DDIFO Chides Dunkin' for Bad Publicity Surrounding Litigation
DDIFO reports in its Business Wire press release that an article posted this week on Blue MauMau.org cites internal documents and quotes from Steven Horn, Dunkin's chief legal counsel in charge of loss prevention, speaking to an audience of attorneys at the ABA Forum on Franchising about aggressive tactics it uses to conduct surveillance on franchisees suspected of underreporting sales. In quoting Horn in expressing his view that the lifestyles and attitudes of franchisees should be investigated as well as surveillance of their stores, McCarthy said, "Targeting franchisees because of their lifestyle is particularly troublesome. No franchisee should be under suspicion or treated differently for aspiring to the American Dream."
DDIFO president Mark Dubinsky added, "We would like to see more reason and balance brought to this situation. To our knowledge, the Dunkin' system is the most litigious major QSR system out there." He feels that litigation and confrontation should be the last alternatives used when underreported sales are suspected.
Dubinsky continued saying, "We believe Dunkin’ Brands must find a way to protect brand equity while also teaching franchisees how to best comply with their business obligations. Other successful QSR franchisors have figured out how to minimize litigation in their respective systems. Dunkin’ Brands should aspire to join the ranks of these leading franchisors in terms of franchisee relations and using litigation against its franchisees as tactic of last resort.”
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Related readings:
- Dunkin's Stalking Scheme Plagues Franchisees in Court
- Dunkin' Says It Must 'Build and Protect' Franchisee Equity
- Beguiling Heresy: Dunkin Donuts Strong Arm Approach of Spying on Franchisees
- Dunkin Donuts Franchisees Angry About Corporate Surveillance and Hardball Tactics
