Independent Joe #32 June/July: Building Community Bonds, One Cup at a Time

June/July 2015

The Magazine for D D

Independent Franchise Owners

Building Communit y Bonds

One Cupe at a Tim

DDIFO NATIONAL

CONFERENCE

2015

LAS VEGAS

September 21-22 First Look inside this year’s National Conference

Registration is Now Open

HOW FAIR IS DUNKIN'S DISPUTE RESOLUTION CLAUSE?

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PROTECTION FROM WINDS OF UNCERTAINTY We’re reading a lot about SEIU of late and the “Fight for $15” effort the union is orchestrating across the country. If you ask me, it’s nothing more than a member recruitment undertaking, but it is having significant impact across the economic landscape. The ranks of organized labor in general, and SEIU in particular, have been on abysmal trajectories over the past few decades. It reminds me of the story of the three little pigs, who each build a house to protect themselves from the big, bad wolf. SEIU is concerned that their house of straw will not survive the wolf of honest labor and workforce rules, so they’re replacing it with a house built with more straw, and held together with empty promises and lofty rhetoric. Ultimately, their house will collapse, the only question is how extensive the damage to their surrounding economic neighborhood will be.

But, the story of the Three Little Pigs has another application as well, and that is to the ongoing effort to fortify the house of DDIFO. DDIFO was built initially as a shelter for the common concerns of Dunkin’ Donuts franchise owners in light of the decision to sell the company to foreign investment concerns (Allied Domecq). The organization was reconstructed again over a number of years as the threat to the interests of DD franchisees changed with the times. A half dozen or so years ago, our house was rebuilt for battle and its construct was an effective refuge for its members in the face of destructive winds blowing from an abusive and callous corporate leadership. Fortunately, the construction was strong enough to withstand the onslaught and provide shelter for Dunkin’ franchisees.

Today, we are faced with a new rebuilding effort – one where we have the ability to build a better foundation – a foundation of benefits and services that will help our members grow and prosper as Dunkin’ Donuts owners well into the future. And, building that foundation is now what DDIFO is all about.

This month, we are introducing of a number of new member benefits and services. First and foremost, the creation of a captive insurance program designed just for Dunkin’ franchise owners. Ably constructed by York Alternative Solutions, a DDIFO business member, it will provide a vehicle for Dunkin’ franchisees to adequately insure themselves and enjoy significant savings in the process. The captive program will return unused premiums to the participants of the program, not to the bottom line of unaffiliated insurance interests. As we move through the launch of this exciting program, DD franchise owners will want to learn more on how they can avail themselves of the savings.

Another exciting program offered through Direct Capital Finance, also a long-time business member of DDIFO, will

allow members to finance any purchase that includes an Island Oasis blender at low fixed rates with no payments for 90 days. This benefit – which is offered exclusively to DDIFO members – further demonstrates the value of a membership in this independent franchisee organization.

As we continue to reimagine a new DDIFO, we recognize the importance of providing concrete benefits that franchisees need and want. To that end, another longtime DDIFO business member, Plotwatt Inc., has stepped forward with a number of programs for franchisees who are current DDIFO members. Plotwatt is offering a flat $120/month cost for franchise owners who sign up for an energy reduction program for at least five stores. What’s more, they’ll eliminate all up-front costs associated with the energy reduction program.

We are actively pursuing other members-only benefits with other companies, among them a deal with Staples, the office supply giant. We have had several meetings with Staples executives that we expect will yield another cost-saving benefit for DDIFO members.

Beyond improving your purchasing power, we are working on a strategy to combat the new “ambush” election rules being foisted on the business community by the NLRB. We have engaged an employment law firm from the southern part of the footprint to develop a guide, specifically for Dunkin’ franchise owners, with steps an owner must take in the event they are served with an “ambush” election petition.

These are just some examples of the building blocks this organization is developing to strengthen our members’ business entities. New rules, regulations, taxes and fees aimed at small business owners represent a constant threat to franchisee profitability. In light of that, we want your “houses” as strong as possible. Think of our building blocks as bricks that can withstand the wind emanating from the big bad wolf.

It seems like uncertainty is always in the air, but DDIFO members can rest assured this organization is doing what it can to provide cover. They can huff and puff all they want, but with this solid construction, our shelter is safe.

Now, about that SEIU house made of straw . . .

Ed Shanahan DDIFO Executive Director

INDEPENDENT JOE • JUNE/JULY 2015 1

SUB HEADLINE

CONTENTS

From the Executive Director: Protection from Winds of Uncertainty• • • • • • • • • • • • • 1 What’s Brewing: A Look at State Issues Around the Footprint • • • • • • • • • 5 Maine Governor Pushes Pro-Business Agenda• • • • • • • 10

10 DDIFO

18

14

NATIONAL CONFERENCE

2015

LAS VEGAS

DDIFO National Conference 2015: Caesar’s Palace is home to the 2015 DDIFO National Conference • • • • • • • • • • • • • • • • • 12 A National Event• • • • • • • • • • • • • • • • • • • • • • • 15 Building Community Bonds One Cup at a Time • • • • • • • • • • • • • • • • • • • 18 Navigating Sign Regulations• • • • • • • • • • • • 22 Directory of Sponsors • • • • • • • • • • • • • • • • 24 Legal: How Fair is Dunkin's Dispute Resolution Clause? ���28 2 INDEPENDENT JOE • JUNE/JULY 2015

22

A captive insurance program may be the single biggest opportunity Dunkin’ Donuts franchisees have to increase the profitability of their business.

Turning premiums into

If you don’t own your insurance program, you don’t control it.

Our goal is simple: drive down claims and costs by putting you in control of your own insurance and risk management program. Turn your insurance program into a profit center!

"While we are new to this, we are moving to establish a captive in the hopes that we can turn what was always a pure cost center into one that could potentially become a profit source, or at least provide a cost reduction for workers compensation and property insurance. In the current punishing regulatory and labor environment we have to look everywhere to cut costs and find ways to preserve our margins. We are looking at new ways of doing things in the hopes of doing that."

- Robert Branca, Jr. To speak with someone about Dunkin’ Donuts captive insurance program opportunities, please contact Lori Ross at 337.230.5437 or lori.ross@yorkrsg.com.

www. RestaurantFranchiseCaptiveProgram .co m

INDEPENDENT JOE • JUNE/JULY 2015 3

Independent The Magazine for DD Independent Franchise Owners

•

June/July 2015 Issue #32 Independent Joe® is published

by DD Independent Franchise Owners, Inc. Editors: Edwin Shanahan, Matt Ellis Contributors: Cindy Atoji, Bill Gavigan, Sr., Lisa Iannucci, Peter R. Silverman, Scott Van Voorhis Business Member Coordinator: Joan Gould Creative Director: Caroline Cohen Direct all inquiries to: DDIFO, Inc. 10 First Avenue, Suite 20, Peabody, MA 01960 978-587-2581 • 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 © 2015 Printed in the U.S.A.

The experTs OTher experTs Turn TO Tax Deferred Exchange for Income & Investment Property 9 Leominster Connector, Suite 1 P (978) 433-6061 Leominster, MA 01453 F (978) 443-6261 www.exchangeauthority.com 1031@exchangeauthority.com

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SUB HEADLINE

WHAT’S BREWING A LOOK AT STATE ISSUES

AROUND THE FOOTPRINT

By Scott Van Voorhis The challenges just keep on coming on for Dunkin’ and other quick service franchise owners.

First there was the wave of minimumwage hikes across the country, which have raised the cost of doing business in several major cities.

Now franchise owners are facing growing demands to provide paid sick leave and give their employees as much as twoweeks’ notice before changing their shifts.

To survive and thrive, franchise owners caught in the bull’s-eye of these changes will need to up their game, with ever smarter and more efficient management, experts say.

“You can do some indirect things that improve your employees’ quality of life and don’t necessarily cost you anything,” said John A. Gordon, principal of Pacific Management Consulting Group and DDIFO’s restaurant analyst.

Still, it’s hardly all bad news. The revival of fair franchising legislation in California is a big bright spot for Dunkin’ franchise owners. That proposal – which provides basic protections for all the time,

"You can do some indirect things that improve your employees’ quality of life and don’t necessarily cost you anything." money and labor franchise owners pump into their businesses – is moving steadily through the California Legislature after a disappointing, 11th hour veto last year by Gov. Jerry Brown.

Here’s our round-up of some of the latest mandates and proposals that may be headed your way.

Retail workers’ bill of rights The new franchise group that is developing Dunkin’ Donuts in San Francisco finds themselves at the forefront of a new city ordinance that could impact franchisees throughout the system. It’s called the “Retail Workers Bill of Rights,” and will force more than 1,200 chain restaurants and stores to provide “more predictable” work schedules, according to Julia Trankiem, a labor relations attorney in the Los Angeles office of ReedSmith LLP. Franchise owners must provide work

schedules to all employees two weeks in advance, while also giving advance warning to workers if their shifts are about to change. Business owners who are forced to cancel an employee’s shift without sufficient notice will have to shell out as much as four hours in “predictability pay,” Trankiem says.

Critics say the law, which unanimously passed San Francisco’s Board of Supervisors and covers all chain franchise owners with at least 20 employees, makes it both more difficult - and more expensive – for franchise owners to make sudden changes in work schedules.

In fact, the requirements kick in even before a new employee starts work, with the franchise owner on the hook for providing a “good faith estimate” on how many shifts per month he or she can expect to work, as well as the hours and days scheduled, Trankiem recently wrote

INDEPENDENT JOE • JUNE/JULY 2015 5

WHAT’S BREWING

Photo Credit: www.jwjsf.org

in an advisory piece aimed at San Francisco businesses.

Even subcontractors such as cleaning and security services are also covered.

“It’s definitely going to impact all employers,” she says, adding “I definitely think it is going to impact Dunkin’ Donuts.”

And it goes on from there.

The wide ranging new ordinance also tries to level the playing field between parttime and full-time workers, calling for the same starting wage for part-timers, paid or unpaid time off, and the ability to win promotion, Trankiem wrote.

Before hiring any new full-time workers, franchise owners must first offer, in writing, additional hours to part-time employees, she noted.

There is even a change of control clause protecting current workers from termination for 90 days after a franchise changes

hands.

Whether San Francisco’s bill of rights becomes a trend setter remains to be seen. The city has been an early adopter of several progressive causes, including higher minimum wages and paid sick leave, which it mandated in 2007.

But an effort to pass a statewide bill that would have required franchise owners and other business to provide advanced warning of shift changes recently fizzled out in the California Legislature.

“It’s a continued movement by local governments to increase regulation in areas

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where they have absolutely no idea what the outcome is going to be on business owners,” contends Ben Litalien, founder and principal of FranchiseWell LLV, a consulting firm.

Paid sick leave Suddenly, proposals to force franchise owners and other businesses to provide paid sick leave have become as ubiquitous as efforts to raise the minimum wage.

California became the latest state to mandate paid sick leave on July 1, with businesses required to provide three sick days a year for each employee. It joins Connecticut, the first state to put such a law on its books, and Massachusetts, which will also start mandating paid sick leave in July. Lawmakers in Maryland and New York are currently debating sick-leave bills.

Oregon’s legislature just approved a paid sick leave law requiring employers with at least 10 workers to offer up to 40 hours of paid leave per year. It follows similar

mandates in the cities of Eugene and Portland.

In fact, cities across the nation are adopting paid sick leave rules ahead of their states, with as many as 20 across the country having passed sick-leave ordinances.

Philadelphia’s law, which went into action this spring, mandates one hour of sick leave for every 40 hours an employee works.

In Chicago, debate is heating up over a five-day-a-year sick leave proposal. Mayor Rahm Emanuel has formed a task force to study the issue after 82 percent of city voters endorsed paid sick leave in a referendum.

Aside from the obvious expenses, the biggest headache for business owners will be complying with the new sick leave laws, ReedSmith’s Trankiem contends.

“It takes a significant amount of administrative work to be in compliance.

It’s not enough that a company is providing sick leave – they have to track it. We see that as a hotbed of litigation.”

Golden State employers have the option of

INDEPENDENT JOE • JUNE/JULY 2015 7

WHAT’S either outright granting three days – or 24 hours – at the start of the year, or allowing staff to accrue sick time at a rate of one hour per every 30 worked. Staying out of trouble will require a major bookkeeping effort and accurate tracking of accrued time, Trankiem says of California’s new law.

Photo Credit: blog.sfgate.com

BREWING

Proponents of California's Fair Franchising legislation are hopeful Governor Jerry Brown will sign the bill once it arrives on his desk.

Business owners are required to stick notices on employees’ paychecks notifying them how much sick time they have accrued or been granted. Records of paid sick leave accrued or granted for each employee must be kept for three years.

“It takes a significant amount of administrative work to be in compliance. It’s not enough that a company is providing sick leave – they have to track it,” Trankiem says, noting that businesses that fail to do so could open themselves up to lawsuits.

“We see that as a hotbed of litigation.”

Fair franchising legislation The fair franchising drive in California may very well turn out to be the legislative comeback story of the year. Fair

8 INDEPENDENT JOE • JUNE/JULY 2015

franchising seemed permanently off the menu in California just a few months ago, after a devastating veto by the state’s long-time Democratic governor, Jerry Brown.

But supporters regrouped, refocused

their efforts, and recently had cause to celebrate after the California State Assembly passed revamped fair franchising legislation by a wide margin. The bill is expected to win the nod from the Senate before being sent once again to Brown’s desk.

This time, though, backers of the fair franchise bill are expecting a different outcome. They have held talks with Brown and his staff to help nail down his support by assuaging some of the legal concerns the governor had with the previous proposal.

This updated proposal would require quick service chains and other franchisors to give 60-days’ notice before terminating its business relationship with a local franchise owner. In addition, the franchise owner would also have a chance to correct any defects cited by the franchisor as the reason for its move to terminate.

Still, there is stiff opposition from a number of major franchisors.

“The bill has already been amended 11 times,” says Gordon, the restaurant analyst who is involved in the effort. “We continue to talk to the other side.”

The tricky road ahead Franchisees may well wonder what they should do to help mitigate the many

Attention franchisees of Dunkin' Donuts

"Certainly small business owners need to be more vocal in their concerns and to hold politicians accountable" mandates that affect their business interests. Experts say the answer is two-fold: Speak up and get more creative in how you manage your employees.

According to Litalien of FranchiseWell, the speaking up part comes when proposals pop up in a franchisee’s hometown or state aimed at dictating how franchise owners should do business. At that point, he says, franchisees need to mobilize to make sure city councils and state legislatures hear their voices as they debate paid sick leave or minimum wage edicts.

“Certainly small business owners need to be more vocal in their concerns and to hold

politicians accountable,” Litalien says.

But franchise owners, especially in cities or states where new sick leave or even shift-change policies have been adopted, have to up their game as well, Gordon argues and find quality of life improvements that won’t necessarily impact a business owner’s bottom line, like providing more scheduling predictability.

“There is this inexorable drive towards better wages and working conditions,” Gordon says. “What has to be balanced out is the cumulative effect and how you balance that out over time. Your management approach needs to be smarter and of a higher level,” he advises.

•

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N155252

WHAT’S BREWING

Maine Governor Pushes Pro-Business Agenda

F

or most of this year, Maine’s probusiness governor has been trading legislative barbs with activists pushing an array of new mandates that would do everything from boost workers’ pay to determine how shifts get scheduled.

Gov. Paul LePage is championing a state ban that would stop cities and towns from passing their own minimum wage laws, reflecting concerns by business owners of a community-by-community patchwork of competing wage regulations. His efforts will be challenged going forward as municipalities look to increase wages on their own.

Already the City Council in Portland has authorized a petition that will let voters decide if Maine’s largest city should mandate a $15/hour rate, which would increase incrementally beginning with a jump from its current $7.50 to $10.10 next January.

But even if LePage successfully lowers the boom on local minimum wage initiatives, he faces another challenge from a budding, statewide campaign.

A group called Mainers for Fair Wages is collecting signatures to put a question on the 2016 state ballot, one that would boost the state’s minimum wage to $12 an hour by 2020.

10 INDEPENDENT JOE • JUNE/JULY 2015

Meantime, Gov. LePage’s push to overhaul the state’s tax code ran into significant opposition from anti-business groups in Augusta, the state capitol. Just before the end of the fiscal year, LePage vetoed the budget the Legislature passed, because it calls for increased spending while eliminating most of his welfare reform proposals. But, the Legislature overrode the veto, leaving their $6.7 billion package on the books.

This as advocates eye initiatives modeled after San Francisco’s Retail Workers Bill of Rights. Two bills that worked their way through the Legislature this past session: L.D. 1101, which called for adopting the entire San Francisco workers’ rights bill, imposing detailed regulations on employee hiring, scheduling, promotion, payment and benefits. For Maine franchise owners, that would mean far more than just being on the hook to provide two weeks’ notice before changing an employee’s shift – and paying a penalty if they don’t.

L.D. 1101 also guaranteed the part-timers the same pay and access to time off as full-timers. In fact, before hiring more full-time workers, a franchise owner first has to approach his part-timers – in writing no less – to offer them more hours.

A more moderate version introduced in

the last session, L.D. 1217, would simply require businesses to give two weeks’ notice before shift changes or face paying a penalty.

Those pro-labor initiatives are a stark contrast to LePage’s efforts to eliminate the mandated payment of union dues as a prerequisite to getting or keeping a job. Right to Work – as the legislation is known – is the law in 25 states. LePage tried making Maine the 26th, but the measure fell flat in Augusta. Still, the governor says he will continue campaigning against legislators in both parties who oppose him.

If it sounds like LePage understands the challenges small business owners face, it’s because he spent 15 years as general manager of a 14-store discount chain called Marden’s. As the state’s chief executive, he’s sticking to his hardscrabble roots to support the state’s business community, which also means entering the fight over the food labeling.

Some Maine lawmakers want to jumpstart the state’s now dormant GMO labeling requirements. The 2013 law, which requires food retailers to slap on labels identifying GMO ingredients, was purposely delayed until similar legislation is passed in other Northeastern states.

While Vermont and Connecticut have passed GMO labeling bills, Massachusetts and New Hampshire have yet to take the plunge.

LePage signed the bill in 2014, but members of his administration have spoken out against Maine adopting regulations on genetically modified organisms before other states.

Such a move could wind up costing Maine consumers and restaurants more, with some food companies likely to stop shipping their products to Maine to avoid the cost of GMO labeling.

“What is likely to happen is that it will shift the burden to small businesses, who will inevitably have to charge more for any product and service,” said Ben Litalien, founder and principal of FranchiseWell LLV, a consulting firm.

•

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Get started now: www.DirectCapital.com/DDIFO or 888-501-6846 INDEPENDENT JOE • JUNE/JULY 2015 11

DDIFO NATIONAL

CONFERENCE

2015

LAS VEGAS

CAESAR’S PALACE IS HOME TO THE 2015 DDIFO NATIONAL CONFERENCE

By Cindy Atoji

O

f all the meetings Dunkin’ Donuts franchise owners are invited to attend in a given year, few offer the variety of perspectives that the DDIFO National Conference does.

Not only is it an opportunity to network with franchisees from across the system – some of whom have been with Dunkin’ since the early days, – it is also a chance to hear directly from franchise owners and industry experts who have firsthand knowledge about operational and regulatory issues. The Fifth Annual DDIFO National Conference will be held in Las Vegas on Sept. 21 and 22 at the iconic Caesars Palace Hotel and Casino.

“The National Conference is our organization’s leading professional meeting, where major developments are discussed and there are unparalleled opportunities to network with your peers,” says DDIFO

12 INDEPENDENT JOE • JUNE/JULY 2015

Executive Director Ed Shanahan, who has worked tirelessly to put together speaker panels and workshop options.

Once again this year, the National Conference will host a franchisee roundtable discussion moderated by Robert Branca.

In past years, the roundtable has provided an open and honest dialogue among franchise owners about a range of issues. This year’s panel is expected to include: Tim Cloe, who sold his Northeast restaurants and now operates a network of stores in Florida; Nicole Hansen, who opened her first store in Reno last year with new locations on the horizon; Parag Patel, who is developing restaurants in the highly sought-after southern California market; and Alex Smigelski, who owns a number of shops in New York and Pennsylvania and is also part of a growing franchise group in Indiana. The conversation,

which has always been a highlight of the National Conference, will center on topics ranging from how an independent franchisee association protects interests of its members, to market challenges, to attracting and retaining new customers.

Another highlight of this year’s National Conference is expected to be the presentation from prominent franchise attorney Robert Zarco, the founding partner of the Miami law firm, Zarco Einhorn Salkowski & Brito. Known as a passionate and compelling speaker, Zarco will touch on a number of legal issues, primary among them: franchisee-franchisor relations.

In the wake of the National Labor Relations Board’s “joint employer” ruling, Zarco will confront the forming divide between courts and the business community. While DDIFO has reported on

www.ddifo.org/2015-ddifo-national-conference

LAS VEGAS

September 21-22 the multitude of ways the ruling affects established laws and the current franchise model in this magazine and in Shanahan’s weekly eBlast, “Small Regular, No Sugar,” Zarco will bring conference attendees up to speed on the latest developments, while also providing his unique twist on the pros and cons of the joint-employer issue.

As Shanahan notes, many Dunkin’ Donuts owners are also franchisees in other systems. To accommodate their growing interest in the broader scope of franchising – and to help them learn more about opportunities in other systems – DDIFO has opened its National Conference to vendors representing other successful franchise chains and is expecting five or six non-competing brands to exhibit at the Conference this year.

The exhibit hall will feature a multitude

INDEPENDENT JOE • JUNE/JULY 2015 13

DDIFO

NATIONAL CONFERENCE

2015

of goods and service suppliers as well— many of which are regular DDIFO meeting and conference Business Members. Shanahan says he is pleased with the number of returning Business Members and new ones that have already signed up for the National Conference.

LAS VEGAS

2015 will also herald the induction of a new class of franchisees into the Dunkin’ Donuts Franchise Owners Hall of Fame.

This year, the Hall of Fame dinner and induction gala will be held on Tuesday evening. The Hall of Fame celebrates those who have contributed significantly to the success of Dunkin’ Donuts; there are 22 men and women currently in the Hall.

So why attend the 2015 DDIFO National Conference in Las Vegas? Past attendees testify to its value as a business meeting focused solely on the issues that confront

Dunkin’ Donuts franchise owners. There is good conversation, important learning and time to have a little fun—this year at the legendary Caesar’s Palace, a bastion of world-renowned luxury. Registration is now open!

“This is a most important and informative event for Dunkin’ franchise owners from every corner of the Dunkin’ footprint.

There is a value for each and every one who attends the conference. They will not be disappointed.” says Shanahan.

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www.ddifo.org/2015-ddifo-national-conference

A National Event

By Matt Ellis

because of its location on the Strip, but also because of the history and spirit that’s as much a part of the place as the Roman columns.

Shanahan offers Independent Joe these thoughts on what makes a successful National Conference and how it’s programmed to meet the needs of DDIFO members.

2

015 marks the fifth year DDIFO will hold a National Conference and the second year it’s happening in Las Vegas. Executive Director Ed Shanahan is looking forward to the excitement that comes with Caesar’s Palace, not only

IJ: What does it mean to be national conference?

ES: We always talk about Dunkin’s “national footprint.” Well, today it’s really taking shape, so we understand that it is truly important for this organization to position itself as one representing franchise owners in Colorado as much as in Connecticut. The way we see it, there are national issues, there are local

issues, and there are local issues with national implications. Government overreach is one example. Something like a Styrofoam ban may only be a local issue today, but tomorrow could well be an issue with national reach. We need to be on top of all of those so our members in all the different regions can look to DDIFO as a source of information that is relevant to their day-to-day business.

IJ: Why Las Vegas in 2015?

ES: Las Vegas is a great choice for several reasons. First and foremost: it is the convention capital of the world. We want DDIFO members to enjoy the benefits of belonging to a true national organization and one of the ways we do that is by hosting it in Las Vegas.

You also have to consider the convenience.

Virtually anyone can get to Las Vegas on either a non-stop or a one-stop flight.

There is an abundance of hotel rooms at various price points and, perhaps most important, there’s plenty to do when

INDEPENDENT JOE • JUNE/JULY 2015 15

DDIFO

NATIONAL CONFERENCE

you’re not sitting in a conference room.

Our members enjoy taking in shows, or checking out the shops, or trying their hand at the tables. At the same time, many want to share the opportunity with their wives and families, so that makes it appealing to a broad section of franchisees.

2015

LAS VEGAS

But, one of the key ingredients to building a national conference is the willingness to move it around and take advantage of the benefits of different geographies and regions. The Southeast and the Midwest have appealing convention locations that we also want to consider in coming years.

IJ: What makes for great programming at the conference?

ES: The number one thing is that the information is timely. Right now, for example, issues related to the NLRB Joint Employer ruling are coming to bear on different franchise systems and we need

Learn more at watchfiresigns.com/donuts

to be mindful of what it could mean to Dunkin’ franchisees. Plus, many of our members are also investors in other franchise systems so they really appreciate getting the latest details from respected industry experts.

a group of franchisees talking about an ongoing issue while meeting over drinks at a cocktail reception, attendees have a lot to gain from conversations with the established people in the system and the newcomers as well.

We also want to offer Dunkin’ franchisees a shared experience. There is great benefit in sharing stories with one another about how someone has handled adversity. And there’s a lot of institutional knowledge in one of our meeting halls for people to soak in. So, whether it’s a panel of franchisees discussing preformatted questions in front of an audience – with someone like Rob Branca leading the conversation – or

The last thing that’s important is paying the bills. We are fortunate to have assembled a great roster of business members with valuable goods and services to offer.

In exchange for their membership fee, we provide them the opportunity to share information about how those goods and services can help a franchisee maximize profits and enhance efficiencies. It’s a win-win.

www.ddifo.org/2015-ddifo-national-conference

IJ: Every year the DDIFO board of directors holds its quarterly meeting at the National Conference. Why do you recommend franchisees attend that meeting?

ES: One of the benefits of having a board that is comprised of industry professionals – and not just franchise owners – is that they bring a different kind of sensibility to the business of running a Dunkin’ Donuts. The National Conference board meeting is not only a great opportunity for franchisees to have a say in how this organization is run, it is also a chance for them to gain a better perspective of what board members bring to the

organization from their experience in Dunkin’ and their other businesses. I’ve watched as board members offer valuable input for franchisees—regardless of the region from which they come. And, I know the board also appreciates hearing from franchisees with whom they are not as familiar, especially those from emerging markets or who may be new to the system.

IJ: What are some of the most memorable moments you remember from past National Conferences?

ES: For me, nothing can match the true joy that franchisees and their families express

at the Hall of Fame banquet. Over the years, we have honored some true giants in the Dunkin’ family and it is so powerful to hear these men and women share their memories about how they got involved in the business and what it’s meant to their families. Even as Dunkin’ Brands expands into a national presence and adds new franchisees to the system, it still feels like one extended family. I never get tired of hearing the old stories and learning how these people have overcome obstacles to build something that not only survives their generation, but continues to flourish because of the same attention to customer service and brand loyalty.

•

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Chicago • St. Louis • Los Angeles

INDEPENDENT JOE • JUNE/JULY 2015 17

Building Community Bonds

By Lisa Iannucci

p u C One e m i T a at

18 INDEPENDENT JOE • JUNE/JULY 2015

T

here is that joke about cops and donut shops that every police officer and every donut shop owner has heard. But, the humorous connotation about cops stopping in for a beverage and snack never stuck with New York franchisee Roy Clark.

A partner in the Wolak Group of Dunkin’ Donuts restaurants in Central New York, New Hampshire and Maine, Clark was intrigued when his partner, Ed Wolak, heard about a Syracusearea business that hosted a successful “Coffee with a Cop” event for local residents. That was five years ago.

Coffee with a Cop is a national initiative supported by The United States Department of Justice, Office of Community Oriented Policing Services.

Its mission is to bring police officers together with community members to enhance community policing efforts and eliminate communication breakdowns that can lead to distrust.

Clark and his team decided if they were going to get involved in bringing police and community members together in their shops, they would go directly to the top. He wasn’t interested in a small event. “That’s not how we do things around here,” says Clark.

neutral, laid-back setting would prove popular. Plus, because Clark’s restaurants have been renovated with larger (and more comfortable) seating areas, it’s been easier to accommodate larger groups for public meetings.

But, even as planning for the first event was underway, some questioned the wisdom of holding such a meeting. At that time, the nation’s attention was focused on Ferguson, Missouri where a white police officer shot and killed an unarmed African American teenager named Michael Brown. The incident fanned unrest in the community of Ferguson, leading to riots and, ultimately, the resignation of the town’s police chief. Clark recalls how that incident was altering the view people had of their local police.

“At the time, this put police in a negative light,” but Clark and Chief Fowler decided to keep their event as scheduled. It turned out to be the right decision. Approximately 40 (top) L-R: Kim Garrett, Tom Santurri, Ed Wolak, Roy residents came to the first Coffee with Clark of the Wolak Group (bottom) Syracuse Police the Chief, eager to get to know their Chief Frank Fowler talks with a concerned resident at chief and discuss issues that were a recent "Coffee with the Chief" event. important to their community, not the circumstances swirling around Ferguson.

So, he got in touch with the Syracuse police department and offered to host a community event with Chief of Police Frank L. Fowler called “Coffee with the Chief.”

“Looking back, I was absolutely glad we moved in that direction and really appreciate what we did and how we want to do more,” said Fowler.

Fowler signed on and, starting last September, the Wolak Group held the first event for Syracuse residents to get up close and personal with the city’s top cop. The meetings have been well received by the police and the community. Each get-together – at different Dunkin’ shop locations around Syracuse – lasted about three hours, during which time Fowler sat with every resident who showed up, sipping coffee and fielding scores of questions.

Fowler says he enjoyed the chance to sit and talk with concerned residents, but he also realized that one meeting would not allow him to connect with a large enough segment of the population. So Clark and the Chief coordinated the additional coffee meetings, opening the doors for other community members to join in. In one of a series of articles published in the Syracuse Post Standard, Chief Fowler characterized the meetings this way, “Just an opportunity to ask questions, voice concerns and build a relationship that will strengthen the entire Syracuse community.”

“People who come out are tuned in to what’s happening in their community,” he says. “They want to ask questions about what’s affecting them.

“They talked about crime and safety and were also very complimentary of the job we are doing,” says Chief Fowler. “Many wanted to share the interactions they had with the Syracuse police department. Of course, there were also some complaints about speeding cars or the extra-long police response time.”

The events were a huge success for the police and the community “They were lined up to get in and talk to him,” says Clark, who always believed providing residents with access to the chief in a

Fowler knows the community. He joined the Syracuse Police Department in 1989 and became chief in 2009. He also knows that Dunkin’ is a strong community partner.

“I’ve enjoyed a long, great working relationship with Dunkin’ Donuts beyond my days as the Chief of Police,” he says. “I was also manager of our department’s community relations department and Dunkin’ Donuts came through and sponsored our DARE program, a program that wasn’t supported by government funding.”

INDEPENDENT JOE • JUNE/JULY 2015 19

COVER STORY: BUILDING COMMUNITY BONDS Thanks to positive community reaction – and stories in the media – word of Chief Fowler’s coffee meetings began to spread. In the City of Ithaca, about 55 miles south of Syracuse, Chief of Police John Barber decided that he wanted to initiate coffee meetings with his community.

As it turned out, the Wolak Group also operates three Dunkin’ shops in Ithaca, which made coordinating the meetings easy—except for one thing.

Chief Barber thought to make his community meetings even more impactful, he would invite Ithaca’s Mayor, Svante L. Myrick, to participate.

“The mayor is ultimately my boss and responsible for the budget of the police department and it’s good to hear of the needs of the members of the community,” says Barber. “The Mayor and I together can really affect change related to policing and the quality of life in the city, so why not have us all on the same page?”

Ithaca’s first Coffee with the Chief (and Mayor) took place this past March. “I heard it all, from the dredging of the local Cayuga Inlet to drug activity in certain neighborhoods,” says Barber.

20 INDEPENDENT JOE • JUNE/JULY 2015

“Some people just stopped in to say thank you, you’re doing a great job and that’s always nice to hear too.”

The local media jumped on the story as well. In an interview with the Ithaca Journal, Mayor Myrick said, “I hope that we will get good ideas from the people, the chief and I will get good ideas about what we can be doing better, and I hope people will better understand what the police department does for them.”

Chief Barber says that this partnership with Dunkin’ Donuts

The Wolak Group is already well established as a philanthropic neighbor in New York, New Hampshire and Maine. Earlier this year, the company donated more than $24,000 to Upstate Golisano Children’s Hospital in Syracuse. It also supports Make-a-Wish, the YMCA and the Maine State Society for the Protection of Animals, among others. And, as the company has grown (it now has over 85 Dunkin’ Donuts locations), so has its commitment to community. Clark says the next city to host Coffee with the Chief events is Watertown, NY, about 70 miles north of Syracuse. has opened doors to other local business partnerships and the creation of other events. “Other businesses want us to do events with them now,” he says.

As far as the old joke goes, Fowler says he’s heard it all before, including from some residents at his recent Coffee with the Chief meetings.

For Clark and his partners at the Wolak Group, Coffee with the Chief has been a win-win. It’s strengthened the relationship Dunkin’ Donuts has with its community leaders and with its customers.

“You will expect that the jokes about cops and donuts will come, but the kudos and accolades, pats on the back and thumbs up were great,” he says. “It’s a great idea to come out to the public on the ground level and get that kind of dialogue with the residents. Hurray for Dunkin’ Donuts to think of something like that.”

“The publicity has been good and it has created good will in the community,” says Clark.

MAGNA INDUSTRIES

•

1825 Swarthmore Avenue, Lakewood, NJ 08701 Toll Free 1.800.510.9856 Office 732.905.0957 Fax 732.367.2989 www.magnaindustries.com sales@magnaindustries.com

INDEPENDENT JOE • JUNE/JULY 2015 21

Navigating Sign Regulations

By Bill Gavigan, Sr.

I

n today’s competitive, quick-service retail environment, the strength and visibility of a brand image is more important than ever. Signage utilizes the power of visual communications to build the bottom time and keep the image fresh. An eye-catching sign not only attracts new business, it also strengthens brand confidence for new and existing customers.

When developed properly, signage provides the essential information to guide customers through and around a retail property, enhancing the visitor experience and improving traffic patterns through a location. But, it’s more than just creating attractive signs. Proper signage should be specific to the customer experience as they approach and travel through the restaurant or parking lot.

A sign permit is required before most exterior signs are installed. This includes freestanding signs, wall signs, and marquee signs. Awnings with graphics are often considered a sign by town regulations and it isn't unusual for jurisdictions to require a temporary banner permit. In some cases, electrical permits and zoning permits are also required when applying for permission to post outdoor signs.

In some cases, franchisees may opt for a sign whose design or size is not allowed under the local sign code. If a sign permit application is denied, most jurisdictions will allow the franchisee to apply for a variance from the Zoning Board of Appeals.

Here are some reasons a variance would be required: 1. The proposed branding package needs to be easily seen by passing motorists in one or both directions and is hidden by existing buildings, trees, traffic, or other obstructions.

2. The permitted signage could not be seen by passing motorists in time to safely react and stop at the business.

3. Existing signs on nearby parcels are impacting the visibility or advertising impact of a conforming sign on your parcel.

4. Construction of a conforming sign would block motorists’ view of the road or otherwise endanger the health or safety of passers-by.

5. Natural land features would have to be removed or severely altered if a conforming sign was

22 INDEPENDENT JOE • JUNE/JULY 2015

constructed such as removal of trees, alteration of the natural topography, filling of wetlands, or obstruction of a natural drainage course.

6. Variance from certain sign regulations would be offset by increased building setback, increased landscaping, or other such enhancements, so that the overall effect would make the parcel look much better than it would if the sign was built according to code.

7. A taller or larger sign than allowed by the code would be more appropriate in scale because of the large size or frontage of the parcel or building.

to a specific sign request, but many local officials are willing to work with you to design a solution that works for all parties involved.

•

Bill Gavigan, SR. is an account executive for Poyant, a leading provider of signs for Dunkin’ Donuts and other brands in New England and New York

When facing any Zoning Board, it’s important to explain the reasons why you have selected the sign design you would like to build. In such cases your signage professional can help you through this process, though in some cases you may also need the services of an attorney.

In the variance application, it is best to demonstrate how the request will not only help your business, but also how granting the request is in the interest of the local community. You can demonstrate how the improvement to your property will contribute to a revitalization of the district itself and how the resulting increases in income and property value will increase local tax revenues. You can also discuss the safety benefits that will result from the enhanced readability of the proposed sign.

Properly navigating sign regulations typically means getting a jump start on the process before construction. Even before asking for a meeting with a city or town official, be sure you understand the community’s specific rules and regulations. It can be helpful to include your signage company in this process since they will likely know the political and regulatory landscape.

The process can often require several months of focused effort and requires a thoughtful strategy for seeking permit approval.

Municipalities don’t always see the big picture when it comes

INDEPENDENT JOE • JUNE/JULY 2015 23

2015

BUSINESS MEMBER

Directory of Business Members Please Visit The DDIFO Business Member Directory online at www.DDIFO.org

ACCOUNTING

Sansiveri, Kimball & Co., LLP

Adrian A. Gaspar & Company, LLP, CPAs

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

Bederson LLP - CPAs and Consultants

Tom Colitsas 609-452-0889 • tcolitsas@tcacpa.com 103 Carnegie Center, Ste. 309, Princeton, NJ 08540

Robert Costello 617-621-0500 • cpas@gasparco.com 1035 Cambridge Street, Ste. 14, Cambridge, MA 02141 www.gasparco.com Steven Bortnick, CPA 973-530-9113 • SBortnick @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, Ste. 61, Warwick, RI 02886-0114

Honkamp Krueger & Co., P.C.

Ryan Hauber 608-620-4794 • rhauber@honkamp.com 251 Progress Way, Ste. 200, Madison, WI 53597 www.honkamp.com

Marcovich, Mansour & Assoc. Inc.

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

Neovision Consulting Inc.

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

Thomas Colitsas and Associates, CPA

BACK OFFICE

Jera Concepts

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

BUILDING

Poyant Signs

Bill Gavigan 125 Samuel Barnet Blvd, New Bedford, MA 02745 508-717-4930 • bgavigan@poyantsigns.com www.poyantsigns.com

Trane HVAC

Jonathan Ralys 225 Woldwood Avenue, Woburn, MA 01801 781-305-1335 • Jonathan.Ralys@Trane.com www.Trane.com/commercial

WatchFire Signs

Alex Foreman • 217-442-0611 alexander.foreman@watchfiresigns.com 1015 Maple Street, Danville, IL wwwwatchfiresigns.com

BUSINESS BROKER National Franchise Sales

Ellen Hui 949-428-0498 • eh@Nationalfranchisesales.com 1601 Dove Street, Ste. 150, Newport Beach CA 92660 www.nationalfranchisesales.com

COMMUNICATIONS

AT&T Corporate Business Solutions

Sophy Englund 954 383-8133 • SE1885@ATT.COM 13450 W Sunrise Blvd, Ste. 602, Sunrise FL 33323 http://att.com/wireless/dunkindonuts

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

Sonu Satellite

Neil Doshi 1-877-999-7668 • neil@sonusatellite.com 430 Commerce Lane, Ste. F, West Berlin, NJ 08091 www.sonusatellite.com

Sprint

Heath Stone 603-793-2129 • heath.h.stone@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 bc2.timewarnercable.com/nationalsales/copartner/dd1.html

COST RECOVERY EF Cost Recovery

Ed Craig 774-263-7388 • ecraig3@efcostrecovery.com PO Box 79361 North Dartmouth, MA 02747 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

ENERGY

Plotwatt, Inc.

Adam Gardiner 401-234-0825 • adamgardiner@plotwatt.com 1715 Six Gables Road, Durham, NC 27712 www.plotwatt.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.

24 INDEPENDENT JOE • JUNE/JULY 2015

2015

Directory of Business Members

BUSINESS MEMBER

FINANCE

Analytix Solutions

Jessica Shaheen 781-503-9000 • ashaheen@aixsol.com 80 West Cummings Park Ste. 2000, Woburn, MA 01801 http://insight360.aixsol.com

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

Business Financial Services

Scott Kantor • 954-509-8019 skantor@businessfinancialsservices.com 3111 N. University Dr, Ste. 800 Coral Springs, FL 33065 www.businessfinancialservices.com

Direct Capital Franchise Group

Richard Henderson 603-433-9434 • rhenderson@directcapital.com 155 Commerce Way, Portsmouth, NH 03823 www.franchise.lendedge.com

Eastern Bank

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

Fidelity Bank

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

First Franchise Capital

Richard Riecker 201-326-4021 • Richard.riecker@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

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

Marlin Franchise Finance Group

Josh Rouswell 856-505-4450 • jrouswell@marlinfinance.com 300 Fellowship Rd, Mount Laurel, NJ 08054 www.marlinfinance.com

Pacific Premier Franchise Capital

United Bank

Mark McGwin 508-793-8342 • mmcgwin@bankatunited.com 33 Waldo St., Worcester, MA 01642 www.bankatunited.com

United Capital Business Lending

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

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

Santander Bank

FOOD PRODUCTS

Paul Sousa 508-821-6122 • psousa1@santander.us 446 Main St., Worcester, MA 01608 www.santanderbank.com

Susquehanna Commercial Finance Inc.

Brian Colburn 443-966-1792 • brian.colburn@susquehanna.net 2 Country View Road, Ste. 300, Malvern, PA 19355 www.susquehanna.net

Quaker Oats A Division of PepsiCo

Ed Bowes 610-948-8309 • Ed.bowes@pepsico.com 402 Kilarney Way, Royersford, PA 19468 www.pepsico.com

HUMAN RESOURCES ADP

TCF Franchise Finance

John Stefko 908-625-7966 • john.stefko@adp.com 99 Jefferson Rd. MS 322, Parsippany, NJ 07054 www.adp.com

TD Bank

Kylie Cox 781-343-4351 • Kylie.Cox@CareerBuilder.com 400 Crown Colony Dr., Ste. 301, Quincy, MA www.careerbuilder.com

Bill Johnson & Brittney Weber 952-656-3268 • bjohnson@tcfef.com 11100 Wayzata Blvd., Ste. 801, Minnetonka, MN 55305 www.tcfef.com Michael Vallorosi 201-962-5187 • michael.vallorosi@td.com 535 East Crescent Avenue, Ramsey, NJ 07446 www.tdbank.com

CareerBuilder

First Advantage

Suzanne Cormier 317-245-1665 • Suzanne.Cormier@fadv.com 9800 Crosspoint Blvd., Ste. 300 Indianapolis, IN www.fadv.com

INDEPENDENT JOE • JUNE/JULY 2015 25

2015

BUSINESS MEMBER

Directory of Business Members Please Visit The DDIFO Business Members Directory online at www.DDIFO.org 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

Paris Ackerman & Schmierer LLP

David Paris 973-228-6667 • david@paslawfirm.com 101 Eisenhower Parkway, Roseland, NJ 07068 www.paslawfirm.com

OPERATIONS

3M Company

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

Alarm Grid

Joshua Unseth 954-933-5095 • support@alarmgrid.com 2510 NE 47th St, Lighthouse Point, FL 33064 www.alarmgrid.com/alarm-monitoring-dunkin-donuts

Bunn-O-Matic Corporation

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

Granite Payroll Associates

Marco Schiappa 401-263-7921 • marco@granitepayroll.com 176 Granite Street, Qunicy, MA 02169 www.granitepayroll.com

Heartland Ovation Payroll

Jim Ferreira 203-530-3512 • jferreira@ovationpayroll.com 90 Linden Oaks Ste. 110, Rochester, NY 14625 www.ovationpayroll.com

Paychex

Diana Devivo (516) 946-8551 • ddevivo@paychex.com 14 Penn Plaza, 225 West 34th St, Suite 700 NY, NY 10122 www.paychex.com

HK Payroll Services, Inc.

Laurie Fleming 732-968-2700 Ext: 41916 • lfleming@honkamp.com 2345 JFK Rd, PO Box 3310,Dubuque, IA 52004 www.hkpayroll.com

Snagajob

INSURANCE

Insurance World Agency Inc.

Leavitt Group

Richard Davis 847-998-9000 • security@davisbancorp.com P.O. Box 1690, Barrington, IL 60010 www.davisbancorp.com

Starkweather & Shepley Insurance Brokerage, Inc.

Mike Pierce 714-850-1320 • mike@phaseresearch.com 3500 West Moore Ave., Ste. M, Santa Ana, CA 92704 www.fasttracktimer.com

Wells Fargo Insurance Services

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

Anil K. Sharma 630-654-6067 • info@iwainsurance.com 100 E Ogden Avenue Ste. 203, Westmont, IL 60559 www.iwainsurance.com Angela Newman • 951-202-9086 lori.ross@restaurantfranchisecaptiveprogram.com 1820 East First Street, Ste. 500, Santa Ana, CA 92705 www.leavitt.com Sabrina San Martino 800-854-4625 ext. 1121 • ssanmartino@starshep.com 60 Catamore Boulevard, East Providence, RI 02914 www.starkweathershepley.com Mark Stokes 813-636-5301 • mark.stokes1@wellsfargo.com 2502 North Rocky Point Drive, #400, Tampa, FL 33607 wfis.wellsfargo.com

Chris Wirt 804-433-2761 • chris.wirt@snagajob.com 4851 Lake Brook Drive, Glen Allen, VA 23060 www.snagajob.com/employers 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 • JUNE/JULY 2015

Cardtronics

Doug Falcone 973-599-0600 • dougf@cardtronics.com 628 Route 10 - Ste. 8, Whippany, NJ 07981 www.cardtronics.com

Davis Bancorp

Delphi/Fast Track 2+2 Drive-Thru Timer

DTT Surveillance

Dunbar Security Products

Dustin Gosewisch • 800-766-9145 dustin.gosewisch@dunbararmored.com 8525 Kelso Drive, #L, Baltimore, MD 21221 www.dunbarsecurityproducts.com

2015

Directory of Business Members Ecolab

BUSINESS MEMBER

Thank You to Our Busin ess M emb ers!

Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses

Green Turtle Americas

Eric Hancock 704-295-1733 • 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

Hockenbergs

Tom Schrack Jr. 402-609-5111 • tomjr@hockenbergs.com 7002 F St., Omaha, NE 68117 www.hockenbergs.com

KD Kanopy

John Behrens 303-650-4707 • john@kdkanopy.com 1921 E. 68th Ave. Denver, CO 80229 www.kdkanopy.com

Magna Industries, Inc.

Jeff Simmons 914-388-1949 • jeff.simmons@magnaindustries.com 1825 Swarthmore Ave., Lakewood, NJ 08701 www.magnaindustries.com

MCD Innovations

Will Knieper 214-883-5656 • wknieper@mcdinnovations.com 3303 N.McDonald St., McKinney, TX 75071 www.mcdinnovations.com

New England Drive-Thru Communications

Angela Bechard 888-966-6337 • angela@nedrivethru.com 12 Wildwood Road, Auburn, NH 03032 www.nedrivethru.com

Pentair Filtration & Process

Jeannine Gaine 630-240-1298 • jeannine.gaine@pentair.com 1040 Muirfield Dr., Hanover Park, IL 60133 www.everpure.com

R.F. Technologies

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

QualServ

Tellermate

Becky Dubose 800-643-2980 • bdubose@qualservsolutions.com 7400 28th Street, Fort Smith, Arkansas, 72906 www.qualservsolutions.com

Dana Glaze 770-220-5113 • dana.glaze@tellermate-us.com 3600 Mansell Road, Ste 500, Alpharetta, GA 30022 www.tellermate-us.com

SensoScientific

Tryad Solutions

Zary Lahouti 800-279-3101 ext. 475 • ZaryL@sensoscientific.com 685 Cochran St, #200, Simi Valley, Ca 93065 www.sensoscientific.com

ServSafe/NRA Solutions, LLC

Nick Restivo 630-549-0079 • nick@tryadsolutions.com 2015 Dean St. Ste. 6A, St. Charles, IL 60174 www.tryadsolutions.com

UAS Security Systems

Kevin Scott 540-868-8292 • kscott@restaurant.org 175 W Jackson Blvd. Ste 1500, Chicago, IL 60604 www.servsafe.com

Walter Bass 610-5875-2796 • walter.bass@uas.com 700 Abbott Drive, Broomall, PA 19008 www.uas.com

Shoes For Crews

York Risk Services Group

Paola Kerns 561-683-5090 • stephanieh@shoesforcrews.com 250 S. Australian Ave. West Palm Beach FL 33401 www.shoesforcrews.com

Lori Ross • 310-489-2443 Lori.Ross@restaurantfranchisecaptiveprogram.com 3130 Stony Run Lane, Cresco, PA 18326 www.restaurantfranchisecaptiveprogram.com

SKAL East, Inc

PCI COMPLIANCE

Kevin Huerth 508-238-0106 • kevin@skaleast.com PO Box 303, 31 Eastman Street, Easton, MA 02334 www.skaleast.com/index.cfm?keyword=dunkin

ANXeBusiness

Mark A. Wayne 313-268-1606 • waynem@anx.com 2000 Town Center Ste. 2050, Southfield, MI 48075 www.anx.com

INDEPENDENT JOE • JUNE/JULY 2015 27

A LOOK ON THE LAW

How Fair is Dunkin's Dispute Resolution Clause?

I

magine an apple fritter filled with cream and grape jelly and covered with mixed sprinkles. That’s a good analogy for Dunkin’ Brands’ dispute resolution clause in your franchise agreement – a mish-mash.

Before delving into the specifics of Dunkin’s clause, here’s some background on dispute resolution clauses. Unless a different procedure is spelled out in the contract, disputes over contracts are resolved in court. Whoever brings suit picks the court to sue in (so long as the other side has minimum contacts with the area), you get a jury (for claims other than an injunction), and you can ask for any damages allowed under the common law or statute. You can also use all the procedural rules that courts offer – including bringing one consolidated action with others against the same party, or even bringing a class action.

Unless a statute provides otherwise, each party pays its own attorneys’ fees.

Franchisors don’t like this. They can be sued anywhere for any damages by any number of franchisees, and a jury would determine their fate. So, they include a dispute resolution clause in their franchise agreements. These clauses are common in commercial contracts. What makes them different in franchising is that the franchisors write them to serve their interests, and usually won’t negotiate them.

For franchisees, these clauses tend to range between moderately and grossly unfair.

For franchisors, they are a risk management tool, and franchisors believe they’re necessary to allow the system to function without the unstable risk posed by litigation not constrained by a dispute resolution clause. As a general rule, the clauses are enforceable, though there are limits.

28 INDEPENDENT JOE • JUNE/JULY 2015

A common clause contains some or all of the following: • waives punitive damages; • waives lost profits, except the franchisor is entitled to seek future damages under the franchise agreement; • waives the right to a jury; • waives the right to bring a consolidated or class action; • requires the franchisee to arbitrate disputes, while reserving to the franchisor the right to bring certain actions in court; • requires the court proceeding or arbitration to be brought exclusively in the franchisor’s home town; and • provides either that the franchisor can recover its attorneys’ fees if it wins or that the prevailing party (even if the franchisee wins) can recover its fees.

Dunkin’s dispute resolution clause mixes and matches these, and to my mind is closer to the moderately unfair pole on the axis of unfairness. Some of my description may be a bit technical, but I want to give you a feel for how it works.

Section 15.0 provides that you waive class and consolidated actions, jury trial, punitive damages, and lost profits (except the franchisee remains liable for future amounts owed under the franchise agreement.) The waivers are written to apply to both court and arbitration, but you may be able to overcome some of the provisions in a court lawsuit.

Section 15.1 allows, but doesn’t require, either party to bring arbitration against the other. The clause provides that arbitration will be in the state of the franchisee’s restaurant (a concession most franchisors don’t make). The clause adds some bells and whistles to arbitration that probably

BY PETER R. SILVERMAN

makes it more procedurally fair, but also adds significantly to the cost savings that arbitration can offer compared to a court hearing. For example, the rules of evidence apply and arbitrators are required to write full opinions. Finally, Dunkin’ may proceed against franchisees under the expedited rules in arbitration if Dunkin’ is trying to collect money, and it’s also allowed to bring certain counterclaims in court.

Section 15.3 provides that if the parties arbitrate, they can appeal to a third party arbitration panel or court. This adds to the cost of arbitration as, absent this clause, it’s nearly impossible to successfully challenge an arbitration award.

So what does this mean for you? If Dunkin’ sues you, look closely at that clause to see if Dunkin’ has gone beyond its rights under the clause, and to see how the clause limits your procedural rights and rights to seek damages. If you want to sue Dunkin’, you can choose arbitration or court, subject to the clause’s limitation on your rights.

The Dunkin’ Brands clause is unusual and complex. Make sure to use an attorney who is sophisticated and experienced in franchise litigation, and one who will explain to you all your options, the limitations the clause places on you, and how all that affects cost, timing, and the potential outcome of the dispute.

•

Peter R. Silverman is a partner of Toledo, Ohio firm Shumaker, Loop & Kendrick, LLP.