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Independent October 2013

The Magazine for D D

Independent Franchise Owners

Issue 22

2013 NATIONAL CONFERENCE

! t o p k c Ja Speakers • Issues Hall of Fame And More

Charities

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Jo e What’s Brewing? •

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SEEING THE WHOLE PICTURE

I

recently had cause to stay a few days in suburban Chicago and visit with some of our franchise owners in the greater Chicago market. While there, I noticed similarities in two related but different settings, and I was struck by what they illustrated for DDIFO. In each case, it spoke to the success so many of our members experience. The first involved a tour of the recently-opened South Chicago CML. As some of the owners were taking me through this magnificent kitchen, owners Sam Panjwani and Amish Patel explained that many of the 39 franchisees who collectively own the facility originally wanted to open their own kitchens, each to service their own networks. During the course of their meetings, a number of franchisees got together and discussed the options. It quickly became apparent that they could realize some significant economies of scale by banding together and developing one large kitchen that could serve all of their baking needs. The new “super-kitchen” is a 100,000 square foot facility serving 300+ stores and baking an average of 160,000 dozen donuts every week. In their words, “We realized that we are stronger together and if we worked together, we could be successful.” During that same week – and on that same trip – I had the opportunity to watch the premiere of Bloomberg TV’s new series, “C-Suite with Jeffrey Hayzlett.” This inaugural program of the series focused on Dunkin’ Donuts’ operation, from tip to tail. Among those interviewed in the show was the current BAC co-Chairman Clayton Turnbull. When he was asked about the franchisee/franchisor relationship, Clayton described it as a “foxhole type mentality,” in that Dunkin’ and its franchisees may have different perspectives, different views on issues, different ideas on progress and maybe even different short-term interests; but they all certainly share the ultimate goal – a strong and successful brand. Allow me to merge those sentiments as a dual backdrop, and relate how well they apply to DDIFO’s story. We exist as an organization with one broad goal – to help create the best possible environment within which our members can flourish. Likewise, our individual members all have that same goal – to succeed

in their business. No matter how big or small one’s network may be, or in which geographic region they operate, the goal is unalterably the same – to succeed! Therefore, if you’ll allow me to extend that theory to what Clayton says about the relationship with Dunkin’ Brands, you can see that whether we’re together at a DDIFO meeting hearing from industry experts regarding the new Affordable Care Act, or working collectively to explain to Members of Congress why they should pass the 40 hours is a Full Work Week Act into law… It’s a foxhole type mentality – we are stronger if we’re together! If we’re debating the impact an increase in the minimum wage may have on our bottom line or discussing how unworkable mandatory paid leave sick leave may be for the QSR industry… It’s a foxhole type mentality – we are stronger if we’re together! We may disagree on the priorities; we may see solutions to challenges from different perspectives; we may even assign different value to our participation with DDIFO. We may think some provisions in the Universal Franchisee Bill of Rights (UFBOR) could be stronger or we may believe that some of them could hurt our brand, but in the end… It’s a foxhole type mentality – we are stronger if we’re together! We may see new store development issues as more pronounced in one region versus another or realize that profits are greater in one state than they are elsewhere. We may think inequity in the franchise agreement is excessive, or we may think it strikes a perfect balance. Either way, in order to succeed… It’s a foxhole type mentality – we are stronger if we’re together! This particular trip was Chicago. Had it been Philadelphia, I may have chosen a different quote which speaks to the importance of working together to reach our shared goals, like this great one from Founding Father Benjamin Franklin: “We must, indeed, all hang together or, most assuredly, we shall all hang separately.” Ed Shanahan DDIFO Executive Director

IT’S A FOXHOLE TYPE MENTALITY – WE ARE STRONGER IF WE’RE TOGETHER!


SUB HEADLINE

CONTENTS

From the Executive Director: Seeing the Whole Picture • • • • • • • • • • • • • • 1 What’s Brewing: A Look at State Issues Around the Footprint• • • • • 5

National Convention: Jackpot! 2013 National Conference Focuses on Issues Impacting Franchisees• • • • • • • 10 Six Franchise Pioneers Honored at Hall of Fame Gala • • • • • • • • 14

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N AT I O N A L CONFERE NCE

AT L A N T

IC CITY , NJ

22

Community Charities Run on Dunkin’ Too• • • • • • • • • • • • • • • • • 19 My Perspective: Feeling Charitable • • • • • • • • • • • • • • • • • • • • • • 22 Directory of Sponsors • • • • • • • • • • • • • • • 24 Lisa on the Law: Tip Pooling Case Could Set New Precedent • • • • • • 28

Joe

Independent •

October 2013 Issue #22 Independent Joe® is published by DD Independent Franchise Owners, Inc. Editors: Edwin Shanahan, Matt Ellis Contributors: Cathy Cassata, Adam Goldman, Carl B. Lisa, Esq., Karen Sackowitz, Advertising: Joan Gould Graphic Design: Caroline Cohen

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The Magazine for DD Independent Franchise Owners Direct all inquiries to: DDIFO, Inc. 150 Depot Street • Bellingham, MA 02019 508-422-1160 • 800-732-2706 info@ddifo.org • www.ddifo.org DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts Franchise Owners. INDEPENDENT JOE®, INDY JOE®, and DDIFO® are registered trademarks of DD Independent Franchise Owners, Inc. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2013 Printed in the U.S.A.


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WHAT’S BREWING A LOOK AT STATE ISSUES

AROUND THE FOOTPRINT Photo Credit: Gordon Chibroski/Staff Photographer with Kennebec Journal

By Cathy Cassata

A

s if the daily tasks of running your Dunkin’ Donuts aren’t enough to keep you busier than busy, everchanging laws and regulations can add more stress to your days. From attempted bans on soda products and successful bans on foam cups to calls for increased minimum wage and fees on worker immigration programs, it pays to stay updated on what’s brewing. That’s why DDIFO is here to keep you in the know. New York City soda ban rejected again In March, New York Supreme Court Judge Milton Tingling rejected a ban on sugar-sweetened beverages larger than 16 ounces in size, deeming the ban “unlawful, arbitrary and capricious.” In June, New York City Mayor Michael Bloomberg appealed Judge Milton’s decision yet the First Division of the State Supreme Court’s Appellate Division knocked it down again, stating the ban was unconstitutional. If the ban was upheld, it would have prohibited restaurants, delis, stadiums and arenas, concession stands and food carts from selling sugar-sweetened beverages in containers 16 ounces or greater. The

Department of Health & Mental Hygiene approved the ban in 2012 with the goal of helping to fight obesity in New York City. Despite rejection from two courts, Bloomberg’s administration says it will appeal yet again. Foam bans force new cups A ban on the use of Styrofoam in packaging for food and beverages at food service establishments will take effect on December 1, 2013 in Brookline, Mass. To prepare for the ban, five Dunkin’ Donuts in Brookline are testing a double-walled paper cup. The test cup was chosen for its price point and because it was rated the best choice in consumer surveys. And, according to Mitzi Lawlor, whose family operates two restaurants in the town, customers love them.

Even as several communities consider bans on cups and food packaging made of Styrofoam, others are focusing on improving recycling efforts.

“The week we switched over customers were saying, ‘Where’s my paper cup? I don’t want the polystyrene anymore.’ So, especially in Brookline where they are savvy and educated about the issue they want the paper cup.”

According to published reports, one New York Dunkin’ shop and two in Maine are using the new cups. But, Lawlor says, price is an issue. “It’s double the cost.” So, any hope of making it cost-effective may lie with more communities instituting bans.

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There are other concerns about how effective the bans will be environmentally. Both foam and paper cups can be recycled, but usually aren’t. Additionally, some recycling centers have trouble breaking down the plastic lining of the paper cups. San Jose recently became the largest city to institute a ban; the phase-put of polystyrene will begin on January 1, 2014. The California Restaurant Association helped fight the measure. “Foam is recyclable, and cities all over California are taking advantage of this by setting up foam recycling programs,” Javier Gonzalez, government affairs director for the California Restaurant Association, said in a statement. In Portland, Maine, the city council bowed to pressure from the public and withdrew a Styrofoam ban last month. Some in Maine’s largest city called it a business tax that would hike the cost of paper and other alternative packaging. While expansive – it would have prevented local retailers from selling plastic foam cups, plates and other food containers intended for personal use and banned the use of Styrofoam for prepared foods and fresh meats, fish, eggs and other produce packaged in the city – it failed to exempt plastic foam boxes used by seafood shippers. One councilor expressed optimism that “we can put together a better ordinance and pass it.”

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WHAT’S Photo Credit: Slobodan Dimitrov. Courtesy of LaborNotes.org.

BREWING Minimum wage walkout On August 29, thousands of fast-food workers in 60 cities across the country walked off their jobs in an effort to raise the minimum wage to $15 an hour, as well as seek paid sick leave and the right to unionize the restaurant industry. The walkouts were organized by workers from eight cities who have staged previous walkouts throughout the year and who deliberately chose the walkout date in correlation with the 50th anniversary of the March on Washington for Jobs and Freedom where Martin Luther King, Jr. called for civil and economic rights. Although President Obama has not commented on the walkouts, days before the nationwide event he tweeted, “Raising the minimum wage will benefit the economy as a whole...” Those looking out for small business owners see it differently. “One of the most important attributes of offerings from any quick service operation is reasonable cost to the consumer. Since the profitability of franchisees depends not only on sales, but also on food and labor costs, a significant increase in the wages paid to employees would force franchisees to raise retail prices, since it would be impossible for them to absorb these kind of cost increases. Raising retail prices would, in all likelihood result in a decrease in sales, thereby further eroding profit,” says Burton D. Cohen, managing partner of Burton D. Cohen & Associates, LLC, former chief franchising officer of McDonald’s Corporation, and

Protesters rally for a higher minimum wage at a Subway sandwich shop in Los Angeles. Franchisees say increasing wages could force them to raise retail prices. Photo: Slobodan Dimitrov lecturer of management and strategy at the Kellogg School of Management at Northwestern University. “Plus, this would be detrimental to the economy as a whole because franchisees would also be forced to cut their work force in an attempt to control labor costs,” adds Cohen. Costly work-travel program Buried in the immigration reform bill that the U.S. Senate passed

INDEPENDENT JOE

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do is to attend meet-and-greets—when they visit their districts and tell them about how outdated the laws for franchising are.”

in June are a couple of paragraphs that could affect the J1-Visa Exchange Visitor Program. As part of a clause in the new Border Security, Economic Opportunity and Immigration Modernization Act of 2013, sponsoring organizations of foreign student workers who come to the United States for seasonal work under the J1-Visa program are now required to pay a $750 fee. Bert Jimenez, a New Jersey franchise owner says he has been pleased with the program as a way to find new hires, especially in cities where competition for unskilled labor can be an issue. And, he appreciates the opportunity to help new immigrants. “We are all immigrants, right? So, we are opening the door to new immigrants, especially if they will do unskilled work.” The J-1 program was established at the height of the Cold War by the FulbrightHays Act of 1961 (also known as the Mutual Educational and Cultural Exchange Act of 1961) to strengthen relations between the U.S. and other counties. As a work-travel program, students and professionals from other countries work in the U.S. for a short period of time and then return home. Push for Fair Franchising Continues Despite passing the California Senate and the Assembly Judiciary Committee in June, California Senate Bill 610 was put on hold until next year, when it is anticipated to come back to the committee with the same status. If passed and signed by California Governor Jerry Brown, the bill would revise the California Franchise Relations Act to explicitly require that franchisors and franchisees deal with each other in good faith as defined in the performance and enforcement of a franchise agreement.

Franchisees would have the right of legal remedy, just as franchisors do now via the contracts. It would also prohibit a franchisor from restricting the right of a franchisee to join or participate in an association of franchisees. Good faith is already part of franchising law in Washington, Hawaii and Iowa. “Right now, the contracts and legal interpretation have become one-sided in favor of franchisors,” says John. A Gordon, founder and principal of Pacific Management Consulting Group and DDIFO’s Restaurant Analyst. “The duty in law of good faith, a well-established common law legal doctrine, would be specifically added.” Similar efforts for franchisee rights are underway in Massachusetts, Maine and Pennsylvania. “For an extended period of time, franchisee associations like DDIFO have led the way with this topic in Congress, but our efforts tended to get locked up because of political gridlock, so it occurred to the franchisee community that if we are going to do anything to help out franchisees, we have to do it in the states,” says Gordon. This approach gives franchisees a chance to make an impact too, according to Gordon. “It’s hard for franchisees because they work in store so much, but to win over their assembly member or state senator, the best thing franchisees can do is to attend meetand-greets—when they visit their districts and tell them about how outdated the laws for franchising are.” Speaking out can make a difference, and DDIFO is here to help you get heard. Together, we can stay informed on legislation that might affect your bottom line and ways you run your business.


: E C N E R E F N N AT I O N A L C O

s e u s s I n o s e Focus s e e s i h c n a r F g Impactin W By Matt Ellis

“Dunkin’ Donuts saved lives after Sandy.”

New Jersey Lieutenant Governor Kim Guadagno

hen New Jersey Lieutenant Governor Kim Guadagno walked to the podium at Caesar’s Atlantic City last month, she knew she was facing a friendly room. The men and women – many of whom scurried to find seats as Guadagno’s keynote address began – were all connected to the Dunkin’ system, and they soon learned that Dunkin’ Donuts made the Lieutenant Governor smile. She has an appreciation for Dunkin’ franchisees—as small business owners who create jobs and pay taxes. And, in a state that is still reeling from Hurricane Sandy, she views them as beacons in the storm, business owners who braved the elements to keep the lights on and provide coffee and snacks for first responders. She said thank you because, in her words, “Dunkin’ Donuts saved lives after Sandy.” Like many politicians, Guadagno knows that a cup of coffee with a constituent, or several as the case may be, can help turn an election. And, as a patron, she knows

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The 2013 DDIFO National Conference featured a conversation with franchisees moderated by Robert Branca (left). Participants from left to right: Danny Costa, Mike White, Arun Mandi and Karim Khoja. Issues ranged from how each franchisee came into the system to the challenges of new store development.

that a cup of coffee, made to order and delivered quickly and with a smile, can keep the customers coming back for more. So, it was fitting that Lieutenant Governor Guadagno began her keynote address to the DDIFO National Conference with a simple “thank you.” She conveyed her genuine appreciation for Dunkin’ Donuts as a product and an economic driver for New Jersey. She also expressed her thanks to DDIFO for choosing Atlantic City as the site of the 2013 National Conference. “It means so much to us that you chose to have your conference here in Atlantic City,” she said. Changing the venue for the 2013 DDIFO National Conference was just one of the innovations DDIFO Executive Director Ed Shanahan instituted in his first year running the organization.

But, Sandy is still being felt along the Jersey Shore. Some businesses never recovered from the super-storm, others are still struggling. The Boardwalk in neighboring Seaside Heights caught fire a few days before the DDIFO National Conference as a result of electrical wiring damaged by Sandy. DIDIFO’s gesture was not lost on Arun Mandi, who owns shops in Atlantic City. “I was really delighted. I think it was very thoughtful on DDIFO’s part to think about coming to Atlantic City and to support the communities that were hit hard by Hurricane Sandy. So, I’m really appreciative of the fact that they moved the convention down to Atlantic City.” Nor was it lost on the Lieutenant Governor, who gave out her personal cell phone number to the attendees, promising to help any franchisee impacted by the storm. In New Jersey there are nine socalled Sandy zones. Any business owner

in those zones can receive loans of up to $5 million at 0% interest for the first two years and 1.5% thereafter. Bert Jimenez, a franchisee with four stores in Bergen County, NJ, had never heard of the loan program about which Guadagno spoke. “We will have to call her,” he said.

A new focus Since taking over as Executive Director in late 2012, Ed Shanahan has consistently worked to change the strategic focus of DDIFO, making it less-combative and more solution-oriented. “We must take the necessary steps to create an environment that is conducive to the success of all Dunkin’ Donuts franchise owners,” he wrote in this magazine earlier this year. One step is to identify threats to franchisee profitability coming from government mandates, regulations and taxes. “Like it or not,” said Shanahan, “Government is a silent partner in your business.” The message resonates with franchisees from every region and with every size network. Issues like paid sick leave, health insurance mandates or even a ban on Styrofoam cups are universal and enable DDIFO to rally members, provide information and, where applicable, government relations support so lawmakers

Photo Credits: Gregg Kohl/AC Photo

“We are working hard to be a national organization addressing the concerns of franchisees from across the footprint,” he said in his opening remarks inside the spacious Palladium Ballroom. As a venue, Caesar’s Atlantic City provided DDIFO a world class address centered on the famed Atlantic City Boardwalk. The conference room provided space for close to 75 vendors to set up around the stage and seating areas and adjacent to the buffet.

Relocating the National Conference, said Shanahan, is “the organization’s way of supporting New Jersey and its franchisees” after Sandy. Atlantic City has largely come back to its pre-hurricane levels. The return of Miss America to the Boardwalk created a noticeable buzz and has helped Atlantic City return to the glow of a friendly spotlight.

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NATIONAL CONFERENCE (Left) National DCP Chief Executive Scott Carter presented a detailed talk about how the cooperative is helping lower franchisees’ cost of goods and answered questions from franchisees in the audience. (Right) DDIFO Executive Director Ed Shanahan chose Atlantic City as the location for the 2013 DDIFO National Conference to demonstrate the organization’s commitment to “addressing the concerns of franchisees from across the footprint.” The conference generated over half a million dollars in local economic activity. understand how such issues impact small business owners. “When it comes to health care, we don’t know what it’s going to cost, or how it will impact our employees and what they’ll have to spend,” said Andy Patel, a franchisee from Jacksonville, Florida. “It’s already adding cost to us in our office. At the same time, it’s going to cost us in terms of employees’ pay on top of a two percent increase in our unemployment tax.” One session, titled, “Keeping Big Brother in Check,” featured C.K. Patel, former chairman of the Asian American Hotel Owners Association (AAHOA). He was joined by lobbyists Joseph Giannino of

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Massachusetts and Gene Mulroy and Jeanette Hoffman of New Jersey. They discussed state and national initiatives designed to support franchisees, like Fair Franchising legislation and the Universal Franchisee Bill of Rights. The panel had a clear and consistent message for the franchisees: Get to know your local legislator. “Many elected officials visit your stores. Know who they are. Introduce yourself. Make them understand that you are the small business owner behind the large corporate brand name on the sign and you feel the brunt of their decisions, not the Brand.” said Giannino.

New perspectives Franchisees say there is great value in hearing other Dunkin’ Donuts operators discuss the issues that are specific to their region. “It’s good to know what’s going on in other parts of the country and other development areas and what franchisees are facing,” said Ben Bathija, a franchise owner from Long Island, New York. This year’s DDIFO National Conference featured a “Conversation with Dunkin’ Franchisee Stars,” featuring Danny Costa from New England; Karim Khoja from Chicago; Arun Mandi from New Jersey; and Mike White from Georgia. Robert


Branca, a franchisee with stores in Massachusetts, Ohio and Florida, moderated the discussion. Each franchisee discussed their history in the Dunkin’ system and the uniqueness of their region. “Atlantic City has grown so much, it’s like a different state from the rest of New Jersey now,” said Mandi, who got his start working for long-time Connecticut franchisee Jim Cain before opening the first of his shops on the shore and then questioning his choice to develop in a new area. “I opened 12 locations in two years. It took seven years to make any money.” Mike White, who started his five store network in Atlanta 11 years ago, emphasized how the southeast market is so different

from Dunkin’s more mature markets in the Northeast, Mid-Atlantic and Chicago. “Atlanta is a tough market to develop and we want the Brand to realize that it can be difficult to build the number of stores they want,” he told the group. “I believe DDIFO can help give us a voice in emerging markets.” “DDIFO brings people together,” said Costa, whose network includes Massachusetts, Maine and Pennsylvania. “It’s important for franchisees to know how they get value from DDIFO at a time like now when we are not fighting with the brand.” Even as development remains a concern in the Southeast, franchisees at the DDIFO National Conference identified issues like

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health care, sick leave and minimum wage as among the most pressing. Franchise owners with two shops have many of the same concerns as those with 100 locations: how to protect profitability while paying higher labor costs and absorbing higher costs related to mandates like Styrofoam cup bans. Each franchisee has to develop strategies and solutions that will work for their business and, they say the opportunity to talk with other Dunkin’ franchisees – from other regions – is, perhaps, the greatest benefit they get from the National Conference. “To hear from a fellow franchisee who’s already done his homework, can make it much better for all of us,” said Andy Patel from Jacksonville.

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Six Franchise d e r o n o H s r e Pione

H

ugs, tears and remembrances punctuated the third annual DDIFO Franchise Owners Hall of Fame Dinner and Gala held during the National Conference in Atlantic City. Six individuals, including the first woman, were recognized for their lifetime contributions to the Dunkin’ system. Amrit Patel, who came to the United States in 1970 from Gujarat, India and built a network of 35 stores in Chicago, was honored for helping develop Dunkin’ Donuts ubiquity in America’s third largest city and helping so many immigrant families have a piece of the American dream. “I am honored to be recognized here tonight,” said Patel, who was joined by family, friends and fellow Chicago-area franchisees. “My goal was running my own shop. But persons similar to me wanted to go into the business, so I sent them to Dunkin’ Donuts.” “Amrit helped hundreds of people get into the Dunkin’ system,” said Karim Khoja, whose father, he remembers, was one of those beneficiaries. “He never cared about your religion or the color of your skin. He just wanted to help you buy a franchise.”

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Fr

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: A L A G E M A F F HALL O c h is e O w

n

Antonio (Tony) Andrade also came to this country in search of the American dream. He found it, thanks in part to his brother, Manny, who began buying Dunkin’ Donuts shops in the late 1960s and created opportunities for his extended family. By the time Tony opened his first store in 1975, Dunkin’ Donuts was growing in popularity throughout New England. Tony wanted to help others get involved. John Motta was one of those early beneficiaries of Tony’s generosity. It was John’s honor to introduce Tony at the Gala. “Tony helped my family get into this business and for that we are grateful,” said Motta. “It’s an honor for me to be remembered by all the franchisees,” said Tony. “We worked hard but we had fun in this business.” Tony is retired now, having handed the reins of his network to his children. He enjoys playing golf and spending time with his family. Attorney Carl Lisa also got involved in the Dunkin’ business early


Photo Credits: Gregg Kohl/AC Photo

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HALL OF FAME GALA

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Building on more than 15 years of service to the Dunkin’ Donuts community, the franchise specialists at Sansiveri, Kimball & Co. are dedicated to becoming the region’s recognized leader in providing compliance and business consulting services to Dunkin’ franchisees. The firm’s list of comprehensive services includes business valuations; audited, reviewed and compiled financial statements; individual and business tax returns; estate planning and gift tax return preparation. Sansiveri, Kimball & Co. also offers tax analysis and purchase price allocations in conjunction with franchise sales, as well as business planning, income tax and cash flow projections for purposes of obtaining financing or opening new locations. “Our understanding of the Dunkin’ Donuts business model and our experience in valuing franchises helps our clients make important business decisions that save them taxes and make their business transitions more seamless,” said Managing Partner Michael A. DeCataldo. “Franchisees often comment that the quality and thoroughness of our work is very high compared with our fees.” For more information, visit www.sansiveri.com or contact Michael DeCataldo at 401-331-0500.

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on—when Manny Andrade came to his Providence office looking for legal help. For almost half a century, Carl has been a trusted advisor for hundreds of franchise owners and the DDIFO. His induction into the DDIFO Franchise Owners Hall of Fame was Carl’s second such honor. His law partner, Louis Souza, reminded the audience of Carl’s athletic prowess in college. A record-setting sprinter, Carl is enshrined in the University of Rhode Island’s Athletic Hall of Fame. His work as DDIFO’s General Counsel has resulted in landmark results, like the 20-year renewal clause in the 2011 Franchise Agreement. “I feel great where this organization is today. I see the long road ahead as a successful one,” said Carl. Mark Silverstein, a New Hampshire franchisee, had a vision for leveraging the collective strength of Dunkin’ franchisees into a purchasing and supply chain cooperative that became a model within the Quick Serve Restaurant (QSR) industry. The Distributor Commitment Program (DCP) began in the northeast but quickly spread into other regions. As the Executive Director of the Northeast DCP, Silverstein used his powers of persuasion to lay the groundwork for the national entity that exists today.

Top to Bottom: Mitzi Lawlor, Carl Lisa Sr., Bill Daly Sr., Ed Wolak, Mark Dubinsky Upper Right: Amrit Patel (third from left) was one of six honorees inducted into the DDIFO Franchise Owners Hall of Fame

“He could persuade you to see his point of view, help you understand his way of thinking so you could think that way also,” said Mark Dubinsky, a former franchisee and a long-time friend of Silverstein. “We benefit every day from his vision,” said Ed Wolak, who accepted the honor on behalf of Mark, who could not make the trip to Atlantic City. Today’s franchise owners also benefit greatly from the vision of another Dunkin’ pioneer, Dave Segal. While he never owned a


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franchise, Segal is credited with devising the system that allowed franchise owners to own the land on which their stores sit, enabling franchisees to have more control over their costs, and develop greater equity in their business. “If it wasn’t for Dave, we would be like McDonald’s,” said Mark Dubinsky, who accepted the award on Segal’s behalf. “We would be renting our shops like McDonald’s franchisees do.”

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Segal was one of the first people hired by Dunkin’ Donuts founder Bill Rosenberg. The two shared the boyhood experience of driving an ice cream truck—as well as the experience of building the iconic Dunkin’ brand.

“Mom would raise her hand to get her point across in franchisee meetings,” said Mitzi Lawlor, Helen’s daughter who helps runs the family business and learned early on from Mom the importance of being heard. “She told me, ‘Sometimes you just have to blurt it out…’”

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Helen D’Alelio is the first woman enshrined in the DDIFO Franchise Owners Hall of Fame. Until her passing in 2007, Helen was accustomed to conducting business surrounded by men—that’s the way the Dunkin’ system was in the early days.

Helen D’Alelio became an active member of the franchisee community soon after buying the family’s first shop in 1977.

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“She was fighting for franchisees before women did that kind of thing,” DDIFO Executive Director Ed Shanahan said as he introduced Helen’s family at the Hall of Fame Gala.

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“If she were here today and could say anything, she’d just go on and on. She’d be beaming,” said her son Gary. “My mother’s claim to fame was that the three of [us] were going to get along and work together and get along and respect each other’s strengths and weaknesses going forward. That’s what has made us successful,” said Lawlor.

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The Kensington Company - Your franchise expert since 1995, specializing in Dunkin Donuts re-sales since 2005. Our Team includes two Former Dunkin Brands Franchise Managers who have experience in selecting new franchisees for DD approval 40% of all deals that were sold had no Financing Contingencies We continually update our database with franchisees that are approved for Expansion; We currently have Six networks under contracts, Five under Letters of Intent and Six active listings which are available for sale.


Community Charities Run on

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Photo Credits: Special Olympics Illinois

By Karen Sackowitz

T

he scope and reach of community programs supported by Dunkin’ Donuts franchisees is as impressive as it is impactful. The Dunkin’ Donuts & Baskin-Robbins Community Foundation, which this summer announced another $205,300 in grants to support organizations in the mid-Atlantic region, has helped to raise more than $1 million for non-profits throughout New York, New Jersey, Pennsylvania, Delaware and Maryland. Similar numbers are reported in other parts of the country as well.

“Cops on Rooftops” has become a popular fundraising effort for Special Olympics in several states. The initiative is coordinated through the Dunkin’ Donuts & Baskin-Robbins Community Foundation, which has raised over $4 million for community causes since its launch in 2006.

The specific programs which generate such funds are planned and executed by the franchisees, who enthusiastically dive in to give back to their communities in a big way. One such success story is the Dunkin’ Donuts George Mandell Memorial Golf Tournament held at the International Golf Club in Bolton, Massachusetts every summer. October 2013 marked the 16th year for the event, drawing 250 participants and raising an impressive $600,000 for the Jimmy Fund. All told, the event has surpassed $10 million in cumulative donations to Dana-Farber since 1998. “The money raised from the Tournament goes to support the Translational Research Laboratory through the Dunkin’ Donuts ‘Right Treatments Rid Cancer’ Research Fund,” says Melanie King, director of Marketing and Communications at the NDCP. “The lab is an important part of Dana Farber’s balanced commitment to patient care and research because it is focused on ensuring that scientific advances are translated to new therapies as quickly as possible.”

When George Mandell, a franchise pioneer and inaugural inductee in the DDIFO Franchise Owners Hall of Fame, lost his battle with cancer in 1998, New England franchise owners stepped in to create the tournament. Each year, the event pays tribute to members of the Dunkin Donuts community impacted by cancer. A fun and attention-grabbing visual can also come into play when franchisees organize community fundraisers. The national “Cops on Rooftops” events enjoy incredible popularity, drawing donations for the Special Olympics in markets such as greater

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Mandell Golf Tournament Co-Chairs Melanie King (right) and Maria Ambach (center) present a check for $600,000 to Nancy Rowe, Director of the Jimmy Fund Golf Program on, August 12, 2013. Also pictured are Boston comic legend Lenny Clarke (left) who emceed the event and Dunkin’ Donuts franchisee George Zografos. in the thousands from the event, providing a huge boost for participating local athletes. In the New York City area, franchisee Rod Valencia says the feedback and consistent support his stores receive from the community shows the success of their charitable initiatives.

Baltimore, Chicago, and Milwaukee, to name a few. For this unique initiative, police officers are literally stationed on the roofs of Dunkin’ Donuts stores, where they solicit donations to bring them down. While some officers are content to smile and wave, others have been known to dance, show up in costume, and even toss munchkins down to customers. Occasionally, adjustments need to be made, such as this past summer when heat indexes in the triple digits forced officers in Onondaga County, New York to come down from the rooftops and fundraise inside, but public response is still strong. Locations who participate generally report proceeds

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“There is tremendous positive response from our guests within the areas in which we operate,” says Valencia, who owns stores in four boroughs of New York City as well as in Tampa. “They show their appreciation by making it known to their friends which Dunkin’ Donuts store they patronize.” Programs which run in Valencia’s locations include sponsorship of youth sports events, projects created in conjunction with Habitat for Humanity, and partnerships with local school districts. “Once a year, we have a class of students come to our CML location to experience how donuts are made and to practice finishing them,” he says. “For Habitat, we were able to work closely with communities on disaster relief efforts in our area.” Traveling west, it’s easy to find more Dunkin’ Donuts franchisees making a difference in their communities. Joe Rando owns five stores in the greater Nashville area and says the largest event of their year is Nashville Family Day, a carnival style event which takes place each fall. Family Day benefits the TJ Martell Foundation, the music industry’s largest foundation which funds innovative medical research focused on finding cures for leukemia, cancer and AIDS. “We’ve been doing it for five years now, and 100 percent of the proceeds go to the Foundation,” says Rando. “Since they are a music based organization, we have some really great live performances.” In 2012, performers and guests included American Idol finalist Colton Dixon and Disney television star Coco Jones. For a special ticket price, Family Day attendees can upgrade their admission to include a VIP reception, where they can meet the day’s performers. In addition to their major annual event, Rando’s stores are known for being strong supporters of local youth sports programs. “I have three kids who all grew up through the programs here, and I’ve always been active on those Boards,” he says, adding that local sporting events truly bring the community together in his market. “You look at youth soccer in Williamson County, and there are 4200 kids in the league every fall. There are fourteen fields going on any given Saturday.”


Photo Credits: www.facebook.com/BarbaraBushChildrensHospital

DUNKIN CHARITIES It is that link between Dunkin’ Donuts franchisees, employees, and community members that spells success for a host of charitable initiatives. In the Northeast, efforts large and small are supported equally. “Our number one cause is the American Red Cross,” says Colleen Bailey, who owns eight stores in central Maine. “We also support Relay for Life and various programs in local schools. For one location, we donated $1000 toward a playground committee.” Bailey says that the initiatives supported by her stores receive positive feedback...and prompt additional requests. “Customers love it, which brings in more people with more needs, but that’s okay,” she says. “Sometimes it’s an individual looking for help with a fundraiser for someone’s medical bills. We try to help anyone who comes in as best we can.” Bailey is also chair of the Dunkin’ Donuts & Baskin-Robbins Community Foundation’s Maine Chapter - which works in conjunction with Dunkin’ Brands - and is proud of the work she and other area franchisees do for the state as a whole. “The Foundation chooses projects based on three pillars: safety for the community, health for the children, and food for the hungry,” she says.

The Maine chapter of the Dunkin’ Donuts & Baskin-Robbins Community Foundation helped raise over $51,000 through its Iced Coffee Day for the Barbara Bush Children’s Hospital. One such campaign recently raised $51,000 for the Barbara Bush Children’s Hospital in Portland, Maine. In 2012, the Foundation’s Northeast Chapter granted over $300,000 to the Jimmy Fund, Hasbro Children’s Hospital, Northeast Food Banks, and the Alzheimer’s Association. Whether making sure the local little league has quality equipment or supporting critical organizations with the financial and community support they need, Dunkin’ Donuts franchisees consistently step up to the plate, representing a source of great pride for the company.

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SUB HEADLINE DDIFO SPONSOR ADVERTORIAL It’s no surprise that Starkweather & Shepley is one of the original DDIFO Sponsors since the insurance broker has worked with Dunkin’ Donuts franchisees for more than three decades. “We aim to provide unparalleled coverage, pricing and risk management services to our clients and can customize policies from the nation’s premier carriers,” said VP Sabrina SanMartino. Starkweather & Shepley offers property, casualty, private group and personal insurance as well as benefit solutions, such as health insurance, life, disability, estate planning and 401k/profit sharing plans. For property and casualty insurance, the broker ensures that hold harmless agreements are correct and any additional insured parties are listed properly. And, unlike most brokers, Starkweather & Shepley has a dedicated claim department that acts as your advocate in claim situations. According to SanMartino, “Franchisees say it is the personal touch from everyone on our staff and our accessibility and ability to clearly explain coverage terms that sets us apart and makes us their trusted ally and business partner.” For more information, visit www.starshep.com or contact Sabrina SanMartino at 800-854-4625, ext. 1121.

My Perspective: Feeling Charitable By Adam Goldman

E

very Dunkin’ Donuts franchisee I’ve ever met talks proudly about the charitable donations their business makes to community organizations. Whether it’s supporting the girls’ soccer team, or buying an ad in a program book or selling car wash tickets for the Boys Club, a franchise owner has many choices for how to be a good neighbor. And, therein lies the problem. We receive hundreds of requests for money or sponsorships every week. Some of them are from people I know personally; others are blind emails asking for donations. I’m sure most all are legitimate, though, some clearly are not. When I first got started in this business, I found it hard to decide which group or friend would get the donations. You can’t give money to everyone. So, I asked people I knew within the Dunkin’ system and other friends who owned small businesses how they handled this. What I learned is that you need to establish processes for responding to solicitations, determining what causes you want to support and keeping records. By no means is our system the only one. There are many best practices that apply in our circumstances, but which may not apply for other franchisees. The majority of our stores are in denselypopulated, urban locations except one restaurant in the town where my wife and I both have spent most of our lives—meaning we are often approached by personal and family acquaintances as well. If there is one piece of advice I want to share it’s this: Remove the emotion from the equation. It’s hard not to be moved by someone’s emotional appeal, even ones that arrive in the mail from people you don’t know.

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So, we decided we would no longer consider unsolicited letters sent to the stores. We figured if you can’t take the time to come in and introduce yourself and your cause, why should we divert funds to you. So, we developed a policy whereby all requests are sent to our corporate email account for evaluation. When we receive a request from a verifiable cause, we automatically send them an email reply so they know we will evaluate their request. We tell them we receive hundreds of requests throughout the year from many needy and deserving groups and we regularly donate goods, money and sponsorships across all of our stores and at the corporate level. We list several of the recurring groups we support and we remind them that we are an independent franchise and that the DDBR Community Foundation has donated over $4.4 million to various causes since 2006; we even give them a link to the website. One other thing we include in that email – and while it may seem obvious, we didn’t do it at first – is a request that they send a copy of the organization’s 501(c)(3) certificate, proving their non-profit status


DUNKIN CHARITIES and, if available, a picture, program, or flyer from last years event. This tends to weed out the fraudulent groups immediately. Here are some examples of how we determine who gets what: We generally turn down requests to sponsor groups or provide coupons. We have a couple of groups that we have sponsored for years and if we are to continue with those, we can’t get involved with new ones. As for coupons or special offers, because there are so many local Dunkin’ shops outside our network that can’t accept those offers, we don’t want to be the cause of any confusion—on the part of a store employee or the consumer. If people are holding an event and want gift cards, we explain how gift cards really work and why we don’t donate them. But, if it’s an event we want to support, we will donate a few dozen donuts and a few boxes of Joe (or more if necessary) so the volunteers can be fed and we can have our product visible to people who attend. It doesn’t hurt when the volunteers tell guests that the coffee and donuts were donated. We will allow groups that we’ve vetted to post a sign in our window, as long as we can review it for content. We post the signs for one week prior to the event and rotate to the next one. We allow one booster’s group per month to solicit for donations outside our shop, so as not to overwhelm our guests. I personally speak to the organizer and explain that there must be at least one adult present at all times, the kids must be in their uniforms, have a sign clearly stating the reason for the solicitation, limit the number of kids to two at any one time. Typically we suggest they not directly ask for a donation, but, instead, open the front door and say, “good morning” to the guests walking in or out. That technique tends to raise more money without shaming the guests into donating.

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Regardless of the donation, we have a specific procedure for recordkeeping. If the donation is sponsorship or cash, we keep a copy of the cleared check and we request the recipient group provide us with a receipt as well as a copy of the brochure, flyer, or program. This is handy particularly if you are audited. If we are donating food and beverage – or providing a discount over the retail price – we send an invoice to the organization. The invoice contains the group’s tax exemption number, the event name, the list of goods delivered and the retail costs. After the line indicating the total value of the products, we have an additional line labeled “Donation by our Company” with the corresponding dollar amount, either full or partial. The invoice reflects the true value of what the group is receiving as well as our generosity. It’s handy if the IRS chooses to question the discrepancy between cost of goods dollars and sales dollars. Invoices also serve as backup documentation to your Radiant (or other POS) records if Dunkin’ conducts an audit. Non-profits are trying harder than ever to raise money in the wake of a continued economic downturn and cuts to municipal budgets. If you’re like me, you find it easy to sympathize with the many causes and personal stories. And, you enjoy giving your money to support worthy charities. So, do yourself a favor and put policies in place so you’re not letting your heart decide how your money is allocated.

INDEPENDENT JOE

OCTOBER 2013 23


Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at www.DDIFO.org ViewPoint Sign and Awning

Plotwatt, Inc.

Adrian A. Gaspar & Company, LLP, CPAs

Bill Gavigan 508-393-8200 • billg@viewpointsign.com 35 Lyman Street, Northboro, MA 01532 www.viewpointsign.com

Marc Bodner 919-614-2293 • marc@plotwatt.com 1715 Six Gables Road, Durham, NC 27712 www.plotwatt.com

WatchFire Signs

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Bederson LLP - CPAs and Consultants

Devon Mourer 217-442-0611 • devon.mourer@watchfiresigns.com 1015 Maple Street, Danville, IL wwwwatchfiresigns.com

ACCOUNTING

Robert Costello 617-621-0500 • cpas@gasparco.com 1035 Cambridge Street, Suite 14, Cambridge, MA 02141 www.gasparco.com Robert Fischbein, CPA 973-530-9100 • rfischbein@bederson.com 100 Passaic Avenue, Fairfield, NJ 07004 www.bederson.com

Cynthia A. Capobianco, CPA

Cynthia Capobianco 401-822-1990 • cynthia@capobianco.necoxmail.com 60 Quaker Lane, Suite 61, Warwick, RI 02886-0114

Neovision Consulting Inc.

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

Rubiano & Company, CPA’s

Daniel J. Rubiano, CPA 401-949-2600 • dan@rubianocpa.com 5 Austin Avenue, Suite 1, Greenville, RI 02828 www.rubianocpa.com

Sansiveri, Kimball & Co., LLP

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

Thomas Colitsas and Associates, CPA

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

BACK OFFICE

BUSINESS BROKER

Kensington Company & Affiliates

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

COMMUNICATIONS

Bank RI

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

Brendon Pierson

Jeffrey Kotch 732-681-4800 • jkotch@brendonpierson.com 6333 North State Highway 161, 4th Fl., Irving TX 75038 www.brendonpierson.com

Business Financial Services

Comcast Business Services

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

Time Warner Cable Business Class

Deborah Blondin 603-589-4071 • dblondin@centrixbank.com 1 Atwood Lane, Bedford, NH 03110 www.centrixbank.com

COST RECOVERY

Bedford Cost Segregation, CPAs

Robyn Gault 603-433-9476 • rgault@directcapital.com 155 Commerce Way, Portsmouth, NH 03823 www.franchise.lendedge.com

EF Cost Recovery

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

Comcast National Sales • 866-407-6338 Dunkin_National_Sales@comcast.com 500 South Gravers Road, Plymouth Meeting, PA 19462 www.business.comcast.com/internet Tricia Petway (919) 654-4115 • tricia.petway@twcable.com 4200 Paramount Parkway, Morrisville, NC 27560 www.twc.com/business

Bill Cusato 978-263-5055 • bcusato@bedfordcostseg.com 60 State Street, Suite 700, Boston, MA 02109 www.bedfordcostseg.com/who_we_serve/ddifo.asp Ed Craig 774-263-7388 • ecraig3@efcostrecovery.com PO Box 79361 North Dartmouth, MA 02747 www.efcostrecovery.com

Centrix Bank & Trust

Direct Capital Franchise Group

Fidelity Bank

First Franchise Capital

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

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

Performance Business Solutions, LLC

Karen Johnson 402-562-5111 • karen.johnson@firstfcc.com 2715 13th Street, Columbus, NE 68601 www.firstfranchisecapital.com

BUILDING

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

Lourilynn Throgmorton • 340-201-4323 Lourilynn.throgmorton@glacialenergy.com 24 Route 6A, Sandwich, MA 02563 www.glacialenergy.com

Christine Keating 203-229-1804 • christine.keating@ge.com 201 Merritt 7, 2nd Floor, Norwalk, CT 06851 www.gefranchisefinance.com

Jera Concepts

Trane HVAC

Glacial Energy

DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

24 INDEPENDENT JOE

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GE Capital, Franchise Finance

Infinity Franchise Capital

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


Photo Credits: Gregg Kohl/AC Photo

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

NFA Restaurant Finance

Larry Howard 205-871-8450 • lhoward@nfaloans.com 400 E. 22nd Street, Suite A, Lombard, IL 66148 www.nfaloans.com

Priority Capital

Brian Gallucci 800-761-2118 ext. 14 • bgallucci@priotiycapital.com 174 Green Street, Melrose, MA 02176 www.prioritycapital.com

Sovereign Bank

Mark E. McGwin 508-890-6880 • mmcgwin@sovereignbank.com 446 Main St., Worcester, MA 01608 www.sovereignbank.com

TCF Franchise Finance

Mike Vallorosi 201-818-2700 • mvallorosi@tcfef.com 300A Lake Street, Suite B, Ramsey, NJ 07446 www.tcfef.com

TD Bank

Brian Frank 203-761-3818 • brian.frank@td.com 40 Danbury Road, Wilton, CT 06857 www.tdbank.com

United Capital Business Lending

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

FOOD PRODUCTS CSM Bakery Products

Marla Cushing 770-723-2083 • marla.cushing@csmglobal.com 1901 Montreal Road, Suite 121, Tucker, GA 30084 www.csmbakeryproducts.com

Bill.com

Becky Riffis 650-353-3301 • briffis@hq.bill.com 3200 Ash Street, Palo Alto, CA www.bill.com

Employers Reference Source

Sandra Fabrizio 888-512-2525 • sandraf@employersreference.com 1587 Hamilton Avenue, Waterbury, CT 06706 www.employersreference.com

Granite Payroll Associates

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

Gulpfish.com

Quaker Oats A Division of PepsiCo

Ilya Reikhrud 800-974-4514 ext. 101 • ceo@gulpfish.com 1005 Main Street, Pawtucket, RI 02860 www.gulpfish.com

HUMAN RESOURCES

Jim Ferreira 203-530-3512 • jferreira@ovationpayroll.com 777 Westchester Ave, Ste 101, White Plains NY 10604 www.ovationpayroll.com

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

ADP

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

Heartland Ovation Payroll

HK Payroll Services, Inc.

Laurie Fleming 563-556-0123 ext.1190 • lfleming@honkamp.com 2345 JFK Rd, PO Box 3310,Dubuque, IA 52004 www.hkpayroll.com

INSURANCE

Insurance World Agency Inc.

Anil K. Sharma 630-654-6067 • info@iwainsurance.com 100 E Ogden Avenue Suite 203, Westmont, IL 60559 www.iwainsurance.com

KK Insurance Agency

Ashish Vadya 866-554-6799 • ashish@kkinsuranceagency.com 541 Broadway, Long Branch, NJ 07740 www.kkquote.com

Sinclair Insurance Group - Risk Management

Matt Ottaviano 203-284-3235 • mottaviano@sinclair-insurance.com 4 Tower Drive, Wallingford, CT 06492 www.srfm.com

Starkweather & Shepley Insurance Brokerage, Inc.

Sabrina San Martino 800-854-4625 ext. 1121 • ssanmartino@starshep.com 60 Catamore Boulevard, East Providence, RI 02914 www.starkweathershepley.com

Wells Fargo Insurance Services

Mark Stokes 813-636-5301 • mark.stokes1@wellsfargo.com 2502 North Rocky Point Drive, #400, Tampa, FL 33607 wfis.wellsfargo.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

INDEPENDENT JOE

OCTOBER 2013 25


Directory of Sponsors Please Visit The DDIFO Sponsor Directory online at www.DDIFO.org Hi-Tech Sound

Gary Hanna 508-624-7479 • gary@hitechsound.com 19 Brigham Street, Unit 10, Marlboro, MA 01752 www.hitechsound.com

HME Drive-Thru Headsets

Brady Campbell 858-535-6034 • bcampbell@hme.com 14110 Stowe Drive, Poway, CA 92064 www.hme.com

Jarrett Services ATM, Inc.

Eric Johnston 732-572-0706 • ej@jarrettforcash.com 1315 Stelton Road, Piscataway, NJ 08832 www.jarrettforcash.com

Macdonald Restaurant Repair Service, Inc.

Paris Ackerman & Schmierer LLP

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

Vernis & Bowling of Palm Beach, P.A.

Tammy Bouker • 561-775-9822 • 561-775-9822 tbouker@national-law.com 884 US Highway One, North Palm Beach, FL 33408 www.national-law.com

Zarco, Einhorn, Salkowski & Brito, PA

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

OPERATIONS

3M Company

Bill Muenkel 952-484-4875 • wemuenkel@mmm.com Bldg. 223-2N-20 St. Paul, MN 55144 www.3M.com/communications

3 Wire Group, Inc.

Derek Knapp 518-563-3200 • derek.knapp@3wire.com 101 Broadway Street West, Osseo, MN 55369 www.3wire.com

Access to Money ATM, Inc./Cardtronics

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

Belshaw Adamatic Bakery Group

Fran Kauth 206-718-3573 • fran_kauth@belshaw.com 814 44th Street NW, Suite 103, Auburn, WA 98001 www.belshaw-adamatic.com

Bunn-O-Matic Corporation

Mark & Debi Macdonald 508-384-9361 • debi@macdonaldcompany.com PO Box 61, 83 Pond Street, Norfolk, MA 02056 www.macdonaldcompany.com

Delphi/Fast Track 2+2 Drive-Thru Timer

Amie Yee 877-646-8224 • ayee@mint-x.com 2048 119th Street, College Point, NY 11356 www.mint-x.com

DTT Surveillance

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

Dunbar Security Products

Jerry Brown • A Division of New England Coffee Co. 781-873-1536 • jerry.brown@necoffeeco.com 100 Charles Street, Malden, MA 02148 www.nerepairservice.com

Ecolab

Jeffrey Cartier 401-247-6500 • jcartier@pararest.com 101 Main Street, Warren, RI 02885 www.pararest.com

eTemp

Matt Lemke 785-368-7530 • matt.lemke@payless.com 3231 SE 6th Avenue, Topeka, KS 66607 www.payless.com

Green Turtle Americas

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

Todd Rouse 800-637-8606 • Todd.Rouse@bunn.com 1400 Stevenson Drive, Springfield, IL 62703 www.bunn.com Mike Pierce 714-850-1320 • mike@phaseresearch.com 3500 West Moore Ave., Suite M, Santa Ana, CA 92704 www.fasttracktimer.com Mira Diza 800-933-8388 • mdiza@dttusa.com 1755 North Main Street, Los Angeles, CA 90031 www.dttusa.com Dustin Gosewisch • 800-766-9145 dustin.gosewisch@dunbararmored.com 8525 Kelso Drive, #L, Baltimore, MD 21221 www.dunbarsecurityproducts.com Arliene Bird arliene.bird@ecolab.com 8300 Capital Drive, Greensboro, NC 27409 www.ecolab.com/Businesses Cardie Saunders 800-974-1006 • cardie.saunders@getecube.com 5 Cold Hill Road, Building 20, Mendham, NJ 07945 www.getetemp.com Eric Hancock 704-295-3964 • ehancock@greenturtletech.com 2709 Water Ridge Pkwy Charlotte NC 28217 www.greenturtletech.com

DDIFO® does not endorse or recommend commercial products, processes, or services. A DDIFO® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDIFO®. Furthermore DDIFO® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

26 INDEPENDENT JOE

OCTOBER 2013

Mint-X Corporation

New England Drive-Thru Communications

New England Repair Service

Paramount Restaurant Supply Corp.

Payless Shoe Source

Pentair Filtration & Process

Pier Cleaners

Larry Fish 401-789-2333 • piercleaners@piercleanersri.com 50 High St. Wakefield, RI 02879 www.piercleanersri.com


Directory of Sponsors R.F. Technologies

UAS Security Systems

Jennifer Morales 618-377-4063 ext. 121 • jenm@rftechno.com 542 South Prairie Street, Bethalto, IL 62010 www.rftechno.com

Chris McGurk 800-421-6661 • chrismcgurk@uas.com 700 Abbott Drive, Broomall, PA 19008 www.uas.com

QualServ

Becky Dubose 800-643-2980 ext. 256 • bdubose@qualservcorp.com 7400 28th Street, Fort Smith, Arkansas, 72906 www.qualservcorp.com

Shoes For Crews

Shanita Vickers 877-677-3630 • shanitav@shoesforcrews.com 250 S. Australian Ave. West Palm Beach Fl 33401 www.shoesforcrews.com

SKAL East, Inc

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

TredSafe/WalMart

Ted Travis 909-949-0495 • ttravis@esoriginals.com 450 West 33rd Street, New York, NY 10001 www.walmart.com

Wentworth Technology

Lisa Keslar 207-571-9744 • jlisakeslar@wentworthtechnology.com 77 Industrial Park Road Saco Me 04072 www.speedthruheadsets.com

The Wifi Company

John J. Bailey 877-949-9434 • jbailey@thewificompany.com 190 Pine Rd., Golden, CO 80403 www.thewificompany.com

TAX DEFERRED EXCHANGE Exchange Authority

Marie Dias 978-433-6061 • mdias@exchangeauthority.com 9 Leominster Connector, Suite 1, Leominster, MA 01453 www.exchangeauthority.com

! s r o s n o p S r u O to u o Thank Y

INDEPENDENT JOE

OCTOBER 2013 27


Lisa on the Law

Tip Pooling Case Could Set New Precedent

Direct Capital Franchise Group has been serving Dunkin’ Donuts franchisees for nearly 10 years and has been a DDIFO Sponsor for six years. Its franchise team’s goal is to simplify financing by providing essential products at the most competitive prices, delivered with extraordinary speed and with a remarkable customer experience. “With us, Dunkin’ franchisees experience fast, frictionless transactions and unparalleled customer service from a lender who understands the difference between a franchise and a typical business,” said VP of Strategic Accounts Robyn Gault. Franchisees have exclusive access to Dunkin’ Donuts LendEdge, an online financing portal that provides access to up to $250,000 without a financial review and same-day approvals for equipment and technology upgrades, remodels and new stores. Direct Capital can also provide capital for operating expenses such as employee wages, initial food orders, local marketing and franchise fees. “Direct Capital has been great to work with. I got the money that I needed quickly, and the entire process was a breeze,” said Dunkin’ Donuts franchisee Moshe Aroch. For more information, visit DD.LendEdge.com or contact Robyn Gault at 603-433-9476 or rgault@directcapital.com.

28 INDEPENDENT JOE

OCTOBER 2013

By Carl B. Lisa, Esq., DDIFO General Counsel

is drawn in New York State because it encompasses both shift supervisors and assistant managers. First regarding shift supervisors, the Court agreed with Starbucks, that the major responsibility of the shift supervisors is wait service and they perform the same customer service duties as baristas, even though they do perform limited supervisory duties which do not include hiring and firing. In doing so, it rejected the claim of the baristas that even though shift supervisors receive a higher hourly wage, they should not be allowed to receive tips.

T

ip pooling is an issue Dunkin’ Donuts franchisees in many states have been watching closely. Several franchise owners have been sued for allowing shift supervisors to share in the tips collected at the counter, even though these supervisors have limited managerial authority and spend the majority of their shifts serving customers. These lawsuits have prompted many franchise owners to remove tip collection cups completely, though, in a case that is still pending, one franchisee in Massachusetts was actually sued for failing to provide a tip cup. Now, a decision involving New York Starbucks baristas (counter workers) and shift supervisors could establish a new precedent in other states and limit the liability of franchisees who allow tip pooling. The New York Court of Appeals for the Second Circuit has held that Starbucks shift supervisors are entitled to share tips left in a jar at the counter. The ruling in Barenboim, et, al v. Starbucks Corporation and Winans v. Starbucks Corporation strengthens the position franchisees have supported that supervisors should be allowed to share in the tips since they work alongside counter staff serving customers and have limited managerial authority. The case also provides an important distinction as to where the line of managerial authority

With regard to assistant managers however, the Court sided with Starbucks that the assistant managers had too much supervisory responsibility, such as creating schedules and hiring and firing, and could not fairly be characterized as employees similar to general wait staff. Therefore, they should not be entitled to share in the tips. The Court based its decision on the New York labor law provisions which provide that employees who directly provide wait service to customers are tip pooling eligible, although they provide limited supervisory duties. While other courts, most notably California, have also ruled that it was lawful to include shift supervisors in the sharing of tips, Massachusetts law stipulates that only those with “no managerial authority” are permitted to participate in a tip pool. At present the Massachusetts Legislature is considering an amendment to its tipping law that would closely align the law to the above ruling to ban assistant managers but not shift supervisors from receiving tips.

This publication is not intended to constitute legal advice. If legal advice is required the services of a competent legal professional should be obtained.

Photo Credit: Tristen.Pelton via Photopin

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October 2013 Independent Joe #22  

2013 NATIONAL CONFERENCE: Jackpot! Focuses on Issues Impacting Franchisees

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