DD Brews Up Lawsuits
Dunkin' Donuts franchise owners are speaking out against what they call aggressive surveillance by the breakfast powerhouse.
In a statement, Mark Dubinsky, president of the Bellingham-based DD Independent Franchise Owners group, called Canton-based Dunkin' Brands the "most litigious major [fast food] system out there." The statement cites media reports that Dunkin' Brands' investigations into possible underreporting of sales include tactics like focusing on franchise owners with expensive cars.
The franchisee group said it would like to see more alternatives to litigation, such as a peer review panel for franchises suspected of underreporting sales.
In response to the DDIFO statement, Dunkin' Brands cited a statement it had previously released saying it insists franchises be operated legally, and that the vast majority of its lawsuits have been successful because of the care the company takes in its investigations.
The company also said that in one case it investigated a franchisee who appeared relatively poor on paper but had expensive houses and boats. However, Dunkin' Brands said it discovered the assets through public records, not physical surveillance.
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