Detroit Mom And Pop Franchisees Sue Dunkin’ Over Illicit Business Practices

Blue MauMau:

Franchisees in Detroit filed a federal lawsuit against Dunkin’ Donuts last Thursday accusing the franchisor of unlawfully withholding consent in permitting them to transfer ownership of their stores to qualified buyers. But they are also alleging that Dunkin’ is prohibiting them from expanding their own businesses, in spite of launching a rapid expansion program. The complaint filed in the U.S. District Court of Michigan by the Marks & Klein law firm in New Jersey and Michigan firm Thav, Gross, Steinway & Bennett, states,”… it is Dunkin’s intention to beat the franchisees into financial submission, at which time Dunkin’ will swoop down and take their stores for pennies on the dollar.”

The franchisees filing the litigation include two seasoned franchisees—Salim Ali, a 24-year veteran operator of four stores and Bhikhabhai Patel, a 10 plus-year owner and operator of five stores. But also named is the Detroit Dunkin’ Donut Franchisee Association (DDFA) comprised of approximately 18 franchisees who own a total of 45 to 48 shops in that market. The primary purpose of the DDFA is to serve as the official voice of the Detroit franchisees, focusing on improving the Dunkin’ brand and brand awareness.

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