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Independen Jo e t The Magazine for Independent Franchise Owners D DD D April 2013 Issue 19 Costly Concerns Menu Labeling Tops List of Pricey Propositions Facing Franchisees New Format New Features New Focus The New Jo e

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Independent Joe Magzine is published by the Dunkin' Donuts Independent Franchise owners association. Members of the association own and operate over 2500 Dunkin' Donuts shops in the US.

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Page 1: Independent Joe Magazine April 2013 #19

IndependenJo etThe Magazine for Independent Franchise OwnersDDDD

April 2013

Issue 19

CostlyConcerns

Menu Labeling Tops List of Pricey Propositions Facing Franchisees

New Format • New Features • New FocusThe NewJo e

Page 2: Independent Joe Magazine April 2013 #19

Some communications providerssee this as a “donut.”

At Bright House Networks Business Solutions we believe to better serve your business we must understand it almost as well as you. Your National Account Manager will fi rst work

closely with you to understand how you work and where you’d like to take your business, and then provide advanced, cost-effective solutions to help you grow.

We know it’s a chocolate frosted cake donut with sprinkles.

• Advanced, competitively priced voice, data and video solutions for businesses of all sizes

• Professional local account teams dedicated to your business and success

• Fully owned facilities-based network built from the ground up

• Keep your existing phone numbers and equipment

©2012 Bright House Networks. Serviceable areas only. Some restrictions may apply. Services provided at the discretion of Bright House Networks.

Ensure you’re getting maximum value from your communications. Connect with your dedicated National Account Manager

for a FREE network consultation and bill evaluation.

Nísida Leopardi • 727-329-2245 • brighthouse.com/business

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Page 3: Independent Joe Magazine April 2013 #19

1Independent Joe • AprIl 2013

Ban on Sale of Large Sugary Drinks Gets DousedLast year with much fanfare, the

City of New York, through its Board of Health, called for a ban

on the sale of sugary drinks over 16 ounces, in restaurants, concessions and other eating establishments. Such sale was not banned in supermarkets.

Advocates, led by Mayor Michael Bloomberg, claimed that the ban was necessary to curb obesity and related, chronic diseases and banning such sales was not only the responsibility of government, but was lawful under its authority to regulate food. Opponents argued that the ban was wrong on two counts. Firstly, the Board of Health exceeded its legal authority in passing such a regulation—the board having no legislative jurisdiction. If such a ban is legal, they continued, it would have to be enacted by the state legislature. Secondly, they claimed selecting a ban on restaurants and eateries, while eliminating other sources of sale from such a restriction—grocery stores, convenience stores and drug stores—was arbitrary, thus the ban should be reversed.

The lawsuit was brought by a coali-tion of restaurant groups, including the American Beverage Association, which will probably attack similar laws elsewhere.

In his decision, State Supreme Court Judge Milton Tingling ruled that the ban should be struck down. He ruled that the New York City Board of Health lacked the jurisdiction to enact such a ban unless a showing of imminent danger due to disease was made, citing an earlier case involving an indoor smoking ban. [Boreli v Axelrod 71 N.Y.2d 1987]

Additionally, he added, the regulation was arbitrary, in that it excluded other places of sale such as drug stores and supermarkets, etc. resulting in unequal enforcement among neighboring businesses.

He further concluded that the regula-tion violated the separation of powers doctrine in that the Board of Health attempted to exercise legislative powers it did not possess. In so doing he recited the long history of the City’s charter harkening back to 1686, under King James of England.

Advocates, including Mayor Bloom-berg have vowed to appeal the decision, which would next go to the New York State Court of Appeals in Manhattan and, presumably, later to the state’s highest Court of Appeals in Albany.

Similar bans have been, and are, being proposed in other areas. State laws which limit the extent municipalities can act may come into play. Addi-tionally, the federal government has authority under the Federal Food and Drug Act to regulate food. It is likely that similar bans would be written, enacted and enforced on a municipal level—by town or city councils, or by state legislatures.

Ultimately, the final decision on New York City’s “soda ban” will be made by the courts and this battle is likely far from over.

Carl B. Lisa is a principal of the firm Lisa & Sousa, Ltd. and serves as General Counsel for DDIFO.

DDIFO is your orga-nization and the best line of defense against encroachment on your business. In my role as Executive Director, I have talked with a great many of you about what we do and do not provide. We’ve talked about how to improve the services and representation you get from your DDIFO membership. We are now beginning the transition of

DDIFO into a true and effective national organization that represents your interests and helps you protect your business.

You will notice this issue of Independent Joe has a different feel—and a different focus—than prior issues. We are looking to bring you regular, valuable and timely information that will help you succeed as a franchisee and pro-tect your interests as a small business owner.

We are now including a number of standing articles in every issue of Independent Joe to help us achieve our strategic goals. “Lisa on the Law” will provide analysis, explanation and assessment of current legal issues affect-ing franchise owners from DDIFO General Counsel Carl Lisa, Sr.; “My Perspective” is a practical, hands-on article from Adam Goldman, a successful New Jersey franchise owner; and “What’s Brewing: A Look at State Issues Around the Footprint” will regularly detail some of the issues, good and bad, that are pending in various states and municipalities. Of course, we’ll also continue to provide you with other top quality articles of timely interest, including regular informa-tion from Washington, DC, the National DCP and Wall Street. Our goal with this magazine is to provide you with regular and more valu-able information.

I’m excited to begin the re-launch of Indepen-dent Joe and the refocusing of DDIFO, with this issue and look forward to your feedback, guidance and input as this process continues. I hope you’ll take the time to give us your thoughts, comments and suggestions!

Ed ShanahanDDIFO Executive Director

LISA on the LAW By Carl B. Lisa, Esq. A New Look, A New Focus

Some communications providerssee this as a “donut.”

At Bright House Networks Business Solutions we believe to better serve your business we must understand it almost as well as you. Your National Account Manager will fi rst work

closely with you to understand how you work and where you’d like to take your business, and then provide advanced, cost-effective solutions to help you grow.

We know it’s a chocolate frosted cake donut with sprinkles.

• Advanced, competitively priced voice, data and video solutions for businesses of all sizes

• Professional local account teams dedicated to your business and success

• Fully owned facilities-based network built from the ground up

• Keep your existing phone numbers and equipment

©2012 Bright House Networks. Serviceable areas only. Some restrictions may apply. Services provided at the discretion of Bright House Networks.

Ensure you’re getting maximum value from your communications. Connect with your dedicated National Account Manager

for a FREE network consultation and bill evaluation.

Nísida Leopardi • 727-329-2245 • brighthouse.com/business

Now offering

FREE WIFI Hot Spots for

Dunkin’ Donuts

franchisees

Ed Shanahan, Executive Director

Page 4: Independent Joe Magazine April 2013 #19

2 Independent Joe • AprIl 2013

Tell it to the MembersCFA Day Forum puts Franchisees on Capitol Hill

From minimum wage to paid sick leave to health care reform, issues debated in legislative arenas this

year stand to have a greater impact on small business owners than ever before. More and more small business owners are recognizing the importance of com-municating their concerns directly with elected officials—at all levels.

Since 2009, franchise owners from vari-ous brands have come together under the umbrella of the Coalition of Franchi-see Associations (CFA) to identify areas of concern and communicate their posi-tions directly to members of Congress.

The 2013 CFA Day Forum will be held July 9-10 at the Fairmont Hotel at 24th and M Streets in Washington, D.C. As a founding member of CFA, DDIFO is working with franchisees from 17 other national brands to promote small busi-ness interests on Capitol Hill. Dunkin’ Donuts franchise owners Rob Branca and John Motta have seats on the CFA Board of Directors.

“My goal is to get 25 Dunkin’ Donuts franchisees at this event this year,” said Motta. “With everything going on in DC right now—with Obamacare knock-ing at our door—this is a great event to have franchisees attend because they can talk face to face with their represen-tatives and senators. It’s definitely worth their time.”

Two years ago, the Universal Franchisee Bill of Rights was unveiled at the CFA Day Forum. According to CFA Chair-man Keith Miller, “The framework of the Universal Franchisee Bill of Rights has resulted in many state legislative efforts

in the form of The Small Business Invest-ment Protection Act. It is time to bring these efforts to Congress and provide the protections franchisees deserve as co-investors in their brands.”

This year, the CFA will be holding a reception for members of Congress the night before franchisees visit Capitol Hill. According to Misty Chally, CFA’s Executive Director, lawmakers from districts represented by CFA Day Forum attendees will be invited to meet and greet.

“Because of the prominent issues of the day, members of Congress want to know what the impact would be on small business owners,” said Chally. “We want them to have a good discussion about the issues with the franchisees.”

Issues like paid sick leave, minimum wage and health care reform impact all franchisees—regardless of the brands they represent. When franchise owners sit down to talk about issues with mem-bers of Congress, they make it clear the issues impact their bottom line and their ability to create jobs, according to Motta.

“If you think about the 25 or so employ-ees we have per store, that’s a big number of people we represent in someone’s dis-trict. So having numbers is important.”

And, even if they don’t agree on the issues themselves, members of Congress from both sides of the aisle are interested in the opinions of small business owners from back home.

To register for this year’s CFA Day Forum visit www.thecfainc.com

April 2013 • Issue #19Independent Joe® is published by DD Independent Franchise

Owners, Inc.

Editors: Edwin Shanahan, Matt Ellis

Contributors: Stefanie Cloutier, Lisa Iannucci,

Adam Goldman, Carl B. Lisa, Esq., Susan Minichiello

Advertising: Joan Gould

Graphic Design: Caroline Cohen

Cover Photography: Kenneth Parry

Direct all inquiries to: DDIFO, Inc.

150 Depot Street Bellingham, MA 02019

508-422-1160 • 800-732-2706 [email protected] • www.ddifo.org

DD Independent Franchise Owners, Inc. is an Association of Member Dunkin’ Donuts

Franchise Owners.INDEPENDENT JOE®, INDY JOE®, and DDIFO® are registered trademarks of DD Independent

Franchise Owners, Inc. 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 © 2013 Printed in the U.S.A.

IndependenJo etThe Magazine for DD

Independent Franchise Owners

UpcomING EvENTS Coalition of franChiSEE aSSoCiationS prESEntS Cfa Day

2013 Cfa Day forum • July 9-10, 2013 • WaShington, D.C.

CFA DAYF O R U MJULY 9-10

2013

the FAIRMONTWASHINGTON, D.C.

coNTeNTsLisa on The Law • • • • • • • • • • • • • • • • • • 1Tell it to the Members: Cfa Day forum puts franchisees on Capitol hill • • 2what’s Brewing: Feeling the squeeze: franchisees face Costly State laws & regs • • • •5section 4205 of the Affordable care Act: new menu labeling requirements • • • • • • • • • 10Feds Require New Labeling Requirements: franchisees face fallout from health Care law • • •13Task Force Green Lights New Products • • • 19Directory of sponsors • • • • • • • • • • • • • • 25My Perspective: DD smart Menu • • • • • • • 28

Page 5: Independent Joe Magazine April 2013 #19

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Page 6: Independent Joe Magazine April 2013 #19

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Page 7: Independent Joe Magazine April 2013 #19

5Independent Joe • AprIl 2013

By Stefanie Cloutier

Rising health care premiums. Mini-mum wage increases. Paid sick leave. Bans on large sugary drinks

and Styrofoam containers. Running a business has plenty of challenges even before the government gets involved. And get involved they have: federal, state, and local governments are all looking for ways to squeeze more money out of businesses and individuals, while also passing laws designed to “help” people live better, healthier lives. Laws that are not always beneficial to the person who owns the local coffee and donut shop.

This is where DDIFO comes in. From states with a Dunkin’ Donuts on every corner to places where the brand is getting ready to make its first foray, the organization is newly focused on legisla-tive and regulatory issues that can impact small business owners.

“We’re working to be a national organiza-tion,” said DDIFO Executive Director Ed Shanahan. “We’ve done an effective job in the Northeast establishing ourselves as a representative power working on behalf

of individual franchise owners. We’re looking to expand that success to make sure each owner in every state within our footprint can benefit from that same level of expertise, energy and professionalism.”So what issues are out there now that owners should be paying attention to? Well, let’s take a look.

Minimum wage could be going upIf the federal government gets its way, you could see minimum wage rise from its current $7.25 per hour to $9 per hour, with increases tied to inflation thereafter. For a business owner, that incremental hourly increase will quickly impact your labor budget.

And it’s not just at the federal level: ten states increased their minimum wage rate as of January 1, 2013, (see box) and there are at least two others contemplat-ing minimum wage increases. New York, for example, is looking at raising the minimum wage to $8.75, while Illinois is considering an increase of almost $2, from $8.25 to $10, over the next four years.

In the state of Massachusetts, by law the state minimum wage must be higher than

the federal minimum wage, by at least ten cents. With a current minimum wage of $8 an hour, legislators are considering an increase ahead of the federal one, to as much as $11 an hour, phased in over three years.

States with minimum wage increases as of

January 1, 2013Arizona $7.80

Colorado $7.78

Florida $7.79

Missouri $7.35

Montana $7.80

Ohio $7.85

Oregon $8.95

Rhode Island $7.75

Vermont $8.60

Washington $9.19

FEELING ThE SqUEEzE

franchisees face Costly State laws & regs

WhAT’S BrEWING a look at StatE iSSuES arounD thE footprint

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Page 8: Independent Joe Magazine April 2013 #19

6 Independent Joe • AprIl 2013

And in Florida, the state constitution includes a Florida Minimum Wage Act, where the state minimum wage is adjusted annually by the rate of inflation for the twelve months prior to September first of that year. Employers then need to make sure their address is up to date, so that they can receive notice of the new rate in a timely manner.

New Jersey lawmakers had proposed a $1.25 increase in the state’s minimum wage, but the measure was vetoed by Governor Chris Christie, who proposed a one dollar increase to phase in over three years. Currently, New Jersey’s state minimum wage is the same as the federal wage.

And while it seems only fair to adjust employees’ pay based on inflation, at least one franchise owner feels the pinch of hav-ing to pay a higher wage, explaining that his margins are fairly slim.

“There’s only so much I can charge for a cup of coffee,” said one New Jersey franchise owner. “At a certain price point, people aren’t going to buy it, no matter how much I’m paying my employees.”

He also felt strongly that the kinds of jobs he’s providing are meant to be side jobs, or secondary to an employee’s main wage-earning job, and therefore not one on which someone should expect to support a family.

Paid sick leave also on the tableAnother hot topic between employ-ers and employees is the issue around paid sick leave, and whether to institute regulations requiring business owners to offer some kind of sick leave to all employees, guar-anteed pay when they can’t work.

In the food industry, having a sick employee come to work is more than just inconvenient to coworkers: it’s potentially harmful to customers. No one wants the potential spread of germs on fresh muffins and donuts, or employees sneezing as they hand over the cup of coffee. But, at the same time, paying an employee for

hours not worked can become a costly proposition.

Right now, this issue is getting a lot of play in New York City, where the City Council has passed a bill requiring companies with 20 or more employees to require at least five paid sick days per year; smaller companies would need to provide unpaid sick days. The proposal is tied to the City’s economy—so it would not be in effect during a deep reces-sion. Mayor Michael Bloomberg says he will veto the bill but there are enough supporters among the Council to override the veto.

Local taxes – up or down?Every shop owner needs to stay on top of local tax rates, but a critical situation came up recently in Florida, where the question arose as to whether Dunkin’ Donuts shops are a bakery selling pastries or a restaurant. The distinction has an impact on how taxes are collected, since items consumed on the premises are taxed one way, and items packaged for consumption off-premises are taxed another.

Dunkin’ Donuts franchise owner and attor-ney David Daly requested a ruling from the Florida Department of Revenue. The ruling

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“Franchisees frequently share that Mood solutions offer a tremendous value and give them a competitive edge. They appreciate our focus on the customer and our ability to provide a distinctive, consistent brand experience at an affordable price,” said QSR Customer Service Representative Joanna Sheyda.

To learn more about Mood, visit http://www.muzak.com/partner/dunkin or contact Joanna Sheyda at [email protected] or 800-331-3340, extension 10656.

DDIFo SpoNSor ADvErTorIAL

Page 9: Independent Joe Magazine April 2013 #19

7Independent Joe • AprIl 2013

essentially states that all food items pack-aged for consumption away from the shop, including baked goods, bags of coffee, and K-cups, are exempt from restaurant taxes. Shops do need to ensure they have a way of tracking these sales and keeping them separate, either through a separate key on the cash register, or a separate cash register all together.

This ruling only applies to the state of Florida; however, Florida shop owners should pay attention and make sure they are collecting taxes appropriately.

In Ohio, Governor John Kasich is propos-ing to lower the state sales tax from 5.5% to a flat 5%. However, he also wants to broaden the sales tax to include a number of service industries, a move not popular with a majority of Ohioans. He is also proposing higher taxes on shale natural gases and oil drilling, a move that could cut income tax for small business up to 50% over three years. These talks bear watching.

ADA makes an impactAny franchisee preparing for a remodel needs to pay attention to rules outlined in the Americans with Disabilities Act (ADA), and to require their architects do what they need to fulfill the requirements. According to Florida attorney Henry Roman, ADA lawsuits can add up to tens of thousands of dollars in renovation and attorney’s fees.

Roman and others tell stories of lawyers who enlist disabled people to purposely scope out violations, sending customers in wheelchairs into establishments to check out sink heights in the bathroom, or the ease of navigation into and out of the place. It’s far easier, and less expensive, to build these accommodations into your renovation than having to do a fix once everything is done.

David Daly also notes that owners need to think about their policy on service animals, which also falls under ADA. Being an establishment that serves food,

WhAT’S BrEWING

“If someone comes in with an animal, you can ask what service the animal performs, but you can’t ask about the disability”

Page 10: Independent Joe Magazine April 2013 #19

8 Independent Joe • AprIl 2013

WhAT’S BrEWING

says Daly, gives this issue even greater importance. An owner can get in trouble if people who come in with service dogs get kicked out, says Daly, and yet, Florida law says you can’t allow animals in a store with food.

“If someone comes in with an animal, you can ask what service the animal performs, (but) you can’t ask about the disability,” according to Daly. Owners should con-sider training people how to handle this situation—check with your attorney to be sure you know the rules..

Is Styrofoam doomed?Recently New York City Mayor Michael Bloomberg attempted to enact legislation banning sales of sugary drinks in cups larger than sixteen ounces. A state judge shot it down, but it only spurred him to set his sights on another allegedly harmful substance: Styrofoam and polystyrene packaging. His argument is that these items are not biodegradable, and fill landfills unnecessarily.

Despite strong opposition from the restaurant industry—and others—Seattle

and Brookline, Massachusetts have instituted Styrofoam cup bans; Portland, Oregon and Somerville, Massachusetts are currently considering such bans.

Mississippi, meantime, is heading in the opposite direction, working to file legisla-tion that specifically bars cities and towns from enacting any local laws affecting what people can eat or drink without passing it by the state government first. Federal regulations notwithstanding, Mississippi wants to ensure its citizens can continue to have freedom of choice, and control over what they put in their bodies, despite local government’s best efforts to wrest control away.

Taking the reinsWith all this going on, what’s a franchise owner to do? Well, for one thing, know that DDIFO has your back. From keeping an eye out for upcoming legislation that could impact the bottom line, to working with legislators to make changes before laws are final, DDIFO does the heavy lifting for franchise owners.

But that doesn’t mean you don’t have to pay

attention. In fact, DDIFO Executive Direc-tor Ed Shanahan says it’s vitally important for owners to understand what is being considered by government at all levels, and to communicate their needs. Only by being aware, and early enough in the discussion, can they effectively protect their invest-ment, their business, and their legacy.

“I’ve had more than a handful of legisla-tors stress the importance of constituents getting in touch with them,” said Shana-han. “Two calls (on a subject) and they put an aide on it, five calls and they attend to it themselves, seven calls and they consider it a mandate. As busy as owners are, they should set aside the time to really get to know their legislators.”

He says CMLs in Rhode Island and Maine have retained lobbyists in their states, which they pay for by assessing each member a set amount of money; he thinks owners in other states may want to do this as well.

There’s always strength in numbers, and especially when dealing with the govern-ment, it’s nice to know you’re not alone. •

Seattle, Washington and Brookline, massachusetts already have instituted Styrofoam cup bans

Page 11: Independent Joe Magazine April 2013 #19

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Page 12: Independent Joe Magazine April 2013 #19

10 Independent Joe • AprIl 2013

Section 4205 of the affordable Care act: New menu Labeling requirements When it was signed into

law on March 23, 2010, the

Affordable Care Act (ACA),

commonly referred to as

Obamacare, mandated that

“restaurants and similar

retail food establishments

with 20 or more locations

list calorie content

information for standard

menu items on restaurant

menus and menu boards,

including drive-through

menu boards. Other

nutrient information—total

calories, fat, saturated fat,

cholesterol, sodium, total

carbohydrates, sugars, fiber

and total protein—would

have to be made available in

writing upon request.”

Development and enforcement of the menu labeling requirement, found in Section 4205 of the Affordable Care Act (ACA), is the responsibility of the U.S. Food and Drug Administration (FDA). Even as select municipalities have instituted their own menu labeling requirements over the years, these new federal regulations will supersede any existing state regulations unless the state successfully petitions the FDA for an exception.

In 2011, the FDA opened up a comment period to give interested parties the opportunity to provide feedback. The FDA continues to oversee the honing of the proposed regulations; however, the agency recently issued a directive with some specific guidance on the require-ments for which affected establishments should prepare.

cUrrENT GUIDANcE According to the FDA, these are among the likely requirements for calorie content and related information which will have to be placed on menu boards inside a restaurant and at the drive-thru:• Must use the word “Calorie” or “Cal”• Must be in a color that has the same

level of visibility as the color of the menu item itself; does not have to be the same exact color

• Must be the same font size• Must cover all standard menu items

(food and beverages); test items appear-ing on a menu for up to 90 days are exempt

• Must appear on or adjacent to the menu board; may not be listed on a

separate board in a different area of the restaurant

• Combo meals must list standardized ranges of calories for combinations unless, if there are specific alternatives, specific related calorie info must be listed

• Must include notification that more nutrient information is available in writing upon request

• Must include a statement to the effect of: • Consuming 2,000 calories per day is

generally recommended. Consider how menu items fit within your total daily needs, which may be higher or lower depending on age, gender and level of physical activity; or• A 2,000-calorie daily diet is used

as the reference point for general nutritional advice. Calorie needs vary depending on age, gender and level of physical activity

It is possible the FDA will order additional nutrient information be available in writing, but that has yet to be determined. In the mean time, the FDA has stated that all calorie content and nutrient informa-tion must have a “reasonable basis.” This terminology is likely to be further defined.

mENU LABELING thE rulES

By Susan Minichiello

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Page 13: Independent Joe Magazine April 2013 #19

11Independent Joe • AprIl 2013

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ANTIcIpATED EFFEcTIvE DATE & poTENTIAL pENALTIES Originally, the FDA intended the menu labeling requirements to go into effect in April 2013. But, in a recent interview, FDA Com-missioner Margaret Hamburg told the Associated Press, writing a new menu labeling law “has gotten extremely thorny,” due, in part, to strong lobbying by supermarkets, convenience stores and other retailers that sell prepared food. She said the final rules should become public in the “relative near term.” Once finalized, it is expected establishments will have six months to achieve compliance.

The FDA will enforce what’s called “strict liability”, meaning that if you violate the rules, you’re liable; there are no excuses, no excep-tions whether the violation is intentional or a mistake. Penalties will depend on the degree of violation. There are likely to be fines for failure to comply for small infractions. All penalties are likely to be civil in nature although, if repeated or deemed intentional or fraudulent, they could lead to criminal liability. •As soon as final requirements are written, DDIFO will post the information on the website, www.ddifo.org.

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Calorie counts for menu items are available at ann nasary’s Dunkin’ Donuts store at 1560 Broadway in Brooklyn, new york. the affordable Care act will make menu labeling mandatory in all Dunkin’ shops. new york City already has a statutory labeling requirement.

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Page 14: Independent Joe Magazine April 2013 #19

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Feds require New Labeling requirementsfranchisees face fallout from health Care lawA s various provisions of the Afford-

able Care Act (ACA) are imple-mented, franchise owners must

stay vigilant learning about and preparing for compliance.

One aspect of the ACA that will impact all franchisees is Section 4205, which will require chain restaurants with 20 or more locations to list calorie content informa-tion on menu boards, including drive-thru menu boards. The new menu labeling

requirements are scheduled to go into effect this spring.

coNcErNS AND qUESTIoNSUpon first hearing about the new menu labeling requirements, a busy small busi-ness owner’s mind might begin reeling: Where am I going to fit this information? Am I going to have to buy all new menu boards? Will I be forced to go digital? Will I have to shut down shops to make the transition? Will my guests stop buying

donuts or stop coming into my shop altogether? And most importantly: What is all of this going to cost me?

Stop. Take a deep breath.

Cities like New York and Philadelphia, and chains like Panera Bread and McDonald’s, have already implemented their own versions of calorie content menu labeling. In 2010, Panera became the first national chain to voluntarily post calories on all

*All programs and offers are subject to final credit approval by Direct Capital®. Applications must be processed through LendEdge by 12/2013. Processing fee of $125/location is financed with 90 daydeferred payment optionavailable for $25/fee per month. Finance options are available for remodel projects and new store projects under a separate finance program. Please contact Direct Capital® for

eligibility and program terms. Dunkin’ Brands® trademarks and logos are registered trademarks of Dunkin’ Brands® and used with permission.

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Section 4205

Chains with 20+ Locations

Must List Calorie Information

Does listing calorie counts on menu boards really help patrons eat healthier? Studies on the subject offer differing results.

By Susan Minichiello

Page 16: Independent Joe Magazine April 2013 #19

Sub headline

14 Independent Joe • AprIl 2013

menu boards. New York City’s legislation went into effect mid-2008.

Scott Campbell, a Dunkin’ Donuts franchisee with more than 40 shops in New York City, is eager to calm fellow franchise owners’ fears.

“Ultimately, you’ll find this is much easier and not at all as harmful as you thought it would be. Within a year of it going into effect, you won’t even be talking about it,” said Campbell. “It helps to try to appreciate that it does educate your guests and allow them to form their own opinions, and that’s great.”

In 2006 the NYC Health Department first proposed the legislation, which prompted two years of lawsuits and revisions before it was implemented. Campbell recalls his own concerns over the legislation and admits there were growing pains.

“It required a transition that involved a lot of shifting around of slats and magnets, font sizes and colors; and the combo meal gels pro-vided their own unique challenges,” he said. “But we were heavily engaged as franchise leaders with Dunkin’ Brands and, given all of the factors—the newness, different interpreta-tions—the brand got it right and the transition was as smooth as it could have been.”

STELLAr BrAND SUpporTCampbell said Dunkin’ Brands offered support not only by providing the actual standard information to be posted but also by leading negotiations with the city over challenging aspects of the law, providing training for fran-chise owners, even fighting the city on behalf of franchisees who were cited in the beginning of the process.

“The brand was very much in touch and really listened to the franchise owners. Their guidance and oversight was really good. They were on it as soon as possible and prepared better than other brands,” said Campbell. “Working together, the brand, the city and the franchisees worked it all out and no one in the Dunkin’ system was fined for any violations.”

A franchisee in New Hampshire and Virginia, John Motta, anticipates exactly that kind of brand support in the wake of new menu label-ing regulations.

“I think that Dunkin’ Brands has this figured out already,” Motta says. “They will not make

the boards a consumer nightmare with too much info; they will make it presentable. I trust they will make it work. They already had to do this in New York and Philly, and I have not heard any franchisees balk at having to do anything out of the ordinary.”

Campbell sees the Dunkin’ experience in NYC as a huge advantage leading up to imple-mentation of the federal law. “The fact that the brand has been through this means they know the missteps and how to work with a govern-ment entity effectively. Cutting their teeth on this in New York City will help everyone.”

To DIGITIzE or NoT To DIGITIzE?At a meeting in early March with franchisees, Dunkin’ Brands acknowledged the pending regulation and the role that digital menu boards could play.

According to one franchise owner who asked to remain anonymous, it seems digital menu boards are “going to be the future of all Dunkin’ locations.” He continued, “The brand made it a sell-in that investing in digital menu boards would make it easier to transition to showing the calorie content.”

For Campbell and other NYC franchise owners, there were no digital menu boards approved by Dunkin’ Brands at the time they had to post calories, and he admitted, “I can see how that would have made the transition much easier.”

Motta already has digital menu boards in one New Hampshire store and one Virginia location.

“The beauty of these boards is that you can program them with what you need to. I think they will be able to update the menu boards with the calorie counts and send them to us over the Ethernet line and it will appear. Without the digital menu boards, we will need to climb up and down ladders, take down the existing boards and add the calorie counts to each menu item, which is time consuming and a safety issue,” said Motta.

“It will be much easier to implement the calo-rie content on digital menu boards instead of ordering all new slats for the magnetic menu boards you currently see,” according to the anonymous franchise owner.

But digital isn’t presently an option for the drive-thru. Dunkin’ Brands has been testing

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15Independent Joe • AprIl 2013

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a digital drive-thru menu board and has encountered problems. “The brand-owned store in Brockton has one in their drive-thru lane, but I know they have issues with sunlight and reflections,” the anonymous franchisee said. With such complications and cost-prohibitive pricing (anywhere from $20,000 to $40,000), no digital menu boards are approved for drive-thru use, so new slats and reconfigurations will be necessary.

coST To FrANchISEESNo matter the type of menu board, franchise owners will absorb costs associ-ated with posting the required calorie information.

Franchisees say the cost of new digital interior menu boards is between $11,000 and $12,000. If you are replacing old menu boards with digital ones and need to add electricity and Ethernet, that will run another $2,000 or so. According to franchisees, price breaks are available now while Dunkin’ Brands is encourag-ing, but not yet requiring, digital boards.

Pricing can drop a bit when franchisees order multiple boards at a time.

“I don’t see there being a huge cost impact in implementing the calorie content whether with digital menu boards or the regular magnetic boards. Sales are projected to grow 2.5% with digital menu boards, so you will see some growth in sales after that investment,” said

one anonymous franchise owner. “The magnetic slats aren’t too expensive and if someone doesn’t want to purchase digital, that’s the way they should go.”

But what about costs in terms of lost sales if guests are influenced by the calorie information to switch from buying coffee and a donut or muffin to just the coffee?

Scott Campbell, a new york City franchisee, says one year after menu labeling went into effect, customers are again ordering the same mix of products. “i haven’t even heard a guest mention calories in at least a year,” he said.

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16 Independent Joe • AprIl 2013

SUB hEADLINE

According to Motta, “We all know which foods have higher calorie counts and which do not. Still, this new legislation may have an impact on our business as people will now see that some food items have a higher calorie count than they expected and not buy certain products.”

The anonymous franchisee doesn’t anticipate a significant impact on guest buying patterns. “We live in a transparent world with a highly educated population. Our nutritional infor-mation has been available for years and can be viewed online. I believe our customers already know more or less the caloric content of what they’re ordering and eating from Dunkin’ Donuts.”

Scott Campbell saw firsthand how customers in New York City responded.

“Initially, guests were buzzing about calo-ries and we saw a shift in buying patterns, especially with certain muffins that surprised people. We saw guests switching from certain

muffins to lower calorie donuts or from one type of donut to another. Some guests made a conscious and enduring shift to healthier options like our oatmeal and wraps, but this didn’t hurt sales; they’re still buying multiple items,” said Campbell. “Honestly, within six months, most people returned to their old pat-terns. We sold more donuts and muffins last year than ever before, and I haven’t even heard a guest mention calories in at least a year.”

Studies of consumer behavior before and after calories were posted on menus seem to sup-port Campbell’s anecdotal experience. A Stanford University study conducted at Starbucks in the first year of calorie posting revealed a 6 percent reduction in calories per transaction but no substantial change in the chain’s revenue. A 2009 New York University study found, “Calorie information on menus appears to increase awareness of calorie content, but not necessarily the number of calories people purchase.” A study by The NPD Group on sit-down chain restaurants indicated largely the same.

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18 Independent Joe • AprIl 2013

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Bonnie Riggs, NPD’s restaurant industry analyst and author of the report said, “In the short term, we expect consumers may react to calorie labeling with some shift in foods/beverages ordered, but expect that old behaviors will return in time. Operators may want to plan for some initial shift in product mix when the new menus are presented to consumers.”

“In the beginning, watch carefully your numbers on muffins and other higher-calorie items and adjust your inventory accordingly,” said Campbell. “Be sure to keep a close eye on it, so when your guests begin revert-ing back to old patterns, you’re ready to react.”

WhAT’S ThE poINT?If the goal of new menu labeling regulations is to battle America’s obesity epidemic by changing consumer behavior (as was the original argument), a new study in the research journal Appetite should garner the federal government’s and the FDA’s attention.

It suggests context is key—that calories alone are of far less conse-quence than pairing calories with related physical activity informa-tion. The study indicates that the effect of “physical activity based labels” on consumer fast food meal selections is significant.

As reported by ThinkProgress, study participants saw “one of four menus: some saw just the calorie count, some were given the calories and the amount of time it would take to burn off the meal, others saw the calories and the distance needed to walk it off, and some were given no nutritional information at all.

“People who received no nutritional information ordered the most caloric meals, while people who saw the distance they needed to walk to burn it off ordered meals that were 200 calories lighter.” It further found, “A menu that directly translates calories into physical activity may be the key to changing eating habits.”

But, from a practical perspective, pairing calories with physical activity information seems unrealistic if not impossible, especially in locations limited by space and already flooded with signage.

Referring to the calorie-only menu labels alone, Jeff Lenard of the National Association of Convenience Stores said, “In a small store like a convenience store, that is really put-ting a lot of signage all over the place. You just hit a point where words become noise, and that’s not good.” •

“operators may want to plan for some initial shift in product mix when the new menus are presented to consumers,” said npD restaurant industry analyst Bonnie riggs.

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19Independent Joe • AprIl 2013

Even as a customer stares intently at the daily offerings of donuts, muffins, sandwiches and drinks, the next great beverage or snack is somewhere in the pipeline. So far

this year, Dunkin’ Brands has announced the introduction of a limited-time-only (LTO) French Toast Bagel, reduced fat cin-namon cream cheese spread, and an Irish Crème Donut, as well as an Irish Crème Frozen Coffee Coolatta and Irish Crème Latte in select markets. Bringing savory new treats and refreshing new drinks to the Dunkin’ menu is no arbitrary event.

“Our culinary research and development team is constantly in the process of creating new menu items to surprise and delight our guests at Dunkin’ Donuts,” according to Karen Raskopf, Chief Communications Officer for Dunkin’ Brands. “Inspiration can come from a number of places, including trends in the food industry, conversations with our franchisees and feedback from our guests on what they’d like to see in our restaurants.”

Before any new product gets onto a Dunkin’ menu, it has undergone a considerable amount of testing. The latest test item to earn permanence is the Dark Hot Chocolate.

In the 31 years his family has owned Dunkin’ Donuts shops in

New York’s Hudson Valley (about 80 miles from New York City), Yuwen Chen and his brother Yu-Shin Chen have seen a number of new items come down the pipeline. They were kids working in the family store when Dunkin’ expanded the coffee and donut menu. Like other long-time franchi-sees they know new product launches can fail if the due diligence isn’t done.

“The plain egg white patty was a good, healthy alternative, but it never received the proper support to be successful,” he said.

Not everything can have the impact iced coffee did, Chen says.

“They won over hot coffee drinkers with this product and the margin is better, so we should reduce LTOs and concentrate on the bread and butter of what’s made this brand successful.”

Raskopf explains the culinary team frequently meets with cross-functional teams including marketing, operations and consumer research, to help determine which products will ultimately be offered.

By Lisa Iannucci

Task Force Green Lights New Products

yuwen Chen and his brother run a network in new york’s hudson Valley.

franchisees on the innovation task force see and taste potential new products at different points along the development pipeline.

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INNovATIoN TASk ForcE

Franchisees play an important role in deciding which inspirations become the next innovations. Members of the Innovation Task Force (ITF), an offshoot of the Marketing Steering Committee, see and taste products across all categories at several stages of their development, helping decide which concepts will create a buzz and which will be a bust.

Ken Blum, a franchise owner in northeast Ohio, chairs the Profit-ability Subcommittee and sits on the Innovation Task Force. “The test kitchen brings us new product for four hours,” said Blum. “We want to know if it tastes good. Can we make it efficiently in the stores? Can we sell it at a profit?”

The Task Force meets quarterly and learns everything about a potential new product, including holding times, shelf life and, of course, cost estimates. “Marketing will tell you what they think it can sell for, but it’s a high-level discussion,” he said. “Would the market support this price point? Is it big enough, too small or the right shape? You can have a lot of different discussions in this committee.”

“In the early concept stages, the committee is asked for input on the appeal of new items and how they fit into our overall menu,” said Raskopf. “It works from the beginning with several goals in mind – brand differentiation, delicious flavor, seasonal fit, profit-able sales opportunity, and straightforward operations handling. As the product continues down the development path, we ask our franchisees and other committee members to weigh in on accom-plishing these objectives and helping to meet the challenges.”

Once a product is discussed and the feedback is passed on, Blum says the committee may never hear about the product again. Other times, a different rendition of the original product ends up in stores. “I’ve also learned that just because I like something doesn’t mean that the public is going to like it and vice versa,” said Blum.

“For example, I’m not a big hot-and-spicy guy, but some products have a lot of spice to it that are very successful. As a Profitability Subcommittee member I look at my role as giving feedback and understanding the cost ramifications. We need to know that it fits in the overall scheme of what we’re already making and there’s a seamless transition or new platform to deliver the product.”

Blum says the committee’s feedback does not guarantee the suc-cess or failure of the product. “It might not have tasted good or we can’t make it efficiently in the store. It’s impressive that every three months they have four hours of food to show us. They actively work on keeping that pipeline full and there’s a good disciplined approach to product innovation.”

If the task force identifies concerns, Raskopf says, Dunkin’ Brands considers the feedback. “Innovation is a constant process of sifting and honing the very best concepts into actual menu items that appeal to our guests and fit into our overall menu. It takes a lot of work and each stage of the development process across the innovation to market pathway is in response to feedback and learnings gained from guests, crew members, internal specialists and our franchisees. We also invite many other stakeholders into

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21Independent Joe • AprIl 2013

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the meetings including equipment, consumer research and other franchisee committee members.”

Some new products require the addition of new equipment. “Bring-ing in new equipment isn’t a bad thing and even if we bring in new equipment, we’ll find other products we can use it for,” said Blum. “If you never innovate, you’re going to be left with shag carpet and fuzzy wallpaper. You have to keep up with the times. For example, if you look in the past 5-1/2 years, we switched from microwaves to turbo chef ovens which make a far superior product.”

Once a new item clears the initial hurdles, it is shared with con-sumers through sensory panels, which allow customers to sample hopeful products. “Our culinary team also partners frequently with the equipment team as they are integrally linked to deliver great menu items that are delicious for our guests and easy for our crew members to make in-store,” said Raskopf.

Once a product gets the go-ahead, it is rolled out in a beta test, or test in a small market. “They’ll test it in one, two or three markets,” said Blum. “For example, in Cleveland we tested the Angus Steak & Egg sandwich recently.”

According to Raskopf, the amount of time it takes to get from idea to store depends on the product. “Extensions to existing product lines can move the quickest, for instance around nine months. Many limited time offers can take from 12 to 18 months to get from concept to actual calendar launch either regionally or nationally. New platform development and testing takes the longest amount of time as platforms also generally include some equipment enhancements.”

Some products are launched regionally, depending on local tastes. Things like Kolaches in Texas, Dulce de Leche Donuts in South Florida and Long John Donuts in Chicago are not offered in distant markets.

“We try to keep local and regional flavor preferences in mind when introducing new products at Dunkin’ Donuts restaurants across the U.S.,” said Raskopf. “For instance, our Northeast and Mid-Atlantic customers love apple flavors in the fall more than other regions. In the Southeast, we’ve developed a best-in-class biscuit, which leads into a biscuit menu anchored by a delicious chicken biscuit. We’re

flavored coffee is just one of the innovations Dunkin’ Brands has made to connect with its varied consumer base.

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22 Independent Joe • AprIl 2013

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constantly working on what those ‘right’ menu items are for other regions as well.”

They can also become lim-ited-time-only products. Not all franchisees favor LTOs as much as other products and marketing strategies.

Chen is a RAC leader, but still wishes he had greater input on new products that come down the pipeline. “There’s a lot of good stuff, like the two new flavors of iced coffee that were recently intro-duced—mint chocolate chip and butter pecan—but I wish the marketing dollars were spent more on advertising the products that we already have, instead of too many LTO products.”

The decision to introduce new products into the marketplace also depends on the needs and trends of the consumer. Over the last few years, the health conscious consumers have wanted a lighter menu, which includes the introduction of egg white options.

“You try to cast as big a net as you can,” said Blum. “You can’t be all things to all people. I think our menu has evolved to meet the changing consumer. We’re never going to have 100% batting average with everything we make, but if it’s not best in class, it’s

pretty close. As a franchisee who lives and dies on this pipeline, I feel good about the process in place.”

Rob Branca, a franchise owner in Massachusetts and Florida and who partners with Blum in Ohio, is also a member of the ITF. He says it’s important that franchisees are included in the develop-ment of new products at the earliest stages because the franchi-see best knows the guests and the operational complexities of serving fresh, great tasting food and beverages with consistently high quality.

“The ITF is a high-energy, interesting and important forum where we work on items from the beginning, conceptual point, through modifications to new ideas, cooking processes, equip-ment needs and marketing ideas,” said Branca. “It is a vital and thriving component to our business. We are fortunate to be led by John Costello and Stan Frankenthaller, each undisputed industry experts, and their teams who are all talented and highly collaborative with us.”

ITF members are just like all Dunkin’ Donuts franchise owners, they are always on the lookout for the next big thing.

“Iced coffee wasn’t big, but the reformulation won over hot coffee drinkers,” said Chen. “Coolattas were a hit, but not the same impact that bagels had—they were a game changer.” •

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since 2005.

Our Team includes two Former Dunkin Brands

Franchise Managers who have experience in

selecting new franchisees for DD approval

40% of all deals that were sold had no Financing

Contingencies

We continually update our database with franchisees

that are approved for Expansion;

We currently have Six networks under contracts,

Five under Letters of Intent and Six active listings

which are available for sale.

Bagels were one of Dunkin’s most successful product innovations and remain a reliable seller.

Page 25: Independent Joe Magazine April 2013 #19

The Kensington Company - Your franchise expert

since 1995, specializing in Dunkin Donuts re-sales

since 2005.

Our Team includes two Former Dunkin Brands

Franchise Managers who have experience in

selecting new franchisees for DD approval

40% of all deals that were sold had no Financing

Contingencies

We continually update our database with franchisees

that are approved for Expansion;

We currently have Six networks under contracts,

Five under Letters of Intent and Six active listings

which are available for sale.

Page 26: Independent Joe Magazine April 2013 #19

24 Independent Joe • AprIl 2013

AccoUNTINGAdrian A. Gaspar & company, LLp, cpAsRobert Costello617-621-0500 • [email protected] Cambridge Street, Suite 14, Cambridge, MA 02141www.gasparco.com

Bederson & company LLp - cpAs and consultantsSteven Bortnick, CPA 973-736-3333 • [email protected] 405 Northfield Avenue, West Orange, NJ 07052www.bederson.com

cynthia A. capobianco, cpACynthia Capobianco401-822-1990 • [email protected] Quaker Lane, Suite 61, Warwick, RI 02886-0114

rubiano & company, cpA’sDaniel J. Rubiano, CPA401-949-2600 • [email protected] Austin Avenue, Suite 1, Greenville, RI 02828www.rubianocpa.com

Sansiveri, kimball & co., LLpMichael A. DeCataldo55 Dorrance Street, Providence, RI 02903401-331-0500 • [email protected]

Thomas colitsas and Associates, cpATom Colitsas 609-452-0889 • [email protected] 103 Carnegie Center, Suite 309, Princeton, NJ 08540

BAck oFFIcE Jera concepts Wynne Barrett508-686-8786 • [email protected] Fruit Street, Hopkinton, MA 01748www.jeraconcepts.com

BUILDING Trane hvAcJonathan Ralys225 Woldwood Avenue, Woburn, MA 01801781-305-1335 • [email protected]/commercial

viewpoint Sign and AwningBill Gavigan508-393-8200 • [email protected] Lyman Street, Northboro, MA 01532www.viewpointsign.com

WatchFire SignsDevon Mourer217-442-0611 • [email protected] Maple Street, Danville, ILwwwwatchfiresigns.com

BUSINESS BrokEr kensington company & AffiliatesDavid Stein • [email protected]: 516-626-2211 • M: 718-490-2218 185 Roslyn Road, Roslyn Heights, NY 11577www.kensingtoncompany.com

cmL opErATIoNSmid-State IsuzuCraig Judge860-281-4117 • [email protected] Southwest Cutoff, Worcester, MA 01604www.midstateisuzu.com

commUNIcATIoNScomcast Business ServicesComcast National Sales • 866-407-6338 [email protected] South Gravers Road, Plymouth Meeting, PA 19462www.business.comcast.com/internet

SprintCaroline Fedele781-367-1057 • [email protected] Van De Graaff Drive, Burlington, MA 01803www.sprint.com/ddifomembers

coST rEcovEryBedford cost Segregation, cpAs Bill Cusato978-263-5055 • [email protected] 60 State Street, Suite 700, Boston, MA 02109www.bedfordcostseg.com/who_we_serve/ddifo.asp

performance Business Solutions, LLcJeff Hiatt508-878-4846 • [email protected] Lafayette Road, Suite 11, Hampton Falls, NH 03844www.revenuebanking.com

ENErGyplotwatt, Inc.Marc Bodner919-614-2293 • [email protected] Six Gables Road, Durham, NC 27712www.plotwatt.com

FINANcE Business Financial Services3111 N. University Dr, Suite 800 Coral Springs, FL 33065Scott Kantor • 954-509-8019 skantor@businessfinancialsservices.comwww.businessfinancialservices.com

centrix Bank & Trust Deborah Blondin 603-589-4071 • [email protected] Atwood Lane, Bedford, NH 03110 www.centrixbank.com

Direct capital Franchise GroupRobyn Gault603-433-9476 • [email protected] Commerce Way, Portsmouth, NH 03823www.franchise.lendedge.com

Fidelity BankSally Buffum508-762-3604 • [email protected] Shrewsbury Street, Worcester, MA 01604www.fidelitybankonline.com

First Franchise capitalKaren Johnson402-562-5111 • [email protected] 13th Street, Columbus, NE 68601www.firstfranchisecapital.com

GE capital, Franchise Finance Christine Keating203-229-1804 • [email protected] Merritt 7, 2nd Floor, Norwalk, CT 06851www.gefranchisefinance.com Infinity Franchise capitalSharon Soltero402-562-1801 • [email protected] 18th Avenue, Suite 3, Columbus, NE 68601www.infinityfranchisecapital.com

DDifo® does not endorse or recommend commercial products, processes, or services. a DDifo® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDifo®. furthermore DDifo® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

Directory of SponsorsPlease Visit The DDIFO Sponsor Directory online at www.DDIFO.org

Thank You to Our Sponsors!

Page 27: Independent Joe Magazine April 2013 #19

25Independent Joe • AprIl 2013

Joyal capital management Franchise DevelopmentDaniel Connelly508-747-2237 • [email protected] Resnik Road, Plymouth, MA 02360www.jcmfranchise.com

NFA restaurant FinanceLarry Howard205-871-8450 • [email protected] E. 22nd Street, Suite A, Lombard, IL 66148www.nfaloans.com

priority capitalBrian Gallucci800-761-2118 ext. 14 • [email protected] Green Street, Melrose, MA 02176www.prioritycapital.com

Susquehanna commercial FinanceBrian Colburn443-996-1792 • [email protected] Country View Road, Suite 300, Malvern, PA 19355www.susquehanna.com

TcF Franchise FinanceMike Vallorosi201-818-2700 • [email protected] Lake Street, Suite B, Ramsey, NJ 07446www.tcfef.com

TD BankBrian Frank203-761-3818 • [email protected] Danbury Road, Wilton, CT 06857www.tdbank.com

United capital Business LendingTrey Grimm410-771-9600 • [email protected] Schilling Circle Suite 100, Hunt Valley, MD 21031www.unitedcapitalbusinesslending.com

FooD proDUcTS cSm Bakery productsMarla Cushing770-723-2083 • [email protected] Montreal Road, Suite 121, Tucker, GA 30084www.csmbakeryproducts.com

quaker oats A Division of pepsicoEd Bowes610-948-8309 • [email protected] Kilarney Way, Royersford, PA 19468www.pepsico.com

hUmAN rESoUrcES careerBuilder.com Maureen O’Neill781-453-3570 • [email protected] Crown Colony Drive, Suite 301, Quincy, MA 02169www.careerbuilder.com

Employers reference SourceSandra Fabrizio888-512-2525 • [email protected] Hamilton Avenue, Waterbury, CT 06706www.employersreference.com Gecko hospitality Robert Krzak 630-390-1000 • [email protected] West 22nd St., Tower Floor Oakbrook, IL 60523 www.geckohospitality.com

Directory of Sponsorsph

oto by

Carol

ine Co

hen

Page 28: Independent Joe Magazine April 2013 #19

26 Independent Joe • AprIl 2013

Granite payroll AssociatesMarco Schiappa401-263-7921 • [email protected] Granite Street, Qunicy, MA 02169www.granitepayroll.com

Gulpfish.comIlya Reikhrud800-974-4514 ext. 101 • [email protected] Main Street, Pawtucket, RI 02860www.gulpfish.com

ovation payrollJim Ferreira • 203-530-3512 2 Stamford Landing, 68 Southfield Rd. #100 Stamford, CT [email protected] • www.ovationpayroll.com

SnagajobErin Brumfield804-822-4604 • [email protected] Lake Brook Drive, Glen Allen, VA 23060www.snagajob.com/employer-solutions INSUrANcE The hill AgencyRita Frailey800-446-1775 • [email protected] Washington Avenue, Endicott, NY 13760www.thehillagencyinc.org

kk Insurance AgencyAshish Vadya866-554-6799 • [email protected] Broadway, Long Branch, NJ 07740www.kkquote.com

Sinclair Insurance Group - risk managementMatt Ottaviano203-284-3235 • [email protected] Tower Drive, Wallingford, CT 06492www.srfm.com

Starkweather & Shepley Insurance Brokerage, Inc.Sabrina San Martino800-854-4625 ext. 1121 • [email protected] Catamore Boulevard, East Providence, RI 02914www.starkweathershepley.com

Wells Fargo Insurance ServicesMark Stokes813-636-5301 • [email protected] North Rocky Point Drive, #400, Tampa, FL 33607wfis.wellsfargo.com

LEGALLisa & Sousa Attorneys at Law Ltd.Carl Lisa, Sr.401-274-0600 • [email protected] Benefit Street, Providence, RI 02904www.lisasousa.com

paris Ackerman & Schmierer LLpDavid Paris973-228-6667 • [email protected] Eisenhower Parkway, Roseland, NJ 07068www.paslawfirm.com vernis & Bowling of palm Beach, p.A.Tammy Bouker • 561-775-9822 • [email protected] US Highway One, North Palm Beach, FL 33408www.national-law.com zarco, Einhorn, Salkowski & Brito, pARobert Salkowski, Esq 305-374-5418 • [email protected] SE 2nd Street, 27th Floor, Miami, FL 33131www.zarcolaw.com

opErATIoNS 3m companyJim Sinclair650-736-3836 • [email protected]. 223-2N-20 St. Paul, MN 55144www.3m.com/xt-1

3 Wire Group, Inc.Derek Knapp518-563-3200 • [email protected] Broadway Street West, Osseo, MN 55369www.3wire.com

Access to money ATm, Inc./cardtronics Doug Falcone973-599-0600 • [email protected] Route 10 - Suite 8, Whippany, NJ 07981www.accesstomoney.com

Belshaw Adamatic Bakery GroupFran Kauth206-718-3573 • [email protected] 814 44th Street NW, Suite 103, Auburn, WA 98001www.belshaw-adamatic.com

Bunn-o-matic corporation Todd Rouse800-637-8606 • [email protected] Stevenson Drive, Springfield, IL 62703www.bunn.com

Delphi/Fast Track 2+2 Drive-Thru TimerMike Pierce714-850-13200 • [email protected] West Moore Ave., Suite M, Santa Ana, CA 92704 www.fasttracktimer.com

DTT SurveillanceMira Diza800-933-8388 • [email protected] North Main Street, Los Angeles, CA 90031www.dttusa.co

EcolabArliene [email protected] Capital Drive, Greensboro, NC 27409www.ecolab.com/Businesses

ecubeCardie Saunders888-99-ECUBE • [email protected] Cold Hill Road, Building 20, Mendham, NJ 07945www.getecube.com

GraingerValerie Jenkins503-887-6775 • [email protected] Grainger Parkway Lake Forest, IL 60045grainger.com

hi-Tech SoundGary Hanna508-624-7479 • [email protected] Brigham Street, Unit 8, Marlborough, MA 01752www.hitechsound.com

hmE Drive-Thru headsetsBrady Campbell 858-535-6034 • [email protected] Stowe Drive, Poway, CA 92064www.hme.com

Jarrett Services ATm, Inc. Eric Johnston732-572-0706 • [email protected] Stelton Road, Piscataway, NJ 08832www.jarrettforcash.com

macdonald restaurant repair Service, Inc.Mark & Debi Macdonald508-384-9361 • [email protected] Box 61, 83 Pond Street, Norfolk, MA 02056www.macdonaldcompany.com

mint-X corporationAmie Yee877-646-8224 • [email protected] 199th Street, College Point, NY 11356www.mint-x.com

Directory of Sponsors

DDifo® does not endorse or recommend commercial products, processes, or services. a DDifo® sponsor is paying to advertise, and it is not to be considered a product or service endorsement by DDifo®. furthermore DDifo® does not control or guarantee the currency, accuracy, relevance or completeness of information provided by sponsors in their advertising.

please visit The DDIFo Sponsor Directory online at www.DDIFo.org

Page 29: Independent Joe Magazine April 2013 #19

27Independent Joe • AprIl 2013

muzakJoanna Barrett803-396-1656 • [email protected] Lakemont Boulevard, Fort Mill, SC 29708www.muzak.com

New England Drive-Thru communicationsAngela Bechard888-966-6337 • [email protected] Wildwood Road, Auburn, NH 03032www.nedrivethru.com

New England repair ServiceJerry Brown • A Division of New England Coffee Co.781-873-1536 • [email protected] Charles Street, Malden, MA 02148www.nerepairservice.com

paramount restaurant Supply corp.Jeffrey Cartier401-247-6500 • [email protected] Main Street, Warren, RI 02885www.pararest.com

payless Shoe SourceMatt Lemke785-368-7530 • [email protected] SE 6th Avenue, Topeka, KS 66607www.payless.com

r.F. TechnologiesJennifer Morales 618-377-4063 ext. 121 • [email protected] South Prairie Street, Bethalto, IL 62010www.rftechno.com

Silver kingChris Lyons630-462-4906 • [email protected] Xenium Lane North Plymouth, MN 55441www.silverking.com

SkAL East, IncKevin Huerth508-238-0106 • [email protected] Box 303, 31 Eastman Street, Easton, MA 02334www.skaleast.com/index.cfm?keyword=dunkin

SureShot Dispensing SystemsSteve Robert905-827-4415 • [email protected] Dispensing Way, Lower Sackville, NS, Canada B4C 4H2www.sureshotdispensing.com TredSafe/WalmartTed Travis909-949-0495 • [email protected] West 33rd Street, New York, NY 10001www.walmart.com

UAS Security SystemsChris McGurk800-421-6661 • [email protected] Abbott Drive, Broomall, PA 19008www.uas.com

Waste managementJoAnn Bradbury215-378-1417 • [email protected] Silvia Street, Ewing, NJ 08628www.wm.com

TAX DEFErrED EXchANGEExchange Authority Marie Dias 978-433-6061 • [email protected] Leominster Connector, Suite 1, Leominster, MA 01453 www.exchangeauthority.com

We Knowyour Business.FranchiseCorporate & BusinessReal Estate & DevelopmentEmploymentTrust & Estate PlanningLitigation

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 example include: transfer of ownership of 100 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 2000 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.

www.lisasousa.com 5 Benefit Street, Providence, Rhode Island, 02904Tel: 401-274-0600 Fax: 401-421-6117

e: [email protected]

AV® Rated by Martindale-Hubbell Signifying the highest standards of legal proficiency and ethics.

Carl B. Lisa Sr. & Louis A. Sousa named Legal Eagles 2009 & 2010

The Rhode Island Supreme Court licenses all lawyers in general practice of law. The Court does not license or certify any lawyer as an expert or specialist in any field of practice.

Directory of SponsorsDirectory of Sponsors

Thank You to Our

Sponsors!

Page 30: Independent Joe Magazine April 2013 #19

28 Independent Joe • AprIl 2013

my perspective: DD Smart menu By Adam Goldman

Recently, McDonald’s announced it would add egg whites to their breakfast offerings, specifically

focusing on their powerhouse breakfast sandwich, the Egg McMuffin. It seems as though McDonald’s is finally realizing that others in the QSR industry—and spe-cifically Dunkin’ Donuts—have for some time been focused on developing innova-tive and great tasting breakfast alterna-tives for health-conscious customers.

Over the last few years, Dunkin’ intro-duced egg whites in three varieties: turkey sausage, veggie, and plain. That offering was dropped once Dunkin’ Brands found that a healthy option should also be great-tasting and the plain was a little too plain for our customers taste. In February the turkey sausage limited time offer (LTO) was such a hit that it became a permanent menu item. The reduced fat blueberry muffin continues to be a top seller throughout the day as both a breakfast item and an afternoon snack, and our breakfast wraps help those customers looking for a smaller portion size.

Dunkin’ didn’t just stop at breakfast, introducing tuna and chicken salad sandwiches, an alternative to the high fat burgers from the traditional QSR’s. Any of these items coupled with one of DD’s “Lite” beverages made with skim milk and Splenda further drives home to our customers that we are listening to their needs and desires.

While Dunkin’ has developed these great alternatives, the vast majority of those who are looking for healthy alterna-tives do not know about our DD Smart Menu offerings. In Window 3, marketing developed a fantastic little brochure that introduced our guests to the Smart Menu and calls out those nutritional figures that

are the most helpful in matching their needs with our products. In my stores we listen for those times when a guest says something has too many calories or too much fat, and introduce them to the DD Smart Menu options.

Now if the customer orders a Latte Lite, and a sausage egg and cheese on a croissant with butter and jelly (yes I have a customer who is watching their weight yet orders this regularly) then the Latte Lite may have no effect, but what about someone who is dedicated to a healthier lifestyle?

Just a few years ago my wife Karen’s cholesterol was at a level that her doctor wanted to prescribe a statin drug. She decided to change her breakfast routine from a bacon egg and cheese on a crois-sant to our veggie egg white with low fat cheddar on the bottom half of a croissant. At the same time, she started playing tennis three times a week in between her busy work schedule. She would hear the other ladies on the court complain how they were hungry after their morning cup of yogurt. When Karen told them about Dunkin’s Smart Menu and what she ate each morning the ladies were stunned. “Dunkin’ has healthy things to eat?” they would say.

Now, after a pre-game breakfast she hosted at one of our stores, the ladies are no longer eating just yogurt and are no longer “starved” while on the court. As for

Karen’s cholesterol, she needs to focus a bit more on the rest of her meals, however that little switch to the egg white veggie and reduced fat cheddar has dropped her levels to the point to where her doctor is holding off prescribing any medication. As an added bonus, the increased protein and reduced fat in both the egg and cheese has given her more energy on the court and left her with the feeling of being full much later in the day and thus reducing the need for a late day snack. This in conjunction with her playing tennis has resulted in her dropping a full dress size. I wonder what Subway pays Jared for his endorsement?

Overall I think our DD Smart Menu has left the competition jealous and envi-ous—particularly about our great tasting breakfast offerings. I would suggest that for my fellow franchisees to really benefit from our superior menu, taking the Smart Menu brochures and product samples and introducing them to managers at local gyms/workout centers and even a doctors or nutritionists in the area. You may even be able to have the brochure posted on the bulletin board within the gym and a savings offering if they show their gym membership card. In turn they may just recommend to their guests and patients Dunkin’ Donuts as a great way of focusing on their health throughout the day. •Adam Goldman is a DD franchise owner with a successful multi-store network in Northern New Jersey. Contact him at [email protected].

the turkey sausage egg white sandwich is one one the many healthy alternatives on the DD Smart menu that has the competition taking notice..

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Start a Relationship Today: 1-800-56-JOYAL

Find out how JCM can help you grow and plan today. We have helped many Dunkin’ Donuts franchisees and we can do it for you.

Total Plan Integration and Commitment to Client ServiceSince 1990 we have enjoyed amazing personal relationships with Dunkin’ Donuts Franchisees.

Gary F. JoyalManaging [email protected]

Daniel F. Connelly Managing [email protected]

Richard P. Joyal, Jr. Managing [email protected]

Kathy Rebello Managing [email protected]

Stephen M. Stabile [email protected]

Sean O’ Brien Chief Financial [email protected]

Watch client testimonials at: www.JoyCapMgt.com OR www. JCMFranchise.com

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34800 Joyal DD ad.indd 1 1/31/13 3:43 PM