Independent Joe #55 August/September

WHAT’S

BREWING

SCHEDULING REGS

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ROBOTS

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SODA TAX

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FRANCHISEE ASSOCIATIONS

August/September 2017

Award-Winning Magazine

for D D Independent Franchise Owners

TIGHTENING

T H E B E LT

What the Experts Think of Dunkin's Slimmed Down Menu

EXPANDING THE VALUE ERIC TRUMP HEADLINES AN OUTSTANDING ROSTER OF SPEAKERS AND GUESTS AT THIS YEAR'S NATIONAL CONFERENCE

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October 30 & 31, 2017

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IT’S ABOUT THE VALUE My wife and I had a “spirited discussion” recently about whether to replace our functional, 20+ year old living-room set with something newer and more stylish. Our positions were somewhat predictable – she felt strongly that it was time to update, while I was of the mind that although the set was aging, it was still quite comfortable and continued to give us very good value.

As we prepare to present the annual DDIFO National Conference at the end of this month, that “discussion” came to mind as something metaphorically illustrative of DDIFO. Since it was founded at the suggestion of Dunkin’ Founder Bill Rosenberg, DDIFO has served the Dunkin’ franchisee community very well. There are many reasons why it is a good deal for franchisees—perhaps none more than the fact it maintains an independent status from the Brand.

Now at 28, DDIFO has not only aged well, but it is stronger, deeper and broader than ever.

The National Conference is another great example of how DDIFO continues to deliver exceptional and franchise-relevant value. Our keynote speaker is a successful QSR chief executive, who will talk candidly about the franchisee/franchisor relationship. Don Fox, like Rosenberg, helped franchisees establish their independent association. It should be a valuable speech.

Again this year, DDIFO is offering an unvarnished view of the Wall Street perspective from two experts who follow the restaurant sector closely.

Getting that insight directly from people who live it on a daily basis is a value one can’t easily replace. In 2016

and 2017, Dunkin’ sought to make unilateral changes to some of its franchise documents – your franchise agreement last year and the agreement covering central production locations (CPLs) this year. We’re going to examine the fallout from the agreement the Brand has been offering to central kitchens around the footprint. This vital information came to the attention of franchisees because DDIFO retains Carl Lisa as its general counsel and keeps a very close watch on changes that impact the franchisees.

A record of value and quality service such as DDIFO enjoys really stands out – and it breeds more quality and more value for our members.

Toward that end, I am thrilled that so many wonderful companies want to be included in our Franchise Solutions Marketplace at the National Conference. In fact, more sponsors have signed on this year than ever before—which means more value for our members who get an up-closeand-personal view of a multitude of products and services.

I’m glad that our members count on us to have their backs and give them an independent forum to discuss issues that directly affect how they run their businesses and harvest their equity. In fact, that’s why we’ve developed and launched the DDIFO IdeaXchange – to serve as a vehicle for members to privately discuss those issues amongst themselves and help each other develop best practices. It’s just the latest example of added value for DDIFO members.

I know not everyone will be supercharged about getting to meet former NFL quarterback Steve Grogan, but I am guessing our New

England contingent will enjoy the chance to chat with Number 14 (he wore that number his entire career as a member of the New England Patriots) and take a picture with the New England Patriot Hall of Famer, or get an autograph. Heck, even some New York fans will put their partisanship aside and join in, I’m sure.

With the National Conference upon us, I thought it was important to restate the value this organization brings to its members. We should all be proud of the men and women who have been honored with inclusion in the DDIFO Franchise Owners Hall of Fame. Yes, there is much for us to celebrate, aside from my brand new living room set (there’s a real value in agreeing with the wife!)

Oh, and did I mention we are having the President’s son, Eric Trump, at the National Conference? Yes, that’s right. I invite you to read through these pages to learn more and I look forward to seeing you at Foxwoods.

Ed Shanahan DDIFO Executive Director

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

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SUB HEADLINE

CONTENTS

From the Executive Director It’s about the value • • • • • • • • • • • • • • • • 3 What’s Brewing: A Look at State Issues Around the Footprint• • • • • • • • • • • 7 Legal: Whose Business is it Anyway?• • • • 10 Franchisee Associations: Important and Necessary• • • • • • • • • • • • 12

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October 30 & 31, 2017

Expanding the Value: Something for Everyone at this Year’s National Conference• • • • • • • • • • • 16 Eric Trump to Address National Conference• • • • • • 17 Three Giants in the Dunkin’ System are Named to the Hall of Fame • • • • • • • • • • • • • • 19 Tightening the Belt: What the Experts Think of Dunkin's Slimmed Down Menu• • • • 22 Franchisee Profile: Maryland franchisee Made Dunkin’ His Home Port• • • • • • • • • • 24 Directory of Sponsors• • • • • • • • • • • • • • • 27 Community Corner: Steve Catalano• • • • • 20 4

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

17 24

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INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

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Independent The Magazine for DD Independent Franchise Owners

Contributors: Cindy Atoji, Stefanie Cloutier, Mike Hoban, Debbie Swanson, Scott Van Voorhis

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August/September 2017 Issue #45 Independent Joe® is published

by DD Independent Franchise Owners, Inc.

Bridge Funding Group is proud to finance franchisees of some of the most recognized brands in the United States.

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INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

Editors: Edwin Shanahan, Matt Ellis

Direct all inquiries to: DDIFO, Inc. 2 First Avenue, Ste. 127 – 3, 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® 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 © 2017 Printed in the U.S.A.

WHAT’S

BREWING A LOOK AT STATE ISSUES AROUND THE FOOTPRINT

By Scott Van Voorhis You win some, you lose some.

As we head into the fall, franchise owners from Dunkin’ Donuts and other QSR systems have some reasons for optimism and some things to worry about as well.

Increasing the minimum wage has been all the rage over the past few years, with union and other activists successfully pushing increases in city after city and state after state. But there may be signs now that the big wave of increases has started to peak.

There is also new research that should provide the quick service sector with some badly needed political ammunition.

New studies, detailed below, point to job cuts and automation in the wake of minimum wage increases.

Yet other trends are more concerning, with the soda tax making a comeback, years after it was defeated soundly in the Big Apple.

Read on for the details.

Tide turning on minimum wage?

The last few years has seen a relentless push by union activists and others to boost minimum wages in cities and states

from New York to California. But now governors and lawmakers in Republicancontrolled states are starting to push back and score a few wins.

While St. Louis’ minimum wage hike survived a challenge in the state’s highest court, the Missouri Legislature had the last say, passing a bill that preempts local communities from fiddling with the minimum wage.

Missouri is not alone. Fifteen states have passed laws since the beginning of 2016 preventing local cities and towns from taking various actions to intervene in local labor markets, including raising the minimum wage, the Washington Examiner reports.

Republicans have led the charge, with the GOP controlling more than 67 percent of state legislative chambers in the country and 33 of 50 governorships, according to the paper.

Meanwhile, in Illinois, Republican Gov. Bruce Rauner recently vetoed a bill that would have raised the minimum wage in the Prairie State to $15 an hour, arguing it would kill jobs and damage business.

He cited a University of Washington study that found that low-income workers wound up losing hours and making $125 a month less after Seattle boosted its minimum to $13 an hour. Yet that study was contradicted by one from the University of California-Berkeley, which found no change, according to Forbes Magazine.

Seattle franchise owners hit with new scheduling regs Speaking of Seattle, franchise and restaurant owners in the tech hub are grappling with new city-mandated scheduling regulations that went into effect in July.

Critics in the business community complain the law is too complex and onerous to comply with, requiring employers to keep records of every formal interaction related to shift scheduling for three years, the Seattle Times reports. Franchise and restaurant owners who are part of major chains must provide each employee with a “good faith estimate” of the median hours per week they can expect to work.

However, before posting the schedule, unless there is a “bona fide business reason,” employees must be granted schedule changes related to major issues such a

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

7

WHAT’S

BREWING health problem, housing, transportation, other jobs or caregiving duties. After that, business owners are required to give employees a copy of their schedules two weeks in advance.

There are also a number of pay-related rules as well, including time-and-a-half for any time worked if it falls between ten hours from closing to opening. Under this “premium pay” requirement, the franchisee must pay for half the hours taken off an employee’s shift or an extra hour, if time is added.

McDonald's plans to roll out self-ordering kiosks at 2,500 U.S. restaurants by the end of 2017. Critics say th technology will replace counter workers.

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A legal opinion by K&L Gates argues the interactive nature of the scheduling process – and trying to determine how to accommodate what could turn out to be myriad scheduling requests from employees – is likely to prove to be a scheduling nightmare.

Hit with multiple

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

requests from workers all citing significant work/life/health issues, business owners will struggle to determine whose request should carry greater weight, the law firm warns in an advisory.

“Human resources personnel and managers will likely face scores of requests from multiple employees with minimal guidance as to how those competing requests should be handled,” attorneys at K&L Gates argue. “However, it is unclear how employers should prioritize competing employee requests for those major life events.”

Robots may be the wave of the future amid rising wage rates Hiking the minimum wage increases the likelihood that some workers in “automatable” jobs will get replaced by robots, finds a new study by a pair of economists from the London School of Economics and the University of California at Irvine.

The researchers, Grace Lordan and David Neumark, look at U.S. wage

data stretching across 35 years, from 1980-2015.

The findings come amid growing signs that some quick service restaurant chains are exploring automation, including Wendy’s, which is rolling out touch screens for ordering in 1,000 of its restaurants, Forbes notes in a piece on the study.

“The findings imply that groups often ignored in the minimum wage literature are in fact quite vulnerable to employment changes and job loss because of automation following a minimum wage increase,” the economists write.

Soda tax re-boot Michael Bloomberg famously flopped when he tried to get a soda tax passed as mayor of New York. Undaunted, a growing number of cities are managing to do what New York could not, according to the National Restaurant Association.

While proposals on the state level have typically foundered, activists have

had more success passing soda taxes at the city level. Five major cities and Cook County, IL have passed soda taxes. They are San Francisco, Boulder, Berkeley, Oakland, and last but not least, New York’s regional neighbor, Philadelphia.

“Politicians are looking to tax sugarsweetened beverages that retailers and restaurants sell,” the NRA notes. “They say it’s to curtail consumption, but there’s no denying it creates extra revenue to support budget shortfalls and public works programs.”

Boulder has the highest tax, with 2 cents per ounce on sugar sweetened drinks.

Philly went with 1.5 cents per ounce but added in diet drinks for good measure.

Others, like Berkeley, Oakland and San Francisco, went with a penny per ounce.

Topics of discussion

Soda sales may have declined by as much as 50 percent in Philadelphia, the New York Post reports, citing retailers and distributors. Some companies in the soft drink business, like Pepsi, have announced plans to lay off workers.

While such taxes are billed as efforts to promote public health, the National Restaurant Association sees other drivers behind this cash grab by city governments.

No room to grow with

?

These and other issues will be topics of discussion at the upcoming DDIFO National Conference, October 30 and 31 at Foxwoods Resort and Casino. While small business owners had been slammed with onerous rules and regulations during the Obama years – minimum wage hikes, scheduling mandates and new health insurance requirements to name a few – there are signs that the pendulum may be finally swinging the other way, thanks to the election of more anti-regulation Republicans at the state and federal level. If we have learned anything over the years, it is that franchisees and other small business owners need to be vigilant and communicate their positions to elected leaders.

•

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INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 9

A LOOK ON THE LAW

BY DAVID S. PARIS

Whose Business is it Anyway?

H

as it ever occurred to you that you don’t actually own your network of Dunkin’ Donuts restaurants?

Well, let me clarify that proposition… while you most likely own the assets, such as the coffee pots, menu boards, and Radiant systems, you do not have the unfettered ability to sell your business. Even if you and your family have invested years of hard work and taken on millions of dollars of liabilities to grow your network, your ability to sell your business and realize a meaningful return on your investment is restricted by the terms of your franchise agreement.

The Dunkin’ Donuts franchise agreement prohibits the transfer of your restaurants without the consent of the Brand, which, the language states, cannot unreasonably be withheld. When a franchise owner submits a complete transfer package for evaluation, the Brand must consider whether to approve, reject, or exercise its right of first refusal (the “ROFR”).

Dunkin’ may consider a wide array of variables when determining whether to approve or reject a proposed transfer.

These include the prospective buyer’s QSR experience and financial wherewithal, the overall economics of the deal – including the actual purchase price and the values allocated to each restaurant – plus Dunkin’s rigorous, break-even analysis.

Any purchase agreement must also comply with the provisions of the franchise agreement and Rider to Contract for Sale (the “Rider”).

When you consider the Brand may use any or all of the above criteria as a “reasonable” basis to reject a proposed transfer, it’s pretty clear there is an imbalance of power. What’s more, much of the above criteria is subjective, which fosters

inconsistency in the transfer approval process.

From our experience, the imbalance of power coupled with the incontinency of the process can often stand in the way of a franchisee’s wish to sell his network. What is more startling, however, are the lengths to which the Brand will go to ensure the terms of your purchase agreement do not interfere with its ability to exercise the ROFR. Depending on which version of the franchise agreement is being transferred, Dunkin’ Brands will have 45 or 60 days from the date it receives a complete submission package to determine whether it will assume the purchase agreement and close on the transaction itself, or assign the purchase agreement to a third-party assignee.

In recent years, the Brand’s ruling on a transfer has become increasingly focused on whether the terms of the deal impede its ability to exercise its ROFR. The Brand will reject those terms and conditions in the agreement which would be beneficial to the franchisee, and could deter a third-party from making the purchase.

By doing this, one could argue Dunkin’ is not only acting in bad faith, it is also marginalizing the franchisee’s ability to exit the system and realize a profit on his investment. It speaks to the imbalance of power that, at the very moment the franchisee is ready to cash in the equity he’s earned, Dunkin’ is able to manipulate the market to its own benefit. In legal terms, Dunkin’ is rendering all but meaningless the basic tenants of “willing buyer, willing seller” and “freedom of contract.”

10 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

From our experience with the transfer of hundreds of Dunkin’ restaurants over the past few years, we have created this short list of current issues and new rules that impact how Dunkin’ franchisees may sell their networks and maximize their return on investment:

1. DEVELOPMENT RIGHTS: Under the current terms of the Rider, you cannot transfer a site selection approval or a site that is under construction, unless such site has been issued a franchise agreement (i.e. a PC number alone is not enough).

2. P URCHASE PRICE ALLOCATION: Schedule 2.10 of the Rider will reflect the manner in which the aggregate transaction purchase price of the transaction is allocated to each restaurant.

A. Generally speaking, restaurants

that have been open for less than a full year can only be allocated a value equal to the capital expenditures outlaid in developing the location.

B. Restaurants that are under con-

struction at the time of submission (but have a franchise agreement) can only be allocated a value equal to the verifiable capital expenditures made through the date of submission.

3. T RANSFER FEES: The vast majority of Dunkin’ purchase agreements we have seen included a provision that transfer fees are to be split evenly between the parties. Just recently, certain business development managers have taken

the position that the transfer fees are solely the obligation of the Seller and cannot be split.

4. DEFICIENCIES: Often, parties will negotiate to have the Seller cure all deficiencies and the Buyer pay the associated cost.

Recently, Dunkin’ has taken the position that such open-ended financial obligations frustrate their ability to exercise the ROFR. We have been able to address this issue by capping Buyer’s contribution to such costs at a fixed amount.

5. SDA: Frequently, a buyer will only be interested in acquiring a network if the transaction includes development rights. If you are going to condition your transfer on the buyer receiving a new SDA, be aware that the Brand has no obligation to issue a new SDA. As such, be sure to draft your provision accordingly by making the request subject to franchisor consent.

6. FRANCHISE TERM: Insufficient franchise term (less than 10 years) remaining on a given franchise agreement will adversely impact your break-even analysis and affect your purchase price allocation for the Rider. As with the SDA above, the franchisor has no obligation to sell either party additional franchise term, so be sure to draft your provision accordingly by making the request subject to franchisor consent.

While this covers many of the issues and obstacles franchisees may face, there are certainly others which can frustrate the transfer process and interfere with a franchise owners’ ability to sell his or her businesses. We’d love to hear from you if you have others the franchisee community should read about.

David S. Paris is a founding partner of Paris Ackerman LLP, a transactional law firm specializing in franchising, licensing and distribution, and commercial real estate. He will be speaking at the upcoming DDIFO National Conference, and can be reached at dparis@parisackerman.com.

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FEATURE

By Debbie Swanson

FRANCHISEE ASSOCIATIONS Important and Necessary

W

hen Qdoba franchise owners learned that Jack in the Box, owner of their fast-casual restaurant chain for the past 14 years, was thinking of selling, they banded together.

“There’d been talk of forming an association for quite some time, and this was just the last motivator,” says Ron Stokes, chairman of the newly formed Qdoba Franchisee Association (QFA). Stokes is the largest Qdoba franchisee in the country, owning 55 locations.

Formally launched in June, the QFA’s primary concern is to protect their investment, collectively totaling $250 million.

As franchising has grown, franchisees across the various systems have learned that working together in an entity independent of their brand's franchisee council can pay big benefits.

“As a class, franchisees invest more money but have less protection than the franchisor,” says Keith Miller, a Subway franchisee and chairman of the Coalition of Franchisee Associations (CFA). “They need these associations to fully represent their interests.”

“If members act in concert, they have a more powerful voice,” says Stokes.

Already, the QFA has an estimated 90% participation, and has been well received by the brand, Stokes says. The group is focusing on communications initially, to ensure that everyone in their franchisee community is aware of what’s going on.

The early days The concept of franchising dates back as early as the mid-1800s, when Isaac

Singer sold licenses for the right to sell the sewing machine he invented. Franchisee associations, in comparison, have a much shorter history, surfacing in the latter part of the 20th century.

Like others at the time, Dunkin’ Donuts franchise owners didn’t have an association to bring them togetheruntil 1988, when, a family dispute between Bill Rosenberg, Dunkin’s founder and president, and his eldest son, Bob, became the catalyst for change. In disagreement over the strategic direction of the brand, Bill left the company and began selling his stock, which was eagerly purchased by Canadian investor George Mann. Mann’s plan was to buy out the brand to sell it for its real estate assets.

With his 2,000 franchisees facing a

" As a class, franchisees invest more money but have less protection than the franchisor. They need these associations to fully represent their interests.”

— Keith Miller, a Subway franchisee and chairman of the Coalition of Franchisee Associations (CFA)

12 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

vulnerable future, Bill Rosenberg encouraged owners to gain strength by banding together. In 1989, Dunkin’ Donuts Independent Franchise Owners, Inc., (DDIFO) was born, with the approval and recognition of the franchisor.

Franchisee associations have grown rapidly since the 1980s, attracting owners from all types of industries. In addition to Qdoba, another recent newcomer is coffee chain Tim Hortons. Earlier this year, Tim franchisees banded together in hopes of lobbying owner Restaurant Brands International for changes that would improve profitability. Almost half of Tim Hortons’ franchisees have joined that alliance.

“There are so many good things about [a franchisee association],” says Christy Williams, CEO of Elevanta, a professional services firm which helps to create and organize franchisee associations. “Collaboration, best practice sharing, member conventions, panel discussions, sharing pros and cons—there’s so much to learn from one another.”

A stronger voice Raising the collective concerns of its members is the paramount goal of a franchisee association. Connie Kirman, owner of Kumon Math and Reading Center in Howell, New Jersey, initially became involved in the International Association

of Kumon’s Franchisees (IAKF) about nine years ago, out of concerns over possible expansion.

" If members act in concert, they have a more powerful voice"

“About 8 months after I opened, there was threat of a predatory expansion – centers opening up too close to one another,” she says. IAKF quickly reacted, meeting with the president at the time to explain their concerns. “The association was at the front of the fight against the predatory expansion.”

While the threat of expansion hasn’t been completely eliminated, Kirman, now IAKF president, says the 20-year old group has remained a powerful voice for franchisees.

“We were very vocal and brought the concerns forward in one voice,” she says.

“We are still trying to educate Kumon on the problems of predatory expansion.”

They’ve also been active in working toward improvements for both the franchisees and the brand. “[One thing we’re currently doing is] working with a financial person who is looking at and analyzing our business model.

— Ron Stokes, Chairman, Qdoba Franchisee Association (QFA) There may be places that hurt the bottom line that Kumon doesn’t realize,” she says.

“Our plan is to present these findings, and hope that the brand is open to it.”

A repository of knowledge Working long hours and often covering multiple locations, it isn’t easy for a franchisee to keep up with relevant issues.

From choosing the best appliances, to following evolving markets, to negotiating legal issues, a franchisee association serves as a source of knowledge.

“It’s better than each franchisee researching [a problem] or seeking legal advice completely independently, and with their own funds,” says Williams. “The association can do this work for them, and share the findings with other franchisees, who also find it valuable.”

Dawn Lafreeda, board member and treasurer of Denny’s Franchisee Association,

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 13

FRANCHISEE ASSOCIATIONS sees this as a major benefit.

“Members of the DFA have more tools to run their business more efficiently, and to network. We have firsthand information that can save franchisee’s money,” she explains.

Lafreeda, who has been a franchise owner for 32 years and currently owns 81 Denny’s restaurants, cites remodels as an example of something which is required at all Denny’s locations, but can be time consuming and potentially overwhelming to a new franchisee.

“We’ve all done remodels, and we can share information about who to use, where to get better prices,” she says.

Franchisee groups embrace many forms

of information exchange, from newsletters and magazines, to conferences and events.

Today’s technology makes it even easier, providing instant access to archives or forums, and dispensing timely information to members from the comfort of their own homes.

“We put together two webinars per month, run by Kumon owners and occasionally outside professionals,” Kirman adds. “Our attorney also puts together an annual webinar, explaining changes to the contract and deciphering the legal language. All this information is archived, and members find it helpful.”

A positive alliance Because an independent franchisee association is designed to serve the interest of franchise owners, it can sometimes be at odds with the franchisor. In many cases, franchisee groups are well received and the two sides maintain an amicable working relationship; the franchisor recognizes that the group can shed a practical, real-world perspective on things—sometimes in the interest of both groups.

DDIFO is one of those exceptions. Despite the fact that it is one of the oldest independent franchisee associations, and was started at the recommendation of the brand’s founder, it is not officially – or publicly - recognized by Dunkin’ Brands.

" Members of the DFA have more tools to run their business more efficiently, and to network. We have firsthand information that can save franchisee’s money.”

— Dawn Lafreeda, board member and treasurer of Denny’s Franchisee Association

Misty Chally, executive director of the CFA says a positive step forward for franchisee associations was the 2007 ruling by the Federal Trade Commission requiring franchisors to include franchisee association information in their Franchise Disclosure Documents, if the association requests to be included.

“This made a huge difference, making franchisees more confident knowing they will have the protection of a franchisee association,” says Chally.

According to Lafreeda, the Denny’s franchisee association is very well received by current President and CEO John Miller.

“The DFA has an instrumental role in making decisions, and we look out for

14 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

the interest of franchisees,” Lafreeda says, adding franchisee association board members take an active part in the development of issues, and are involved in councils making decisions on marketing, development and operations.

“We get a chance to examine and poke holes in things early, before decisions are finalized,” she says. “As a result, things run more smoothly. There are two perspectives behind everything: corporate and franchisee.”

Like any relationship, there are bound to be conflicts between franchisee association and franchisor. But that’s to be expected, adds Williams.

“You’re both on the same course, working to improve the brand and be aligned, so it shouldn’t be an adversarial relationship.

But it’s natural that the two will disagree sometimes – that’s the point of advocacy,” says Williams. “The good thing is that with a franchisee group in place, there’s the ability to sit down and communicate.”

Making a unified impact While brand-specific franchisee associations are invaluable to those within the industry, organizations that bring different specialties together give franchisees even more cohesion.

Founded in 2007, the Coalition of Franchisee Associations (CFA) seeks to benefit the entire franchisee population. In addition to those within the restaurant industry, members include the Meineke Dealer’s Association, Supercuts, Asian American Hotel Owner’s Association, and more.

“We represent millions of franchisees, regardless of what they sell, and cover issues of concern to franchisees in general – broader than brand-specific concerns,” says Chally.

The CFA provides member collaboration, education and advocacy through the conferences and educational opportunities it provides throughout the year. The Annual CFA Day Forum, held in Washington DC, provides a unique opportunity for attendees to bring their issues to the right ears.

" Any franchisee is welcome to come, and bring their issues forward before members of Congress" — Misty Chally, Executive Director of the CFA

“Any franchisee is welcome to come, and bring their issues forward before Members of Congress,” says Chally.

franchise owners much stronger protection in many situations, including termination and ownership of equipment.

The CFA has supported and sponsored many changes at state and federal levels to protect franchisee interests. One of their biggest victories was the 2015 passage of California’s landmark franchise protection law AB 525, which gives California

“That was a big victory for California franchisees,” says Miller. “It helped to swing the pendulum back to the franchisee.”

As the recent developments demonstrate, a growing number of franchisees - across a

multitude of industries - are joining independent associations. In addition to providing valuable assistance in times of conflict, groups offer members knowledge and networking, and an avenue through which franchisees can spark progress. Whether brand-specific or multi-industry, franchisee organizations are a vital tool for small business owners who have invested their time and money in franchised brands.

•

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 15

EXPANDING THE VALUE

SOMETHING FOR EVERYONE AT THIS YEAR’S NATIONAL CONFERENCE

October 30 & 31, 2017

S

cott Campbell, who owns a network of Dunkin’ Donuts shops in New York City, knows change is coming. His team has been preparing for it for months. Coming on the heels of a city-wide mandate that raised minimum wage to $11 per hour this past January – and will top out at $15 an hour by the end of 2018 – small business owners like Campbell are now adjusting to new scheduling rules, which demand managers give employees two-weeks’ notice before changing their shifts.

“We call it restrictive scheduling,” says Campbell, spoofing the official name.

“Predictable schedules and predictable paychecks should be a right, not a privilege,” New York City Mayor Bill de Blasio said last May, while signing into law widespread changes to employment laws. “With these bills, we are continuing to build a fairer and more equitable city for all New Yorkers.”

That may be fine for Democratic politicians and union chiefs who

lobbied for the changes, but how will it affect operators like Campbell—not to mention franchisees across the country that will likely face similar restrictions in the months and years ahead?

Campbell says if a franchisee doesn’t take the proper steps to manage human resources, it could be a real problem.

“We write schedules in advance already.

The key is to live to the letter of the law and minimize schedule changes as much as you can,” he says. “Your team members need to be very good. You need skilled, developed players on your bench; you can’t have those weak players.”

Predictive scheduling grew out of the labor-friendly Obama administration and continues to gain steam in Democratic cities like New York, San Francisco and Seattle as well as in blue states like Oregon and Massachusetts.

Its impact will be among the topics discussed at this year’s DDIFO National Conference being held October 30 and 31 at Foxwoods Resort and Casino in Mashantucket, Connecticut.

16 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

Among the speakers expected to appear is Cicely Simpson, the head of policy and government affairs for Cicely Simpson the National Restaurant Association.

“We are thrilled Simpson is planning to join us in October,” says DDIFO Executive Director Ed Shanahan. “Her experience on issues related to our members, and her long-time work as vice president of government affairs at Dunkin’ Brands, makes her a natural fit for our program.”

According to Reuters, “With several states and municipalities having increased their minimum wages to as high as $15 an hour in recent years, scheduling in the often unstable fast-food sector has become the new frontier for unions and advocates for low-wage workers.”

“Minimum wage increases and

ERIC TRUMP TO ADDRESS NATIONAL CONFERENCE It’s not every day an independent franchisee association can announce the son of the President of the United States will speak at its annual meeting. But with the assistance of a well-known Dunkin’ Donuts family, Eric F. Trump has confirmed he will appear at the 2017 DDIFO National Conference.

“This is a wonderful honor for our organization and we are truly grateful that Eric Trump can join us for the National Conference,” DDIFO Executive Director Ed Shanahan says. “We wouldn’t have had the chance to even put in the request were it not for the Cain family, and Shaun Cain in particular, and his personal relationship with Mr. Trump. I can’t thank Shaun and his family enough for making this possible.”

At press-time, the schedule calls for Eric Trump to appear at the DDIFO Hall of Fame luncheon to address the attendees and help honor this year’s inductees, Carl Andrade, Jim Cain and Joe White. The luncheon will be held on Tuesday, October 31 in the Pequot Ballroom from 12:00 p.m. to 2:00 p.m.

Trump, who is 33, is Executive Vice President of The Trump Organization and is responsible for all aspects of management and operation, including new project acquisition, development and construction. A graduate of Georgetown University, Trump was once honored as one of New York’s “Most Important Young Philanthropists” by The New York Observer.

Among his many professional accomplishments, Trump is recognized for his efforts spearheading the growth of the Trump Golf Collection, bringing the portfolio from three properties in 2006, to 19 today. Among those is the Trump Turnberry resort in Scotland, which has been home to four British Open Championships.

“We know Eric is passionate about his work, but, like so many Dunkin’ franchisees, he is also passionate about his charitable efforts – in particular the tremendous work he does on behalf of the St. Jude Children’s Research Hospital. I expect he will talk with us in some detail about that part of his portfolio as well when we meet him at Foxwoods,” Shanahan says.

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 17

2017 NATIONAL CONFERENCE

scheduling laws will hurt all restaurant owners, including QSR. Restaurants need to invest in technology, including mobile order and pay, kiosks and server handhelds, to offset the higher labor costs,” notes Mike Halen, Bloomberg Intelligence senior restaurant analyst, who will also be on hand at Foxwoods.

Mike Halen Halen will join John Gordon, DDIFO’s Restaurant analyst, for a panel discussion about what lies ahead for Dunkin’ Brands and the QSR segment.

John Gordon

A VIEW OF THE FUTURE

One of the most challenging questions facing Dunkin’ Donuts franchise owners is how a sale of the brand would impact their day-to-day operations.

Gordon has been monitoring industry signs and Wall St. conversations and believes “There is now less interest in a big investor purchasing Dunkin’ Brands, since a transaction did not happen earlier in the year,” when the international conglomerate JAB was seen as a likely buyer. JAB has since purchased Panera Bread and is working to integrate that chain into its operations. Halen notes, however, that “Dunkin' could still be a potential target down the road as JAB has shown no signs of slowing its [merger and acquisition] binge.” Dunkin’ and Starbucks are now the only U.S. publicly traded coffee chains.

The situation could well be complicated by CEO Nigel Travis at the time he announces his resignation from the corner office—a scenario many believe will happen in the short-term.

CEO ON STAGE

Every year DDIFO’s Shanahan sends a letter to Travis, inviting him to present the keynote address at the National ConferDon Fox ence. Shanahan believes association members would benefit from a straight-talk speech delivered by a QSR chief executive.

With Travis unavailable again this year, Shanahan turned to Firehouse Subs CEO Don Fox. “Mr. Fox has to be one of the most wellrespected operators in any system,” says Shanahan. “We are so fortunate to have him kicking off the 2017 National Conference.”

Indeed, Fox has been recognized by his peers and others. He was the Nation's Restaurant News 2011 Operator of the Year and also named the 2010 HandsOn CEO by QSR Magazine, which recognized him for, “setting strategic objectives, visiting stores, developing franchisee relationships, building a strong organization, mentoring tomorrow’s leaders,” while balancing a hands-on approach.

Fox told the magazine, getting out of the office and into the field is what “keeps you very close to the business, how the business is being operated, and where the dollars are flowing.” Plus, he says a leader needs to be close to the customers to understand how customers interact with the brand.

What is perhaps of most interest to Dunkin’ franchisees, however, will be Fox’s view of franchisees. During his Operator of the Year acceptance speech, he openly bragged about the men and women who carry the Firehouse Subs flag. “I’d put my franchisees up against franchisees of any system at any time.”

In fact, Fox has an interesting view of franchisee associations, having approved

18 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

the creation of one at Firehouse Subs.

“Most franchisee associations are formed out of adversity, and we didn’t want that to happen,” he said. Firehouse hasn't been sued by a franchisee in the years since the chain started selling franchises, he added.

A former assistant restaurant manager at Burger King, Fox worked his way up the chain to the role of Franchise Business Manager during his 23 years with the company. Interestingly, he was also once an area manager for Six Flags Adventure, so he is familiar with the ups and downs life – and quick service restaurants – can present.

A WINNING RECORD

Another guest at this year’s conference who knows something about the ups and downs of life is former NFL quarterback Steve Grogan Steve Grogan, who led the New England Patriots to their first Super Bowl in 1986.

Grogan spent his entire 16 year career with the Patriots and is a member of the team’s Hall of Fame. Today, he is a motivational speaker and still revels in the glow of his success in New England—something about which many Dunkin’ franchisees are also familiar.

TIMING IS EVERYTHING

The 2017 DDIFO National Conference will close out promptly at 2:00 p.m. on October 31, after lunch celebrating the formal induction of the 2017 Hall of Fame class. The timing is significant, Shanahan says, because conference attendees are eager to get home in time for Halloween festivities in their neighborhoods and communities. With the truncated format of this year’s conference, Shanahan and the team has less time to deliver more content and more insight than in previous years. He says it promises to be a well-spent two days.

•

HISE O W N

E

R

ANC

CARL ANDRADE

years since, they have built a successful business. Today he has 16 shops that his children, Lori and Kevin, help run.

He admits he was surprised when his old friend – and New Hampshire neighbor – John Motta called to inform him the DDIFO Hall of Fame committee had selected him to be honored at this years’ National Conference.

“I am happy to be recognized by my peers,” he says. “I’ve been with Dunkin’ Donuts a long time and they all know me.”

From the time he was a teenager, Carl Andrade had little doubt he would work for Dunkin’ Donuts. His two other brothers, Manny and Tony, were already established as Dunkin’ franchisees.

“It was 1975 and I worked as a baker at Tony’s shop in Holbrook, Mass. I was there a year and a half,” he remembers. ”Dunkin’ wasn’t that big back then, so when a store became available in New Hampshire, I had to go for it.”

That was 1977, Andrade was 21 and already married. He and his wife moved to Manchester and, in the 40

Indeed, people know Andrade as a hard-working operator who always has the interests of the franchisee community in mind. He is also known for his philanthropy.

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

For four decades, Andrade has also been on top of what’s going on with Dunkin’, volunteering for many councils and committees. He served as a member of the Boston Ad Committee for over 20 years, was chair of the New Hampshire DAC and was a member of the DDIFO Roundtable for over 10 years.

Of all those, he says, his work with the New Hampshire district was the most rewarding because it showed “franchisees had faith in me and my decision making for all the stores in our state.”

Andrade has seen many changes come to his adopted home-state. As textile mills and other industries closed many of the French Canadians who had migrated to New Hampshire moved away. Many of those were regular customers of Andrade’s shops. Today, he says, many customers from the late 1970s still come in to see him.

“There is this one woman who comes in and says, ‘Where’s Carl? I need my hug.’

I was always a people person and loved talking to people and meeting people,” he says.

During the years the competitive landscape has changed too, he notes.

“When I came to New Hampshire there were no other donut shops, other than Dunkin’. We were the only game in town, especially late night and overnight. On the midnight shift the stores were actually busy with people getting their coffee on the way to work,” he recalls. "We didn’t compete with convenience stores and McDonald's".

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 19

HALL OF FAME

FR

THREE GIANTS IN THE DUNKIN’ SYSTEM ARE NAMED TO THE HALL OF FAME

Andrade has always enjoyed having his two brothers – and other family members – in the Dunkin’ system. They’ve been there to provide moral support, staffing support and a reality check of how his shops operate in comparison to others.

“We would look and compare our sales, our percentages and our food costs to find out if we were really doing a good job.”

It was an advantage, he agrees, many franchisees didn’t have. It also didn’t hurt that his brothers were wellregarded in the business. With Carl’s induction, all three Andrade brothers are now enshrined as Hall of Fame operators.

JIM CAIN

an impact,” says Cain, as he references the names of those he will join as members of the DDIFO Franchise Owners Hall of Fame.

“It’s an honor and a privilege to be recognized for hard work, but it means even more so when it comes from your peer group,” Cain says. “When it’s from them, it means the most.”

Cain was just 21 when he bought his first share in a Dunkin’ shop. He had a couple of years of experience under his belt and saw the chance to make a name for himself in the burgeoning Dunkin’ brand. After two years, and newly married to Mary Cain, he took a calculated risk and sold his share so he could go solo in a new market—Norwalk, Conn. “I learned at the beginning that success in this business is based on a culture of hard work. Particularly in those early years building the business, I could not have done it without my wife’s support,” he says.

In the late 1980s, as Dunkin’ was facing a hostile takeover bid, Cain joined the National Leadership Council, the precursor to the Brand Advisory Council (BAC). “I came in and worked with Henderson, John Rader, Mark Dubinsky, John Boujoukos [and others],” he remembers.

When you talk with Jim Cain, the longtime Connecticut franchisee whose network has expanded into New York City, he is quick to mention the names of people he considers the giants in the Dunkin’ Donuts system, people like John Rader, Manny Andrade and John Henderson, who helped transform a New England coffee and donut chain into a powerhouse global brand.

Cain started his career working for these men in Providence, Rhode Island and later served with them on various Dunkin’ Donuts advisory councils and committees. “Some people have that natural ability to be successful and have

that marketing is the lifeline of the business.”

After 18 months on the committee, Cain was elected chairman.

“Marketing is a balancing act,” he says.

“I’ve tried to instill some best business practices, while at the same time keeping mindful of its creative nature. We’ve developed a comp calendar to quantify which products are winners and which are losers. We check it on a month-bymonth basis to see where shortfalls are,” he says.

These days, Cain works hard finding the right balance between Dunkin’ work and his love for the water, spending time on the boat or scuba diving.

He says he keeps coming back to the advisory work in part because of what his sons say to him. “’Keep doing it,’ they tell me. ‘You’re making it easier for all of us.’ There is a balance point, but I like what I do,” Cain says.

JOE WHITE

Eventually, his sons Jim Jr. and Shaun joined the business, enabling Cain to expand his footprint and devote more of his time to franchisee business. From there, he began spending more time on advisory work, ultimately devoting as much as two thirds of his work time to that side of the business.

Over the years Cain served as co-Chair of the BAC, the Restaurant Excellence Subcommittee and the New York Ad Committee. But, he says it was his work on the Marketing Steering Committee that gave him a whole new perspective.

“It changed how I look at the business,” Cain says. “It’s given me a birds-eye view of what we do. I’ve learned

20 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

Joe White’s history with Dunkin’ Donuts is like that of few others. An Ohioan born and bred, White got into the donut business because he wanted to be his own boss. He bought a Mister Donut shop in the late 1970s and converted when Dunkin’ bought the chain in 1990. As White told Business Journal

Today, he admits he was fortunate Dunkin’ bought the chain so he could enter the system. He didn’t realize he would have an influential voice in the brand’s development. At the time of the Mister Donut merger, drive-thrus were still growing in popularity. White recalls how his former Mister Donut shops were already realizing the benefit of selling coffee and snacks directly into the customer’s car. “When we were Mister Donut, we were doing 45-50% percent of our business through the drive-thru,” he says. “We were outperforming stores in metro areas that didn’t have drivethrus.” In fact, White once closed a location because it didn’t have a drive-thru.

He says when he entered Dunkin', it didn't have cash register systems didn’t have cash register systems that were designed for drive-thrus. “We had Omron cash registers that didn’t support the drive-thrus at all. You couldn’t stack orders, you couldn’t put the orders onto a video display monitor.

The Omron registers were cumbersome to use in a drive-thru environment.”

So much so, White recalls, that he told Dunkin’ he wouldn’t convert his system to Omron. The situation created a conflict because, as White remembers, Dunkin’ was adamant that franchisees all had to use the same systems. But White wouldn’t budge.

Eventually, White kept what he had and Dunkin’ moved past Omron to find a new system that would enable franchisees to maximize the opportunities drive-thrus presented.

When he learned the Hall of Fame nominating committee selected him for induction, White says he was shocked. “It humbles me because there are so many great people in this system. I’ve learned a lot from them. I was always a listener,

I wanted to find out what was going on.

I would listen and soak it all in, taking away what I thought applied to us.”

At the same time, the brand was listening to White. In the 1990s, his Ohio shops were often used to test market new products and he was invited to National Leadership Council meetings so the brand could ask him what customers thought of the new products.

Over the years, White also served on the brand’s Restaurant Excellence Subcommittee, the Regional Advisory Council (RAC) and the BAC. He was always happy to take part, not just because it could help him, but also because it could ultimately help other franchisees.

The way he sees it, Dunkin’ owners are all in it together, regardless of where in the country they operate.

“We are only as strong as the weakest link. Anything that happens in this system, it affects all of us.”

White’s days of baking donuts and working weekends ended years ago when his son, Stewart, joined the business. Like others in this year’s Hall of Fame class, he has shifted more of his time into committee work. He was an inaugural member of the original Dunkin’ Donuts Baskin Robbins Charitable Foundation, serving two years on the board.

“I found that to be very gratifying and satisfying. I am still involved with Harvest for Hunger and sit on their board,” he says. Harvest for Hunger is one of the nonprofits that receives funding from the newly-named Joy in Childhood Foundation.

White learned long ago the importance of giving back to the community. He says that’s how people embraced him as a local business owner way back when he was Mister Donut. He says he also learned the importance of his independent franchisee association. “People don’t realize the importance of DDIFO until they need it. I’ve been around long enough to see the cycle. It’s like insurance for franchisees.”

•

DDIFO HALL OF FAME Started in 2011, the DDIFO Franchise Owners Hall of Fame honors franchisees and others who made important contributions to the Dunkin’ Donuts system.

The inductees include: 2011: John Boujoukos, Antonio Couto, Jose Couto, Ralph Gabellieri, John Henderson, George Mandell and Dunkin’ Donuts founder William Rosenberg 2012: Manuel Andrade, Brooks Barrett, Jason Dubinsky, John Rader, Robert Rosenberg and actor Michael Vale, famously known as “Fred the Baker” 2013: Tony Andrade, Helen D’Alelio, Carl Lisa, Amrit Patel, Dave Segal and Mark Silverstein 2014: Carlos Andrade, Joe Batista, Bill Daly; 2015: John Cadete, Guido Petrosinelli 2016: Nick Apostoleres, Duke Carvalho.

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 21

HALL OF FAME

Daily in 2009, he had two choices at the time. He could either convert his stores to Dunkin’s or “die on the vine.

So I decided to convert to Dunkin’,” he remarked.

COVER STORY

TIGHTENING

T H E B E LT

What the Experts Think of Dunkin's Slimmed Down Menu

By Cindy Atoji

T

o paraphrase Paul Revere’s famous warning: “Change is coming! Change is coming!” You know all about it: Dunkin’s menu simplification, aimed at improving the brand’s competitiveness by reducing the number of sandwiches and keeping the focus on beverages. In the Tampa area, franchisee Alex Fernandez gladly rolled out a menu reduction in early August, having prepared for it months ahead of time.

There was a lot of signage work to be done, and more importantly, hearing from other store owners like John and George Primpas in Norfolk, Mass., who had already gone through the process in early winter and were part of a 300 store test market.

“There are challenges and opportunities with the smaller menu,” says Fernandez, who pointed out that communicating the change to customers was the most important aspect of the menu slim-down.

Many Dunkin’ loyalists are not happy about the elimination of their favorite products, complaining on social media sites.

One wrote on Facebook: “Been to this store for a Chocolate Donut covered in coconut three times and they never have them....today the guy behind the counter told me they have been discontinued. Again, walked out without buying anything.” Another said, “Unfortunately all of the frozen coffees now have a chemical aftertaste since they switched from the Coolatta. Major bummer.” And another: “The lack of pistachio has cut down my purchases this summer. Bring back pistachio please!”

The skinny, new menu comes as customer traffic to the

22 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

chain’s U.S. stores has fallen for five straight quarters and the Brand has reduced the number of new U.S. restaurants it will open this year. At the same time, second quarter results, driven by higher spending per visit, exceeded Wall Street’s expectation. The stock price hit a 12-month high in June, but has slipped since.

According to Dunkin’ Brands CEO Nigel Travis, eliminating lower-selling items – especially food items like afternoon sandwiches and an assortment of bagels – will allow franchisees to improve speed and accuracy while saving on food and labor costs. For years, franchisees have complained of menu complexity.

“All the brand has been doing is adding, adding, adding,” says franchisee Jerome Johnson, who owns a string of Dunkin’ Donuts shops in the Washington, D.C. area. “Stores have just been putting in machines wherever there was space – espresso machines, new ovens. That’s a tough way to run the back of the house.”

“Complexity creeps in and you have to attack it.” Dunkin’ Brands President Dave Hoffman told the trade magazine Nation’s Restaurant News. “[It] is not unique to Dunkin’. It’s common in other players in the industry.”

According to Mike Halen, senior restaurant analyst at Bloomberg Intelligence, Dunkin’s bloated menu never made sense to him. “There are other ways to get people though the door then selling sandwiches. Breakfast makes sense for

“ Inventory is cash, and if a bagel is just sitting there, it’s like cash sitting there with no return. A smaller inventory improves your cash and speed increases sales."

Dunkin’. But not the turkey, tuna, and chicken salad and other bakery sandwiches introduced five years ago, added with the hope of boosting food sales after breakfast hours. Franchisees were complaining that they were required to carry all the options. Operations behind the counter were a mess, with people stumbling over each other. It was a disaster.”

His comments confirm what brand research from Boston Consulting Group found after hearing from 10,000 customers: Dunkin’s is seen as a beverage and on-the-go purveyor, not a sit-down restaurant.

The decision to change the menu focus did not come overnight.

In February, when he announced fourth-quarter 2016 earnings, Travis said, “We have a pretty complex store we want to simplify.” Eliminating chicken salad sandwiches on French rolls, represents a piece of the overall strategy to build the coffee culture; provide faster and improved product innovation; offer targeted value and smart pricing; be a leader in digital; improve the restaurant experience, and drive consumer packaged goods and new channels.

Franchisees we spoke with agree with streamlining the menu.

Fernandez, who operates six Dunkin' Donuts restaurants in Jacksonville and six in Tampa says crew members found the complex menu difficult to handle. “There [were] too many options,” he says and that made it cumbersome for customers as well. “Simpler and faster is what customers are looking for; they want speed.” Fernandez says 90 percent of the sales in his shops were based on less than 20 percent of the products.

Fernandez cites the peanut donut as one example of surplus goods in his shops. Loved by a minority of customers, and feared by many more who have peanut allergies, the item sold very little yet had to be available all day. “To convert that peanut donut person to one of the other 18 donuts that we are going to have is a great opportunity,” Fernandez says.

In addition, because he now has fewer offerings, the shops’ digital menu boards don’t need to rotate to show beverage and food choices; at a single glance, customers can see exactly what choices they have. On the other side of the counter, servers can more simply handle the customers’ needs.

Halen, the Bloomberg analyst, says smaller inventory leads to more control and less waste—which all contribute to a better bottom line. “Inventory is cash, and if a bagel is just sitting there, it’s like cash sitting there with no return. A smaller inventory improves your cash and speed increases sales.” What’s more, simpler menus require less employee training. As an example, Halen cites McDonald’s, where a worker may do fries, and only fries, all day. “At Dunkin’s by contrast, an employee has to learn

everything and do a lot more,” he says.

Halen applauds Dunkin’s decision to scale back its expansion plans, noting that times are tough for many fast food chains.

Dunkin’, he says, can ride out tough times by focusing on what customers love about the brand. “McDonalds figured out really quick that it wasn’t kale,” quips Halen, pointing out that for Dunkin’ it’s the coffee.

“When people do grab a lunch sandwich at Dunkin’, it's out of dire need or desperation more than anything else,” Halen says.

"Maybe you're on the way to pick up coffee and it's 2 p.m. I’ve never heard anyone say, ‘Hey, let’s go buy lunch at Dunkin’s.’ I’m sure no one will be heartbroken that they can’t get a sandwich [there].”

So yes, “change is coming, change is coming.” Hopefully that change will lead to a revolution in operations. As notes, “The foundation is running the restaurant and being efficient; improving operations in the back of the house. Once you do that, you’re setting the base to improve other elements, whether marketing or improvement in the mobile app.”

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FRANCHISEE PROFILE

Maryland Franchisee Made Dunkin’ His Home Port

T

here’s an old proverb that says, “Smooth seas do not make skillful sailors” – with the logical corollary being that rough going will surely forge good men of the sea. Such could be said for former Merchant Marine Todd LaLumiere, who after a rocky start and a series of subsequent obstacles along the way, has found success as the owner and operator of Maritime Coffee Time LLC, a six-store network of Dunkin' Donuts franchises in the Annapolis, Maryland area.

LaLumiere endured many of the usual struggles that franchise operators encounter when launching a business – such as finding good help and store locations – but he also had to persevere through a host of other challenges, including seeing the bank that was financing his operations go under during the recession, then having his contractor make off with his construction deposit immediately thereafter. But like a sea captain navigating a schooner through a raging nor’easter, he has pressed on, eventually finding the calmer seas that come with time and experience.

LaLumiere began his professional seafaring life after graduating from Maine Maritime Academy, where he earned a Bachelor of Science degree in marine engineering. It was there that he met his wife Lisa. They married when he was 23, and started a family soon after.

“And the only way we could [make ends meet] was for me to ship out,” he says.

“And I hated it. I was in a union and I made good money, but it was really, really hard – hard on the family, hard on me.”

By Mike Hoban

24 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

During his stints at sea he studied for his real estate licenses, and when he was on shore he sold residential and commercial properties. Then he learned construction, building two houses and a day-care center for his wife, which she still operates. Later, he redeveloped and sold three apartment buildings in the Portland area. “I sold them too cheap and too soon,” he laughs.

But while the real estate dealings were providing extra income and another valuable skill set, he acknowledges that there was another motivation behind the second career, “I was always looking for a way to not ship out.”

The opportunity for a landlocked life presented itself one day when he was traveling to Lowell, Massachusetts with his eight-year-old son for a youth hockey tournament. He and another hockey dad were standing in line at a Dunkin’ Donuts located inside a gas station, when his friend off-handedly mentioned that his brother-in-law was the general manager for an entity that owned 70 Dunkin’ stores. When told that the operator of that C-Store made $150,000 a year, he replied, “Geez, I don’t even make that when I go to sea – even with a chief engineer’s license.

How do I get in?” And that was the opening chapter of his career as a franchise operator.

LaLumiere impressed the Brand and was offered a development agreement in one of three markets: Philadelphia, Southern New Jersey, or Baltimore/Annapolis, Maryland. He chose the latter, because of his connection to the area. “I’m a sailor, and all my friends are sailors,” he says.

“My Merchant Marine union was headquartered in Baltimore, the school where we receive our continuing education is on the eastern shore of Maryland, and I also had a couple of buddies from Maine Maritime that were Chesapeake Bay pilots. So I had a little toehold in Maryland already.”

It was February, 2003 and LaLumiere signed a three-store SDA. The kids were still in school and his wife owned and operated the daycare center, so each week LaLumiere would travel from Maine to Maryland to get the groundwork done for his first location.

While away, he lived like a sailor onboard an old sailboat in Chesapeake Bay, which he weatherproofed to protect himself from the elements. In the colder months, he stayed warm using a portable space heater, and he showered in the marina each day.

Soon after, he opened his first store in the town of Stevensville, a historic community at the eastern end of Chesapeake Bay, about 15 miles from Annapolis. It didn’t take long for this experienced sailor to feel like he was taking on water.

“Except for working in a pizza parlor when I was a teenager, I had zero fast food

experience, and the next thing you know, I’m a Dunkin’ Donuts/Baskin Robbins [franchisee] making donuts all night,” LaLumiere recalls. “I live 500 miles away, I have no infrastructure, no family, and no support. And then my general manager quits on the third day after I took him through all the training. It was nuts, 24 hours a day, and I had my second store on the way.”

Feeling overwhelmed, he reached out to his hockey buddies for help, and they came through. One friend, a lawyer with whom he had skated on the same line, connected him to a long-time New Hampshire franchisee who had just sold his network. Not long after, a team from the Granite State was on its way to the Eastern Shore to assist with operations.

It was a game-changing turn of events for the franchisee, for which he is most grateful.

“Honestly, without the help of the [New Hampshire] franchisees, I would have failed,” LaLumiere admits, adding that he is still in touch with some of the people who helped him through that period.

Once he was able to get the operational issues straightened out, the store began to perform well. He ran that location for approximately 10 years, until an underperforming Pizza Hut became available.

The restaurant was just 200 yards away, but had direct highway access. LaLumiere bought the property, razed the existing restaurant, and erected a new, much larger store that included a drive-thru and a lobby that has become a meeting place for local business people. 80,000 cars pass by his shop every morning headed to Washington D.C., and that volume has helped LaLumiere’s Dunkin’ became the highest grossing store in the state of Maryland.

Where the old location brought in approximately $30,000 per week, the new one grossed $45,000 to $50,000 per week.

After stabilizing Stevensville, he focused on opening his second restaurant, located 25 miles away. LaLumiere then learned another lesson about the Dunkin’ business. “The worst combination of stores to have is two, because you can’t be in two places at one time. You can’t make enough money to have a general manager or a multi-unit manager, so it’s basically full hands-on,” he recalls.

When it came to opening store number three, new struggles ensued. First, a delay caused him to forfeit a deposit, terminating his agreement, but the overall business eventually stabilized. “You commit,” says LaLumiere. “I had leveraged my house, my wife’s business – everything.

But I made it through.” He didn’t know at the time that things were going to get worse before they got better.

In 2007, after signing a new agreement to develop five additional shops and signing personal guarantees to obtain leases, the financial crisis hit. LaLumiere’s bank went out of business. Then, to makes matters worse, his contractor skipped town just days after beginning construction with the deposit LaLumiere had paid. “So I’m left with a 12-foot wide hole in the wall, no financing, no money and no contractor,” he says, “but over time we just persevered and things worked out.”

Everything changed for the better when he got store number four up and running.

“When [that one] opened, the numbers changed – all the metrics the banks use – and then it really started to work financially,” says LaLumiere. “Everyone says it takes five years [to get a small business to work], and that’s when I started to make money.”

In 2011, he purchased a building in the historic district of Annapolis, and while the store has yet to become profitable, the value of the building has increased considerably since he bought it, and he has the added bonus of maintaining his home office in the building.

LaLumiere says that although his wife Lisa lives 500 miles away, she has played a large role in the success of the business.

In addition to handling HR functions, she has also helped develop a peoplefirst culture for the company, one which emphasizes a work-life balance and recognizes employee excellence with a bonus structure.

Their oldest son Matthew is now working for the family business; their daughter Margo, a CPA, assists with a number of business functions and their youngest, a son named Charlie, just graduated from Dartmouth College and is planning to pursue

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 25

FRANCHISEE PROFILE: LALUMIERE a career in real estate, through which he can assist that element of the business.

Now a total landlubber, LaLumiere says he has enjoyed his time as a Dunkin’ franchisee. One of the parts he likes best is “that you are able to own the real estate, unlike a lot of franchises. It provides you with the assurance that you can’t lose your location. You can also stabilize your costs because your rent won’t be escalating by three or four percent per year. And from an ownership perspective, that’s a real advantage, even though it is expensive initially to buy the property.”

But it is his experience as an engineer in the Merchant Marine that has served him best, particularly from a practical standpoint. Recently, the roof on one of his buildings was leaking, so he just climbed on the roof, squeegeed off the water, and repaired the leak, and “not everybody is going to be able to do that,” he says.

Long before he was up all night baking donuts, LaLumiere had learned what it

means to work.

“When I came here as a merchant marine guy, I had never heard of somebody not coming to work – because I was on a ship!” he jokes. “If you’re showing up late for work, we’ll leave you at the next port.

26 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

So when I came into the food service business and found that when an employee doesn’t show up for work, they just walk in the next day as if nothing ever happened.

And I’m thinking, ‘What is wrong with you?’ And then I realized it was a different world– welcome to fast food.”

•

2017

Directory of Business Members

BUSINESS MEMBER

ACCOUNTING

BUILDING

Adrian A. Gaspar & Company, LLP, CPAs

Duro-Last Roofing

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

Persona Signs, Lighting, Image

Joe Duhaime 617-504-0059 • Joe.r.duhaime@sprint.com 3 Van de Graaff Dr, Burlington, MA 01903 www.sprint.com

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

Employers Unity LLC

Granite Telecommunications

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

Mike Grammel 303-895-4514 • mgrammel@employersunity.com PO Box 173836, Denver, CO 80217 www.employersunity.com

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

Marcovich, Mansour & Assoc. Inc.

Poyant Signs

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

MFA - Moody, Famiglietti & Andronico, LLP

David Fisher 978-569-2944 • dfisher@mfa-cpa.com 1 Highwood Dr., Tewksbury, MA 01876 www.mfa-cpa.com

Neovision Consulting Inc.

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

Sansiveri, Kimball & Co., LLP

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

BACK OFFICE BlumShapiro Consulting

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

Jera Concepts

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

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

Restroom Remodels Company

Keith Vanderbilt 617-500-2554 • keith@restroomremodels.com 15 Hammatt St, Ipswich, MA 01938 www.restroomremodels.com

Trane Commercial Systems

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

Watchfire Signs

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

COMMUNICATIONS Charter Business

Bernadette Vidal 212-5980-1707 • Bernadette.Vidal@charter.com 477 Congress St. Portland, ME 04102 www.charter.com

Sprint

Verizon

Dustin Ray 207-317-1406 • Dustin.Ray@vzw.com 352 Center St, Auburn, ME 04210 www.verizon.com

COST RECOVERY EF Cost Recovery

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

Performance Business Solutions, LLC

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

ENERGY Secure Energy

Jodi Maurer 413-733-2571 x218 • jmaurer@sesenergy.org 12-14 Somers Rd., East Longmeadow, MA 01028 www.sesenergy.org

FINANCE Bank of America/Merrill Lynch

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

Thank You to Our Business Members!

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 27

2017

BUSINESS MEMBER

Directory Business Members Directory ofof Business Members

Bank RI

Pacific Premier Franchise Capital

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

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

BMO Harris Bank N.A.

Pinncale Commercial Capital

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

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

Bridge Funding Group, Inc.

Santander Bank

Rick Riecker 800-928-8537 • Franchise@BankUnited.com 215 Schilling Circle, Suite 100, Hunt Valley, MD 21031 www.bridgefundinggroupinc.com

CIT

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

Signature Financial

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

Trey Grimm 410-419-7107 • tgrimm@signatureny.com 502 Club Ln., Towson, MD 21286 www.signatureny.com

Eastern Bank

Sterling National Bank

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

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

Fidelity Bank

TCF Franchise Finance

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

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

Joyal Capital Management Franchise Development

HUMAN RESOURCES Employers Reference Source

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

HigherMe

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

Paychex

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

TalentReef

Abby Sandbach 720-399-2494 • asandbach@talentreef.com 210 University Ste. 300, Denver, CO 80206 www.talentreef.com

INSURANCE Intrepid Direct Insurance

Chad Lee 913-217-4262 • clee@intrepidinsurance.com 10851 Mastin Blvd, Ste. 200, Overland Park, KS 66210 www.intrepidinsurance.com

Regions Insurance

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

TD Bank

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

Dennis McClelland 770-274-2914 • dennis.mcclelland@regions.com 12725 Morris Rd. Ext. Bldg. 100 Ste. 200 Alpharetta, GA 30007 www.regionsinsurance.com

LCR Franchise Finance

United Bank

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

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

Northern Bank & Trust Company

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

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

Wells Fargo Bank

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

Starkweather & Shepley Insurance Brokerage, Inc.

LEGAL Constangy, Brooks, Smith & Prophete, LLP

Jeffery Rosin 617-849-7882 • jrosin@constangy.com 535 Boylston St, Ste. 902, Boston, MA 02116 www.constangy.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.

28 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

Lisa & Sousa Attorneys at Law Ltd.

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

Marks & Klein LLP

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

Paris Ackerman & Schmierer LLP

Ecolab

Michael Quate 215-287-6953 • michael.quate@ecolab.com 8300 Capital Dr, Greensboro, NC 27409 www.ecolab.com/Businesses

HME Drive-Thru Headsets

SKAL East, Inc

OPERATIONS

Bunn-O-Matic Corporation

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

Cardtronics

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

Carrier Corp

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

Crane Payment Innovations

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

DTT

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

safeTstep by Payless Shoesource

Jarrett Services ATM, Inc.

Loree Miller 704-968-1582 • loree.miller@kronos.com 900 Chelmsford St, Lowell MA 01851 www.kronos.com

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

Michael Murdock 847-495-7350 • michaelm@rftechno.com 330 Lexington Dr, Buffalo Grove, IL 60089 www.rftechno.com Kyle Clendennen 785-295-6664 • kyle.clendennen@safetstep.com 3231 Southeast Sixth Ave, Topeka, KS 66607 www.payless.com/safetstep-1/

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

Kronos

MCD Innovations — Airxcel, Inc.

Christina Trammell 972-548-1850 • christina@mcdinnovations.com 3303 N. McDonald St. McKinney, TX 75071 www.mcdshades.com

Nano Safety Solutions

Jim Muldoon 978-273-1847 • jim.muldoon21@gmail.com 6 Argyle St, Andover, MA 01810 www.nanosafetysolutions.com

New England Drive-Thru Communications

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

Pentair Everpure

Chris Williams 651-503-4763 • christopherJ.Williams@pentair.com 1040 Muirfield Dr., Hanover Park, IL 60133 www.everpure.com

Prince Castle/Silver King

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

BUSINESS MEMBER

R.F. Technologies, Inc.

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

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

3M Company

2017

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

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

Squadle

Brendan Bencharit 818-590-4483 • brendan@squadle.com One Broadway, Floor 14, Cambridge, MA 02142 www.squadle.com

Staples Advantage

Joe Shea 781-806-3139 • joseph.shea@staples.com 31 Commercial St. Sharon, MA 02067 www.staplesadvantage.com

Tellermate

Kyle Anthony 770-220-5113 • kyle.anthony@tellermate-us.com 3600 Mansell Road, Ste 500, Alpharetta, GA 30022 www.tellermate-us.com

Wind River Environmental

Samantha Kelley 978-344-0926 • skelley@wrenvironmental.com 46 Lizotte Dr., Ste. 1000, Marlborough, MA 01752 www.wrenvironmental.com

Workpulse, LLC

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

Thank You to Our Business Members!

INDEPENDENT JOE • AUGUST/SEPTEMBER 2017 29

COMMUNITY CORNER

BY STEFANIE CLOUTIER

Steve Catalano: Stepping Up

S

teve Catalano knows firsthand that one person can make a difference.

Catalano has raised more than $180,000 for Lyme disease research since 2015, after his daughter contracted it. That’s a hefty sum in such a short time.

But he started giving back long before it became personal. A Dunkin’ Donuts franchise owner for 27 years, he has made a habit of getting involved with organizations that have a big impact in the communities where he has stores. It’s the way he has always done business.

“You have to step up and do things,” he says. “When we started out, we knew Dunkin’ Donuts was a very communityled business. Though it has a national name, it’s the individual stores that make a difference in the communities.”

For years he has been involved with his local rotaries. “You meet so many people, and are able to do so many good things for the community,” he says, adding, “Our employee base is part of that community.” That spurred meetings with other charitable organizations, giving him more opportunities to support the communities where he has a stake.

One of those organizations is Loaves and Fishes in Massachusetts, where Catalano operates 39 Dunkin’ Donuts restaurants.

Their mission is to provide nutritious food to those who need it in six surrounding communities. Each year, the organization collects frozen turkeys to hand out

at Thanksgiving, but they have nowhere to store them before distributing them.

Catalano provides the freezer space in his stores.

“They get the turkeys and we house them,” he says. “I’m happy to do it, they’re a great organization.”

So when he recently entered the Nashville, Tennessee market, buying 19 shops, it made sense to connect with the TJ Martell Foundation. Started by music industry executive Tony Martell when his son was diagnosed with non-Hodgkins lymphoma, the foundation champions leukemia, cancer and AIDS research.

“They funded a whole wing at [Vanderbilt University] for research on cancer and AIDS,” says Catalano. “I did a tour of the building and when you see what the doctors are doing, the clinical trials, the labs, it’s just amazing.”

One of TJ Martell’s fundraisers takes place in Aspen, Colorado, where Martell’s industry connections come into play.

Volunteer kids hang out at the bottom of the mountain and sell hot cocoa to the celebrities as they finish skiing down.

Catalano donates the hot chocolate.

There’s also a gala in New York City, to honor people in the music industry who work behind the scenes.

But Catalano’s favorite fundraiser may be the bed race: each team takes a regular bed, puts bike wheels on it, and pushes it for two blocks through Nashville, from the

30 INDEPENDENT JOE • AUGUST/SEPTEMBER 2017

Omni Hotel to the arena where the NHL’s Predators play. For the race this past May, his daughter sat atop the bed for the ride.

“We raised a ton of money and it was fun!” says Catalano. “What’s a better fit for Dunkin’ Donuts than a cup of coffee in bed?”

In 2014, Catalano tapped his experience as a fundraiser for a more personal goal.

After his daughter contracted Lyme disease, Catalano, his wife Christin, and his business partner Chris Sargent created Fore Lyme. In its first year, the organization held a golf tournament which raised $50,000 for research into the debilitating disease.

“Our families deal with Lyme disease, it’s personal, but it goes beyond that,” he says.

“We see people suffering with that, and to have the ability to give back to something we truly believe in is really rewarding.”

Looking ahead, he’s hoping to host a wine tasting in Massachusetts, where he resides, as a joint effort between TJ Martell and Fore Lyme. The proceeds will be split between the two organizations.

None of the community work Catalano does is for business profit – there’s more corporate visibility than a direct benefit to his stores. For him, it’s connecting with an organization he can relate to, one that’s doing important things for the community at large.

“When it’s something you can relate to and get behind, it’s not like doing work,” he says, “It’s a blessing.”

•

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