Independent Joe Magazine Isue #1

IndependentJoeThe Quarterly Magazine of DD Independent Franchise Owners

Spring 2009 • Issue 1 DD Franchise owners Kini Do it together!

Premier Issue of the DDIFO Magazine

PrOFIt from

MeDIatIOnSkip the courtroom -

save face & money

also in this issue: Many FaceS of

DD Franchise OwnersDiversity benefits all

nc Franchise Owner returns to“OlD Style” lawyerIng

In the News:

“Regular Joe” Brad Pitt keeps runnin’ with a DD Joe.

www.lisasousa.com

Lisa & Sousa Ltd. is a firm with over 50 years of collective experience representing

multi generational Dunkin Donuts franchisees in the acquisition, financing, development,

structuring, transitions and transfer of franchised and other businesses.

Specific examples include:

transfer of ownership of 100 franchise locations in Northeast, Southeast and other parts

of the United States; sale of 48 locations in NY; purchase of 15 stores in the Northeast;

acquisition of multi-shop networks in Florida (18), Vermont (20) and Cape Cod, MA (20);

Store Development Agreements (SDA’s) throughout the country; and formation of

cooperative Central Production Locations (CPL’s).

Lisa & Sousa Ltd. is general counsel for the Dunkin Donuts Independent Franchise

Organization (DDIFO) with a membership of approximately 1500 Dunkin Donuts franchise

units nationwide.

Our clients have chosen to have an on-going relationship with Lisa & Sousa Ltd. because of

experience, proficiency, determination and attention to detail.

Spring 2009 • independent Joe 3

Independent Joe is published quarterly by dd independent Franchise ownersEditors: Jim Coen, Matt ellis • Contributors: Susan Minichiello, Judy Rakowsky

Advertising: Amy Levine • Graphic Design/Production: Susan PetersenDirect all inquiries to:

DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019508-422-1160 • 800-732-2706 • www.ddifo.orgDD Independent Franchise Owners, Inc. is an Independently

Owned and Operated Association of Member Dunkin’ Donuts Franchise Owners.

Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of DD Independent Franchise Owners, Inc. All Rights Reserved. Copyright © 2009 • Printed in the U.S.A.

IndependentJoeThe Quarterly Magazine of DD Independent Franchise Owners

Welcome!on behalf of dd independent Fran-chise owners (ddiFo), i am pleased to welcome you to our new magazine, “Independent Joe”.

Four times a year “Independent Joe” will celebrate dunkin’ donuts fran-chise owners with articles and infor-mation regarding the ownership of one of the world’s great iconic brands. i’d like to thank all of the Associate Member Advertisers for their financial support in making this publication possible.

the dunkin’ donuts brand is expand-ing across America and evolving its business. now is a critical time for franchise owners, and ddiFo is com-mitted to providing support, sharing knowledge and advocating for the best interest of all franchise own-ers. our goal is your goal: to keep the Dunkin’ Donuts brand strong and grow the business.

All Dunkin Donuts shops are all in-dependently owned and operated by franchise owners; “independent Joes” if you will. Franchise owners have invested time and money in develop-ing their business and building the brand. Dunkin’ Franchise owners are some of the most sophisticated and skilled operators in all of franchising. dunkin’ franchise owners have billions invested in locations, distribution infra-structure, and production.

We hope you will find the magazine informative and entertaining. We

also hope you will take the time to look closely at the advertisements provided by our Associate Members. Without their financial support this endeavor would not be possible.

news that affects dunkin’ donuts franchise owners is breaking and changing all the time. For regular updates on issues that affect your business, we invite you to visit our website, www.ddifo.org.

We also invite you to have your voice heard through our online forums and regular member meetings. the strength of ddiFo lies in the organi-zation’s independence and its mem-bership. together we create a synergy where one plus one equals three.

Let us all make sure that Dunkin Do-nuts of tomorrow is something we can all be proud to be a part of.

Jim Coen President, DDIFO, Inc.

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4 independent Joe • Spring 2009

ray esposito, the long-time and much beloved Master instructor at dunkin’ donuts University (ddU), once advised me as he did all his de-parting students from ddU that i would always be a success at dunkin’ Donuts as long as I “kept my eye on the donut and not on the hole”.

Keeping Our eyes on the Donut and Not the Hole… by Kevin McCarthy DDIFO Chairman

It took many years and too much experience before i finally realized how important, useful and correct the old Master Baker’s words of wisdom were. paying careful attention to the relevant matters at hand and not allowing yourself to get distracted from the key elements of running a donut shop or supervising a network of retail units sounds simple and easy in concept but it is much harder in practice.

time showed me that paying atten-tion to the needs of customers was more important than filling out ad-ministrative forms or believing that if you got a great score on a business inspection or an audit then you were a great retail operator. experience taught me that listening to employees and my fellow associates, whether in shops in Florida or at the executive offices in Massachusetts, made me more effective that simply pushing my own agenda or talking at people and not communicating with them. Yes, Ray was right and time has proved his point.

Upon joining the ddiFo Board a year ago, I remembered Ray and his words of wisdom. Keeping our eye at ddiFo on what’s important, useful and relevant to franchisees is essential to successfully serv-ing the modern day Dunkin’ Brands community. And that’s just what we are trying very hard to do at ddiFo. through our new and dynamic web-site, www.ddifo.org, we strive to bring the Dunkin’ community all the impor-tant and new information needed to maximize franchisee success. our

leadership team is headed by Presi-dent Jim Coen, who brings unparal-leled executive skills, unbounded energy and creativity to our focus on unrelenting franchisee support. Jim’s supporting cast includes Matt ellis, an extraordinarily talented media expert and Amy Levine, who has already made a major positive impact on increasing associate memberships which means new financial revenues and industry connections for ddiFo.

As well, our ddiFo Board consists of highly experienced and accom-plished professionals ranging from a major university professor to experts in franchising law, franchise account-ing and finance. All of the above are supported by the finest franchisee leaders in the food service industry. it is the vision, intelligence and courage of our franchisee leaders that have made all that the new ddiFo has to offer dunkin’ franchisees possible.

By drawing on our deep and rich past combined with new and creative mod-ern leadership, and technology we at ddiFo remain committed to further supporting our franchisee members in a superior manner while always keep-ing our eyes on the truly unique and core elements of ddiFo and dunkin’ Brand success. thank you ray!

Kevin is the Chairman of the DDIFO Board of Directors and a past Vice-President of Dunkin’ Brands. Kevin is also a franchise lawyer with Dunkin’ Brand clients throughout New England and the Mid-Atlantic.

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Welcome! Jim Coen, President

Keeping Our eyes on the Donut Kevin McCarthy, Chairman

DDIFO associateMembers Directory

Mediation createswinners on Both SidesJudy Rakowsky

Dunkin’ Donuts Franchises Reflect neighborhood DiversityMatt Ellis

Atty. Marzella Returnsto assist DDIFOSusan Minichiello

Dunkin’ Donuts & Baskin-robbins community FoundationSusan Minichiello


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Lisa & Sousa Attorneys at LawCarl Lisa, Sr.5 Benefit StreetProvidence, RI [email protected]

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Directory of associate Members


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In 1995 when many major brands were turning away from courtroom battles to resolve problems between franchisors and franchise owners, Dunkin’ Brands’ legal counsel spoke to the firm’s embrace of mediation.

“Anything that keeps people out of the courtroom is a good idea,” said Jack Laudermilk, Dunkin’ Brand’s legal counsel, as he hailed mediation in remarks to Nation’s Restaurant News. “It’s a great program,” Laud-ermilk said. it’s fast, inexpensive and nonbinding.”

indeed, dunkin’ donuts was one of the founding members of the national Franchise Mediation program along with Burger King, Mcdonalds, pizza Hut, taco Bell and Hardee’s.

the program was trumpeted in “Set-tling Disputes” a 1994 book by Linda r. Singer, which chronicled the rise of mediation as a way to resolve busi-ness conflicts with far less acrimony and expense than going to court.

“Because of its flexibility, mediation is adaptable to business disputes of all sizes and complexity,” Singer wrote. “the process emphasizes solving problems rather than establishing who did what to whom in the past.”

Mediation has become such a widely accepted alternative to litigation that it is credited with helping to drive a trend away from jury trials. in fact, the American Bar Association set up a “Vanishing trials project” because contract cases, among others, are so unlikely to wind up being decided at trial. As cases settled through media-tion increased, the rate of civil jury trials decreased by two thirds from 1976 to 2002 in federal and state courts, according to the National Cen-ter for State Courts.

But Dunkin’ Brands has turned its back on the trend of steering clear of

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Mediation creates winners on Both SidesFranchise relationships profit from skipping litigation.

by Judy Rakowsky Guest Journalist

the courthouse. Dunkin’ Brands does not mention mediation as an option in franchising agreements and, lately, has resorted with gusto to the arena of lawyers and long delays through litigation.

Between 2000 and 2002, Dunkin’ Brands filed 350 lawsuits against franchise owners compared to 12 similar suits filed by the far larger Mc-Donald’s in the same span, according to Nation’s Restaurant News and the Boston Business Journal. Dunkin’ Brands filed 157 lawsuits against franchise owners between Janu-ary 2006 and June 2007 compared to 5 by Subway, according to those publications. And in 2008, Dunkin’ Brands filed 50 new lawsuits, buck-ing a national trend and its previously stated interest in alternatives.

At the recent annual meeting of the American Association of Franchisees and dealers, ddiFo Chairman Kevin McCarthy said several panelists men-

tioned the proliferation of litigation by Dunkin’ Brands.

“I was saddened to hear several references to the fact that dunkin’ donuts had become known for be-ing overly litigious with its franchise owners,” McCarthy said. “It appears to have become a more common opinion in the franchisee community that things had been deteriorating over the last several years.”

one panelist noted, “in the days of Bill Rosenberg cooperation between the franchisor and franchise owners was much better.”

“Litigation creates an environment of lack of trust, of intimidation, and fear,” said Jim Coen, ddiFo president. “it’s not conducive to a strong franchisee-franchisor relationship.”

Coen, also the executive director of the new england Franchise Associa-

Mediation continued on next page


tion (neFA), said dunkin’ Brand’s strategy is costly on many levels. It also undermines the shared goals with franchise owners of avoiding bad publicity and the corrosive effects of airing conflicts in public. Litigation keeps control in the hands of lawyers and judges, who are not the business experts. “We need to find a way to re-solve these disputes more efficiently and in a way that is less costly and involves less intimidation and fear than the current way Dunkin’ Brands does,” Coen said.

In the 1995 Nation’s Restaurant News article, Laudermilk said that one of the nine cases that the brand consid-ered for mediation was not “ripe,” so officials decided to assume a “wait and see” posture. But the brand has made no other public comments to reveal what it may view as shortcom-ings of the mediation process.

dunkin’ Brands officials were asked to comment on Laudermilk’s 1995 statements lauding mediation.

Stephen J. Caldeira, communications chief for dunkin’ Brands, did not ad-dress the company’s view of media-tion, but said in a prepared state-ment, “At Dunkin’ Donuts, we value the partnership we have built over nearly 60 years with our more than 1,000 franchisees and recognize that our viability as a franchisor depends entirely on their success. our goal is, and always has been, to protect the health of the entire system for the benefit of all. this includes ensur-ing that every franchisee upholds the same standards, which is the back-bone of both a consistently outstand-ing guest experience and a strong brand reputation. “

Bob purvin, chairman of the Ameri-can Association of Franchisees and Dealers, said that mediation is widely seen by the 50,000 franchisees and over 100 independent franchisee groups in his organization as the way to go.

“through mediation you can often add value,” said Purvin. “A lawsuit or arbitration is about winning. Media-tion is about getting along; resolving, compromising, building.”

purvin said that often by the time the AAFd hears from a franchise owner involved in a dispute with a franchisor the franchisee is looking to recover damages for a perceived loss. But, Purvin said, when asked his ultimate goal, the franchisee “almost invariably would opt to fix the problem so the relationship can continue as originally envisioned.”

It is time, Coen said, to talk about mediation and to use it.

“I believe mediation is a much better way to resolve conflicts,” Coen said. “Franchising is all about relationships that continue and that’s where media-tion has real benefits.”

Mediation: the choice of auto makers and dealerstwenty years ago, a major U.S. automaker started mediating disputes with dealers rather than go to court or even arbitration. A few years later, a high-end foreign automaker followed the same path. Neither has ever looked back.

Mediation has long been the main-stay of the automobile sales industry, which recognized it as the fastest and least expensive way to resolve disputes and preserve long term busi-ness relationships. Companies and dealers came to appreciate the way it avoids all-out war and all the frayed relationships that come with the time and expense of litigation and arbitra-tion, said nancy Connelly of Media-tion Works Inc., a Boston agency whose mediators handle disputes between dealers and the automakers.

What motivates both the companies and the dealers and propels them toward mediation is the understand-ing that neither side will make money unless vehicles are sold. their com-mon interest and mutual disinterest in bad publicity has made a beautiful marriage between mediation and the automobile industry, Connelly said.

“First of all, if you go to court, you let everyone know there’s a problem,” she said.

Connelly cannot share the details of the remarkable mediations that have

gone on in the auto industry, but she has had a bird’s eye view on how seemingly intractable disputes get worked out. Long-term contracts are the norm in the world of franchising– the smallest is 5 years, and Dunkin’ Donuts is 20. “What is the value of dragging somebody into court?” Connelly asked. “You might stumble 20 times – do you want to litigate all that?

Michael Webster, a toronto attorney who deals with franchise relation-ships, said that many contracts are written to react to the past.

“Franchise contracts are drafted by franchise counsel to worry about the last franchisee legal win and try to draft around that,” Webster said. “But that may have nothing to do with the business problem; in fact it’s likely that it has nothing to do with the busi-ness problem.”

Most franchise contracts did not contemplate what would happen if the dow fell in half and banking became frozen, he said. But such stark chang-es make negotiating skills essential.

And they highlight the fact that tradi-tional methods of resolving them are not the best.

“if you want to maintain a relation-ship between the franchisor and the franchisee you simply do not have the luxury of litigation or arbitration,” he said. “those are relationship-ending moves. if you are going to use them it means you are going to terminate this relationship.”

Legal and business experts often liken franchise relationships to mar-riages. And everyone knows that messy divorces that drag on in the courts often lead to bankruptcy and lasting acrimony. “With litigation and arbitration, communication is disrupt-ed or markedly changed between the two sides, creating problems for the ongoing business relationship,” said Webster.

All that litigation does is create a win-ner and a loser and assign a dollar value to the outcome, he said.

Mediation continued on page 13

Mediation continued from previous page


In 1981 rod Valencia left his home in the philippines for a vacation in new York City. At the time his cousin told him he was going to open a Dunkin’ Donuts shop and could use some help. He said getting involved in the coffee and donut business could be the op-portunity of a lifetime. it was.

Rod never moved back to the Philip-pines. Instead he worked with his cousin until he eventually wound up opening up his own stores. today he has 16 franchise locations in new York and Florida.

“it was a very exciting time building all those stores,” he said. In his 25 years as a Dunkin’ Donuts and Baskin Rob-bins franchise owner he has bought and sold a number of stores and con-tinues to develop new locations.

rod’s story is not unlike that of many long-time dunkin’ donuts franchise owners. As immigrants to the United States, many saw the opportunity to get involved with a growing business. It required hard work and dedication but that was one thing they all had in common—that and a goal to succeed in a new world.

Chris Prazeres is a second genera-tion dunkin’ donuts franchise owner. College educated and computer liter-ate, Chris approaches the business a bit differently from his dad, Joe, who came to Massachusetts in the 1960s and got connected with the brand through other immigrants who had journeyed from portugal, ultimately opening his first store in raynham, Massachusetts in 1989.

“Years ago they needed strong backs,” said Chris. “they did work hard, which was a common denominator for all the people that came over here and were successful, and dad was willing to do that. He was fortunate enough to get involved when he did. He worked hard

and here we are. We are in a much better place for it.”

dunkin’ donuts has a long history of welcoming a diverse group of franchise owners, according to Cirabel Lard-izábal, Senior director for Corporate Social Responsibility and Multicultural Initiatives at Dunkin’ Brands. She said that’s because Dunkin’ Donuts prod-ucts appeal to nearly every one.

“the brand and its products are relevant to a diverse consumer base. thus, franchisees can relate to the brand and the customers regardless of their background, gender or ethnic origin. In addition, the Dunkin’ Donuts business model rewards hard work and great customer service. Many of these immigrants did exactly that, worked hard to build their business and grew slowly with the brand. they grew and realized that they could be rewarded for their hard work.”

When Arun Mandi decided to move to the U.S. it was with the aim of getting a doctorate in computer engineering and teaching college one day.

“At the time, I had two thousand dol-lars in my pocket and no return ticket

Dunkin’ Donuts Franchises Reflect Diverse Nature of their neighborhoods

home,” he said. As a student he got a job working the counter at a Dunkin’ donuts and fell in love with the busi-ness. After receiving his Master’s he went to work full-time for Jim Cain, a Connecticut-based franchise owner and learned the business.

“People thought I was crazy to have a Master’s and go back to work for Dunkin’ Donuts but Jim gave the op-portunity to manage a store. eventu-ally I was managing his whole network and putting systems in place. Jim was like a mentor to me,” he said.

eventually Arun went back to school and got a business degree; a few years later he was buying his own network of stores. today he has 19 Dunkin’ Donuts shops in New Jersey and is eyeing further expansion.

“i never felt being an indian was a disadvantage with Dunkin’ Donuts,” he said. “this business has always been very diverse. if i had chosen another system it probably would have been more difficult for me to succeed.”

With his extensive educational background and years working for other franchise owners, Arun believes dunkin’ donuts offers him tremendous opportunity.

“I love this brand and have a great passion for it,” he said. “even though it is not something I ever planned to do.”

Walk into any Dunkin’ Donuts shop and you’ll notice the faces of the work-ers tend to reflect the ethnic makeup of the neighborhoods where the stores are located. Kathy Anczerewicz said that’s not by accident. She and her husband Wally own two stores in sub-urban Chicago. each has a different employee base, in keeping with the neighborhoods.

Chris Prazeres is a second generation Dunkin’ Donuts franchise owner.

Diversity continued on page 12

by Matt EllisDDIFO Communications


After working as a partner in the new Jersey law firm Horn Marzella, LLC for 12 years, Carmen Marzella ventured out as a Dunkin’ Donuts franchise owner. in 2003, Marzella formed a business partnership with Mario Russo and established a dunkin’ donuts franchise in raleigh, North Carolina. Marzella and Russo opened another location in 2005 and one more in 2007, both near Re-search triangle park in the western suburbs of raleigh, which provides a combined business and residen-tial customer base. While Marzella continues to be an owner and part-ner in all three locations, his career path has taken a new turn, one that is sure to be of interest and service to dunkin’ donuts franchise owners nationwide.

on April 1, Marzella joined the prominent raleigh law firm, ragsdale Liggett, PLLC. In his role, Marzella will focus on representing franchisees

in the growth and development of their businesses, going beyond basic document drafting tasks. His ap-proach is to provide franchise owners with a well-rounded, total package of services. “i’m looking at it from the perspective of what i would like as a franchise owner,” says Marzella. “it would be reassuring for franchisees to know they can have an attorney who knows their business because he has been in the business himself and understands all facets of the business.”

In addition to being a Dunkin’ Donuts franchise owner, Marzella served two terms on the Dunkin’ Regional Advi-sory Council (rAC). His initial term was for the mid-west region (which included raleigh) and the subsequent term was for the southeast region (into which raleigh was reorganized). Marzella also served a term on the Baskin-Robbins RAC. In 2008, shortly after Marzella stepped down from the

southeast Dunkin’ RAC, he was ap-pointed to the Baskin Robbins Brand Advisory Council (BAC) as a combo BAC member. Marzella is one of only two such members representing com-bination dunkin’/Baskin stores.

Marzella has extensive experience in franchising and law, as well as invalu-able industry contacts and relation-ships with senior leadership. He has a solution-based, non-adversarial reputation. With this breadth of expe-rience, knowledge and contacts de-veloped as a franchise owner, along with that gained through member-ship in Dunkin’ and Baskin advisory councils, Marzella can offer franchise owners unparalleled service and ex-pertise. While he is based in Raleigh, his services are available to franchise owners across the country.

the services Marzella can provide include legal and business advice that touch upon all phases of fran-chise ownership: purchasing and establishing a franchise, day-to-day franchise operations, and finance and lending, as well as succession and estate planning. Ragsdale Liggett has authorized Marzella to create a flat fee program of services that will enable franchise owners to better budget legal fees, adding value to the package and resulting in fees that will be significantly lower than what other firms charge.

Marzella aims to be available as an ongoing resource franchisees can reach out to for advice when they

Atty. Carmen Marzella also served two terms on the Dunkin’ Regional Advisory Council.

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by Susan Minichiello

Marzella continued on page 15Spring 2009 • independent Joe 11

Rod Valencia said he sees diversity within the system as a sign of dunkin’ Donuts long-term success.

“i think it’s a sign of the health of the system. the company recognizes the benefit of welcoming different ethnic groups is critical for its ability to grow, develop and excel in the marketplace.”

Diversitycontinued from page 10

“our Summit (illinois) store has many more Spanish speaking customers, so we have more Spanish speaking employees. they have to be able to re-late to the customers. that’s just good business,” she said.

Lardizábal of dunkin’ Brands agreed, “People working the counter are the ones dealing directly with consumer and they are incredibly diverse. It helps understand customers and helps franchisees provide better service to customers.”

In New York, Rod Valencia said he works closely with neighborhood repre-sentatives to ensure his crew members represent the people who live near the shops.

“We do job fairs and work with local community groups to find the best local workers. Here in New York there are neighborhood cooperatives and they recommend people they know are the

best employees in a neighborhood. We do this because we always want to be part of the community because that’s the only way they will embrace us as part of their lives.”

As Dunkin’ Donuts expands into new geographic regions the company is actively recruiting a diverse group of new franchise owners and employees. “Without question, diversity and inclu-sion is the fuel that stokes success-ful and growth and innovation. We (dunkin’ Brands) don’t always claim to have a monopoly on the best ideas; the best ideas come from having a diverse and inclusive system-meaning both franchisees and employees,” said Steve Caldeira, Chief global Communications & public Affairs of-ficer for dunkin’ Brands.

Kathy Anczerewicz and her husband Wally own two stores in Chicago.


Mediation, in contrast, is an airing of the viewpoints of the business parties and a negotiation that is managed by a third disinterested party.

No matter how smart a judge or an arbitrator is, “they have no interest in making sure you have the best deal possible,” he said. “they are interest-ed in getting the case off and moved,” said Webster.”

With the auto dealers, the business relationships improved as soon as mandatory arbitration was off the table, said Connelly and Webster. Ac-cording to Webster, the best part was removing attorneys from the driver’s seat. the role change is more con-ducive to improving the business rela-tionship. No longer are the attorneys running the show, they are involved only to assist the business people.

the beauty of mediation is that it allows the parties to deal with is-sues beyond money damages, the only kind that courts and arbitrators decide, Connelly said.

Nothing but mutual With mediation, anyone can walk away from the table at any time, said Connelly, whose Boston-based firm keeps 15 mediators busy and only uses mediators who are highly trained and experienced in franchis-ing. that voluntary nature is freeing for the participants. nothing happens without their agreement.

in fact it is not the mediator that makes a decision. the mediator is the person who assists in the negotiation but does not make a judgment.

“You can craft something that a judge could never address,” she said.

the benefits of mediation, aside from the savings in time and legal fees, are that each side learns something they didn’t know before. the process brings together top people on each side because mediation by nature is a process conducted between peers. A lot of good is done when one side gets to hear the other say something out loud, Connelly said.

“often times what they learn makes them go back and re-evaluate,” she said.

Connelly asks businesses that are considering mediation, “Do you want to win or do you want to get it re-solved? there is a huge difference.”

Mediation lets the parties vent. It is a safe forum where no one is tak-ing notes that could come back to haunt either side and no one loses or makes money without the other side agreeing.

“Nothing is printed ever,” she said.

Confidentiality and sharp elbowsthat confidentiality has cut both ways with Dunkin’ Donuts. Dunkin’ Brands apparently welcomed the confidential-ity of the mediation process in an age discrimination claim that Warren De-Luca brought in New York and which was unsuccessfully mediated before the federal equal employment oppor-tunity Commission. During settlement negotiations, in which DeLuca said he would drop his complaint in exchange for a franchise, Laudermilk said “We’re not in the process of giving out franchises to people that are suing us or made complaints.”

DeLuca tried to use the remark in a 2003 lawsuit as evidence of retalia-tion, and Laudermilk acknowledged making the remark to the judge. But the judge refused to consider the remark as evidence because media-tion proceedings are by definition confidential.

the confidentiality is, however, a fundamental part of mediation that allows all parties to be on equal foot-ing, and which often leads to a more honest and productive exchange, Connelly said.

“Some franchise systems are not ready to give up the kind of control that has been relinquished for media-tion,” Connelly said. But once they realize how satisfying the process can be, they like it.

“they control the outcome because they control the substance of the jigsaw puzzle,” she said. “When you

are embroiled in a dispute you aren’t thinking outside your own interests. You get caught in the labyrinth.”

the auto industry mediations have been very successful, she said, because sometimes the dispute is not what it appears to be on the surface. in one case, a dispute that seemed to be about money was aired in a mediation which drew a high-ranking executive to the table. After the issues were thoroughly aired, the manufacturer offered the dealer an apology, which is what he was really looking for. And no one had a gun to anyone’s head - either side could walk out at any time with no record of the meeting that could come back to haunt them in court or arbitration.

”With mediation, there’s no downside; no risks,” said Connelly. “It’s wonder-ful.”

Purvin said that the only thing stop-ping many brands and franchise owners from embracing mediation in earnest is a lack of education and understanding.

“i have heard many criticisms of mediation aired by attorneys, ranging from a belief that mediation is a waste of time, to a fear that mediation is a show of weakness, or that the pro-cess of mediation exposes ‘secrets’ of the case,” Purvin said in a posting on the AAFd website. that’s why AAFd is focused on educating attorneys on the merits of mediation.

Mediation demonstrates that the ani-mosity that litigation creates and the enemies it makes are just not neces-sary, Coen said.

“Franchising is not only about the money, it’s about brand-building,” said Coen. “Mediation is about mutual respect and we can use mediation as bridge to foster better relationships.”

As Coen said, “When you have mutual respect between the franchise owners and the brand, the potential is limitless.”

Mediationcontinued from page 9


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Dunkin’ Donuts & Baskin-robbins community Foundation by Susan MinichielloSince its inception more than three years ago, the dunkin’ Brands Community Foundation (dBCF) has awarded nearly two million dollars “to serve those who serve others in time of crisis”. now, the Foundation is undergoing a change — in name and mission. According to Dunkin’ Brands, it will now be known as the Dunkin’ Donuts & Baskin-Robbins Com-munity Foundation (ddBrCF).

Stephen Caldeira, the Foundation co-chair, said one primary goal of the name change and mission shift is to increase franchisee and corporate engagement while providing support for charities which assist children and families.

“Children and families are suffering in the current economy,” said Caldeira who is also Chief global Communications & pub-lic Affairs officer for dunkin’ Brands.

“the ddBrCF wants to work more closely with franchisees,” he said. “With the new mission, we’ll enhance the opportunity to get more franchises involved in our core

markets,” which will help leverage fund-raising and public relations opportunities.

As part of their local community involve-ment, dunkin’ donuts franchise owners already support a wide variety of local

charities, such as Little League groups, Special olympics and Boys & girls Clubs. According to Caldeira, the DDBRCF does not preclude franchise owners from con-tinuing their support of local charities. But, under the new structure, franchise owners would funnel their contributions through the DDBRCF to the local organizations they wish to support.

the ddiFo contributes 5% of all Associate Member revenues (i.e., dues, sponsor-


ships, advertising) to the dunkin’ Brands Community Foundation and will now shift these donations to the DDBRCF.

“ddiFo Associate Members are interested in gaining access to the franchise own-ers we are privileged to represent,” said ddiFo president Jim Coen. “our dona-tion model provides a perfect opportunity to offer Associate Members this access while also generating funds to support the Dunkin’ Donuts & Baskin-Robbins Com-munity Foundation and the worthy organi-zations it benefits.”

the end goal is to better understand those issues and causes that are most important to franchise owners where they work and live. the ddBrCF is operated by a 15 member board which includes representa-tives from dunkin’ and Baskin as well as seven franchise owners.

For more information about the Foundation and board members, you can contact Leslie Klein, [email protected]

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encounter operational problems and challenges. He wants franchise owners to feel comfortable calling for advice without the added pressure of feeling the clock is running in terms of fees. He will work with clients to set and agree in advance to a budget for services that fits each client’s needs. For example, the freedom to contact Marzella whenever issues arise can be part of a flat fee for monthly services.

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Marzella can be reached at Ragsdale Liggett PLLC, 2840 Plaza Place, Suite 400, Raleigh, North Carolina, 919-881-2210 or [email protected].

Marzellacontinued from page 11


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