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Log In / Register | Feb 9, 2010

Dunkin' Brand's Franchisees Serve Up Brand New Professional Board of Directors

BELLINGHAM, Mass. (Blue MauMau) -  The DD Independent Franchise Owners, Inc. (DDIFO), which represents the largest association of Dunkin' Donuts franchisees in the U.S., has officially announced its creation of a new board of directors, for the first time comprised of non-franchisees. Jim Coen, newly appointed as Clerk and Director of the DDIFO board, said it was an honor being part of a brand like Dunkin' Donuts. "Dunkin' has been an integral part of the Boston area for decades. It's part of our culture here." Coen is the founder of Franchise Perfection and is Executive Director of the New England Franchise Association.

In announcing who the new members will be, DDIFO President Mark Dubinsky  said, "This new board, comprised of five well-respected professionals, is perfectly aligned to act in the long-term best interests of our members. We wish to thank the previous board for their many years of dedicated service and intend to ask for their input going forward."

In addition to Coen, the new DDIFO board of directors are Chairman Kevin McCarthy, a  franchise attorney in Cohasset, Mass., and a former senior executive with the franchisor, Dunkin' Brands; Vice Chairman Brendan Van Deventer, the Managing Partner of Riparian Partners, LTD., an investment banking firm in Rhode Island; Treasurer Joseph Kimball Jr., CPA, a partner in the firm Sansiveri, Kimball & McNamee which currently works with Dunkin' Donuts franchisees; and Director Deborah Blondin, a Senior Vice President of the Franchise Finance Division of Sovereign Business Capital.

Mark Dubinsky will continue in his role as the President of the DDIFO. Dubinsky was a 22-year franchisee and served as CEO of his family's network of franchised Dunkin' Donuts shops.

Incoming Chairman Kevin McCarthy said in an announcement, "The DDIFO decision came about because the franchisees wanted to make a change for positive reasons. They want to establish a much better communication and a productive relationship with Dunkin' Brands." This franchisor, McCarthy says, "is one of the premiere chains in the industry and it has a tremendous capacity to communicate respectfully and reasonably with its franchisees."

Coen agrees. He said, "The reason I joined the board is that I firmly believe that franchisee associations are integral to the success of a brand. You don’t have franchising without a franchisor and a franchisee."  He feels having an association that can put franchisees together to discuss similar issues and get on the same page can be very beneficial to a franchise system, because then the franchisor is able to communicate directly to the franchisees with an independent voice. "It allows those franchisees to be honest, straight and realistic about their particular situation."

Coen did not want to comment on Dunkin' Brands statement last week that it would not recognize the activities of DDIFO, that it was not an official representative of franchisees. But he did say, "What’s more important is that franchisees see the value in what DDIFO is doing. By bringing in a professional board, DDIFO is attempting to act as a much more professional franchisee association that serves all of the franchisees. Ultimately, I think Dunkin’ Brands will eventually see value in that."

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This could be a new business model. by Guest
This could be a new business model for franchisee associations. I can anticipate certain benefits that may accrue by having professionals act in the best interests of their constituents. So long as the board stays plugged in to their members, I can foresee much progress for the DDIFO. Best of luck to the board and the organization, as a whole. You will need it with Dunkin'. Their reputation is less than stellar in terms of franchisee relations. It is common knowledge they are veraciously litigious against certain of their franchisees.
Over 100 cases of litigation? by Guest
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... The momentum has shifted here. by Guest
It seems to me that the momentum has shifted here. The DDIFO directors sound altogether reasonable and balanced, while the franchisor looks to be unreasonable and obstinate. A brilliant move electing these particular directors, as well. The Chairman, Kevin McCarthy, is a franchise Attorney and former senior executive with the franchisor, Dunkin' Brands. I am quite sure he knows where all the skeletons are buried! I am quite sure the DDIFO knew exactly what they were doing here. This is a no lose situation. If the franchisor starts communicating / negotiating with DDIFO everybody wins. If the franchisor remains obstinate and continues their pact of silence the DDIFO still wins by making the franchisor look unreasonable and unyielding to their franchisees. Given the franchisor's stated goals of selling 10,000 more franchises and doing an IPO, the pressure is now on Dunkin' Brands, and in a very big way. It will be interesting to see if Dunkin' Brands will shoot themselves in the preverbal foot by staying firm, or if they will rethink their position in order to achieve their goals. Chock one up for this franchise association.
Congrats DDIFO by Bob Frankman
Bob Frankman's picture

Congratulations to board members Jim Coen, Mark Dubinsky, Kevin McCarthy and all. Judging from their postings or quotes in news stories on Blue MauMau, Dunkin' franchisees have selected an amazingly articulate and persuasive group of individuals to head up their independent association. 

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