Independent Joe #42 February/March

February/March 2017

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for D D Independent Franchise Owners

SUCCESSFUL LANDING Former Marine Pilot Settles into a Career in Franchising

Why Athletes Love Dunkin’

Franchisee Returning to Root

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DON’T GET CAUGHT IN THE SPIN CYCLE In some of its earliest iterations, it was referred to as yellow journalism. Back in the early days of this nation’s history, it manifested itself in so-called Pamphlets, where the writer would use a pseudonym and slander his political opponents with outrageous allegations – some having just a sliver of truth, others lacking even the smallest kernel of accuracy. More recently, it became known as advocacy journalism and when the Internet burst on the scene, the practice of publishing inaccuracies as truth proliferated and with the advent of the 2016 Presidential election; “fake news” was raised to an art form.

Throughout its historical evolution however, “fake news” had a very prominent first cousin that was becoming more and more refined with each campaign. The art of political spin has given birth to some of the most bizarre twists and turns of the truth.

As an example, we now not only have to deal with “fake news,” but the oxymoronic “alternative facts” as well.

Ask an elected official if they are for or against any particular proposal and you’ll get a long-winded dissertation on a host of issues, but rarely a direct answer to the question. Recall that the former U.S. Senator, 2004 Democratic Party presidential nominee and Secretary of State John Kerry famously campaigned that he “actually voted for the $87 billion for the Iraq war before [he] voted against it.”

On the other side of the aisle, Condoleeza Rice, who was Secretary of State under former President George W. Bush, advocated a “diplomatic offensive” in dealing with Syria and Iran; while the nation’s 34th President, Republican Dwight D. Eisenhower, promised that “We are going to have peace even if we have to fight for it.” So, oxymoronic phrases have always had a home in politics, but the political spin today seems to have reached a point where it is the political equivalent of “fake news.”

A number of years ago, the Coalition of Franchisee Associations spearheaded the development of a document called the Universal Franchisees Bill of Rights (UFBOR). The idea was to identify outstanding issues of fairness in the relationship between franchisees and franchisors that the former believed needed to be addressed in order to preserve and strengthen the franchise business model. Over the years, no fewer than 24 states have adopted at least some of the provisions of the UFBOR. Most recently, the state of California, with the sixth largest economy in the world (just ahead of No. 7 France), unanimously passed legislation adopting several UFBOR provisions – with the concurrence of the International Franchise Association (IFA).

A formerly contested piece of legislation passing a legislative branch of government unanimously is a very rare occurrence – passing both branches without a dissenting vote is virtually unheard of.

So now let’s talk about the latest initiative to adopt some provisions of the UFBOR – The Protect Florida Small Business Act

(SB 750). Simply stated, this bill seeks to address inequities in three key areas: 1. Protection from unjust terminations; 2. Protection from unjust restrictions on sales and transfers; and 3. Protection from non-renewal of their agreement.

If it becomes law in Florida, SB 750’s provisions will only apply to new franchise agreements and renewals, so it will not impact any existing agreements. Furthermore, it preserves the franchisor’s right to defend the integrity of their brand – something all franchise owners want them to do as maintaining brand quality greatly inures to the benefit of the franchisee. After all, the franchisee is the one who has spent his own money, time and effort building the business.

Too often, franchisors exercise their unlimited power to restrict the sale or transfer of a franchise so that they can maximize their income – at the expense of the small business owner who built the business. SB750 grants the franchisee the ability to sell his/her franchise to another individual as long as that person is qualified by the franchisor’s standards. The franchisor should not be able to veto qualified individuals from purchasing the business just so they can squeeze additional fees from a franchisee.

Similarly, a franchise owner should not be subjected to the whims of the franchisor who may choose not to renew their franchise agreement without providing the franchisee the opportunity to monetize the equity he/she has built over the years.

We can all remember how, in California, franchisors complained that Fair Franchising legislation would end franchising as a viable business model. Yet, according to the US Chamber of Commerce, there are over 733,000 franchised businesses operating in the Golden State today. What’s more, the franchise model is stronger than ever in each of the 23 other states that have adopted some provisions of the UFBOR. Yet, to hear them tell it, adoption of the Protect Florida Small Business Act will end franchising as we know it. Here they go again, telling us, “The sky is falling.”

Perhaps we shouldn’t be surprised, since that is the nature of political spin today. Don’t be concerned about even a shred of truth; just stir up the masses and create enough confusion to energize the opposition.

President Harry Truman once said, “There are always a lot of people so afraid of rocking the boat that they stop rowing. We can never get ahead that way.” With apologies to our 33rd President, we can never get ahead if we cower in the face of political spin and “fake news” promulgated by franchisors either.

Ed Shanahan DDIFO Executive Director

INDEPENDENT JOE • FEBRUARY/MARCH 2017 1

SUB HEADLINE

CONTENTS

From the Executive Director Don’t get caught in the spin cycle • • • • • • • • • • • • • 1 What’s Brewing: A Look at State Issues Around the Footprint • • • • • • • • 5 Legal: How Vicarious Liability Can Leave Franchisees Exposed • • • • • • • • • • • • • • • • • 9 Why Athletes Love Dunkin’ • • • • • • • • • • • • 10 Successful Landing: Former Marine Pilot Settles into a Career in Franchising• • • 14 Aloha, Dunkin’! • • • • • • • • • • • • • • • • • • • • 18 Franchisee Profile: Franchisee Completes Circle by Returning to Roots • • • 20 Directory of Sponsors • • • • • • • • • • • • • • • 25 Community Corner: Carlos Andrade • • • • • • • • • 28

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Independent The Magazine for DD Independent Franchise Owners

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February/March 2017 Issue #42 Independent Joe® is published

by DD Independent Franchise Owners, Inc.

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Editors: Edwin Shanahan, Matt Ellis Contributors: Cheryl Alkon, Michael Hoban, Lisa Iannucci, Scott Van Voorhis Business Member Coordinator: Joan Gould Creative Director: Caroline Cohen Direct all inquiries to: DDIFO, Inc. 2 First Avenue, Ste. 127 – 3, Peabody, MA 01960 978-587-2581 • info@ddifo.org • www.ddifo.org

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DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners.

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WHAT’S BREWING A LOOK AT STATE ISSUES

AROUND THE FOOTPRINT

By Scott Van Voorhis The Trump Administration sooner or later will start delivering on its promise to slash government red tape but, in the meantime, the battle over wages, sick leave and food labeling requirements continues to rage on at the city, state and county level.

New York City officials are crowing over a court victory upholding their new labeling requirement for salty foods, while activists are pushing minimum wage and sick leave proposals in several cities and states.

However, the most effective push back is coming right now not from the new administration in Washington, D.C., but from Republican governors and state lawmakers across the country.

A number of states are pushing legislation

that would bar local communities from setting their own wage and labor rules.

“There is certainly cautious optimism across the franchise sector that Trump will roll back the tide,” says Benjamin Litalien, founder and principal of FranchiseWell.

Salty foods label survives challenge Dunkin’ and other quick-service franchise owners in the Big Apple will have to keep flagging salty items on their menus for the foreseeable future.

A state appeals court has upheld a controversial New York regulation that requires restaurant owners across the city to slap an icon shaped like a salt shaker next to sandwiches and other items that are particularly salty.

To qualify for salt shaker status, the menu item has to have more than the recommended daily level of sodium, or 2,300 milligrams, or effectively a teaspoon of salt.

The number, in turn, is based on the FDA’s recommendation of daily sodium intake.

Restaurants are also required to post a warning that “[h]igh sodium intake can increase blood pressure and risk of heart disease and stroke.”

The National Restaurant Association has argued the science related to sodium consumption is still unsettled while blasting the New York City Board of Health - which unsuccessfully pushed a ban on sales of soda and other drinks larger than 16 ounces a few years back - as a “renegade regulator,” according to a legal brief filed with the appeals court.

“ I think it’s systemic of the ignorance of the franchise model.

It highlights how little regulators and legislators know about franchising. It smacks of penalizing small business owners under the guise of a chain.”

INDEPENDENT JOE • FEBRUARY/MARCH 2017 5

WHAT’S BREWING

“The New York City sodium regulation, by contrast, is about the Board – for the second time in three years – looking to grab headlines as the purveyor of ‘first in the nation’ health initiatives, notwithstanding that, in truth, its sodium regulation is illogical, unlawful, and more likely to mislead consumers about sodium health than help them,” lawyers for the restaurant association write.

“I think it’s systemic of the ignorance of the franchise model,” he says. “It highlights how little regulators and legislators know about franchising. It smacks of penalizing small business owners under the guise of a chain.”

The NRA also contends the way the city’s new sodium labeling regs are written are unfair as well. The rules target 17 percent of New York restaurants, including large chains like Dunkin’, while exempting independent and small restaurant chains like diners, as well as grocery and convenience stores.

The court decision upholding New York’s sodium labeling could have nationwide repercussions, with the city’s new warning on salty foods being the first of its kind in the country.

This supposedly targeted approach misses the fact that many of those larger chains like Dunkin’ are made up of individual franchise owners who are no different than the family-run restaurant or diner across the street, Litalien says.

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It’s hardly surprising the restaurant organization is fighting the labeling of salty foods.

The restaurant organization has argued in favor of nationwide disclosure rules under which restaurants would detail the sodium count in various foods and menu items to customers who write to request the information.

The NRA has indicated it is reviewing its legal options in the wake of the decision.

“The National Restaurant Association will be exploring all of our legal options moving forward following today’s ruling,” Cicely Simpson, executive vice president of the National Restaurant Association, said in a statement. “Local mandates on sodium regulation are a costly and onerous burden on all New York City restaurateurs. Instead of confusing state and local mandates, we believe the best approach to disclosing nutrition information is the uniformed national menu standard that will go into effect this year.”

Minimum wage battle ramps up Republicans may control Washington but there’s no sign yet of a slowdown of local campaigns to raise the minimum wage in a myriad of cities and states.

In fact, with the exception of Connecticut, three of the four latest minimum wage proposals are being pushed in red state territory.

Connecticut, Nevada, Kansas City and Flagstaff, Ariz., are the latest states

and cities to debate whether to hike the minimum wage to $15 an hour.

More than 40 state representatives and senators in Connecticut are pushing a proposal that would boost the state’s minimum wage to $11 an hour on Jan. 1, 2018, followed by annual increases until it reaches $15 in 2022.

Nevada legislators are debating two bills that would significantly boost the state’s minimum wage, which currently stands at $7.25 an hour for those with employerprovided insurance, and $8.25 for those that don’t.

A proposal in the Nevada Assembly, the lower house, would bump the minimum wage to $15 an hour for those without insurance by 2022, with the rate a slightly lower $14 an hour for those who do have coverage. A bill in the state Senate would raise the minimum by 75 cents a year until it hits $11 an hour for those with insurance and $12 an hour for those without.

In Kansas, the state Supreme Court gave the green light that will see a proposal to raise the minimum wage to $15 an hour in Kansas City on the ballot in August. If passed, the city’s minimum wage would more than double from $7.70 an hour today to $15 an hour by 2020.

upper house against the $15 an hour bill.

And in Flagstaff, a new law will raise the minimum wage in the city to $15 an hour by 2021, well beyond a statewide increase to $12 an hour by 2020 that Arizona voters recently approved.

Some Republican controlled state legislators are also getting into the act, looking to short-circuit local attempts to raise wages on a community-by-community basis.

However, pushback against the avalanche of minimum wage increases across the country is also mounting among business owners and some lawmakers as well.

Republicans in the Iowa Legislature are pushing a bill that would stop cities and counties from raising their minimum wages above the state’s minimum, which now stands at $7.25 an hour.

In Connecticut, three local chambers of commerce have come out against the push to raise the state’s minimum to $15 an hour.

And Republican gains in the state Senate – now evenly divided 8-8 between the two parties - could provide a roadblock in the

Flagstaff business owners have launched their own counter campaign, Elevate Flagstaff, which would amend state law to lower the minimum wage to $12 an hour, down from the planned $15 an hour.

In Ohio, Republican Gov. John Kasich recently shot down a bid by labor activists in Cleveland to raise that city’s minimum wage to $15 an hour. Kasich’s bill prevents local cities and towns from passing ordinances raising local wages beyond the state minimum of $8.15 an hour.

INDEPENDENT JOE • FEBRUARY/MARCH 2017 7

WHAT’S BREWING

Sick leave spreads – and fuels pushback Maryland and Rhode Island are the latest states to jump on the paid sick leave bandwagon.

with businesses and franchises with 15 employees or more required to offer seven days a year of paid sick leave. Those with fewer than 15 employees would have to provide unpaid sick leave.

Maryland legislators are eyeing competing sick leave proposals, one from the state’s Republican governor and the other from Democrats in the Assembly.

Companies could face fines for not complying and would have to keep thorough records.

The debate is also heating up in Rhode Island, where legislators have proposed a bill that would enable workers to earn up to seven paid sick leave days a year.

Gov. Larry Hogan is pushing a somewhat more business-friendly plan that would require employers with at least 50 employees at one location to offer sick leave. For companies with fewer than 50 employees who volunteer to offer paid sick time, the governor’s plan would offer a tax break of up to $1,700.

Under the bill, workers would accumulate one hour of sick time for every 30 worked and could use it either to take care of themselves or family members.

It’s not clear whether the governor’s mandatory sick leave policy would exempt franchise owners, who may own one or more restaurants but are unlikely to have 50 employees at a single location.

However, as with the minimum wage, a number of state legislatures are starting to move to preempt cities, towns and counties from adopting their own sick leave policies and labor rules. State lawmakers in Ohio and Kentucky recently barred local communities from requiring employers to provide fringe benefits.

Assembly Democrats are pushing a plan that would set a much lower threshold,

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In Minnesota, lawmakers have proposed their own preemption bill that, if passed, could roll back sick leave ordinances passed in St. Paul and Minneapolis. The effort is aided by the fact that Republicans recently took control of both houses of the legislature. The Minneapolis Chamber of Commerce has been a leading opponent as well, challenging Minneapolis’ sick leave law in court.

Looking ahead Many important decisions will be made in the coming year, both at the state level and in Washington, D.C., that could very well mean dollars gained or lost for your franchise. While minimum wage and sick leave battles loom large, momentous changes are coming as well on the healthcare front as a Republican-controlled Congress tries to make good on its pledge to repeal and replace Obamacare. Major changes are also likely to come at the Labor Department and the National Labor Relations Board as Trump appointees finally take the reins. Keep your eye on this space and we will keep you up to date with all the latest developments.

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BY JUSTIN M. KLEIN AND ALLISON S. BECHT

A LOOK ON THE LAW

How Vicarious Liability Can Leave Franchisees Exposed The financial impact I of an indemnification t is fairly common for franchisees and franchisors to be sued together for an injury that occurred at a franchised location. Likewise, more recent lawsuits have extended to employment-related claims alleging that the franchisor and franchisee are “joint employers” and, therefore, jointly liable for any alleged misconduct of employees at the franchised location.

In the legal world, claims like this against the franchisor are generally referred to as “vicarious liability” claims. And, while the common goal is to defeat lawsuits like these, there is an added consideration when there is a franchise agreement involved. Indeed, franchisors carefully construct franchise agreements and impose certain operational requirements on their franchisees to highlight a clear distinction of the legal obligations between it, as the franchisor, and its franchisees.

In fact, nearly every franchise agreement in the United States contains some variation of an indemnification provision, which requires the franchisee to defend, hold harmless and indemnify the franchisor from claims of third parties for any actions or omissions relating to the franchisee’s ownership and operation of its business. The purpose of the indemnification obligation is for the franchisor to ensure it is made whole in the event that it is sued for claims based solely on account of being the franchisor.

The financial impact of an indemnification provision can be substantial even if you win or settle the case because the franchisee’s obligation includes reimbursing the franchisor for all losses, damages, attorneys’ fees and other costs incurred by the franchisor in connection with the lawsuit. Indemnification provisions are common in the franchise industry and—quite frankly—they are not going away. Franchisees need to consider the magnitude of these provisions when

operating their businesses and certainly if they find themselves in a lawsuit alongside their franchisor.

When a person visits a Dunkin’ Donuts store, he/she may recognize on some level that the store is a franchised business owned and operated by someone separate and apart from Dunkin’ Donuts (i.e., the franchisor). But while the customer may be aware that the store is owned by a franchisee, and not Dunkin’ Brands, most are unaware of the identity of the person who actually owns and operates the store.

That means there often is no perceived distinction between the individual store operator and the franchisor, primarily due to the shared name and concurrent use of trademarks and trade dress by the parties.

This fundamental misunderstanding of how a franchise relationship works creates a multitude of issues for the legal system.

Any franchisee should not only be familiar with the provisions in his/her agreement which relate to these types of claims and carry the appropriate insurance, but also be aware of how these provisions may affect the relationship with their franchisor. We are seeing how recent litigation matters filed jointly against franchisors and franchisees in the U.S. have prompted franchisors to make changes to their franchise agreements, tightening the protections they have in place against claims for vicarious liability, and leaving franchisees exposed. This is especially so in situations where franchisors and franchisees have been sued for perceived misconduct relating to employment practices.

Generally speaking, franchisors do not maintain day-to-day control over their franchisees’ employees, nor do franchisees want that. As a result of the heightened scrutiny of the franchise relationship by courts, which are more frequently reviewing claims against franchisors and franchisees jointly, franchisors in most cases are actually working towards an

provision can be substantial even if you win or settle the case even more defined separation between themselves and their franchisees, not just by making changes to their franchise agreements, but also through adjustments (and, often, reductions) in the types of training and oversight they generally offer to franchisees.

In short, vicarious liability claims have always existed—however, recent law has demanded that franchisors take a closer look at their business models. As a result of this internal analysis, franchisors will make decisions that will force their franchisees to change how they plan for and run their own businesses.

Best practice is to not only know what your franchise agreement and insurance policies say, but to keep the lines of communication open with your franchisor and to maintain comprehensive records of all such communications—especially if they involve the franchisor’s failure to comply with any of its obligations under the franchise agreement. In the event that a joint lawsuit is asserted, knowing what is in your arsenal and being familiar with your options and the various obstacles will be key to putting you in the strongest possible position for success.

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Justin M. Klein is a founding partner of Marks & Klein LLP, a law firm with offices in New Jersey, New York City, Chicago and Boca Raton. Allison S. Becht is a corporate attorney whose practice concentrates on corporate and franchise law.

INDEPENDENT JOE • FEBRUARY/MARCH 2017 9

Why Athletes Love Dunkin’

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F

or former NFL placekicker Kris Brown, knowing how to kick a football hard is just as important as knowing how to “kick butt and work hard,” which is the way he describes his second career as a Dunkin’ Donuts franchise owner.

Brown, now 40, played 12 years in the NFL with the Pittsburgh Steelers, Houston Texans and San Diego Chargers, after a record-breaking career at the University of Nebraska. Brown retired in 2011 and became partners with former Houston teammate Zach Wiegert, who had retired in 2007. Together they are developing a network of Dunkin’ Donuts restaurants in Nebraska and western Missouri.

Brown and Wiegert are just two of the growing numbers of current and former professional athletes who moved from sports into franchising, choosing the iconic Dunkin’ Donuts brand.

Photo courtesy of Instagram @drewbrees

“We have found that there is an increasing interest from pro athletes, especially as we grow the Dunkin’ Donuts brand across the country,” says Grant Benson, senior vice president of franchising and development for Dunkin’ Brands.

Other sports figures who have become franchise owners or who have partnered with existing Dunkin’ franchises include former NBA All-Star player Jamal Mashburn and NFL defenseman Ricky Jean Francois. Most recently New Orleans Saints quarterback Drew Brees announced he was partnering with Dunkin’ Donuts franchisee Vik Patel to develop Dunkin’ locations across Louisiana.

“I’m excited to be working with [Vik] to expand the Dunkin’ Donuts brand in Louisiana, starting with five stores in the New Orleans and Baton Rouge areas,” Brees wrote in an email. “Dunkin’ Donuts is an incredible brand offering friendly service, convenient locations, great value and a fantastic menu of hot and iced coffees, espresso beverages, hot and iced teas, frozen beverages, breakfast sandwiches and, of course, its signature donuts.”

The MVP in Super Bowl XLIV in 2009, Brees knows the qualities that lead to success. IIn his 16 year NFL career, he completed passes totaling an NFL record of more than 5,200 yards; he’s thrown 465 touchdowns and over 66,000 total yards. When describing the value local businesses,

" I’m looking forward to growing such an iconic brand down here in Louisiana, and to helping build the local economy and create jobs."

—Drew Brees

By Keith Allison (Flickr) [CC BY-SA 2.0

INDEPENDENT JOE • FEBRUARY/MARCH 2017 11

“ There are a lot of qualities you have to possess as an athlete. Clearly, you have to work hard and know how to work. Running a franchise is really following the operational manual, which tells you, ‘This is how to run the business. Take the training and execute the operational manual,. Working on sports teams and running a franchise are similar; you are bringing a group of people together, setting a vision, and setting some goals.”

—Kris Brown like Dunkin’ Donuts, have in their communities, he praised the work of franchisees for keeping local communities thriving. He said he was optimistic his efforts would also spur growth. “I’m looking forward to growing such an iconic brand down here in Louisiana, and to helping build the local economy and create jobs,” he wrote.

The sports-to-Dunkin’ connection If he asks Brown or Wiegert about the transition he may face as he settles into his Dunkin’ career, Brees would probably hear that professional athletes and Dunkin’ Donuts operators follow a path with many similarities.

According to Brown, “There are a lot of qualities you have to possess as an athlete. Clearly, you have to work hard and know how to work. Running a franchise is really following the operational manual, which tells you, ‘This is how to run the business. Take the training and execute the operational manual,’” Brown says.

“Working on sports teams and running a franchise are similar; you are bringing a group of people together, setting a vision, and setting some goals.”

Now in their sixth year as Dunkin’ operators, Brown and Weigert have four locations in Kansas City and eight in Omaha.

“We have defined territory in both Kansas City and Omaha, and are contractually obligated to open a total of 17 stores,” says Brown. “It’s nice because when you sign a development agreement, no one else can develop Dunkin’ Donuts franchises in that area.”

It’s a customer base Brown got to know during his two runs to the NCAA Men’s Football National Championship with the Cornhuskers of Nebraska. And, while those days of glory shine brightly in the memories of Nebraskans, Brown says he enjoys a relatively anonymous life as a franchise owner. “I really don’t get recognized today,” he says. “Very rarely, if ever.”

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Athletes need to rely on the strength and commitment of their teammates in order to be successful, and Brown says there is a strong similarity in the QSR business. Without question, he says

ATHLETES Dunkin’ Brands also works with the Professional Athlete Franchise Initiative, which presents franchising opportunities to interested and qualified athletes, according to Benson.

Why choose Dunkin’?

For Brown, the brand brings back memories of his childhood near Dallas during the 1980s. “There were some Dunkin’ Donuts stores around where we lived, and we would go in before school and I’d have a maple frosted donut,” he recalls. “Whenever I take a bite, it brings me back to being eight years-old in Plano, Texas.

It was emotional. Deciding to work with Dunkin’ just made sense.”

Photo courtesy of Twitter @DunkinNE

the toughest part of his job is finding the best people to join his team. “[That] is always a challenge, because everybody looks for good people to retain,” Brown says his longest team members have been with the company since 2013, and one has opened several new stores as the company has grown. How does he manage to keep good people?

“It’s defining our mission. And asking ‘Why does our company exist? What makes people get up and go to work at 5am?’ It’s because we want to energize and reward our guests and our team and our community. It’s about defining those things and getting into alignment so that people have a deeper appreciation and understanding for what we do,” he says.

While Dunkin’ Donuts doesn’t have a formal recruiting program for pro athletes, “we are open to any individual interested in opening a franchise as long as they meet our rigorous franchisee selection criteria,” says Benson. “First and foremost, we look for qualified franchisees with operational experience, strong financial backgrounds, and a passion for their local communities and our brands. We’ve worked with a number of athletes over the years and we’re very proud of the relationships we have with them.”

Brown says he was drawn to the notion of working for himself – and being his own boss – during his NFL off-seasons.

In addition to staying in shape, Brown worked a number of internships.

“I got a sense of what I liked, and realized that I wouldn’t mind working for myself,” he says. “I liked the flexibility, the time in the off-season with my family. If you got into business for yourself, you controlled your destiny: how much you could make, how hard to work, and if you want to kick butt or not.”

When it was time to retire – and Brown says the day came earlier than he thought it would, in 2011 – his partnership with Wiegert gave him responsibility over business operations, while Wiegert handled the real estate piece. Later, Brown was named CEO, overseeing all aspects of the business.

He says there are parallels between running franchises and running as a professional football player. “Life in the NFL is very structured. From January to December, your life is planned by your team. One of the nice things about working as a franchise owner is that the franchise does provide that structure. It’s already given to you, and that’s a fit with a lot of professional athletes, because they are already have that structure.”

Working with Dunkin’ Donuts has been positive, he adds. “It’s been a great experience, and the brand has been great to work with. We’ve built 12 stores and we hope to continue for many more years to come.”

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NBA star Jamal Washburn poses for a selfie at the opening of his Dunkin' Donuts location at the University of Kentucky

INDEPENDENT JOE • FEBRUARY/MARCH 2017 13

SUB HEADLINE

SUCCESSFUL LANDING

Former Marine Pilot Settles into a Career in Franchising

T

alisin Burton was readying for his second deployment to Iraq when he returned home to upstate New York to attend an engagement party of his childhood buddy Chris Fox. The Marine Corps pilot was looking beyond this tour of duty however—thinking about a day when he would be his own boss.

“I always had this entrepreneurial thing in my head,” he says.

That night, while Chris was celebrating on the dance floor, Burton was talking about the future with Bob Fox, Chris’ dad, who together with his brother, owned a number of Wendy’s restaurants in and around Rochester.

“He gave me two hundred dollar bills and said if I brought them back safely he’d give me eight more. I carried [the bills] with me in Iraq. I thought I could use them as bribe money.” But, Burton says he never had to. Today the bills are framed as a reminder of that conversation, and Bob is his partner in a growing network of Dunkin’ Donuts shops in San Diego. Burton’s journey to entrepreneurship – through Rochester, NY, to Iraq and then to southern California – is one of several stops and starts. The Marine Major likens his career to a military sortie: a quick take-off, followed by a long flight, an attack, and then a return home.

A wartime career Burton graduated from the U.S. Naval Academy in May 2001 and accepted a commission as an officer in the Marine Corps, piloting helicopters. He chose Camp Pendleton as his base, wanting to trade the cold, gray skies of Rochester for the sunshine and blue ocean of San Diego. The son of “hippies from the 60s,” Burton wasn’t intending to be a wartime pilot, but that all changed after 9/11.

“It meant a wartime career, long deployments, which I wasn’t expecting, but was proud to be a part of,” he says.

After his deployments to Iraq, Burton became a flight instructor at Pendleton. Among the things he missed most from home was access to Dunkin’ Donuts coffee. “I couldn’t find a Dunkin’ anywhere and I wondered why,” he recalls. “It was always in the back of my head.”

While at Pendleton, Burton started looking into food service contracts for the base, thinking that would be the next stop on his journey to being his own boss and satisfying that entrepreneurial desire. Around the same time, he also enrolled in an Executive MBA program at the University of Southern California.

For his master’s thesis, which he wrote as the Great Recession was bearing down on American businesses, Burton argued that Dunkin’ Donuts should expand into California.

“I wrote about why 2009 was right time for Dunkin’ Donuts to expand. While [businesses] were shutting down, Dunkin’ Donuts was fairly recession-proof and had a better price point than Starbucks,” he recalls. “I looked at [the brand’s] failures in the 1990s and why it would be better now.”

Armed with his thesis, Burton approached leadership at Camp Pendleton with a bid to operate a coffee business on base, while

" There are 187,000 cars that pass by on the interstate every day. We have a highway sign that is 30-by-30-by-75. It’s 1800 square-feet of signage…We broke the Dunkin’ Donuts North America revenue record for the first seven days we were open. We topped $156,000 that week. That’s a lot of donuts!"

3,000 miles away, Dunkin’ Brands was welcoming a new CEO on board, one with an eye on westward expansion.

“I did a good job of convincing the base they needed a Dunkin’ Donuts. Then, through emails and phone calls with the brand I felt I did a good job convincing them to make Pendleton the brand’s first new location in California.”

Pendleton, he says, was a perfect landing spot for Dunkin’ because it sits on land owned by the federal government and, as such, would not be bound by a California franchise agreement.

Dunkin’ opened the Pendleton location in May, 2012, but Burton was not chosen as the franchisee. Instead, the nod went to a franchise group called First Cup, LLC, which is based in Arizona.

Disappointed, Burton continued his work as a pilot and flight instructor.

Partnerships and promise Ryan Redmond founded Redline Surgical, a southern California medical device distributorship in 2007. Fresh out of the Marines, Burton took a job at a company that Redline distributes, and he and Redmond hit it off immediately—each trying to outperform the other. Two years later, Burton left the company to join Redmond. In their first year as partners, the pair grew the business more than 200 percent.

At that time, Dunkin’ Brands was seeking franchisees to develop the San Diego market. Burton shared his love for Dunkin’ – and his thesis – with Redmond, who agreed it would be a tremendous business opportunity. The pair had capital and business

INDEPENDENT JOE • FEBRUARY/MARCH 2017 15

experience, but neither had been a restaurant operator. That’s when Burton made the call to Bob Fox, the man who had given him the hundred dollar bills and nourished his entrepreneurial spirit. Together, the trio earned Dunkin’s respect. In 2014, Dunkin’ Brands awarded Burton Restaurants LLC an SDA to develop central and southern San Diego.

“It really was Dunkin’s requirements that solidified our partnership. It’s one of the best things that’s ever happened. Without [Bob] and his guidance, this would have been infinitely harder,” Burton says.

Burton also sought the legal advice of a pilot he’d met on the first day of training and later worked with at the Camp Pendleton flight school after serving in Iraq. Greg Dono was a New York native who went to law school after his career in the Marines was over. During his studies, he was contacted by Burton and asked

16 INDEPENDENT JOE • FEBRUARY/MARCH 2017

COVER STORY: SUCCESSFUL LANDING if he could help him work through the legal paperwork Dunkin’ Brands sent to its new California franchise group.

Dono was not only up to the task, he was also enthralled with the business and decided to put practicing law on hold in order to sell donuts and coffee. Dono became the first of four Marine Corps pilots Burton hired to fill senior management positions at his company’s Dunkin’ Donuts restaurants.

Soon after signing its SDA, Burton Restaurants opened a Dunkin’ Donuts at the Balboa Naval Medical Center in San Diego. The location was really just a coffee cart, just 17 feet long.

But it was an instant success and it gave Burton his first taste of operating a Dunkin’. Around the same time, Burton sought out the owners of the Dunkin’ location at San Diego’s Embassy Suites and at Camp Pendleton. According to Burton, the franchise group First Cup had run into operational difficulties with its two San Diego locations, a result, he says, of the group’s out-of-town status. The location at Embassy Suites, Burton says, was failing because it was not being run properly. In 2015 Burton made a deal for the Camp Pendleton location and later purchased the Embassy Suites Dunkin’ franchise—taking ownership even as he and his group were still securing the location for their first stand-alone Dunkin’ Donuts shop.

A (very) visible sign Since signing the development deal with Dunkin’ Brands, the Burton group thought carefully about where to locate its first true Dunkin’ Donuts restaurant. Because of his military background, Burton chose the suburb of National City, a community of 60,000 located in the South Bay region of the San Diego metro.

National City is the second-oldest city in San Diego County and is home to many military and working-class families—a demographic Burton was certain Dunkin’ would appeal to.

“We knew the military community wanted Dunkin’ Donuts here. We were not introducing the brand to them. They know the brand. They know us (veterans) and they value our service and our products,” Burton says.

The franchise group selected a half-acre location at the end of an off-ramp from the busy 805 Freeway. The site was undeveloped and needed to be re-graded to account for its 18 degree slope, but it offered the chance for the Burton group to build a 2300 squarefoot restaurant – with a drive-thru – from the ground up.

“We were patient in our decision-making,” Burton says. “We were last to the market; there isn’t another major brand that doesn’t have a presence in San Diego so we had to be creative. I believed in the site even with the challenges. There are 187,000 cars that pass by on the interstate every day.”

In fact, according to KNSD TV the NBC affiliate in San Diego, it is the largest Dunkin’ Donuts sign west of the Mississippi River. It’s been a huge attraction for a brand locals have long awaited. The local NBC television station reported 137 cars were stacked in the drive-thru on the shop’s first day opening.

“We broke the Dunkin’ Donuts North America revenue record for the first seven days we were open,” Burton says proudly. “We topped $156,000 that week. That’s a lot of donuts!”

As in most emerging markets, Dunkin’s sweets were outselling the coffee and beverages in San Diego.

“We targeted making 18 thousand donuts a day, and the only way we could keep up was by leveraging our relationships with other franchisees in southern California to help with the logistics,” Burton says. “We are all in this together.”

Market challenges Because of Dunkin’s jaded history in southern California, and the competitive landscape, Burton knew he and his team would have to work extra hard to make their Dunkin’ an every-day part of their customers’ lives.

“There are 264 Starbucks in my territory,” Burton says, acknowledging the competition. “Yes, they are a factor, but we have chosen to embrace it.”

Burton’s team is trained – and armed with a cheat sheet – to instantly translate a Starbucks order, so the customer asking for a venti Mocha Frappuccino is told, “Okay, we will make you a large mocha Coolatta.”

Burton’s team also writes the names of the customer on the coffee cup. “Most people want that guest interaction,” he says.

“Coming from the Marine Corps, one of our pillars was always service.

To accommodate the local coffee consumer – that Burton says has been “trained by Starbucks – customers at Burton’s Dunkin’ shop order at the counter and then move to a pick-up station to retrieve their beverage. Burton calls it a “reverse coffee line that is customer-driven.”

Beyond translating the customer’s order from Starbucks lingo, the Burton team also asks every customer that orders a “regular coffee” if they want the beverage black or with cream and sugar.

Those who are familiar with Dunkin’ Donuts want their regular coffee light and sweet; those who are not, don’t.

And, once they were finished everyone knew there was a Dunkin’ Donuts off the highway ramp.

“It’s a conversation that has to take place at the [point of sale],” Burton admits. That way confusion is averted and customers are happy. It’s a plan Burton and his team will follow as they open three additional stores this year.

“We have a highway sign that is 30-by-30-by-75. It’s 1800 squarefeet of signage,” says Burton.

Ultimately, he says, competing with Starbucks comes down to two things. First, delivering great products at a great price with

INDEPENDENT JOE • FEBRUARY/MARCH 2017 17

ALOHA, DUNKIN’!

Having made its mark up and down the California coast, Dunkin’ Donuts is readying its return to Hawaii. According to the Honolulu Star Advertiser newspaper, “Hawaii’s first Dunkin’ Donuts shop in more than a decade will be near the Honolulu Airport as part of a development project that includes an IHOP restaurant, a Shell gas station and an Aloha Island Mart convenience store.”

Aloha Petroleum Ltd., which is developing the property and will own and operate the Dunkin’ restaurant along with the gas station and convenience store, announced its agreement with Dunkin’ Brands in May 2016 to open as many as 15 shops in the 50th state.

Hawaii is one of four states in the nation that bans billboard advertising. It means Dunkin’ will have to rely on other means – like traditional advertising and word of mouth – to spread the word that Dunkin’ Donuts coffee and snacks are now available in the land of sun, surf, volcanoes—and coffee fields.

While Hawaii has welcomed many new national and international food brands in recent years. Dunkin’ Donuts has developed a loyal following across the country. We will be keeping an eye westward for news about Dunkin’s move to Five-O.

Hawaii is the only state that grows coffee, though it’s unlikely the brand will be incorporating Aloha State beans into its famed blend. Honolulu, which has the longest borders (approximately 1500 miles) of any U.S. city, is the nation’s 11th largest metropolitan area.

Pacific Business News reports Aloha Petroleum is targeting Downtown Honolulu, Waikiki, Hawaii Kai, Mililani and Kapolei for its initial locations. Many of those locations are already home to Starbucks, which has over 15 shops in Honolulu. The paper recalls Dunkin’s first foray into Hawaii, which ended a decade ago, reporting that franchise owner “shuttered the shops.”

Because of its distance from the U.S. mainland (2400 miles from California), and the fact that it is surrounded by water, prices for virtually everything are higher in Hawaii. It’s estimated everything costs approximately 30 percent more. That means a small coffee at Starbucks, which costs $1.75 on the mainland, would cost about $2.25. But, the National DCP will try to keep costs down by loading containers for the Hawaii Dunkin’ shops from the Phoenix DCP facility, then sending those containers to the franchisee’s freight forwarder who will consolidate the Dunkin’ freight with other products for their other businesses.

18 INDEPENDENT JOE • FEBRUARY/MARCH 2017

Richard Parry, president and CEO of Aloha Petroleum, at the groundbreaking for the new Dunkin' Donuts location at the Honolulu International Airport

COVER STORY: SUCCESSFUL LANDING

great service; second, being involved in the community because “Starbucks is not locally owned, so it’s important we are involved locally.”

and plaque are a symbol of all of the service members we have lost through the years, they need to be remembered and honored and we are proud to be able to offer that venue.”

Community support

Burton Restaurants also supports is the Travis Manion Foundation, which empowers veterans and families of fallen heroes to develop character in future generations. Manion was a Marine First Lieutenant and Naval Academy grad, who was killed in Iraq in 2007 while attempting to save his wounded teammates.

When you have a franchise group led by former members of the United States Armed Forces and a community whose demographics reflect a strong military connection, it’s no surprise that Burton and his partners have chosen to support organizations that support veterans and their families.

Each of the free-standing restaurants in the Burton group is dedicated to members of the military who have paid the ultimate price, whom Burton refers to as “fallen patriots.” Recently, the group dedicated the Camp Pendleton store to Captain Kevin M. Kryst, who was Burton’s roommate and was killed in the line of duty while both were deployed to Iraq. Each year on Kevin’s birthday, the restaurant donates a percentage of its revenue to the Armed Forces YMCA, the charity picked by his family.

“Dedicating the store to Kevin was something I will never forget.

He loved coffee and would wake me up each Saturday with a new flavor, so it is fitting that his name be on the wall on the base where he spend most of his career,” says Burton. “Kevin’s name

And, the group supports ARTS, a San Diego based creative organization for youth. The acronym stands for “A Reason to Survive,” and it helps southern California youth who are facing adversity develop creative experiences to build hope and confidence.

The jump from active military to active franchise owner has been fairly smooth for this pilot, who became accustomed to rocky flights while serving overseas. Burton strongly recommends a career in QSR franchising for anyone considering life after the military. But, he’s quick to point out that it’s hard to go it alone.

“You need a mentor,” he says, referring to Bob Fox, the man who gave Burton those hundred dollar bills. “If you don’t have one, it’s hard to be successful.”

•

INDEPENDENT JOE • FEBRUARY/MARCH 2017 19

FRANCHISEE COMPLETES CIRCLE BY RETURNING TO ROOT

D

ennis Gramm knows Dunkin’.

While the franchisee operates four stores in northwest suburban Chicago (with two more stores under construction), he also has a unique perspective amongst his peers, having spent 11 years on the corporate side of Dunkin’ Brands before becoming a franchise owner in 2007.

“In the eyes of some of the legacy franchisees, I still probably qualify as a rookie,” jokes Gramm, “and I’ve been in the QSR business since 1969.” But he says it wasn’t until he had the opportunity to join Dunkin’ in 1996 that he understood the power of the franchise model itself – and the power of Dunkin’ Donuts.

“I think the dominance of Dunkin’ in New England and the relationship of the operators to the franchise was not only powerful, it was aspirational.”

Gramm began his Dunkin’ Donuts career as a general manager in Boston, initially overseeing operations for western Mass., Rhode Island, Connecticut, New Hampshire and Vermont before lending his expertise to the Mid-Atlantic and Midwest regions. He came to Dunkin’ Donuts after working in QSR for decades, running business units for PepsiCo’s Kentucky Fried Chicken division, which he says grounded him in the QSR business. But the Chicago native had no idea how deeply imbedded Dunkin’ was in the lives of the New England populace when he first came on board.

By Michael Hoban

“The customer association was really eye opening, because they not only used it – they loved it. It was part of their culture, and this was something I was not aware of.” recalls Gramm. “[Dunkin’] was that morning ritual, where the average user within Dunkin’ Donuts was someone who used the brand 7-8 times a week. And that’s magical in the QSR business.”

When he's not behind the counter at his Dunkin' shops, franchisee Dennis Gramm likes to grab a fishing pole and spend the day on the water

20 INDEPENDENT JOE • FEBRUARY/MARCH 2017

Once Dunkin’ Brands asked Gramm to move back to the Midwest and try to build that strength of brand loyalty, he learned that the business in the Midwest was vastly different than it was in New England.

“You didn’t have that ritual business [that

INDEPENDENT JOE • FEBRUARY/MARCH 2017 21

FRANCHISEE PROFILE: GRAMM New England had], so it was about changing that morning ritual and the ways that people used this brand in the Midwest and Mid-Atlantic,” says Gramm. “That was the leadership challenge as we tried to grow the brand.”

It was during his time in the Midwest that the idea of becoming a franchisee himself began to crystalize. His responsibility as a senior market manager was to translate

22 INDEPENDENT JOE • FEBRUARY/MARCH 2017

his Boston experience to the Greater Chicago area, and “it wasn’t really just about branding, it was about the emotional connection to the brand that had to be translated,” Gramm remembers. One of his responsibilities was to conduct franchisee meetings in the region, and in his first year in that capacity he realized that he, too, wanted to become a franchisee.

was nonexistent, so this was the first opportunity I had to really see the wealthbuilding and the organizational-building opportunities that existed within this franchise company,” says Gramm. “I think it was at the first franchisee meeting here in Chicago, and one of the things I shared was the fact that I would be a franchisee someday.”

“My experience as a [Dunkin’] franchisee

For Gramm, that “someday” was actually

a return to his roots. After college, his intent was to go to work for Geocaris & Company, a large Schlitz beer distributorship for whom he had worked for years.

But the owner told him he had a better deal for him, so his first job was working for Barnaby’s Family Inns, a pizza and beer by the pitcher family casual restaurant owned by Geocaris. It was one of the early franchises, and when he began, they only had three operating stores. Barnaby’s was soon franchised throughout the Midwest as well as Florida and Denver, and six months later he was working as the trainer and manager for new store openings.

Gramm spent three years in that capacity before becoming the director of marketing, but after a few years, purchased and ran his own store. When Bally Manufacturing bought the 24-store chain in 1981 and converted the outlets into arcadepizza parlors, Gramm went to work for PaineWebber and Company as an analyst for a short time before landing back in the QSR business with Kentucky Fried Chicken.

“Leading large business units at KFC, Pepsico and Dunkin’ Brands was

“ You didn’t have that ritual business [that New England had], so it was about changing that morning ritual and the ways that people used this brand in the Midwest and Mid-Atlantic. That was the leadership challenge as we tried to grow the brand.”

INDEPENDENT JOE • FEBRUARY/MARCH 2017 23

FRANCHISEE PROFILE: GRAMM

“ I truly believe that whether its small networks or large networks, it’s really about culture. We’re talking about meaningful and challenging and all those kinds of things the corporate experience could be, but since I owned my own family casual business early on in my career, I knew that touching that business every day was something that was exhilarating, and I knew that the Dunkin’ franchise model would provide that opportunity,” say Gramm.

competency.

So he bought a single Dunkin’ restaurant – an 1100 square-foot inline store in a shopping center – and signed a development agreement to build three other shops. Gramm now has four stores, including two 2100 square-foot locations with drive-thru service and exterior patio seating under construction. The stores are all clustered in a 15 mile radius within Lake County, just north of Chicago. Gramm says he can visit the four operating stores as well as the two under construction in less than two hours.

In addition to avoiding the things that contribute to failure and emulating the practices of successful franchisees, Gramm says that the single most important element to his success has been to develop a culture of engagement. “I truly believe that whether its small networks or large networks, it’s really about culture.

We’re talking about interaction, the engagement across leadership teams, and engagement with the guests, hospitality, and guest satisfaction…all of those elements.”

“Knowing that I always wanted to be a franchise owner, and going back to defining in my own mind what that business unit would look like, it was my intent to create a five to six store network where I could be very hands-on every day,” says Gramm.

He also believes that “all of the strategy and planning in the world mean nothing” if those plans are not actually put into practice in an organization’s culture. He’s quick to cite this quote by Theo Epstein, the Chicago Cubs general manager who assembled the team that ended a 108-year drought and won the 2016 World Series: “Culture eats strategy for breakfast.”

One of the advantages to having worked on the corporate side was that he was able to gain an understanding of why some franchisees failed and why others were successful. The hallmarks of the successful franchisees, according to Gramm, was that they planned well, had a very good understanding and vison of where they were and where they wanted to go from an organizational standpoint, then executed the plan well—all while building strong people relationships. He also observed that the number one reason for franchisees failing was that they overextended themselves, particularly in leadership

24 INDEPENDENT JOE • FEBRUARY/MARCH 2017

“The temptation to grow [too fast] is very attractive,” asserts Gramm. “And for some, their ability to grow stores and grow networks was far greater than their ability to build competencies and build the organizational networks to be able to lead them.”

And although Gramm’s corporate days are behind him, he still has the ability to look at the big picture within Dunkin’ Brands. During his twenty-year career with Dunkin’, he saw the brand go from a simple coffee and donuts quick service model to something far more complex.

“The last five years have been about the proliferation of products and menus and changing marketing positioning and multiple windows. What was once a simple business has become difficult to execute with excellence,” he observes.

interaction, the engagement across leadership teams, and engagement with the guests, hospitality, and guest satisfaction…all of those elements.”

At a recent road show for Dunkin’ franchisees, Gramm says his thoughts were validated when the brand revealed the results of an imaging research study it commissioned from an outside consulting firm. The study identified a discrepancy between how customers see Dunkin’ and how “we as brand leaders and franchisees see ourselves.” According to the research, customers see Dunkin’ as a food brand, whereas brand leaders and franchisees aspire to be a beverage company.

Despite the disconnect, Gramm says that he’s as bullish today as he has ever been.

He believes Dunkin’ is taking the research findings to heart and addressing the issue.

He is also grateful to have been a part of the Dunkin’ Donuts business – on both ends – for over two decades.

“I consider myself very fortunate in the sense that I’ve been a part of probably the most active period from the standpoint of innovation and change with the Dunkin’ Donuts 60-plus year history,” says Gramm.

“Dunkin’ met all of my expectations, and as a constant reminder, I named our seven-year old rescue beagle Dunkin’.”

Harnessing his dry, Midwestern humor, Gramm jokes, “No trade mark infringement intended.”

•

ACCOUNTING Adrian A. Gaspar & Company, LLP, CPAs

Robert Costello 617-621-0500 • cpas@gasparco.com 1035 Cambridge Street, Ste. 14, Cambridge, MA 02141 www.gasparco.com

Brendon Pierson

Peggy Pierson 732-681-4800 • peggy@brendonpierson.com PO Box 1750, Wall, New Jersey 07719 www.brendonpierson.com

Marcovich, Mansour & Assoc. Inc.

Joseph Mansour 401-334-9099 • jmansour@mm-cps.net 640 George Washington Hwy., Lincoln, RI 02865

Jera Concepts

Wynne Barrett 508-686-8786 • wynne@jeraconcepts.com 17 Fruit Street, Hopkinton, MA 01748 www.jeraconcepts.com

BUILDING

Sansiveri, Kimball & Co., LLP

Jonathan Ralys 978-737-3814 • Jonathan.Ralys@Trane.com 181 Ballardvale St., Wilmington, Ma 01887 www.Trane.com

BACK OFFICE David Fionda 781-610-1206 • dfionda@blumshapiro.com 2 Battermarch Pk.;1 Pine Hill Dr Ste. 301, Quincy, MA 02169 consulting.blumshapiro.com

Sprint

EF Cost Recovery

Neovision Consulting Inc.

BlumShapiro Consulting

Daryl Chelo 401-334-3176 • dchelo@granitenet.com 1 Albion Rd., Lincoln, RI 02865 www.granitenet.com

Persona Signs, Lighting, Image

Jackie Linhares 125 Samuel Barnet Blvd, New Bedford, MA 02745 508-207-1273 • jlinhares@poyantsigns.com www.poyantsigns.com

Michael A. DeCataldo 401-331-0500 • mdeca@sansiveri.com 55 Dorrance Street, Providence, RI 02903 www.sansiveri.com

Granite Telecommunications

Duro-Last Roofing

Samantha Pickelman 525 Morley Dr., Saginaw, Mi 48601 (989) 758-1048 • spickelm@duro-last.com www.duro-last.com

MFA - Moody, Famiglietti & Andronico, LLP

Nish Parekh 609-531-4444 • info@neovisioncpa.com 1246 South River Road, Ste. 101 Cranbury, NJ 08512 www.neovisioncpa.com

BUSINESS MEMBER

Joe Hirschfeld 617-388-8869 • joseph.hirschfeld@sprint.com 3 Van de Graaff Drive, Burlington, MA 01903 www.sprint.com

Susan Koelzer 700 21st Street SW, Watertown, SD 57201 800-843-9888 x390 • skoelzer@personasigns.com www.personasigns.com

Joanna Davidian 978-557-5325 • jdavidian@mfa-cpa.com 1 Highwood Dr., Tewksbury, MA 01876 www.mfa-cpa.com

2017

Directory of Business Members

Poyant Signs

Trane Commercial Systems

Watchfire Signs

David Watson 205-542-7881 • David.Watson@watchfiresigns.com 1015 Maple Street, Danville, IL www.watchfiresigns.com

COMMUNICATIONS Charter Business

Chris Lawrence 207-632-0562 • Chris.Lawrence1@charter.com 477 Congress St. Portland, ME 04102 www.charter.com

COST RECOVERY Ed Craig 774-263-7388 • ecraig3@efcostrecovery.com 32 William St., New Bedford, MA 02740 www.efcostrecovery.com

Performance Business Solutions, LLC

Jeff Hiatt 508-878-4846 • jdh@revenuebanking.com 87 Lafayette Road, Ste. 11, Hampton Falls, NH 03844 www.revenuebanking.com

FINANCE Bank of America/Merrill Lynch

Earl Meyers 585-546-9162 • earl.w.meyers@baml.com 1 East Ave., Rochester, NY 14450 www.bankofamerica.com

Bank RI

Tom Fitzgerald 401-574-1119 • tfitzgerald@bankri.com One Turks Head, Providence, RI 02903 www.bankri.com

BMO Harris Bank N.A.

Angelo Maragos 949-293-0152 • angelo.maragos@bmo.com 7700 Irvine Center Drive, Ste. 510, Irvine, CA 92618 www.bmoharris.com/franchisefinance

Thank You to Our Business Members!

INDEPENDENT JOE • FEBRUARY/MARCH 2017 25

2017

BUSINESS MEMBER

Directory BusinessMembers Members Directory ofofBusiness

Bridge Funding Group, Inc.

Pacific Premier Franchise Capital

Mike Orlov 551-227-1305 • Morlov@BankUnited.com 215 Schilling Circle, Suite 100, Hunt Valley, MD 21031 www.bridgefundinggroup.com

Sharon Soltero 402-562-1801 • ssoltero@ppbifranchise.com 3154 18th Avenue, Ste. 3, Columbus, NE 68601 www.ppbifranchise.com

CIT

HUMAN RESOURCES The Ahola Corporation

Douglas Solomon 603-433-9413 • DSolomon@cit.com 155 Commerce Way, Portsmouth, NH 03823 www.cit.com

Pinncale Commercial Capital

Mylan Dawson 317-472-2828 • dawson@pincomcap.com 101 W. Ohio St., Suite 2000, Indianapolis, IN 46204 www.pincomcap.com

Tim Yonek 440-717-7620 • tyonek@ahola.com 6820 West Snowville Road, Brecksville, Ohio 44141 www.ahola.com

Eastern Bank

Santander Bank

Shannon Cassidy 617) 890-6476 • shannon@higherme.com 77 Franklin St., Suite 510, Boston, MA 02110 www.higherme.com

Deborah Blondin 603-606-4724 • D.Blondin@Easternbank.com 11 Trafalgar Square, Ste. 105, Nashua, NH 03063 www.easternbank.com

Paul Sousa 401-276-1954 • Psousa1@santander.us 95 Amaral St., East Providence, RI 02915 www.santanderbank.com

Fidelity Bank

HigherMe

Paychex

Sally Buffum 508-762-3604 • sbuffum@fidelitybankonline.com 465 Shrewsbury Street, Worcester, MA 01604 www.fidelitybankonline.com

Sterling National Bank

Lindy Baldwin 402-312-2542 • lbaldwin@snb.com 500 7th Ave., 3rd Floor, New York, NY 10018 www.snb.com

Ryan Birtles (843) 576-9337 • rbirtles1@paychex.com 7204 Copperfield Ct, Wilmington, NC 28411 www.paychex.com

Joyal Capital Management Franchise Development

TCF Franchise Finance

Jim Ferreira (203) 530-3512 • jferreira@paycor.com 12 Dale Dr., Greenwich, CT 06831 www.paycor.com

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

Bill Johnson 952-656-3268 • wjohnson@tcfef.com 11100 Wayzata Blvd., Ste. 801, Minnetonka, MN 55305 www.tcfef.com/franchise

LCR Franchise Finance

TD Bank

Robert Obolewicz 203-644-8481 • robolewicz@lcrcapital.com 315 Post Road West, Suite 200, Westport, CT 06880 www.lcrfinance.com

Peter J. DiFilippo 401-525-6771 • Peter.DiFilippo@td.com 180 Westminster Street, Providence, RI 02903 www.tdbank.com

Marlin Franchise Finance Group

United Bank

Chris Holland 856-505-4206 • cholland@marlinfinance.com 300 Fellowship Rd, Mount Laurel, NJ 08054 www.marlinfinance.com

The MINT National Bank

Samir Ruparel 732-485-3331 • samir.ruparel@themintbank.com 1585 Oak Tree Rd., Ste. 205, Iselin, NJ 08830 www.themint.bank

Northern Bank & Trust Company

Kelley Munsell 781-569-1584 • kmunsell@nbtc.com 275 Mishawum Road, Woburn, MA 01801 www.nbtc.com

Mark McGwin 508-793-8342 • mmcgwin@bankatunited.com One Mercantile St., 7th Flr, Ste. 760, Worcester, MA 01608 www.bankatunited.com

Wells Fargo Bank

Julianna Fritz 203-225-5894 • Julianna.M.Fritz@wellsfargo.com 4 Corporate Dr. Suite 495, Shelton, CT 06484 www.wellsfargo.com

Paycor Inc.

TalentReef

Cassie Altbrandt 303-667-2328 • caltbrandt@talentreef.com 210 University Ste. 300, Denver, CO 80206 www.talentreef.com

INSURANCE American Family Insurance

Todd L Laczynski 219-406-8633 • tlaczyns@amfam.com 2502 Beech St Ste 70, Valparaiso, IN 46383 www.ToddLaczynski.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

LEGAL Lisa & Sousa Attorneys at Law Ltd.

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

DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® Business Member 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.

26 INDEPENDENT JOE • FEBRUARY/MARCH 2017

Marks & Klein LLP

Justin Klein 732-747-7100 • justin@marksklein.com 63 Riverside Avenue, Red Bank, NJ 07701 www.marksklein.com

Paris Ackerman & Schmierer LLP

David Paris 973-228-6667 • david@paslawfirm.com 103 Eisenhower Parkway, Roseland, NJ 07068 www.paslawfirm.com

OPERATIONS

DTT

Mira Diza 800-933-8388 • mdiza@dttusa.com 1755 North Main Street, Los Angeles, CA 90031 www.dttusa.com

Ecolab

Cardtronics

Tom Spooner 973-452-4131 • tspooner@Cardtronics.com 628 Route 10 - Ste. 8, Whippany, NJ 07981 www.cardtronics.com

Carrier Corp

Bob Eckweiler 973-222-6742 • Bob.Eckweiler@carrier.utc.com 3 Hollyhock Way, Newton, NJ 07860 www.carrier.com

Crane Payment Innovations

Ray Picard 603-809-3584 • ray.picard@cranepi.com 1 Executive Pk. Dr. #202, Bedford, NH 03110 www.CranePI.com

Solink

Squadle

Armor SafeTechnologies, LLC

Bunn-O-Matic Corporation

Kevin Huerth 781-806-3139 • kevin@skaleast.com PO Box 303, 31 Eastman Street, Easton, MA 02334 www.skaleast.com/index.cfm?keyword=dunkin

HME Drive-Thru Headsets

Alexander Pezzolla 732-572.0706 ex 202 • alex@jarrettforcash.com 1315 Stelton Road, Piscataway, NJ 08832

Todd Rouse 800-637-8606 • Todd.Rouse@bunn.com 1400 Stevenson Drive, Springfield, IL 62703 www.bunn.com

SKAL East, Inc

Christopher Beaudoin 884-463-5730 • cbeaudoin@solinkcorp.com 390 March Road, Ste, 110, Ottawa, Ontario k2k 0g7 www.solinkcorp.com

3M Company

Patrick Moore 214-636-8409 • prmoore@armorsafe.com 5916 Stone Creek Dr., The Colony, TX 75006 www.armorsafe.com

BUSINESS MEMBER

Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses Brady Campbell 858-535-6034 • bcampbell@hme.com 14110 Stowe Drive, Poway, CA 92064 www.hme.com

Bill Muenkel 952-484-4875 • wemuenkel@mmm.com 3M Center, 220-12E-04, St. Paul, MN 55144 www.3M.com/communications

2017

PLEASE VISIT THE DDIFO BUSINESS MEMBER DIRECTORY ONLINE AT WWW.DDIFO.ORG

Jarrett Services ATM, Inc.

Kronos

Loree Miller 704-968-1582 • loree.miller@kronos.com 2005 Millbridge Parkway, Waxhaw, NC 28173 www.kronos.com

New England Drive-Thru Communications

Angela Bechard 603-475-2046 • angela@nedrivethru.com 999 Candia Rd. Ste. 7, Manchester, NH 03032 www.nedrivethru.com

Prince Castle/Silver King

Zachary Waas 630-873-0088 • waaz@princecastle.com 355 East Kehoe Blvd., Carol Stream, IL 60188 www.princecastle.com

R.F. Technologies, Inc.

Michael Murdock 847-495-7350 • michaelm@rftechno.com 330 Lexington Drive, Buffalo Grove, IL 60089 www.rftechno.com

safeTstep by Payless Shoesource

Kyle Clendennen 785-295-6664 • kyle.clendennen@safetstep.com 3231 Southeast Sixth Ave, Topeka, KS 66607 www.payless.com/safetstep-1/

Michael McAuliffe 617-571-6807 • michael@squadle.com One Broadway, Floor 14, Cambridge, MA 02142 www.squadle.com

Staples Advantage

Joe Shea 508-238-0106 • joseph.shea@staples.com 31 Commercial St. Sharon, MA 02067 www.staplesadvantage.com

SuzoHapp

Tom Orton 847-660-4289 • Tom.Orton@suzohapp.com 1743 Linneman, Mt. Prospect, IL 60056 www.suzohapp.com

Torrco

301-775-5046 • tej.guthalagowda@workpulse.com 2 Eastwick Dr., Suite 200, Gibbsborro, NJ 08026 www.workpulse.com

Workpulse, LLC

Tej Guthalagowda 301-775-5046 • tej.guthalagowda@workpulse.com 2 Eastwick Dr., Suite 200, Gibbsborro, NJ 08026 www.workpulse.com

Thank You to Our Business Members!

INDEPENDENT JOE • FEBRUARY/MARCH 2017 27

BY LISA IANNUCCI

COMMUNITY CORNER

Carl Andrade

A

sk New Hampshire Dunkin’ Donuts franchise owner Carl Andrade about Girls Inc., a local nonprofit that helps girls achieve their personal best, and he will have to fight off the tears.

For the past decade, the organization has been close to Andrade’s heart.

“Some girls are from single parents and some are from drug addicts,” says Andrade, who owns 16 Dunkin’ Donuts stores all in New Hampshire. “If it weren’t for this program, most of these kids wouldn’t even have a meal.”

Carl Andrade is part of a large family that owns Dunkin’ Donuts restaurants in Massachusetts, New Hampshire and Rhode Island. Carl’s network encompasses 16 shops all within 22 miles of Manchester, the Granite State’s largest city.

His commitment to philanthropy started when he opened his first Dunkin’ in 1977.

“The first places in close proximity to our stores that called us got our help,” Andrade recalls. “We started by sponsoring kids’ teams with our logos on their uniforms.”

Today, the organization continues its support of the Bedford School District as well as the state’s Safe Sports program and the Cystic Fibrosis Foundation.

“My wife’s cousin’s son was born with CF, so I rode 77 miles for CF, without ever haven ridden before, to recruit franchisees

from New Hampshire to Maine,” says Andrade, who recalls specifically his family’s fundraising strategy: “We sold paper sneakers for $1.”

Andrade demonstrates that he cares about people in many ways, supporting several initiatives in his community. He recalls one occasion when tragedy struck and he was compelled to step in and assist one of his employees.

“Both parents of an employee died within a week of a rare influenza. We did a fundraiser [where] a $5 donation got you a chance to win free coffee for one year. We raised $20,000 in seven days.” Andrade refers to his efforts as “just caring about people.”

When Andrade got involved with Girls Inc., he wanted to host a grand holiday party for the girls, complete with gifts and a holiday dinner. So, he donated $5,000 to pay for the affair, but that wasn’t all.

Andrade also committed to donating $5,000 every year for a similar holiday

party. And, since transportation is not available for all the girls in the program, Andrade and a group of other New Hampshire franchisees chipped in to purchase a bus for the program. “Without it, the kids couldn’t get there,” he says.

Then Andrade went one giant step further, providing the cash to help the Manchester chapter of Girls Inc. pay off their $150,000 mortgage and ease the nonprofit’s debt load.

“I want to give something back,” says Andrade. “We’re here doing business and appreciate being here. The more [you are] involved in the community, the more you learn about what’s going on.”

His advice to other franchisees: “You don’t have to pay off a building, but you can do a lot for $3,000 to $5,000 per year and keep it local where it’s much more appreciated.”

In turn, he says, “They will want to help your business because you’re helping the community.”

•

“I want to give something back. We’re here doing business and appreciate being here. The more [you are] involved in the community, the more you learn about what’s going on."

28 INDEPENDENT JOE • FEBRUARY/MARCH 2017

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