Dunkin' Chief Legal Counsel Steve Horn Is Out
CANTON, Mass. – Following much turmoil and bad press over its legal team’s aggressive tactics against franchisees, Dunkin’ Brands CEO Nigel Travis has just announced the latest in his reorganization of corporate executives, stating that the company’s controversial chief legal counsel Stephen Horn is leaving to pursue new opportunities. His email letter to franchise operators reads,
Dear Dunkin’ Donuts and Baskin-Robbins Franchisees,
After 10 years with Dunkin’ Brands, Steve Horn has decided to take this opportunity to announce his intent to leave the company. Steve has communicated that he will pursue new opportunities including his passion for writing. A well known author, Steve has had significant success with his two previous novels and has decided that this is the time for him to start the third. At our request, Steve had agreed to stay on working with myself on special projects until the end of December.
Steve has always striven to act in the best interests of our brands, our franchisees’ investment in those brands, our customers and the thousands of employees in our restaurants who work so hard to serve these customers. We appreciate Steve’s integrity, his total dedication to the company and his many years of service.
On an interim basis and effective immediately, Arthur Anastos, director and managing counsel, will assume management of the legal department.
We plan to quickly recruit an experienced general counsel from the outside. With that hiring of a new general counsel, we will have finalized our Dunkin’ Brands leadership team.
I look forward to discussing the new organization with you and our exciting plans for the future at the upcoming RAC meetings and as I visit markets around the country.
Thank you for your support,
Nigel Travis
Dunkin’ Brands CEO and Dunkin’ Donuts President
Robert Zarco, Zarco, Einhorn, Salkowski & Brito, representing a number of franchisees, recently affirmed that the franchisor’s “loss prevention” department headed up by Horn has been turning its lawsuits against operators into a major “profit center.” In hearing today’s announcement, Zarco stated, “I believe these draconian tactics have caught up with Steve Horn. He has been a bully for years.”
Zarco also feels that the franchisees uniting into an association has demonstrated the force and strength it can have with a franchisor. He said, “It’s only because the franchisees got together that they were able to effectuate this kind of impact and resolve. My hat goes off to them.” He added, "And, congratulations to the board of directors of Dunkin’ Brands for making what I am sure was a very difficult but appropriate decision, which has been long overdue.”
In a statement from Michelle King, Dunkin’s director of global public relations, she announced, “Steve has always striven to act in the best interests of our brands, our franchisees investment in those brands and our customers. We appreciate his dedication and years of service and wish him the best in his future endeavors.”
She said upon the hiring of a new general counsel, the company will have finalized its leadership team. And, in addition, she confirmed that the Dunkin’ Brands loss prevention team now reports to Paul Carbone, vice president of finance. Previously, he worked for large retail organizations, including Limited Brands and Tween Brands where he had responsibility for loss prevention.
New York attorney Paul Steinberg, who first highlighted Horn’s hardball tactics in terminations and litigation in his publication, Beguiling Heresy: Regulating the Franchise Relationship, today said, “This is a very positive step for the brand.” He explained that any franchisor needs to make sure that people are being honest. But he observed, “You don’t need to be sleazy. You can treat your franchisees with respect and integrity and expect that they will treat you likewise. Where they don’t, obviously, you will have to deal with that.” He said there was never any reason for Steve Horn to pursue the course of action that he did, adding, “Other franchisors don’t have to do that.”
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Related Articles:
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- Despite Mounting Evidence, Dunkin' Continues to Deny Spying on Franchisees
- Dunkin' Caught in Scheme to Entrap Franchisee
- Attorneys Criticize Dunkin Donuts Litigious Behavior
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i can't believe this
...that you may already know. The DDIFO is replete with franchisees that actually "work" both sides of the fence. This is to say that some routinely share meeting notes, agendas, and potential "actions" with company management. It's been that way since inception.
For this, they receive preferential treatment by the company. If you find this hard to believe you might wish to look at a few of the Maryland and Virginia franchisees.
Most everyone already knows who they are.
What i worse for them is that their old pals at Dunkin Brands, except ofr one, have all been fired. They may find that being a rat has the opposite of a payoff these days.
I've heard from Dunkin Brands employess that "X told me that DDIFO is doing Y." They named the name of the rat.
Rats be warned.
Judass’ are typically high performers although sometimes they can be a sucker newbie. Preferential treatment means so much more to a high revenue operator but the newbie is typically suckered for little more than the stroking.
I am yet to come across a franchise network where the Judass concept was not alive and cultivated.
The Judass is usually found out without too much difficulty as they routinely support the unsupportable while promoting themselves as the voice of reason. They all have egos that blind them from their transparency.
They can be a strategic windfall at times and a great source of entertainment for people with a sorry sense of humour. When the Judass carries back his titbits he gets an extra pat but when he carries back news of great import he gets an extra big bone. Smart people can shape some wonderful and costly outcomes with misinformation carefully and intelligently shared with the Judass.
In such systems Judass eventually comes unstuck and the preferential treatment stops and he is cast out from the flock of the zor. When it is his turn to suffer at the hands of zor he squeals really, really loud as the ego comes to terms with joining the band of X while being outraged that he could be betrayed by the zor to whom he betrayed so many. His day was always destined. He turns to those whom he betrayed and they say; ‘Its awright mate, come around back here and we’ll chat a little bit’.
franchisee group. No group of franchisees can expect confidentiality when meeting to try to deal with franchisor source difficulties. Even board members in groups I have worked with have been found to be double dealing for their own account by betraying confidences.
You have to have serious determination to deal with an abusive franchisor. There is no secret passage through which you can access a better life with no risk.
When I am trying to get a group started, I communicate with potential members as the attorney for the organizers whom I do not identify - but I know that one of those very organizers is telling the franchisor who I represent and what we said in our meetings.
Unfortunately you cannot deal out what such people really deserve.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
The DDIFO has accomplished something remarkable. But this is but one battle in the war. You can accomplish so much for yourselves if you ALL band together. Support your f'ee association. If you are already a member tell your friends to join. If you are not yet a member, join today.
Now you have seen a sample of your immense potential power. Now you should ALL unite to get a more fair franchise agreement. How about lobbying for fair franchising legislation? The sky is the limit!
We all know f'ors need to sell franchises. This one also wants to do an IPO. You can be their friend or their foe in this regard. Why don't you have your association approve or disapprove their franchise agreement? It should get them to the table to improve your franchise agreement if you can help them sell more franchises with your approval as a fair and balanced document.
You control your own destiny more than you know. The future is in your hands. Aim for 80% of all franchised shops joining your association. Your f'or will be forced to listen - and to act.
Carpe Diem!
Hmm. Mr. Zarco is highlighted in a television program because of his riches and lavish lifestyle. Didn't he make all of his money off of franchisees. I'm just wondering about motives here.
because he is good. If you want someone of lesser capabilities, go hire the bozo of your choice.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Spoken like a lawyer.
When you are done rifling through franchisee trash bins, maybe you should abandon communism, too.
Zarco amkes money the same way that DD franchisees do. They work hard at being the best at what they do. They don't need to be contract parasites feeding off the work of others, which appraoch you apparantely deem the height of franchising.
If you are still employed by Dunkin Brands, they will never be able to another franchise. I suspect you are out or are well on your way. Dunkin Brands is taking out the trash right now, and that wll include the rest of the goon squad.
with any legitimate operator making whatever he can honestly. And that applies to franchisors and lawyers and franchisees and whomever. Most people do have a problem with scum that rip off people knowingly and willingly and in the process brutalize them. Few that read Horn would see this idiot's comments as dumb and most that read Horn read all of Horn so they won't be distracted by gibberish. Those that support the scum are scum. Dumb scum ... there you have it.
Zarco. Zarco is at the top of the list of people who have helped frnachisees. He is at the top of the list of trial lawyers who are force multipliers.
Horn isn't fit to wash Zarco's feet, and neither are Horn's team mates. The Horns of this world are nothing but bullys that need to be smacked.
Bobby Zarco, on the other hand, is the best friend franchisees could ever have.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
And how much do franchisees have to pay in legal fees to be "Bobby's best friend"?
Obviously you belong in another group.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Who might that be?
I drive a late model Lexus LS 460. You may have a 1975 Pinto. Both are cars. Both have engines. Both have 4 wheels. In theory, both can take you from point A to point B. In my eyes, that is where the comparison ends.
I see the value in procuring quality. You may not value quality the same way I value quality. You may not have the pocketbook to afford to drive what I drive. That is your choice.
I see a parallel in obtaining service from an Attorney. I maintain Atty. Zarco is the best in his field. As such, he commands a high price. Further, I think he is a very good value. For me, only the best will do, and I am ready and able to pay for the best.
I have listened to Zarco speak at the last month's DDIFO meeting. I have never been "in trouble" with Dunkin'. Hopefully that will always be the case. If not, you can be 100% sure who I will be calling!
Guest; you would not be the Horn would you? Denial suits you. You may not have the capacity to understand why your brain works the way it does but rest assured; the rest of the planet knows you are damaged.
I doubt very much he would waste his time on this site. I'm interested in why you all want to destroy the franchise.
Every scam franchisor that gets slammed here comes here and we happily screw their day. Don't suggest otherwise fool. They cannot help themselves.
I suspect no one wants this franchise destroyed. Rather they want the removal of those at the helm that screwed and abused franchisees and would continue to do so unless they were exposed. This franchise would possibly save some time, future pain and reputation if it was sold. Then you might find franchisees more confident about any possible collaboration and willing to review a new franchisor's operation. But then again; Horn would have destroyed a hell of a lot of what this franchise was once worth. Another franchising rock and a hard place.
Zisk? If you want to know who is destroying the DD franchise, look in the mirror.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Sorry I don't speak latin. I live in america. I guess you have a problem with people not agreing with you. I guess you must have lost your store to be so angry.
Acting like children
The last time I checked it was not a bad thing to stop individuals from committing tax fraud, hire illegal aliens and steal from a company by undereporting sales. Steve Horn did his job and I personally applauded him for it.
...but in this particular case of execution, I most assuredly do not.
Technical infractions, no matter the scope or intent, all result in the same disastrous outcome: Notice of Termination of Franchise with neither appeal nor opportunity for correction.
By way of example, if I unintentionally file an inaccurate Form 1040, the IRS lets me amend my return. In Dunkin's world, I would be gone. I am compelled to "obey all laws" or risk being thrown out on my proverbial backside.
Therein lies the problem. Zero tolerance with no opportunity to mitigate or correct "infractions" is unworkable, patently unfair and incomprehensibly harsh. What makes it all the worse is that this f'or took the opportunity to profit greatly by stealing Millions of dollars of f'ee sweat-equity in the process.
Did dunkin brands ever pay the IRS back for the infraction?
No, they collected the money from the franchisee as a penalty and pocketed it.
So they enforced IRS rules harsher than the IRS does and they never paid the IRS for the money Dunkin Brands says the franchisee stole from the IRS.
The same is true with all the "obey all laws" infractions.
Why should Franchisor have to pay off the IRS for crooked franchisees? If you want to break tax laws you have to pay for it.
It is alleged here that Dunkin Brands collected money for deliberately exaggerated IRS infractions and then pocketed it rather than pass it back to the IRS. So franchisees pay the franchisor who then steals IRS monies? In that instance who would be guilty of the greater crime?
Guest you come here to provoke readers but you cannot offer anything with substance and quite obviously because you work from a basis that Dunkins is clean when everyone else on the planet, except Dunkins, has accepted they are filthy.
Gee--entrapping a franchisee for doing nothing only to try to steal his store. Are you golf clapping for him now? Maybe the "legalized extortion" gets you over.
Maybe you need to read more closely. The big complaints are not about disenfranchising criminals, it is about threatening honest businesspeople with financial ruin by groundless federal lawsuits when they've done nothing wrong is the problem.
Is all of this mindset of investigating and attacking franchisees a strategy to sell the thousands of franchises you need to go nationwide?
How's that working out for ya?
If you applaud shakedowns as a laudable business strategy, there's a much older enterprise than Dunkin out there for you. It helps if you speak Italian, but I suspect you aren't tough enough for this line of work.
will it become Quiznos, only more sinister?
Hornisn't even gone. He is "consulting" on "special projects". I'll bet they are special to Dunkin. Horn brought in MILLIONS with his lawsuits against franchisees.
Will Dunkin be able to give u that money?
What about all of Horn's henchmen? They are still there.
Also, Dunkin can just hire Horn as a lawyer any time and he can continue his "work".
Steve:
I'm a great fan of your work. Call me. The law firm of Quick, Duhk & Hyde could use (another) associate like you.
Let's talk!
Richard Quick, Esq.
Senior Partner, Quick, Duhk & Hyde,
Founder, FranWorst.com, Author (What is Success? by Richard Quick)
Millionaire Richard Quick, Esq.
Website: FranWorst.comI obviously missed the bit where this franchisor, or any, charged $350 a pop, or anything, for a standards inspection. I could say a whole lot on this but I’ll give everyone a rest and save it.
How many franchise systems charge for a standards inspection? I thought I had heard it all. Un-bloody-believable! From the bloody rediculous to the bloody sublime.
Is this new? Can we copy that crap here in Australia? I'm sure someone will try.
At least the Horn won’t have any trouble getting a job doing something disgusting to someone.
The name is Steven Horn; come and join his new family of franchisees.
I am amazed .... how many franchise systems charge for a standards inspection?
A day after Janet's article, the NY Post covered the story of Horn leaving, Dunkin' eyes legal refill. The Post discusses how Dunkin' is regarded as "the most litigious [franchise] system." That was a term that I first heard used about the doughnut chain among attorneys.
The Post was the first to break the news about Dunkin' Donuts' controversial March Surveillance System POS.
"Free at last! Free at last! Thank God Almighty, we are free at
last!"
...were entirely incapable of properly running this company in both legal and operational areas.
As the quality of Dunkin' continues to faulter, as franchisees continue to become disillusioned with "the system"...let's trust that Nigel caught it in time to re-invent this brand and return operations and ethical legal behavior to their former levels of excellence.
15 years of a sneaker salesman and ambulance chaser were quite enough.
For those who did not know, prior to their current gigs:
1. Kussell was VP-Marketing at Reebok.
2. Horn worked at Schmeltzer, Aptaker and Shepard in Washington, D.C. Prior to that, he was a prosecutor for the U.S. Department of Justice.
Horn was succeeded by Zisk, who is still there. The office is now part of Gray Plant Mooty.
Ding Dong! The Witch is dead.
Which old Witch? The Wicked Witch!
Ding Dong! The Wicked Witch is dead.
Wake up - sleepy head, rub your eyes, get out of bed.
Wake up, the Wicked Witch is dead.
She’s gone where the goblins go, Below - below - below.
Yo-ho, let’s open up and sing and ring the bells out.
Ding Dong’ the merry-oh, sing it high, sing it low.
Let them know
The Wicked Witch is dead!
I was required to read the Wizard of Oz, of all things, in my Freshman literature class. I never could figure out in the mid-term exam what was so symbolic about this part of the story. Only in my old age, with the help of Expert Franchise Critic's post above, has it now dawned on me that author L. Frank Baum was prophetically talking about people like Steve Horn and Dunkin's Loss Prevention practices. I had no idea that Dorothy, the Scarecrow, Tin Man and Cowardly Lion were a symbolism for franchisees.
Who would have thunk?
Thanks Expert Franchise Critic for helping me answer that exam question after so many years.
Why yes, Bob... But please allow me to correct and complete your symbolic analysis:
- "Fire" is the unwarranted f'or litigation against its f'ees.
- Dorothy is the "DDIFO", not a f'ee.
- BMM coverage is the "Water" that melted the evil Wicked Witch of the West.
- The Flying Monkeys are Dunkin' Brands Employees. They have come to see the evil that Horn bestowed upon the system.
Yes, sometimes childrens' stories are quite allegorical.
Expert Franchise Critic. Get a life.
Hey Guest, what is the problem? Am I too bright for you? Don't you understand that an "allegory" is?
I have an Ivy League MBA, an IQ of 142 and (I assume) a boatload more $ than you have! Lighten up and have a little fun.
I'm sure your mother is proud. The rest of us, not so much.
no one but an ivy league MBA with a 142 IQ would boast about how wealthy he is, comparatively or otherwise - except maybe a dumb Texan who got lucky but has no education whatsoever.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
a discussion of my sexual prowess! ;-)
I stand corrected.
I was trying to figure out who the Flying Monkeys were. Now I know. If they fly anywhere, let's hope its up LP's butt to stop Loss Prevention's heavy handed legal tactics.
Do you people really believe you are not dealing with organized crime? Do you really believe every organized gangster dresses outlandishly and eats spaghetti all day? Do you think that organized crime needs goons with guns to come around and shoot your children? Is it possible that you are all that stupid?
The other Mafia is Anglo Saxon Protestant or worse; wears very conservative tailor made suits; went to all the best schools; has a daddy who set him up so well that he could hire lower orders to do his dirty work; lawyers and contracts instead of guns; and professional managers instead of button men.
Judging by methods and results, can you honestly distinguish between Tony Soprano and Rick Schaden or Mitt Romney (Bain Capital)? Are you experiencing a more pleasant life under Mitt the Shit than you would under Tony Soprano?
Get real, people!
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Just wondering if you can point to a conviction of Mitt Romney??? The Governor is tied up in a suit brought by an ex head of MA civil service under Romney because Mitt fired him due to possible Mafia connections, and Bain, like every other big company has been sued, but please show us where and how Mitt Romney is a corrupt man.
Just because this is a franchise site, don't think that a bloated old big mouth like you can mess with people on a hateful basis. Carry your ass to a monkey farm where you can do some entertaining - for a day until the monkeys get bored.
Expert Franchise Critic said: "Fire is the unwarranted f'or litigation against its f'ees."
Your explanation adds a whole new meaning to the term "trial by fire".
Here's to hoping that youa ren't one of them.
He is still around through year end. Keep your eyes open! Pay your DDIFO dues!
Nigel Travis felt he had to put some positive spin on the debacle that was Steve Horn. He would have been smarter to have shut his mouth. His advisors are idjits or he is if this ‘company line’ was a moment of personal brilliance. Instead of allowing DD to get some much needed positive PR from the demise of Horn he has now said Horn performed well in destroying and attempting to destroy DD franchisees.
If this is as bright as Travis gets then he should follow his friend Horn into exile for it is said that he who willingly lies down with dogs cannot complain when he is forced to lift his knees and drag his ass across bitumen to get relief. His statement gives no relief to DD or DD franchisees. In acknowledging the efforts of Horn and retaining his services Travis is attempting to defend what is indefensible and that is just too dumb to fathom.
He just made the way forward so much more difficult when it was always going to be tough. Why would anyone put the memory of Horn before the needs of DD and DD franchisees?
of DDIFO, its franchisee members, and also of Dunkin' Brands. Justice was served today.
DDIFO and its members united to decry a great wrong. The brand may not yet recognize you, but your effect was most assuredly felt. I suspect that you will be recognized in short order, but that would just be a bonus. You are making a positive difference to your members today.
As to my kudos for Dunkin' Brands, yes, removing Horn from his post must not have been easy, but it was both necessary and proper. Now, how are you going to clean up all your previous messes from excess litigation against the fallen masses?
Today, Steve Horn... tomorrow the unfair franchise agreement!
Go get 'em DDIFO!
I wonder where the sumbitch will go now. Schaden might hire him.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
No...Shady just brought back Pat Meyers. I suspect Shafer isn't far behind which will put the final nails in the Quiznos coffin should that happen.
We owe you a debt of gratitude.
Those franhcisees that don't belong, well, why?
I will revise my parody lyrics of that song, but until we see real change (ahem..there ares till 350 outstanding lawsuits and franchisees who got shaken down that need reimbursement), I continue to sing my song (to the tune of "Here Today, Gone Tomorrow" by 90s band DaDa) hoping that there's not just a replacement name for Steve Horn (remember, if the ownership didn't love his actions, he would not have taken them):
I used to hide my franchise in a paper bag
Well I only took it out when it was safe from frag
My last sixteen years in a Fred the Baker suit
One Franchisor with a law firm and a steel-toe boot
You see my franchise is... (here today)
Here today (gone tomorrow)
Here today (gone tomorrow)
Here today (gone tomorrow)
Here today, 'n' gone tomorrow
One night in the mirror I saw a target shaped scar
So I flew to Robert Zarco in a really fast car
A pack of court papers, I'm a bundle of nerves
Crying out loud as Steve Hoover Horn verves
'Cause you know my franchise is here today...
(and gone tomorrow)
Here today (gone tomorrow)
Here today (gone tomorrow)
Here today (gone tomorrow)
Here today, 'n' gone tomorrow
So we went up to the donut shop to meet the money
I saw my field rep, he was actin' funny
He said "smile for the camera" cuz the fix is in
And that's about the time that Steve Hoover Horn walked in
He said
"Son, I'm gonna tell you something, it ain't pretty
There's a thousand ways to lose your equity in my franchise city"
And we were here today (gone tomorrow)
Here today (gone tomorrow)
(You know we're) here today (gone tomorrow)
Here today ......
Just right on.
This is only the first step in rehabilitating Baskin Robbins and Dunkin Donuts reputation.
As shown on a large number of blogs, the thuggish franchisee abuse by their foreign operated entities continues unabated. Of special note have been TV reports recently about the Baskin Robbins franchisees in Korea and Japan, as well as the well-documented activities of Allied Brands Ltd., the Dunkin - owned franchisor for Australia, India, and parts of China.
http://baskinrobbinsaustralia.blogspot.com
Was the removal of Horn, who is responsible for organising these anti-franchisee operations around the world, a genuine step towards support of the franchisees or a smokescreen for a new, more aggressive Dunkin Brands attack on franchisees - their largest investor group!
I want to take his "face-off" and plaster it on the blood ridden streets of our fallen Franchisee Heroes. I'm disgusted by that "face". I wonder what he says when he looks at his own "face"?
That is a man who will join Schaden, Shaffer, MacDonald and Ryan in Hell someday.
I don't think he's worrying about being hellbound. His conscience is clean. I can't say that about the rest of you.
Horn's conscience is clear????!!!! Really? Why?
Because what he did was allowable under a strict reading of the extreme and abusive franchise agreement that he drafted and shoved down franchisee throats? Justification will not you sleep at night for very long.
If he REALLY thinks what he did was right, why does he say he was fired?
If his conscience is clear, does that include destroying his company's prospects of selling franchises when it desperately needs to do that to meet its own often stated goals?
Sounds like he has much to regret. He may have thought that raising short term revenue was his job and to be fair, if he was told to do that he certainly did that very well. That he can sleep at night over.
sell more DD franchises. However, DD will have to find a way to make peace with its franchisees to get them to vouch for a quality franchise relationship before their franchises can be sold to anyone who is not a fool.
I suspect that is unlikely to happen, as franchisors believe today that they never have to regret anything or correct anything - their contracts say they are always right no matter what.
The franchisee community also has to be ready to reconcile upon evidence of a new modus vivendi. The franchisor is unlikely to hire anyone with a trustworthy reputation in the franchisee community, because that is simply not the way things are done. It is sad, but this whole affair may very well wreck any chance for an IPO, which is why Bain Capital and its friends bought the thing anyway.
Where is Sam Peckinpaugh when the story of this needs to be written?
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
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