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Log In / Register | Jun 21, 2018

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john a. gordon's picture

Baskin Robbins Litigation

To your question posted above:

(1) The franchisee association noted this added fee in their complaint,  but the judge found that it was commercially reasonable, and therefore their point was knocked out. Hence, why contracts and underlying legislation that can support (or not) contractual actions are important.

(2) The Baskin supply chain is not owned by the franchisees as is the Dunkin Donuts franchisees via the DCP. It is separate and apart from the DCP, it is owned by the franchisor. Hence, we have another franchise due diligence super factor to review, whether supply chain is franchisor owned and whether it is a source for captive profits.

(3) The Baskin Association did gain standing via this litigation. 

How does BR earn this fee?

If stores are paying royalties then how does the franchisor get to justify adding on this fee - what are they doing that is over and above their normal responsibilities? Also, doesn't the same purchasing co-op that supports Dunkin franchisees also support BR operators?

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