Dunkin’ Donuts Facing Racial Discrimination Allegations

QSR Magazine:

2 minority franchisees have alleged racial discrimination in a counterclaim filed in response to Dunkin’ Donuts‘ attempts to terminate their franchise agreements. The counterclaim alleges that the actions of Dunkin’ Donuts are based upon the color of the franchisees’ skin.

Last year Dunkin’ served Mahendra and Nita Patel, husband and wife owners of 4 Dunkin’ Donuts shops in Goshen, Harriman, and Chester, New York, with a notice of termination stemming from alleged violations of the franchise agreements, labor laws, and tax laws.

The Patels, who are first-generation Americans of Indian descent, answered by filing a counterclaim in White Plains Federal Court October 15. It that Dunkin’ Donuts unfairly terminates minority franchisees or forces them to sell their stores at less than fair market value to Caucasian multi-unit operators.