 hrs a week early in the morning, especially if they have to take a bus or drive too far. And, because it’s an early morning shift, we can’t use the moms we have on staff because they are home getting their families out the door. One solution is to reach out to senior citizens. We cater many functions at a local community center and independent living center for people 65 and over. We are in the process of meeting with a few seniors who are physically fit, energetic, able to drive, and looking for part time work. They could prep, bake, and clean the dining room during the morning rush which would free up another crew member, or manager, who sometimes steps in to those duties. And, we think hiring a senior would have a positive impact on our shop and foster some community goodwill. We plan on making similar inquiries with local facilities that work with young, developmentally challenged adults to determine if working at a Dunkin’ shop is a good fit for their skills. Staffing is one of the toughest challenges operators face. But, if you’re willing to think outside the box of a traditional workforce pool, you can expand your options and cultivate great employees you can count on for years to come.
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Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at www.DDIFO.org ViewPoint Sign and Awning
Adrian A. Gaspar & Company, LLP, CPAs
Bill Gavigan 508-393-8200 • billg@viewpointsign.com 35 Lyman Street, Northboro, MA 01532 www.viewpointsign.com
Bederson LLP - CPAs and Consultants
Devon Mourer 217-442-0611 • devon.mourer@watchfiresigns.com 1015 Maple Street, Danville, IL wwwwatchfiresigns.com
ACCOUNTING
Robert Costello 617-621-0500 • cpas@gasparco.com 1035 Cambridge Street, Suite 14, Cambridge, MA 02141 www.gasparco.com Robert Fischbein, CPA 973-530-9100 • rfischbein@bederson.com 100 Passaic Avenue, Fairfield, NJ 07004 www.bederson.com
Cynthia A. Capobianco, CPA
Cynthia Capobianco 401-822-1990 • cynthia@capobianco.necoxmail.com 60 Quaker Lane, Suite 61, Warwick, RI 02886-0114
Neovision Consulting Inc.
Nish Parekh 609-531-4444 • info@neovisioncpa.com 1246 South River Road, Suite 101 Cranbury, NJ 08512 www.neovisioninc.com
Rubiano & Company, CPA’s
Daniel J. Rubiano, CPA 401-949-2600 • dan@rubianocpa.com 5 Austin Avenue, Suite 1, Greenville, RI 02828 www.rubianocpa.com
Sansiveri, Kimball & Co., LLP
Michael A. DeCataldo 55 Dorrance Street, Providence, RI 02903 401-331-0500 • mdeca@sansiveri.com www.sansiveri.com
Thomas Colitsas and Associates, CPA
Tom Colitsas 609-452-0889 • tcolitsas@tcacpa.com 103 Carnegie Center, Suite 309, Princeton, NJ 08540
BACK OFFICE
Jera Concepts
Wynne Barrett 508-686-8786 • wynne@jeraconcepts.com 17 Fruit Street, Hopkinton, MA 01748 www.jeraconcepts.com
BUILDING
Trane HVAC
Jonathan Ralys 225 Woldwood Avenue, Woburn, MA 01801 781-305-1335 • Jonathan.Ralys@Trane.com www.Trane.com/commercial
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Kensington Company & Affiliates
David Stein • kstein@kensingtoncompany.com W: 516-626-2211 • M: 718-490-2218 185 Roslyn Road, Roslyn Heights, NY 11577 www.kensingtoncompany.com
CML OPERATIONS Mid-State Isuzu
Craig Judge 860-281-4117 • craig@midstateisuzu.com 35 Southwest Cutoff, Worcester, MA 01604 www.midstateisuzu.com
COMMUNICATIONS
Comcast Business Services
Comcast National Sales • 866-407-6338 Dunkin_National_Sales@comcast.com 500 South Gravers Road, Plymouth Meeting, PA 19462 www.business.comcast.com/internet
Sprint
Caroline Fedele 781-367-1057 • caroline.fedele@sprint.com 3 Van De Graaff Drive, Burlington, MA 01803 www.sprint.com/ddifomembers
Time Warner Cable Business Class
Tricia Petway (919) 654-4115 • tricia.petway@twcable.com 4200 Paramount Parkway, Morrisville, NC 27560 www.twc.com/business
COST RECOVERY
Bedford Cost Segregation, CPAs
Bill Cusato 978-263-5055 • bcusato@bedfordcostseg.com 60 State Street, Suite 700, Boston, MA 02109 www.bedfordcostseg.com/who_we_serve/ddifo.asp
Performance Business Solutions, LLC
Jeff Hiatt 508-878-4846 • jdh@revenuebanking.com 87 Lafayette Road, Suite 11, Hampton Falls, NH 03844 www.revenuebanking.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.
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ENERGY
Glacial Energy
Lourilynn Throgmorton • 340-201-4323 Lourilynn.throgmorton@glacialenergy.com 24 Route 6A, Sandwich, MA 02563 www.glacialenergy.com
Marathon Energy Corp.
Mauricio Rojas 340-244-7050 • mauricio@mecny.com 868 39TH Street Brooklyn NY 11232 www.mecny.com
Plotwatt, Inc.
Marc Bodner 919-614-2293 • marc@plotwatt.com 1715 Six Gables Road, Durham, NC 27712 www.plotwatt.com
FINANCE Bank RI
Tom Fitzgerald • 401-574-1119 tfitzgerald@bankri.com One Turks Head, Providence, RI 02903 www.bankri.com
Business Financial Services
Scott Kantor • 954-509-8019 skantor@businessfinancialsservices.com 3111 N. University Dr, Suite 800 Coral Springs, FL 33065 www.businessfinancialservices.com
Centrix Bank & Trust
Deborah Blondin 603-589-4071 • dblondin@centrixbank.com 1 Atwood Lane, Bedford, NH 03110 www.centrixbank.com
Direct Capital Franchise Group
Robyn Gault 603-433-9476 • rgault@directcapital.com 155 Commerce Way, Portsmouth, NH 03823 www.franchise.lendedge.com
Fidelity Bank
Sally Buffum 508-762-3604 • sbuffum@fidelitybankonline.com 465 Shrewsbury Street, Worcester, MA 01604 www.fidelitybankonline.com
First Franchise Capital
Karen Johnson 402-562-5111 • karen.johnson@firstfcc.com 2715 13th Street, Columbus, NE 68601 www.firstfranchisecapital.com
GE Capital, Franchise Finance
Christine Keating 203-229-1804 • christine.keating@ge.com 201 Merritt 7, 2nd Floor, Norwalk, CT 06851 www.gefranchisefinance.com
Photo by Kenneth Parry
Directory of Sponsors Infinity Franchise Capital
Sharon Soltero 402-562-1801 • ssoltero@infinityfranchise.com 3154 18th Avenue, Suite 3, Columbus, NE 68601 www.infinityfranchisecapital.com
Joyal Capital Management Franchise Development Daniel Connelly 508-747-2237 • dconnelly@joycapmgt.com 50 Resnik Road, Plymouth, MA 02360 www.jcmfranchise.com
NFA Restaurant Finance
Larry Howard 205-871-8450 • lhoward@nfaloans.com 400 E. 22nd Street, Suite A, Lombard, IL 66148 www.nfaloans.com
Priority Capital
Brian Gallucci 800-761-2118 ext. 14 • bgallucci@priotiycapital.com 174 Green Street, Melrose, MA 02176 www.prioritycapital.com
Sovereign Bank
Mark E. McGwin 508-890-6880 • mmcgwin@sovereignbank.com 446 Main St., Worcester, MA 01608 www.sovereignbank.com
HUMAN RESOURCES
INSURANCE
TCF Franchise Finance
Chris Stec 781-343-4347 • christopher.stec@careerbuilder.com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169 www.careerbuilder.com
Anil K. Sharma 630-654-6067 • info@iwainsurance.com 100 E Ogden Avenue Suite 203, Westmont, IL 60559 www.iwainsurance.com
TD Bank
Sandra Fabrizio 888-512-2525 • sandraf@employersreference.com 1587 Hamilton Avenue, Waterbury, CT 06706 www.employersreference.com
Mike Vallorosi 201-818-2700 • mvallorosi@tcfef.com 300A Lake Street, Suite B, Ramsey, NJ 07446 www.tcfef.com Brian Frank 203-761-3818 • brian.frank@td.com 40 Danbury Road, Wilton, CT 06857 www.tdbank.com
United Capital Business Lending
Trey Grimm 410-771-9600 • tgrimm@ucbl-inc.com 215 Schilling Circle Suite 100, Hunt Valley, MD 21031 www.unitedcapitalbusinesslending.com
FOOD PRODUCTS CSM Bakery Products
Marla Cushing 770-723-2083 • marla.cushing@csmglobal.com 1901 Montreal Road, Suite 121, Tucker, GA 30084 www.csmbakeryproducts.com
Quaker Oats A Division of PepsiCo
Ed Bowes 610-948-8309 • Ed.bowes@pepsico.com 402 Kilarney Way, Royersford, PA 19468 www.pepsico.com
CareerBuilder.Com
Employers Reference Source
Granite Payroll Associates
Marco Schiappa 401-263-7921 • marco@granitepayroll.com 176 Granite Street, Qunicy, MA 02169 www.granitepayroll.com
Gulpfish.com
Ilya Reikhrud 800-974-4514 ext. 101 • ceo@gulpfish.com 1005 Main Street, Pawtucket, RI 02860 www.gulpfish.com
Heartland Ovation Payroll
Insurance World Agency Inc.
KK Insurance Agency
Ashish Vadya 866-554-6799 • ashish@kkinsuranceagency.com 541 Broadway, Long Branch, NJ 07740 www.kkquote.com
Sinclair Insurance Group - Risk Management
Matt Ottaviano 203-284-3235 • mottaviano@sinclair-insurance.com 4 Tower Drive, Wallingford, CT 06492 www.srfm.com
Starkweather & Shepley Insurance Brokerage, Inc.
Sabrina San Martino 800-854-4625 ext. 1121 • ssanmartino@starshep.com 60 Catamore Boulevard, East Providence, RI 02914 www.starkweathershepley.com
Wells Fargo Insurance Services
Jim Ferreira 203-530-3512 • jferreira@ovationpayroll.com 777 Westchester Ave, Ste 101, White Plains NY 10604 www.ovationpayroll.com
Mark Stokes 813-636-5301 • mark.stokes1@wellsfargo.com 2502 North Rocky Point Drive, #400, Tampa, FL 33607 wfis.wellsfargo.com
HK Payroll Services, Inc.
LEGAL
Laurie Fleming 563-556-0123 ext.1190 • lfleming@honkamp.com 2345 JFK Rd, PO Box 3310,Dubuque, IA 52004 www.hkpayroll.com
Lisa & Sousa Attorneys at Law Ltd.
Carl Lisa, Sr. 401-274-0600 • clisa@lisasousa.com 5 Benefit Street, Providence, RI 02904 www.lisasousa.com
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Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at www.DDIFO.org Paris Ackerman & Schmierer LLP
David Paris 973-228-6667 • david@paslawfirm.com 101 Eisenhower Parkway, Roseland, NJ 07068 www.paslawfirm.com
Vernis & Bowling of Palm Beach, P.A.
Tammy Bouker • 561-775-9822 • 561-775-9822 tbouker@national-law.com 884 US Highway One, North Palm Beach, FL 33408 www.national-law.com
Zarco, Einhorn, Salkowski & Brito, PA
Robert Salkowski, Esq 305-374-5418 • rsalkowski@zarcolaw.com 100 SE 2nd Street, 27th Floor, Miami, FL 33131 www.zarcolaw.com
OPERATIONS
Access to Money ATM, Inc./Cardtronics
Doug Falcone 973-599-0600 • dougf@accesstomoney.com 628 Route 10 - Suite 8, Whippany, NJ 07981 www.accesstomoney.com
Belshaw Adamatic Bakery Group
Fran Kauth 206-718-3573 • fran_kauth@belshaw.com 814 44th Street NW, Suite 103, Auburn, WA 98001 www.belshaw-adamatic.com
Bunn-O-Matic Corporation
Todd Rouse 800-637-8606 • Todd.Rouse@bunn.com 1400 Stevenson Drive, Springfield, IL 62703 www.bunn.com
Delphi/Fast Track 2+2 Drive-Thru Timer
3M Company
Mike Pierce 714-850-1320 • mike@phaseresearch.com 3500 West Moore Ave., Suite M, Santa Ana, CA 92704 www.fasttracktimer.com
3 Wire Group, Inc.
Mira Diza 800-933-8388 • mdiza@dttusa.com 1755 North Main Street, Los Angeles, CA 90031 www.dttusa.com
Bill Muenkel 952-484-4875 • wemuenkel@mmm.com Bldg. 223-2N-20 St. Paul, MN 55144 www.3M.com/communications Derek Knapp 518-563-3200 • derek.knapp@3wire.com 101 Broadway Street West, Osseo, MN 55369 www.3wire.com
DTT Surveillance
Dunbar Armored, Inc.
Laurie Corak (410) 229-1892 • Laurie.Corak@dunbararmored.com 50 Schilling Road, Hunt Valley, MD 21031 www.dunbararmored.com
Ecolab
Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses
eTemp
Cardie Saunders 800-974-1006 • cardie.saunders@getecube.com 5 Cold Hill Road, Building 20, Mendham, NJ 07945 www.getetemp.com
Green Turtle Americas
Eric Hancock 704-295-3964 • ehancock@greenturtletech.com 2709 Water Ridge Pkwy Charlotte NC 28217 www.greenturtletech.com
Hi-Tech Sound
Gary Hanna 508-624-7479 • gary@hitechsound.com 19 Brigham Street, Unit 10, Marlboro, MA 01752 www.hitechsound.com
HME Drive-Thru Headsets
Brady Campbell 858-535-6034 • bcampbell@hme.com 14110 Stowe Drive, Poway, CA 92064 www.hme.com
Jarrett Services ATM, Inc.
Eric Johnston 732-572-0706 • ej@jarrettforcash.com 1315 Stelton Road, Piscataway, NJ 08832 www.jarrettforcash.com
Macdonald Restaurant Repair Service, Inc.
Mark & Debi Macdonald 508-384-9361 • debi@macdonaldcompany.com PO Box 61, 83 Pond Street, Norfolk, MA 02056 www.macdonaldcompany.com
Mint-X Corporation
Amie Yee 877-646-8224 • ayee@mint-x.com 2048 199th Street, College Point, NY 11356 www.mint-x.com
New England Drive-Thru Communications
Angela Bechard 888-966-6337 • angela@nedrivethru.com 12 Wildwood Road, Auburn, NH 03032 www.nedrivethru.com
New England Repair Service
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.
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Jerry Brown • A Division of New England Coffee Co. 781-873-1536 • jerry.brown@necoffeeco.com 100 Charles Street, Malden, MA 02148 www.nerepairservice.com
Photos by Kenneth Parry
Directory of Sponsors Paramount Restaurant Supply Corp.
Jeffrey Cartier 401-247-6500 • jcartier@pararest.com 101 Main Street, Warren, RI 02885 www.pararest.com
Payless Shoe Source
Matt Lemke 785-368-7530 • matt.lemke@payless.com 3231 SE 6th Avenue, Topeka, KS 66607 www.payless.com
R.F. Technologies
Jennifer Morales 618-377-4063 ext. 121 • jenm@rftechno.com 542 South Prairie Street, Bethalto, IL 62010 www.rftechno.com
QualServ
Becky Dubose 800-643-2980 ext. 256 • bdubose@qualservcorp.com 7400 28th Street, Fort Smith, Arkansas, 72906 www.qualservcorp.com
Shoes For Crews
Shanita Vickers 877-677-3630 • shanitav@shoesforcrews.com 250 S. Australian Ave. West Palm Beach Fl 33401 www.shoesforcrews.com
SKAL East, Inc
Kevin Huerth 508-238-0106 • kevin@skaleast.com PO Box 303, 31 Eastman Street, Easton, MA 02334 www.skaleast.com/index.cfm?keyword=dunkin
SureShot Dispensing Systems
Steve Robert 905-827-4415 • srobert@sureshotdispensing.com 100 Dispensing Way, Lower Sackville, NS, Canada B4C 4H2 www.sureshotdispensing.com
TredSafe/WalMart
Ted Travis 909-949-0495 • ttravis@esoriginals.com 450 West 33rd Street, New York, NY 10001 www.walmart.com
TAX DEFERRED EXCHANGE Exchange Authority
UAS Security Systems
Marie Dias 978-433-6061 • mdias@exchangeauthority.com 9 Leominster Connector, Suite 1, Leominster, MA 01453 www.exchangeauthority.com
Chris McGurk 800-421-6661 • chrismcgurk@uas.com 700 Abbott Drive, Broomall, PA 19008 www.uas.com
Wentworth Technology
The Wifi Company
John J. Bailey 877-949-9434 • jbailey@thewificompany.com 190 Pine Rd., Golden, CO 80403 www.thewificompany.com
Lisa Keslar 207-571-9744 • jlisakeslar@wentworthtechnology.com 77 Industrial Park Road Saco Me 04072 www.speedthruheadsets.com
ur Thank You tosO Sponsor !
Experts at Delivering Franchise Finance Solutions
The Solution for Franchise Success enabled me to grow my business. They truly are industry experts.” - Greg Nigro, Dunkin Brands Franchisee Virginia and North Carolina
Contact Us Today: Mike Vallorosi,VP Sales Manager • Ph: 201.818.2700 • mvallorosi@tcfef.com tcfef.com/franchise
©2013 TCF Equipment Finance, Inc.
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Mayor Lorenzo T. Langford City of Atlantic City 1301 Bacharach Blvd Atlantic City, NJ 08401
Greetings, On behalf of the City of Atlantic City, it is indeed a pleasure to welcome the Dunkin’ Donuts Independent Franchise Owners (DDIFO) to Atlantic City on the special occasion of their National Conference, to be held September 16-18, 2013 at Caesars Atlantic City. At this time, I wish to take the opportunity to personally thank DDIFO for selecting Atlantic City as the destination for their National Conference. It is significant and important to note that this will be the first time the National Conference will be held outside of New England. As you know, one of the reasons DDIFO chose Atlantic City as the site for this year’s National Conference is to show support for our region, particularly after Hurricane Sandy. Please know that DDIFO’s commitment and willingness to hold their National Conference in our great city is appreciated more than words can express. Hurricane Sandy caused significant damage throughout our community, wreaking havoc in our neighborhoods, and costing our local economy over $200 million. However, when you visit us you will see firsthand just how well we have recovered from Hurricane Sandy. Indeed, Atlantic City is truly resilient. “We’re stronger than the storm” and open for business: ready, willing and able to host Dunkin’ Donuts Independent Franchise Owners and provide the kind of first-class accommodations that has earned Atlantic City its reputation as the place to be! Additionally, I want to recognize and commend DDIFO for their outstanding efforts to represent franchises and their more than 2,500 locations from across the United States. Over the years, Dunkin’ Donuts has become a personal favorite of many Atlantic City residents – myself included – as I am a satisfied patron of our local Dunkin’ Donuts and franchisee Arun Mandi. While you’re here for the DDIFO National Conference, be sure to “Do AC” and take advantage of all that Atlantic City has to offer. From our world-famous Boardwalk and beach, to delectable dining, star-studded entertainment, superb shopping, and non-stop casino excitement, Atlantic City has something special for everyone! Again, thank you for holding your National Conference in Atlantic City. We appreciate your patronage and look forward to making your stay most memorable and enjoyable. In closing, please come back soon to visit us again…and remember, you’re always welcome in Atlantic City! Sincerely, Mayor Lorenzo T. Langford City of Atlantic City
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The Kensington Company - Your franchise expert since 1995, specializing in Dunkin Donuts re-sales since 2005. Our Team includes two Former Dunkin Brands Franchise Managers who have experience in selecting new franchisees for DD approval 40% of all deals that were sold had no Financing Contingencies We continually update our database with franchisees that are approved for Expansion; We currently have Six networks under contracts, Five under Letters of Intent and Six active listings which are available for sale.