independent joe magazine october 2012 #15

Why Grassroots Politics Benefit Your Bottom Line by Susan Minichiello

October 2012 • Issue 16 We Communicate, We Educate, We Advocate!

I’ll Have What He’s

Having!by

Stefanie Cloutier

Franchise Owne

r

IndJoe #16 covers print.indd 1 10/16/2012 11:47:56 AM

OCTOBER 2012 • IndEpEndEnT JOE 272 IndEpEndEnT JOE • OCTOBER 2012

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Shanahan continued from page 5

chise owners aware and prompt them to take action at the local level.

“After all, all politics is local,” Shanahan said, quoting the phrase made famous by the former U.S. Speaker of the House Thomas p. (Tip) O’neill, for whose cam-paigns Shanahan volunteered. Knowing how to work within the legislative sys-tem, organize, and take action are some of the skill set Shanahan brings to his new role as executive director of ddIFO.

Or, to use a sports analogy, Shana-han said that it’s the franchise owners “who’ve got the real skin in the game.”

Sports language often peppers Shana-han’s conversations because in addition to being a lobbyist and professional membership organization leader, Shana-han spent many seasons running across college football fields as an nCAA referee. Before he officially retired from division 1 football, he officiated at the four oldest rivalries in college football, including “The Game” between Harvard and Yale. In addition, he served as president of the Eastern Association of Intercollegiate Football Officials, Boston Chapter.

Keeping the peace between opposing teams and ensuring a fair and level play-ing field are skills he brings to the task of making sure the needs of small busi-ness owners are not unfairly encroached upon by government regulations.

From what he’s been hearing in the field and at the national conference, franchise owners in different parts of the country are all facing increasing pressures from government oversight and regulations.

“If sprinkles and frosting are being taxed some place today,” Shanahan quipped, “you bet other municipalities will look to do it too.” And while taxing sprinkles was meant only as a humorous example, Shanahan said in this struggling econo-my, where all levels of government are struggling with reduced budgets, elected leaders are looking for new sources of revenue—and when something works in one place, it could well be enacted in another.

Shanahan tipped his hat to Jim Coen, former ddIFO president and chief operating officer, for building up a strong network within ddIFO. “Kudos to Jim,

he’s put together a sponsorship program that’s been doing exceedingly well,” Shanahan said. The trajectory of the ddIFO sponsorship program is positive and it is functioning very well, he said.

Current ddIFO board chair daniel Con-nelly echoed this sentiment that ddIFO communications channels have grown and strengthened considerably in the past few years. “Jim’s done a fantastic job in growing us to where we are.”

When Coen opted to not renew his contract with ddIFO, Connelly said the board underwent an extensive search and culled it down to 50 qualified re-sumes. Shanahan’s blend of lobbying experience coupled with growing mem-berships in a number of trade organiza-tions proved the right blend of experi-ence to keep ddIFO moving forward.

“Our franchisees are waking up every morning facing a challenging business climate. As the brand continues to move

beyond new England,” Connelly said, the membership base of ddIFO will keep expanding as well.

“Every franchisee signs the same [fran-chise] agreement,” Connelly said and is dealing with the same essential issues when it comes to running a small busi-ness. When their individual businesses are thriving, the most desired next step for most franchisees is to expand.

“Expansion is good for the local econ-omy, good for architects, for construc-tion, for people looking for jobs,” Con-nelly said. So there is leverage among a membership organization such as ddIFO to work in tandem with local, state, and national lawmakers to ensure small businesses can thrive.

To this end, Connelly said both Sha-nahan and the board are committed to representing franchise owners from all around the country and building a truly national organization.


Process and Progress:Why Grassroots PoliticsBenefit Your Bottom Line

by Susan MinichielloWhy GrassrootsPolitics BenefitYour Bottom LineSusan Minichiello

New Executive Director Listening toFranchisee ConcernsBetsy Lawson

Dunkin’s Recipe for ExpansionMatt Ellis

DDIFO Directoryof Sponsors

Hall of FameInductees HonoredMatt Ellis

I’ll Have WhatHe’s Having!Stefanie Cloutier

Index ofAdvertisers

03

05

0708111427

In an election season full of name-calling and attack ads, real issues close to the heart of small business owners can get lost in the fray. Yet, Dunkin’ Donuts franchise owners who are on the lookout for harmful legislation and regulation—and are willing to engage with politicians on such issues—can better protect their bottom line.

Getting ThereFor several years, DDIFO has employed a strategy of closely following legislative and regula-tory issues in Massachusetts, in part because the organization is based there, but also because it is Dunkin’ Brands’ backyard and such issues are closely followed by the franchisee leadership. To that end, the organization hired Boston lobbyist Joe Giannino as Government Relations Director and helped establish a po-litical action committee (DDFO MassPac) for franchise owners in that state. On the national lev-el, DDIFO is a founding member of the Coalition of Franchisee Associations (CFA) and sends representatives to Capitol Hill as part of the annual CFA Day Forum. DDIFO’s new Execu-tive Director Ed Shanahan says under his leadership there will be a renewed and strengthened focus on addressing legislative and regulatory issues across the country and engaging franchise owners more directly in that process.

“Like it or not, government is a partner in every small business. The more ac-tive and aware franchise owners are, the more likely that partnership will be productive,” said Shanahan. “Self-pres-ervation requires a certain amount of political action and, with the increasing numbers of laws and regulations of sig-nificant consequence to every Dunkin’ Donuts shop, it is of critical importance

that franchisees get involved building relationships with local politicians and learning about the actions of those politicians.”

At the DDIFO National Members Meeting in September, Shanahan and Giannino led a breakout session about growing government intrusion. They provided guidance on how franchisees can prepare for and respond to legisla-

tive and regulatory threats, empha-sizing how essential it is to establish relationships with local politicians. Dave Walck, a franchisee in Maine who attended the session, discussed how the business has changed in this regard and shared how his strong rap-port with a legislator is making a real difference.

“Fifteen years ago, the only things I worried about were: do I have enough openers coming in? Is the product okay? How much was my throwaway and what was my labor? It’s a whole different world today, and we’ve got to understand that we need to get involved,” he said. “My state legislator

knows me and knows I’m a small busi-nessperson. He sends me an email and says, ‘Hey Dave, here’s some legislation I think is going to affect you and your small business that I think we need to defeat.’ I send out a blast email to every franchisee in Maine. Those franchisees get on the phone, call their representatives, and say, ‘This is bad for me.’ So that’s why you need to get to know your state legislators and get them to communicate with you.”

In an interview prior to the meeting, Shanahan told Independent Joe, “The groundwork laid by Jim [Coen], Joe [Gi-annino] and several key franchise owners, has given DDIFO a leg up in the political arena. We need to sustain those efforts and to develop new avenues for convinc-ing elected officials of the validity of our positions. DDIFO is ready and willing to expand its sphere of influence and assist franchise owners in all states to better protect their business, their lifelong invest-ment and their generational legacy. But we

OCTOBER 2012 • InDEpEnDEnT JOE 3Politics continued on page 23

Franchise owner and former DDIFO Legislative Affairs Coordinator Rob Branca with Senator Scott Brown (R-MA)

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October 2012 • Issue #16Independent Joe ® is published by DD Independent Franchise Owners, Inc.

Editors: Edwin Shanahan, Matt EllisContributors: Stefanie Cloutier, Betsy Lawson, Susan Minichiello

Advertising: Joan Gould • Graphic Design/Production: Susan Petersen

Direct all inquiries to:DDIFO, Inc. • 150 Depot Street • Bellingham, MA 02019

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Even before he was shaking hands, introducing himself and listening to the concerns of Dunkin’ Donuts franchise owners at the recent National Members Meeting in September, DDIFO’s new Executive Director Ed Shanahan had already spent months getting to know many franchisees and associated busi-ness partners.

Shanahan called it his “unofficial listen-ing tour” and it began immediately after he was brought on to take over DDIFO. “This is a member organization, driven by the needs of those it serves,” he said.

And with more than three decades of experience in government advocacy, coalition building, and organization management, Shanahan said he under-stands that with an organization such as DDIFO, “it’s all about the members and what they need to be successful in their businesses.”

Shanahan earned his bachelor’s degree in political science from Central Con-necticut State University and started his career in public service in 1975 with the City of Boston in its Office of Hous-ing. He served in progressively more responsible positions that included busi-ness manager, neighborhood manager, and principal rehabilitation specialist. He then moved to the City’s Office of Man-agement and Budget where he worked as deputy director.

From there, Shanahan went on to spend the next two decades, from 1984-2004, with real estate trade associations – first as executive director of the Rental Housing Association, then as CEO of its parent, the Greater Boston Real Estate Board. This 120+ year old organization represents the varied and diverse inter-ests of the real estate industry across Eastern Massachusetts. In addition to expanding and enhancing organizational revenues, Shanahan handled legislative and governmental representation.

In 2004, Shanahan launched his own government affairs consulting and lob-bying practice in Boston and went on to represent a number of major firms

in property development and manage-ment. He worked with clients to secure passage of significant legislation on their behalf as well as prevented passage of various legislative initiatives detrimental to their stated interests.

At a DDIFO members’ meeting in New Jersey in September, Shanahan took careful note of a presentation on em-ployment law and the significant hurdles employers face if they should step afoul of these laws. Shanahan pointed out that while the specifics of employment

law will differ from state to state, the underlying themes and challenges facing franchisees in New Jersey today will be echoed in some fashion or other all around the country in the months and years ahead.

In light of this reality, he be-lieves, DDIFO needs to func-tion as a knowledge base for sharing best practices in how to handle local, state and national legislative issues.

Through his listening tour and other outreach to franchise owners throughout the country, Shanahan hopes to keep a two-way dialog going.

“Whether it’s Florida, New Mexico, Il-linois, New England, wherever,” Shana-han said, “when DDIFO members read or hear about an issue, I want to hear from them.”

When a bill is filed, Shanahan explained, DDIFO needs there to be a two-way educational process to make other fran-

New Executive Director Listening to Franchisee Concerns by Betsy Lawson

Shanahan continued on page 27

Ed Shanahan with New York franchisee Alex Rowzani and his wife/business partner, Sue


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Depending on your territory, market expansion can take on an entirely dif-ferent meaning. A new Dunkin’ Donuts franchisee, opening new markets like Omaha for example, begins with a blank slate. Their competitive landscape could be marked with Starbucks, McDonald’s or local mom-and-pop coffee shops. But, for franchisees in mature markets, sometimes the com-petitive landscape includes another Dunkin’.

Expansion is Dunkin’ Brands’ (DBI) primary strategy to generate future growth and demonstrate to Wall Street that its stock is a smart buy. DBI intends to double its U.S. points of distribution to 15,000 over the next 20 years. This would include free standing shops, alternate points of distribution like col-leges, hospitals and transpor-tation centers and self-serve facilities like those at select Hess gas stations.

DDIFO Restaurant Analyst John Gor-don, principal of pacific Management Consulting Group, says the institutional investors that have bought up much of the DNKN shares vacated by the private equity firms Bain Capital, Thomas H. Lee Partners and The Carlyle Group, want earnings growth of 15-20% per share which is only possible through same store sales growth and unit expansion. Wall Street can be impatient, but Gordon says Dunkin’s growth will be methodi-cal—not rapid.

“It took 15 years to double the number of units in the Chicago market,” said Gordon. “And, I think Dunkin’s western expansion will take longer than Dunkin’ wants.”

At the recent DDIFO National Members Meeting in September, Rhode Island franchise owner Steve Gabellieri was part of a panel discussion about mar-ket development. Prior to owning four shops, Gabellieri spent eight years as

vice president of operations for Dunkin’ Brands. He says DBI’s growth strategy is to initially focus on markets contiguous to the brand’s base: New England, the mid-Atlantic, Chicago and Florida.

“The approach is much like we saw in upstate new York, first Albany, then Syracuse, then Rochester and then Buf-falo,” which leads to the Great Lakes and the industrial Midwest.

Gabellieri believes Dunkin’ has attractive unit economics because its “menu and sales mix is made up of cost efficient products and high customer traffic en-able cost efficient labor.” He also says Dunkin’ can be successful when it cre-ates market density that further drives supply chain and marketing efficiencies.

Whayne Hougland has witnessed both growth and retrenching in his 35 years in the QSR industry. As Executive Direc-tor and Legal Counsel to the Long John Silver’s Franchisee Association, Houg-land has been witness to a paradigm shift within his system from the time when franchisees owned 40% of the restaurants to today when franchisees own 100%. Getting there involved a significant change of ownership. Long John Silver’s was owned by Yum Brands and often co-branded with other con-

cepts. Now it is entirely owned by its franchisees, and one of the larger shareholders is the person who originally created the concept for the brand.

Hougland joined Gabellieri, Boston attorney Eric Karp and DDIFO Director and Boston University Marketing Department Chair, Pro-fessor Patrick Kaufmann on stage in the Great Hall at Mohegan Sun for the DDIFO Market Development

Panel. He emphasized that the Long John Silver’s Franchisee Association ne-gotiated impact guidelines to ensure new development would not threaten existing shops. Any proposed location was stud-ied by a third party vendor to determine if the impact would be more than 10% of the existing franchisee’s gross sales; if so, the new shop would not be built. While it remains to be seen if DBI will consider such independent impact stud-ies in emerging markets, some franchi-sees in core Dunkin’ Donuts markets say expansion through encroachment has impacted their bottom line.

There have been occasions when Dunkin’ Donuts franchisees raise the concern that opening a new shop close to his or her territory would cannibalize sales. In these cases Dunkin’ will some-times encourage the developing franchi-see or the potentially impacted franchi-see to commission a Customer Intercept Study. The cost of the study is borne by one or both. The results of the study can influence DBI’s decision whether to

Expansion continued on page 26

Dunkin’s Recipefor Expansion by Matt Ellis

Long John Silver’s Franchise Association Executive Direc-tor Whayne Hougland (holding microphone) joined Boston attorney Eric Karp and Rhode Island franchise owner Steve Gabellieri to discuss Dunkin’ Donuts’ expansion.

Boston University Marketing Department Chair and DDIFO Board Member Patrick Kaufmann led the panel discussion on market development.

Business Broker Hirshon Associates LLC425 Broadhollow Road, Suite 428, Melville, NY 11747 Andrew Hirshon • [email protected] • www.hirshon.com

Kensington Company & Affiliates185 Roslyn Road, Roslyn Heights, NY 11577David Stein • [email protected]: 516-626-2211 • M: 718-490-2218 • www.kensingtoncompany.com

CML OperationsMid-State Isuzu35 Southwest Cutoff, Worcester, MA 01604Craig Judge • [email protected] • www.midstateisuzu.com

CommunicationsComcast Business Services500 South Gravers Road, Plymouth Meeting, PA 19462Comcast national Sales • [email protected] • www.business.comcast.com/internet/index.aspx

Sprint3 Van De Graaff Drive, Burlington, MA 01803Caroline Fedele • [email protected] • www.sprint.com/ddifomembers

Cost RecoveryBedford Cost Segregation, CPAs 60 State Street, Suite 700, Boston, MA 02109Bill Cusato • [email protected] • www.bedfordcostseg.com/who_we_serve/ddifo.asp

EF Cost RecoveryPO Box 79361, North Dartmouth, MA 02747Ed Craig • [email protected] • www.efcostrecovery.com

Performance Business Solutions, LLC87 Lafayette Road, Suite 11, Hampton Falls, NH 03844Jeff Hiatt • [email protected] • www.revenuebanking.com

EnergyEnergy Gateway, Inc.451 Worcester Road, Charlton, MA 01507Christopher Tremblay • [email protected] • www.energygateway.com

Glacial Energy 24 Route 6A, Sandwich, MA 02563Kristy Solt • [email protected] 340-201-4323 • www.glacialsales.com/dunkindonuts

Metromedia Energy200 West Park Avenue, Suite 125, Westborough, MA 01581Scott Werman • [email protected] • www.mmenergy.com

Secure Energy Solutions, LLC12-14 Somers Road, East Longmeadow, MA 01028Mike Schmidt • [email protected] ext. 223 • www.sesenergysolutions.org

Finance Business Financial Services3111 n. University Drive, Suite 800, Coral Springs, FL 33065Scott Kantor • [email protected] • www.businessfinancialservices.com

AccountingAdrian A. Gaspar & Company, LLP, CPAs1035 Cambridge Street, Suite 14, Cambridge, MA 02141Robert Costello • [email protected] • www.gasparco.com

Bederson & Company LLP - CPAs and Consultants405 northfield Avenue, West Orange, nJ 07052Steven Bortnick, CpA • [email protected] 973-736-3333 • www.bederson.com

Cynthia A. Capobianco, CPA60 Quaker Lane, Suite 61, Warwick, RI 02886-0114Cynthia Capobianco • [email protected]

James P. Ventriglia, CPA, Inc.145 Phenix Avenue, 2nd Floor, Cranston, RI 02920 Jim Ventriglia • [email protected] • www.jpvcpa.com

Gray, Gray & Gray, CPA34 Southwest Park, Westwood, MA 02090paul Gerry, CpA • [email protected] • www.gggcpas.com

Rubiano & Company, CPA’s5 Austin Avenue, Suite 1, Greenville, RI 02828Daniel J. Rubiano, CpA • [email protected] • www.rubianocpa.com

Sansiveri, Kimball & Co., LLP55 Dorrance Street, Providence, RI 02903Joseph Mansour • [email protected] • www.sansiveri.com

Thomas Colitsas and Associates, CPA103 Carnegie Center, Suite 309, Princeton, NJ 08540Tom Colitsas • [email protected] • 609-452-0889“A Member of Franchise Pros”

Back Office IKMS Group, Inc. PO Box 6221, Manchester, NH 03108Cliff pratt • [email protected] • www.ikmsgroup.com

Jera Concepts - Order and Production Management Software17 Fruit Street, Hopkinton, MA 01748Wynne Barrett • [email protected] • www.jeraconcepts.com

SIB Development & Consulting288 Meeting Street, 3rd Floor Charleston, SC 29401Al Rush • [email protected] • www.sibdevelopment.com

Building Trane HVAC225 Woldwood Avenue, Woburn, MA 01801Jonathan Ralys • [email protected] • www.Trane.com/commercial

ViewPoint Sign and Awning35 Lyman Street, Northboro, MA 01532Bill Gavigan • [email protected] • www.viewpointsign.com

WatchFIre Signs1015 Maple Street, Danville, ILDevon Mourer • [email protected] • wwwwatchfiresigns.com

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


Capital One Bank710 Route 46 East, Suite 306, Fairfield, new Jersey 07004Stuart Vorcheimer • [email protected] • www.capitalone.com

Centrix Bank & Trust 1 Atwood Lane, Bedford, NH 03110 Deborah Blondin • [email protected] 603-589-4071 • www.centrixbank.com

Direct Capital Franchise Group155 Commerce Way, Portsmouth, NH 03823Robyn Gault • [email protected] • www.franchise.lendedge.com

Fidelity Bank465 Shrewsbury Street, Worcester, MA 01604Sally Buffum • [email protected] • www.fidelitybankonline.com

First Franchise Capital2715 13th Street, Columbus, NE 68601Karen Johnson • [email protected] • www.firstfranchisecapital.com

GE Capital, Franchise Finance 201 Merritt 7, 2nd Floor, Norwalk, CT 06851Christine Keating • [email protected] • www.gefranchisefinance.com

Infinity Franchise Capital3154 18th Avenue, Suite 3, Columbus, NE 68601Sharon Soltero • [email protected] • www.infinityfranchisecapital.com

Joyal Capital Management Franchise Development50 Resnik Road, Plymouth, MA 02360Daniel Connelly • [email protected] • www.jcmfranchise.com

Merchant Cash & Capital450 Park Avenue South, 11th Floor, New York, NY 10016Seth Broman • [email protected] • www.merchantcashandcapital.com

NFA Restaurant Finance400 E. 22nd Street, Suite A, Lombard, IL 66148Larry Howard • [email protected] • www.nfaloans.com

Priority Capital174 Green Street, Melrose, MA 02176Brian Gallucci • [email protected] Ext 14 • www.prioritycapital.com

Susquehanna Commercial Finance2 Country View Road, Suite 300, Malvern, PA 19355Brian Colburn • [email protected] • www.susquehanna.com

TCF Franchise Finance300A Lake Street, Suite B, Ramsey, NJ 07446Mike Vallorosi • [email protected] • www.tcfef.com

United Capital Business Lending215 Schilling Circle Suite 100, Hunt Valley, MD 21031Trey Grimm • [email protected] • www.unitedcapitalbusinesslending.com

Directory of Sponsors

Sponsors cont. page 18Thank You to Our Sponsors!

Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org


Food Products CSM Bakery Products1901 Montreal Road, Suite 121, Tucker, GA 30084Marla Cushing • [email protected] • www.csmbakeryproducts.com Quaker Oats A Division of PepsiCo402 Kilarney Way, Royersford, PA 19468Ed Bowes • [email protected] • www.pepsico.com

Human Resources CareerBuilder.Com 400 Crown Colony Drive, Suite 301, Quincy, MA 02169Maureen O’neill • [email protected] • www.careerbuilder.com

Employers Reference Source1587 Hamilton Avenue, Waterbury, CT 06706Sandra Fabrizio • [email protected] • www.employersreference.com

Gecko Hospitality 1415 West 22nd Street, Tower Floor Oakbrook, IL 60523 Robert Krzak • [email protected] 630-390-1000 • www.geckohospitality.com

Granite Payroll Associates176 Granite Street, Qunicy, MA 02169Marco Schiappa • [email protected] • www.granitepayroll.com

Gulpfish.com1005 Main Street, Pawtucket, RI 02860Ilya Reikhrud • [email protected] Ext 101 • www.gulpfish.com

JobOn 141 Log Canoe Road, Stevensville, MD 21409pete Steiner • [email protected] 774-217-0340 • www.jobon.com

Ovation Payroll2 Stamford Landing 68 Southfield Rd. #100, Stamford, CT 06902Jim Ferreira • [email protected] • www.ovationpayroll.com

Snagajob4851 Lake Brook Drive, Glen Allen, VA 23060Erin Brumfield • [email protected] • www.snagajob.com/employer-solutions

The PCI Group303 Molner Drive, Elmwood Park, NJ 07407Robert Boffa, Sr. • [email protected] ext. 223 • www.pcihr.com

Insurance The Hill Agency5 Washington Avenue, Endicott, NY 13760Rita Frailey • [email protected] • www.thehillagencyinc.org

KK Insurance Agency541 Broadway, Long Branch, NJ 07740Ashish Vadya • [email protected] • www.kkquote.com


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OCTOBER 2012 • InDEpEnDEnT JOE 11Hall of Fame continued on page13

Hall of Fame Inductees Honoredfor Their ContributionsClass of 2012 at Gala

by Matt Ellis

At one moment, during the cocktail party after the Dunkin’ Donuts Fran-chise Owners Hall of Fame gala, a young, first generation franchisee walked up to Jay Dubinsky, reached out his hand, and said what you often hear spoken to first respond-ers or war veterans, “Thank you for what you have done.” The comment exactly addressed one of the prima-ry reasons DDIFO established the Hall of Fame in 2011.

Jay was one of this year’s inductees along with Manuel Andrade, Brooks Barrett, John Rader, Robert Rosenberg and actor, Mi-chael Vale better known as “Fred the Baker.” When he entered the system in 1971, Jay Dubin-sky had no restau-rant experience, but he was quick to learn that beverages would be the key to Dunkin’ Donuts’ success.

John Rader, who bought his first Dunkin’ in New York in 1965, gra-

ciously accepted his honor as a Hall of Fame inductee saying, “It’s been a long journey.” He noted how it cost $35,000 to open his first store, and today that would buy a point-of-service system for one shop. Rader was one of the first franchisees to trade his cash register for a com-puterized POS.

In the Hall of Fame program, Brooks Barrett’s is identified as “never one to follow the crowd.” But, when he had the opportunity to address the crowd of 240 at the Hall of Fame

gala, Brooks put it another way. “My contribution is that I was a pain in the ass.”

The truth is that Dunkin’ Donuts Chief Executive Robert Rosenberg counted on Brooks to stand up for

the franchisees. “The franchisees are the reason we are here tonight,” Brooks said from the podium.

In the history of Dunkin’ Donuts, there is one fran-chisee at the hub of a network that is estimated to include 40 percent of all the Dunkin’ Donuts in New England. Man-uel Andrade was not able to attend

the gala but his brother Carl recalled how the business spread through-out the family and his partner, John Justo talked about the success they have had.

John Rader and Jay Dubinsky

Brooks Barrett

Carl Andrade accepts the Hall of Fame Award on behalf of his brother, Manuel. Also shown: Jim Coen, John Justo and John Motta


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Robert Rosenberg could not be in attendance either but his nieces, Lynne McLaughlin and Carol Resn-ick, thanked the Hall

of Fame committee and franchisee community for the honor. “Bob is honored to be recognized by the franchisees,” Carol said.

Rosenberg was one of two 2012 inductees to never own a franchise.

Hall of Fame continued on page 20

Hall of Fame continued from page 11

Hall of Fame inductee John Rader with Anthony Pellizzi

The other was Michael Vale, whose portrayal of “Fred the Baker” is nearly as iconic as the brand itself. Vale passed away in 2005 after 18 years in the role that defined his ca-reer and created a warm, personal, inviting image for Dunkin’ Donuts.

The late actor Michael Vale, A.K.A. “Fred the Baker”

Carol Resnick and Lynne McLaughlin

accepted the Hall of Fame on behalf of their

uncle, Robert Rosenberg

Whether it was Vale’s pronounce-ment that, “It was time to make the donuts,” Dubinsky’s belief that advertising had to reflect that it was, “Time to make the coffee,” or Barrett’s belief that a franchisee-owned supply chain that acts as a cooperative was in the best and long-term interest of the franchisee community, the Hall of Fame Class of 2012 did a lot for the system. It’s no wonder people thank them for all they did.

Over 200 people attended this year’s Hall of Fame Awards Dinner at Mohegan Sun.


Professional athletes lead better lives than the rest of us mere mortals, or at least they seem to. First of all, they get to play a sport they love for an unbelievable amount of money. They go to great parties, drive expensive cars – even their hair looks great. We follow their every move in the press, sighing and wondering what it would be like to live that life, wanting just a little piece of what they have.

And then we see them in an adver-tisement, wearing a certain watch, or – yes – drinking a certain iced cof-fee. And we think, well, I may not be

able to BE them, but I can have what they’re having.

It’s exactly the reason advertisers use celebrities to pitch their products. And it’s why Dunkin’ Brands (DBI) is currently using a number of profes-sional football players, including Eli Manning of the New York Giants and Rob Gronkowski of the New England Patriots, to promote their wares.

Quite simply, it works, says Nancy Harhut, Chief Creative Officer of

the Wilde Agency, an ad firm just 12 miles from Foxboro Stadium, home of the Patriots.

“It’s because we all do things that people like us – or people we like – do,” said Harhut. “Social scientists call it the principle of social proof.”

Social proof means that seeing other people doing something validates it as the right decision for us. When you see someone you admire driving a certain car or drinking a particular beverage, if you identify with that person, then that could be all the justification you need to make that purchase. It’s why advertisers use fa-mous people to promote their brand.

Of course, it’s important to make certain it’s the RIGHT person.

“You want to make sure the tone of your person aligns with your brand,” according to Doug Chapman, execu-tive creative director and principal at Avenue Brand in Boston. “You might pair a serious person with a serious product or subject, or you pick some-one who can entertain.”

For a while now, DBI has chosen to use local sports figures. The nice thing about sports figures is that they have a broad appeal across a num-ber of demographics: even people who aren’t avid sports fans are usu-ally aware of the big names. People feel passionate about their teams, as the recent NFL replacement referee

by Stefanie Cloutier


Having!

Seeing other people doing something validates it as the right decision for us.

OCTOBER 2012 • InDEpEnDEnT JOE 15Celebrities continued on page 17

debacle shows. It’s a great way to connect the product with the local audience.

Using local sports figures also helps to customize the advertising to a par-ticular region. For example, Dunkin’ can speak to New Yorkers—and New Jerseyites—with Manning and to New Englanders with Gronkowski. They can even go a step further by customizing the ads by season, using baseball players in their spring and summer ads to push the iced bever-ages, and saving the football players for fall and winter, making the adver-tising relevant and impactful.

From a purely practical point of view, it can also be a little easier to use sports figures than people in the entertainment industry. “Actual actors don’t always want to be directed, whereas athletes don’t have that expertise,” said Chapman.

Last spring, Dunkin’ Donuts used their spokespeople in a unique local way, kicking off their campaigns by having Manning and Gronkowski play employee for a day, filling coffee or-ders and surprising customers at the drive-up window. It was a great way to boost the brand: what fan doesn’t dream of meeting a sports figure up close and personal?

The ultimate test of whether or not the use of celebrity endorsements is successful, of course, is if it results in more sales.

Some of the most successful celeb-rity endorsements are also the most memorable. People of a certain age may remember Bill Cosby and his iconic Jello commercials. By the time Cosby became the Jell-O spokes-person, sales of the jiggly dessert had been steadily declining; it had become a “special occasion” food instead of the everyday dessert the company wanted it to be. No stranger to using celebrity endorsers, Jell-O had previously used such luminar-ies as actress Ethyl Barrymore and comedian Jack Benny to hawk their product. So it’s no surprise they tapped Cosby to tout their jigglers, Jello snacks made to look like differ-ent shapes and meant to be eaten with your fingers. Cosby’s endorse-

ment not only stopped the decline, it significantly increased sales. He stayed as their spokesperson for thirty years, a testament to his suc-cess.

Then there’s George Forman and the grill that bears his name. Who would think to tie a kitchen appliance to a boxer? Apparently Salton, Inc. did;

the company at the time owned the Lean Mean Fat-Reducing Grill-ing Machine, as the product was origi-nally named. They were impressed that Forman had made a comeback at age 45 to regain the heavy-weight world cham-pionship, a feat he attributed to healthy eating. Since a key attribute of their indoor grill is its ability to draw fat away from the food as it cooked, they saw a perfect match with the hale and hearty Forman. The campaign was so successful that the product is now known as the George Forman Grill, spawning the famous tagline, “It’s so good I put my name on it!”

Advertising and pop culture experts warn however that you do need to be careful because sometimes your message can be derailed by a seem-ingly innocuous detail. Back a few years ago, Dunkin’ used Rachel Ray as a spokesperson. After all, she’s a recognized foodie, and she loves Dunkin’ Donuts coffee – it seemed like a natural fit. But when the ads came out there was a backlash: she was wearing a scarf around her neck that appeared to be a keffiyeh, a tra-ditional scarf worn by Arab men sup-porting terrorist ideals. The scarf was actually a silk paisley thrown on at the last minute by the stylist, but the ad

was pulled nonetheless. Dunkin’ won praise for their quick action and con-cern for the sensitivity of the issue.

Not everyone, however, is sold on the idea of celebrity endorsements as sound ad strategy. International ad-vertising executive Martin Lock, with twenty-five years of experience in the industry, feels that celebrity endorse-ments tend to be the last resort when all other ideas for brand competition have failed.

“Your risk (of exposure) increases over time,” said Lock, “eroding your core brand. It

becomes a veneer, and you risk losing the authenticity of the brand.”

The flip side is that it can also help to differentiate you when you have a commodity product, like coffee and donuts, or when you are well es-tablished and don’t have something new to tout regularly, like “new and improved.” In those cases, a celebrity endorser can serve to differentiate your product in a crowded market.

If you ARE committed to using a ce-lebrity to endorse your product, Lock says it’s critical to do your research, and understand the amount of risk you’re prepared to take, because when it doesn’t work, the result can be disastrous.

One of the best examples of an endorsement that didn’t work is OJ Simpson and his endorsement of Minute Maid OJ (orange juice). On paper, it looked like a match made in heaven: well-liked athlete with the same name as your product – what

The ultimate test of whether a celebrity endorsement is successful... is if it results in more sales.


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Celebrities continued from page 15

could be better? Of course hav-ing your spokesperson indicted for murdering his ex-wife can certainly do more than just tarnish your whole-some image. The unfortunate event spawned several unflat-tering taglines for the product, and it took Minute Maid a very long time to recover from the notoriety.

Of course, in advertising, it’s important to really understand your customers and which ce-lebrity will connect with them. This is where the research Lock talks about comes in.

When Microsoft went look-ing for someone to undo their stuffy image, they thought comedian Jerry Seinfeld was a perfect match. After all, he was funny and hip. Prob-lem was, he was so hip that all the computers he used on his popular TV show were Macs. Not the connection Microsoft was hoping to make.

And then there is Nike. Back in 2004, Nike’s market research told them there was a market they weren’t reaching: customers who referred to

themselves as “academi-cally orient-ed.” They needed to come up with an endorser who would appeal to this market, and brilliantly hit upon re-

searcher Stephen Hawking to market their Air Jordans to the geek group. Only problem was, Hawking is para-lyzed as a result of a long-standing motor neuron disease; he’s been con-fined to a wheelchair almost his entire adult life. Not a ringing endorsement for how well their sneakers worked.

Of course, Nike is also the company that had Tiger Woods on their payroll

when the golden golfer had his very public marital spat. Which brings up another issue: what to do when the celebrity to whom you’ve so publicly tied your cart goes off the

Celebrities continued on page 22


Paris-Kirwan Insurance1040 University Avenue, Rochester, nY 14607John Mulcahy • [email protected] • www.paris-kirwan.com

RMS Insurance Brokerage, LLC575 Jericho Tpke, Suite 102, Jericho, NY 11753Donna Mis • [email protected] • www.rmsrestaurants.com

Sinclair Insurance Group - Risk Management4 Tower Drive, Wallingford, CT 06492Matt Ottaviano • [email protected] • www.srfm.com

Starkweather & Shepley Insurance Brokerage, Inc.60 Catamore Boulevard, East Providence, RI 02914Sabrina San Martino • [email protected] ext. 1121 • www.starkweathershepley.com

Wells Fargo Insurance Services2502 north Rocky point Drive, #400, Tampa, FL 33607Mark Stokes • [email protected] • wfis.wellsfargo.com

LegalLisa & Sousa Attorneys at Law5 Benefit Street, providence, RI 02904Carl Lisa, Sr. • [email protected] • www.lisasousa.com

RMS Insurance Brokerage, LLC575 Jericho Tpke, Suite 102, Jericho, NY 11753Donna Mis • [email protected] • www.rmsrestaurants.com

Sinclair Insurance Group - Risk Management4 Tower Drive, Wallingford, CT 06492Matt Ottaviano • [email protected] • www.srfm.com

Starkweather & Shepley Insurance Brokerage, Inc.60 Catamore Boulevard, East Providence, RI 02914Sabrina San Martino • [email protected] ext. 1121 • www.starkweathershepley.com

Wells Fargo Insurance Services2502 north Rocky point Drive, #400, Tampa, FL 33607Mark Stokes • [email protected] • wfis.wellsfargo.com

LegalLisa & Sousa Attorneys at Law5 Benefit Street, providence, RI 02904Carl Lisa, Sr. • [email protected] • www.lisasousa.com

Paris Ackerman & Schmierer LLP101 Eisenhower Parkway, Roseland, NJ 07068David paris • [email protected] • 973-228-6667www.paslawfirm.com “A Member of Franchise Pros”

Zarco, Einhorn, Salkowski & Brito, PA100 SE 2nd Street, 27th Floor, Miami, FL 33131Robert Zarco, Esq. • [email protected] Salkowski, Esq. • [email protected] • www.zarcolaw.com

Directory of SponsorsSponsors continued from page 9 Operations

3M CompanyBldg. 223-2N-20 St. Paul, MN 55144Jim Sinclair • [email protected] • www.3m.com/xt-1

3 Wire Group, Inc.101 Broadway Street West, Osseo, MN 55369Derek Knapp • [email protected] • www.3wire.com

Access to Money ATM, Inc./Cardtronics 628 Route 10 - Suite 8, Whippany, NJ 07981Doug Falcone • [email protected] • www.accesstomoney.com

Belshaw Adamatic Bakery Group814 44th Street NW, Suite 103, Auburn, WA 98001Fran Kauth • [email protected] 206-718-3573 • www.belshaw-adamatic.com

Bunn-O-Matic Corporation 1400 Stevenson Drive, Springfield, IL 62703Todd Rouse • [email protected] • www.bunn.com

Cashmaster Cash Solutions2108 Trving Blvd., Dallas, TX 75207Jayson Dunston • [email protected] ext. 2 • www.cashmaster-us.com

Delphi/Fast Track 2+2 Drive-Thru Timer3500 West Moore Avenue, Suite M, Santa Ana, CA 92704Mike pierce • [email protected] • www.fasttracktimer.com

DTT Surveillance1755 North Main Street, Los Angeles, CA 90031Mira Diza • [email protected] • www.dttusa.co

Ecolab8300 Capital Drive, Greensboro, NC 27409Arliene Bird • [email protected]/Businesses/

eCube5 Cold Hill Road, Building 20, Mendham, NJ 07945Cardie Saunders • [email protected] • www.getecube.com

ePOS Solutions, Inc.1910 Smith Street, North Providence, RI 02911Robert Marcello • [email protected] • www.epossolutions.net

Grainger100 Grainger Parkway Lake Forest, IL 60045Valerie Jenkins • [email protected] • grainger.com

Hi-Tech Sound53 Brigham Street, Unit 8, Marlborough, MA 01752Gary Hanna • [email protected] • www.hitechsound.com

HME Drive-Thru Headsets14110 Stowe Drive, Poway, CA 92064Brady Campbell • [email protected] 858-535-6034 • www.hme.com

Please Visit The DDIFO Sponsor Directory online at: www.DDIFO.org

Thank You to Our Sponsors!


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

HS Brands International500 Myles Standish Boulevard, Taunton, MA 02780Michael Mershimer • [email protected] • www.hsbrands.com

Jarrett Services ATM, Inc. 1315 Stelton Road, Piscataway, NJ 08832Eric Johnston • [email protected] • www.jarrettforcash.com

LED Source402 Knights Run Avenue, Suite 150, Tampa, FL 33602 Haitham Charles • [email protected] • www.ledsource.com

Macdonald Restaurant Repair Service, Inc.PO Box 61, 83 Pond Street, Norfolk, MA 02056Mark & Debi Macdonald • [email protected] • www.macdonaldcompany.com

Mint-X Corporation2048 199th Street, College Point, NY 11356Amie Yee • [email protected] • www.mint-x.com

Muzak3318 Lakemont Boulevard, Fort Mill, SC 29708Joanna Barrett • [email protected] • www.muzak.com

New England Drive-Thru Communications12 Wildwood Road, Auburn, NH 03032Angela Bechard • [email protected] • www.nedrivethru.com

New England Repair Service - a div. of New England Coffee Co.100 Charles Street, Malden, MA 02148Jerry Brown • [email protected] • www.nerepairservice.com

Paramount Restaurant Supply Corp.101 Main Street, Warren, RI 02885Jeffrey Cartier • [email protected] • www.pararest.com

Payless Shoe Source3231 SE 6th Avenue, Topeka, KS 66607Matt Lemke • [email protected] • www.payless.com

R.F. Technologies542 South Prairie Street, Bethalto, IL 62010Jennifer Morales • [email protected] 618-377-4063 ext. 121 • www.rftechno.com

Register Tapes Unlimited1268 Bella Vista Circle, Longwood, FL 32779Michael Curtin • [email protected] • www.rtui.co

Silver King1600 Xenium Lane North Plymouth, MN 55441Chris Lyons • [email protected] • www.silverking.com

SKAL East, IncPO Box 303, 31 Eastman Street, Easton, MA 02334Jim Zafirson • [email protected] • www.skaleast.com/index.cfm?keyword=dunkin

SureShot Dispensing Systems100 Dispensing Way, Lower Sackville, NS, Canada B4C 4H2Steve Robert • [email protected] • www.sureshotdispensing.com

TredSafe/WalMart450 West 33rd Street, New York, NY 10001Ted Travis • [email protected] • www.walmart.com

UAS Security Systems700 Abbott Drive, Broomall, PA 19008Chris McGurk • [email protected] • www.uas.com

Waste Management107 Silvia Street, Ewing, NJ 08628JoAnn Bradbury • [email protected] • www.wm.com

Tax Deferred ExchangeExchange Authority 9 Leominster Connector, Suite 1, Leominster, MA 01453 Marie Dias • [email protected] 978-433-6061 • www.exchangeauthority.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.


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Hall of Fame continued from page 13

Taco Bell and Long John Silver’s franchise owner Sean Tuohy delivered an emotionally compelling speech to at-tendees of the DDIFO National Meeting. The story of how Tuohy’s family adopted Michael Oher, a homeless teen-ager who would go onto become an NFL star, became a best-selling book and movie called “The Blind Side”

150 franchise owners attended this year’s National Members Meeting at Mohegan Sun


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Hall of Fame inductee Jay Dubinsky shares the stage with

Bill Daly, John Motta and Jim Coen

Hall of Fame “After Party”

Plates created by Peggy Karr Glass were awarded to

each Hall of Fame inductee.

Hall of Fame continued from previous page

DDIFO Executive Director Ed Shanahan led the

discussion of grassroots politics at Mohegan Sun.


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rails and does something you’d really rather not be associated with. That’s the downside of using celebrities to endorse your products.

Whether you choose to drop the en-dorsement depends entirely on your brand and the transgression: if you’re promoting wholesomeness and your endorser is caught breaking a law, you’ll have a problem. But if your brand is projecting an edgy lifestyle, the celebrity’s bad behavior may not make an impact at all on your sales, and in fact could enhance sales.

With sports figures, the danger is more that they will be traded while your ads are still running, making it important to pick a player with long standing, or a really popular newcom-er, something Dunkin’ has been very successful with. And they’ve been agile with developing ads that incor-porate those changes. That relevance strikes a chord with die-hard fans.

Whether or not you like the idea of well-known people touting your prod-uct and promoting your brand, the fact is that people respond to it. Es-pecially when it’s their favorite sports

player, doing an every day activity that they do themselves: drinking cof-fee. And hopefully, it will make them drink yours.

Celebrities continued from page 17


out what’s going on that could affect you. It’s a bottom up approach, and it works.”

Winning the BattleSpurred by DDIFO, franchisee Rob Branca has worked hard to increase his political involvement in recent years, developing strong relationships in Massachusetts with Speaker of the House Robert DeLeo, State Repre-

sentative Linda Dorcena Forry and State Senators Michael Moore and Brian Joyce. Branca has spearheaded successful meetings with legislators and government agencies that have resulted in defeating or amending harmful laws and regulations.

Most recently, Branca helped gener-ate an amendment to the existing Fair Share Law in Massachusetts that will go into effect on July 1, 2013. Current-ly, the law requires any Massachusetts employer with 11 or more full-time-equivalent (FTE) employees to provide employees with health insurance that passes certain tests, or pay the Com-monwealth $295 per year per FTE. Further, if fewer than 25 percent of employees opt to accept the employer-offered coverage, the employer must pay the penalty.

“As written, the Fair Share Law is anything but fair, especially since there is no consideration for the reasons an employee might choose not to accept coverage,” said Branca. “In our world,

can’t do it alone; we need franchisees to be directly involved in the political process as well.”

Giannino asserts that many franchise owners already have a rapport of some kind with local politicians.

“Whether they’re your customers, your neighbors, your relatives’ neighbors or friends—even if they’re meeting with people in your shops—you probably

already have some kind of relationship with your state reps, senators, alder-men and city councilors. All of these relationships are crucial and should be cultivated, because it’s the local con-nections that matter most.”

Through these personal relationships, franchise owners can ensure that politicians understand the difference between Dunkin’ as a brand and the individual franchisee as an indepen-dent small business owner and a voting constituent. Franchise owners play an important role in their local communities and deserve a voice in the decisions impacting their opera-tions. Giannino says lawmakers and policy-setters are coming to realize just how much franchisees invest in hiring local people, paying taxes and sup-porting local charities and community organizations.

“If you build a good rapport with your legislators and other politicians, they’ll turn to you for your opinion and, conversely, you can go to them to find

Politics continued from page 3

Recent/Pending Legislation & Regulations

Here are some examples of the laws and regulations franchisees are

facing, or have faced, nationally and in specific states.

• National: the “Fair Minimum Wage Act,” a bill in the U.S. Senate to raise the federal minimum wage from $7.25 to $9.80 an hour in three annual incremental increases of 85 cents an hour; also would tie future increases to inflation; in late July, assigned to a con-gressional committee for consideration before possibly sending to the House or Senate as a whole

• New Jersey: a bill proposing an increase in the minimum wage from $7.25 to $8.50 an hour in NJ; passed the full Assembly in May; stalled in the State Senate because Governor Chris Christie vowed to veto it

• Florida: lawmakers are now classifying Dunkin’ Donuts as a restaurant instead of a bakery, changing how franchisees are taxed on the sale of donuts and other baked goods

• Illinois: the restaurant tax rate (about 10%) applies to all goods purchased in QSRs and other restaurants; Dunkin’ customers are charged the same tax rate on one donut as a dozen even though a dozen is technically a bulk sale; in grocery stores, the bulk sales tax rate (about 2%) applies; DDIFO mem-bers are working with the Illinois Chamber of Commerce to identify explicit language in the current law that permits charging bulk tax rate without fear of repercussions in future audits

• New York City: a regulation banning sales of big sodas and other sugary drinks at restaurants, concession stands, workplace cafeterias and other eateries (doesn’t apply to supermarkets or most convenience stores); puts a 16-ounce size limit on cups and bottles of non-diet soda, sweetened teas and other beverages considered high in calories; passed by the NYC Board of Health in August 2012

• Massachusetts: a tip pooling law banning any employees with “managerial authority” from collecting tips; prevents Dunkin’ employ-ees who are not true managers from sharing in tips even though they work in direct service operations; has been spurring class action lawsuits; amendment lost by one vote in MA Senate; the fight continues with a grassroots effort encouraging franchisees to attend one-on-one meetings with their senators

• Rhode Island: a tip pooling bill modeled on the MA law; initially passed the RI Senate and was sent to the House; Dunkin’ franchisees mobilized to convince their representatives how unfair the bill was to countless employ-ees in the state; House legislators listened, and the bill died; it’s likely to be re-introduced next session; franchise owners remain alert and engaged.

Franchise owners Dinart Serpa, Greg and Jeeny Califano, and Rob Branca with Massachusetts Speaker of the House, Robert DeLeo.

Politics continued on page 24


pact Dunkin’ Donuts franchise owners by assuming the role of vice-chairman of the CFA.

“As the saying goes, ‘If you don’t have a seat at the table, you’re probably on the menu.’ That’s why we all need to make sure we’re part of the local, state and national politi-cal conversation. If we don’t, it’s our bottom line that will be devoured,” he said.

Other franchisees agree.

“We have to engage politically to protect our operations. I recently faced an issue impacting a location in Florida and, had it not been for the relation-ships I have with local politicians, we never could have resolved it. Of course, if it weren’t for their actions, I never

it’s common for employees not to take up the coverage we’re offering. Many of our employees are covered under a spouse’s health insurance plan or are seniors or military personnel with other coverage in place. Still, even though I was in compliance in terms of the mini-mum plan standards I was offering – in fact, the plan I offer employees goes beyond the minimum standards – I was paying thousands of dollars in penalties due to the take-up rate requirement.”

Branca brought this inherent unfairness to the attention of key legislators. They agreed the law is unjust and fought to fix it accordingly. In August, the Mas-sachusetts legislature passed, and Governor Deval Patrick signed into law, an act that includes new Fair Share provisions, namely raising the FTE threshold from 11 to 21 and making an adjustment for employees with other coverage.

Branca has also taken an active role in examining how legislative and regulato-ry action in Washington, D.C. could im-

Politics continued from page 23

would’ve had the problem in the first place,” said David Daly. “No matter what, some politicians overstep basic issues of public protection and expand powers where they shouldn’t. That’s when you need to be able to go to your officials and ask for help. And they need

CFA representatives, including DDIFO’s Jim Coen and Rob Branca meet with US Congressman Jim McGovern

Politics continued on next page


Politics continued from previous page

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to know who you are: that you own x number of stores employing x number of people in their constituency, that you vote and maybe even that you contrib-ute to their campaigns.”

“We have to educate our politicians about who we are and the issues that matter to us,” Chris Prazeres said. “Go to community events, like little league opening day. All the politicians are there. It’s a great opportunity to meet them and let them know we’re small business owners, not a big corporation, and that we live down the street from them, creating jobs and investing mon-ey in the community. In my experience, once they understand this, they take seriously what we say about the nega-tive impact certain legislation has on us, and consequently on our employees and our communities. That’s when they really listen and are responsive.”

Empowering DDIFODDIFO leadership is committed to identifying key legislative and regulatory issues nationwide and lobbying in the best interest of all franchisees, but they need help from franchisees.

“We know we have a cadre of franchise owners with existing political relation-ships that would be great to have in the DDIFO rolodex,” Giannino said.

“We need to know about the relation-ships you have with local politicians and policymakers, and we can ad-vise how to leverage those rela-tionships in ways that protect your

investment,” Shanahan agreed. “As soon as you hear about a piece of legislation or a regulation that could impact your business, let us know. We can follow up, make inquiries, identify the key players, ascertain the likelihood of it moving forward or not, and determine if there’s a need for mobilization. That’s part of my job, and I stand ready and eager to serve in that capacity.”

How to Get the Ball Rolling

If you have access to the Internet, you can find out who your elected officials are and how to contact them, as well as where to vote, primary and general election dates and much more information that will help you get con-nected, get involved and start building invaluable relationships with govern-ment officials.

Resources for federal, state and/ or city/town officials and voting/

elections information:• http://www.usa.gov/Agencies/State-

and-Territories.shtml or www.usa.gov/Contact.shtml

• http://votesmart.org/ (Click Govern-ment & Officials, then Offices &

Officials) • www.eac.gov/voter_resources/con-

tact_your_state.aspx

Another way to find your town or city website, is to use a search engine like Google, Bing, Yahoo, etc. and search for your town or city name together with your state abbreviation (e.g., Elmhurst IL; Holyoke MA; Davie FL). The official city or town website typically appears as the top result. A city or town website typically provides links to contact the mayor and city councilors, as well as other local of-ficials, committees and boards.

How to Talk to PoliticiansStart with Positive Comments & Establish Common Ground, like:• “Thank you for your hard work.”• “Our kids play little league together.”• “I fully support your position on...”• “I read a great article about you in our

local paper.”• “I appreciate your help.”• “I am a local business owner who has

50 employees that live and work in your district.”

Don’t Go Negative, like:• “I won’t vote for you unless you...”• “I pay your salary.”• “You work for me! “• “Do your job!”• “I don’t trust politicians.”Other Key Points:• The office visit is important – show up

in person.• Be concise – show respect for their

time.• Ask for their vote/support.• Say “Thank you”.• Have polite conversation.

Franchise Owner David Daly with Boston City Councilor John Connolly.


Expansion continued from page 7

approve or deny a new site. Regardless of the decision, the results of the study are not shared with the franchisees.

By his own estimation, one Dunkin’ Donuts franchise owner in a core market saw his gross sales drop by 20 percent when DBI approved the development of a new shop less than a mile from his existing location. He told Independent Joe, not only did DBI bypass this franchisee entirely—re-fusing to offer him the chance to develop the new location—it is also considering another new shop in close proximity to his territory. This double-whammy encroachment punch could significantly reduce this franchisee’s profits and ham-per his chances to harvest the eq-uity he has put into the business.

Even as isolated encroachment situations arise in core markets, DBI is banking on increasing its penetration in emerging and future markets. At the breakout session, Gabellieri showed a slide indicating, there is approximately one shop for every 10,000 people in New England and New York; one for every 24,000 people in Philadelphia, Chicago and South Florida; one to 99,000 in other markets east of the Mississippi; and one for every one million people in western markets.

So, while a westward march is inevitable, Gabellieri says it won’t happen overnight. “Developing contiguous to success-ful markets is smart,” he said. “East of the Mississippi (River) is where Dunkin’ Donuts sees good growth opportunities, again focusing on markets contiguous to the base,” he said.

And, Gordon notes, approvals for new Dunkin’ shops in west-ern markets appear to be happening faster than expected, which indicates DBI’s interest in getting new beachheads established, while increasing the density in states in the middle.

Something else DBI is banking on is tapping the expertise and capital of some of its successful core market franchisees to lead the development charge into new markets. One example is the Milwaukee Coffee Brewing Company, a partnership of six franchises headed by Mark Cafua, which is developing 30 locations in Milwaukee and surrounding towns over a four-year span. The group is getting well known and is actively engaged in its new communities. After all, they know what it’s like to be a linchpin of a neighborhood.

The proximity to Chicago, with its existing supply chain and the largest CML in the country, certainly improves the Milwau-kee group’s chances for success. And considering the density in new England, it’s hard to find any opportunities to add 30 new locations to a network without branching out west. DBI can make that argument to other established franchisees as it continues to fill in open spaces.

Gordon concurs it’s in DBI’s best interest to have well capital-ized franchisees from its core markets develop new territories. “They know the business and they know what it’s like to build,” 800.581.5363 fidelitybankonline.com FITCHBURG GARDNER LEOMINSTER MILLBURY SHIRLEY WORCESTER

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he said. “Besides, the second and third generation is important to Dunkin’ Donuts.”

“My caution to your franchisor is to be patient with the franchi-sees and give them time to build their team and support them with training,” said Hougland. “And my caution to the franchi-sees is go for it—but be sure you have the right team along

with you.”

But, time marches quickly for publicly traded companies. Because expansion is so critical to Dunkin’s story and stock valuation on Wall Street, Gordon is not so sure pa-tience will be an option, or be rewarded by the investment community.

Restaurant Analyst John Gordon told meeting attendees, Western expansion will take longer than Dunkin’ wants.




Having!by

Stefanie Cloutier

Franchise Owne

r


OCTOBER 2012 • IndEpEndEnT JOE 272 IndEpEndEnT JOE • OCTOBER 2012

In 2012, 21 stores have been sold/under contract/letter of intent.We currently represent 12 DD owners in 7 states looking to sell their network of stores.

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Shanahan continued from page 5

chise owners aware and prompt them to take action at the local level.

“After all, all politics is local,” Shanahan said, quoting the phrase made famous by the former U.S. Speaker of the House Thomas p. (Tip) O’neill, for whose cam-paigns Shanahan volunteered. Knowing how to work within the legislative sys-tem, organize, and take action are some of the skill set Shanahan brings to his new role as executive director of ddIFO.

Or, to use a sports analogy, Shana-han said that it’s the franchise owners “who’ve got the real skin in the game.”

Sports language often peppers Shana-han’s conversations because in addition to being a lobbyist and professional membership organization leader, Shana-han spent many seasons running across college football fields as an nCAA referee. Before he officially retired from division 1 football, he officiated at the four oldest rivalries in college football, including “The Game” between Harvard and Yale. In addition, he served as president of the Eastern Association of Intercollegiate Football Officials, Boston Chapter.

Keeping the peace between opposing teams and ensuring a fair and level play-ing field are skills he brings to the task of making sure the needs of small busi-ness owners are not unfairly encroached upon by government regulations.

From what he’s been hearing in the field and at the national conference, franchise owners in different parts of the country are all facing increasing pressures from government oversight and regulations.

“If sprinkles and frosting are being taxed some place today,” Shanahan quipped, “you bet other municipalities will look to do it too.” And while taxing sprinkles was meant only as a humorous example, Shanahan said in this struggling econo-my, where all levels of government are struggling with reduced budgets, elected leaders are looking for new sources of revenue—and when something works in one place, it could well be enacted in another.

Shanahan tipped his hat to Jim Coen, former ddIFO president and chief operating officer, for building up a strong network within ddIFO. “Kudos to Jim,

he’s put together a sponsorship program that’s been doing exceedingly well,” Shanahan said. The trajectory of the ddIFO sponsorship program is positive and it is functioning very well, he said.

Current ddIFO board chair daniel Con-nelly echoed this sentiment that ddIFO communications channels have grown and strengthened considerably in the past few years. “Jim’s done a fantastic job in growing us to where we are.”

When Coen opted to not renew his contract with ddIFO, Connelly said the board underwent an extensive search and culled it down to 50 qualified re-sumes. Shanahan’s blend of lobbying experience coupled with growing mem-berships in a number of trade organiza-tions proved the right blend of experi-ence to keep ddIFO moving forward.

“Our franchisees are waking up every morning facing a challenging business climate. As the brand continues to move

beyond new England,” Connelly said, the membership base of ddIFO will keep expanding as well.

“Every franchisee signs the same [fran-chise] agreement,” Connelly said and is dealing with the same essential issues when it comes to running a small busi-ness. When their individual businesses are thriving, the most desired next step for most franchisees is to expand.

“Expansion is good for the local econ-omy, good for architects, for construc-tion, for people looking for jobs,” Con-nelly said. So there is leverage among a membership organization such as ddIFO to work in tandem with local, state, and national lawmakers to ensure small businesses can thrive.

To this end, Connelly said both Sha-nahan and the board are committed to representing franchise owners from all around the country and building a truly national organization.





Having!by

Stefanie Cloutier

Franchise Owne

r


independent joe magazine october 2012 #15

Documents

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franchise owners whove

dd owners

ddifo sponsorship program

campaigns shanahan

government regulations

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