John Motta has a passion for politics. The Chairman of the new Dunkin’ Donuts Franchise Owners Federal Political Action Committee (DDFO FedPAC) has never run for office, nor does he plan to. Motta operates a 20-store network in New Hampshire and Virginia; he’s been a Dunkin’ franchisee since 1980.  But, his passion is quite evident when he talks about the political efforts for which he’s volunteered.

“I like being in the mix and I’ve always been there in the background. I helped support Kelly Ayotte’s successful campaign for the US Senate in New Hampshire.  In my home town of Nashua, I was appointed to the Parks and Recreation Committee and was appointed as the Chairman of The Ethnic Festival in Nashua. I was also on the fundraising committee for the new high school athletic fields,” said Motta.

That effort was so successful, the city actually named the football field for him. Teams from three high schools – Nashua High North, Nashua High South, and Bishop Guertin High – now play their home games on Motta Field.

With the creation of DDFO FedPAC, Motta will be playing on a bigger field.

New federal laws and regulations – ranging from healthcare to financial reform – affect profitability for franchise owners across all quick service restaurant systems. Franchisees face the continual challenge of alerting federal lawmakers to the impact new laws and regulations have on their businesses and their ability to create jobs, support community efforts and continue investing in the local economy.

“We repeatedly find that government officials do not understand either the nature of the franchise relationship or that Dunkin’ Donuts are virtually 100% independently owned. We’ve been able to put the face of a local, small business owner on our stores as opposed to a faceless corporation that is not a voting constituent in their district. It really does make a difference to government officials when they understand they are regulating a small business owner.” said Rob Branca, chairman of the Massachusetts Political Action Committee, DDFO MassPAC.

Motta says franchise owners across the country are feeling more government interference on issues like menu labeling, credit card fees and immigration reform. “We feel it’s the right time to organize ourselves and be able to support politicians and groups that will work on our behalf.”

The DDFO FedPAC will raise money to support legislators who are supportive of the small business issues that are important to franchise owners in all parts of the country.

Misty Chally, deputy executive director for the Coalition of Franchisee Associations (CFA) and a lobbyist in Washington, D.C., says through the CFA, Dunkin’ Donuts franchise owners have done an excellent job of increasing their visibility on Capitol Hill and the creation of a federal political action committee is the right next step towards getting more involved.

“These are not easy economic times for franchisees; it’s critical to have representation here. The more people understand how what happens in Washington affects their businesses back home, they will start to donate and participate,” said Chally. “Dunkin’ Brands has a strong lobbyist down here but, it’s important to distinguish the franchise owners from the Brand. There are times the two sides will not be aligned.”

Branca says one of the lessons he’s learned in the year since the launch of the DDFO MassPAC is the importance of identifying the right issues and the right candidates to support.

“You need to select those that you can master and where it is possible to make a favorable change or prevent an unfavorable change.  For candidates, you must select those in the middle that have the power to sway a vote or the wording of a regulation.”

On the federal level, Motta admits, that can be an even bigger challenge. “We have to make sure the issues we identify are ones that impact all franchise owners. I think it’s really important that we have input from franchise owners in all the different regions of the country.”

To accomplish that, Motta has assembled a volunteer board of directors which includes: Jim Cain from New York, Arun Mandi from New Jersey, Scott Ball from Florida, Joe White from Ohio, Branca and DDIFO President Jim Coen.

“Coen was a huge help getting this thing going,” said Motta. “I had tried for a couple of years to start the PAC but it wasn’t until I got Jim involved that it started happening.”

His position as chairman of a PAC may be new, but Motta’s knowledge of politics isn’t. He knows things can move slowly and that raising money can be challenging. He has set out realistic expectations for the PAC’s inaugural year.

“I feel confident we can raise a war chest of $100,000 or more in the first year and get at least 50% of all franchisees to make a contribution,” said Motta. “That will be a success.”

“The entire DDFO MassPAC effort has been to distinguish the forest from the trees for state and federal legislators,” said DDIFO Government Relations Director Joe Giannino. “You drive down any road in Massachusetts and you’re bound to see a Dunkin’ Donuts–that’s the forest. The individual franchise owners and operators are the trees. But, as the PAC discovered through its work, the majority of legislators didn’t even see the trees, so to speak. They had no idea that each and every Dunkin’ shop in their local districts is operated by a small business owner, a constituent, and not by the Brand conglomerate. That has made a huge difference in their perspective on certain proposed legislation and in their desire to protect the interests of franchisees.”

DDFO MassPAC Chair Robert Branca echoed and added to Giannino’s assessment. “Over the past year, we achieved the goals we set for educating state and federal legislators and protecting franchisees’ interests,” he said. “We brought our message, our agenda and our specific concerns to their attention. They know who we are now: We franchisees are the actual small business owners behind the Dunkin’ Donuts signs that people have seen for years upon years. We are the ones investing in their local districts every day through our businesses and our community efforts. They understand that it’s our bottom line–not to mention our families and employees–that are put at risk by confusing and even contradictory regulations and laws.”

At the Annual Meeting, DDFO MassPAC Treasurer David Martin delivered a financial report that acknowledged the organization has reached its year-one fundraising goal of $25,000. Martin commented that over 60 franchise owners contributed in an “impressive showing” particularly for a first-year PAC.

Jon Hurst, President of the Retailers Association of Massachusetts (RAM), served as guest speaker. Hurst has a long history of involvement with RAM, a statewide trade association dedicated to promoting and protecting the retail industry through government relations. According to Branca and Giannino, Hurst has been very supportive of DDFO MassPAC and is mindful of the two organizations’ common interests and concerns. In his talk, Hurst asserted that it’s the small business owners, like Dunkin’ Donuts franchisees, who are the true drivers of the Massachusetts economy. He emphasized how critical it is for small business owners to stay involved and make their voices heard on the political front.

“Having Jon Hurst at the meeting signifies the power of establishing collaborative relationships across industries, of the banding together of small business owners,” Giannino said. “His association represents thousands of members affected by the same issues as Dunkin’ Donuts owners. The more we can work together within the political system, the more impact we can have on the system.”

Just one example of the type of work DDFO MassPAC does day-to-day is its efforts related to the Massachusetts tip-pooling statute. The original law on the books contained exceedingly ambiguous language and inherent inequities that led to ridiculous fines and baseless private action lawsuits, even class actions, against individual franchisees. DDFO MassPAC drafted and led through the legislative process a comprehensive amendment to the law. At first, a variety of unions, the Attorney General’s office and the Department of Labor and Workforce Development had a litany of objections. DDFO MassPAC worked with each of these parties to tackle all of the objections, remove the ambiguity and negotiate a bill that everyone could live with. This is the bill that ultimately went to and was passed by the state legislature.

“On the federal level and in every state, legislation can and often does arise that could be financially or operationally crippling to us,” said Branca. “We need to continually be able to back candidates who will advocate for small business owners and particularly Dunkin’ franchisees. We need to put ourselves in a position to make our voices heard clearly and with specificity. No one else is going to do it for us. That’s why, as a franchisee myself, I’ve come to see contributing to the MassPAC as part of the ongoing cost of doing business. Franchise owners in every state need to recognize the importance of having a PAC and need to budget accordingly in order to support it.”

Dunkin’ Donuts franchisees in Connecticut, Illinois and New Jersey have already expressed interest in forming state PACs and are using DDFO MassPAC as a model. In addition, a national committee–DDFO FedPAC–is now in its formative stages with a plan to launch officially in 2011. Longtime multi-unit and multi-state franchisee leader and owner John Motta will head the national PAC and is beginning to pull together a team.

“Many of us have experienced how government is affecting our businesses, and it seems that they want to regulate more and more how we do business. That’s why I feel we must unite as franchisees and establish a federal Political Action Committee so our voices can be heard directly in Washington,” said Motta. “The new federal PAC will specifically tackle issues on a federal level that will affect franchisees throughout the country.”

“Regardless of your level of political tolerance, government has a tremendous impact on small business operations and on your bottom line,” Giannino said. “People either lead, follow or get out of the way. Kudos to DDIFO, Rob, John and all of the involved franchisees for realizing that it’s best to lead.”

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Kyle Cheney of State House News Service, published at Metro West Daily News writes that much has been made about how the sausage is made on Beacon Hill. But what about doughnuts?

Franchise owners of the 1,350 Dunkin’ Donuts stores in Massachusetts, which employ 25,000 workers, have formed a political action committee aimed at countering the impact of “big labor, trial attorneys and other organizations that contribute hundreds of thousands of dollars annually to help elect candidates in Massachusetts.”

“If we do not get involved to protect our own businesses, no one else will do it for us,” wrote Robert Branca, chairman of the Dunkin’ Donuts Franchise Owners Massachusetts Political Action Committee, on the group’s web site, www.ddfomasspac.org. “Indeed, there are forces working against us daily. Every season new laws and regulations are proposed or enacted that impact our bottom lines, and they never seem to protect our interests.”

“Simply put – political campaigns cost money – and political candidates who help support and promote our business ought to have our financial support, both individually and through the PAC,” the letter continues.

The Massachusetts PAC will back candidates “who understand small business issues and who will promote a legislative and regulatory climate favorable to small business operators,” according to the web site.

Dunkin’ Donuts, caffeinating Massachusetts residents since its first store opened in Quincy in 1950, today serves coffee and baked goods to 3 million customers a day in 8,835 locations in 31 countries, according to company figures.

Jim Coen, president of the Dunkin’ Donuts Independent Franchise Owners, Inc., said the PAC would be a critical voice for the company’s taxpaying business owners.

“These are people who pay real estate taxes. These are people who collect sales tax, who pay employee taxes,” Coen said in a phone interview. “These are people who make investments … in their communities. These people have a stake in Massachusetts.”

Coen said the PAC won’t be particularly visible – the company already has a lobbyist acting on its behalf in the capitol. But a PAC, he said, will enable the franchise owners to back candidates and issues directly.

Created as an independent entity, DDFO MassPAC is completely separate from the DDIFO, but exists to leverage the combined resources of Dunkin’ Donuts franchise owners to promote and protect the business interests of that group.

Former DDIFO Legislative Affairs Coordinator and franchise owner Rob Branca is assuming the position of the Chairman of DDFO MassPAC.

“We’ve already gained ground and achieved some success in the legislative arena, but we need to build on that,” said Branca. “Seasoned government relations professionals have advised us that forming a political action committee was the right step to demonstrate that we are involved and serious. We took that advice to heart and made the DDFO MassPAC a reality.”

Branca indicated he would look for a successor as Chairman of the committee once it was up and running so he could focus his attention on his increased responsibilities with the Brand Advisory Council and continue operating his franchises. He said his decision to resign as DDIFO’s Legislative Affairs Coordinator was based, in part, on the desire to allow others to get involved in the process.
 
A Political Action Committee, or PAC, is a private group that raises money for contributions to specific political candidates or parties. According to Branca DDFO MassPAC will be a vital tool for effecting positive change and minimizing potentially harmful outcomes in Massachusetts—home to 1350 Dunkin’ Donuts franchises.

“One of our chief concerns is that we are in strict compliance with the complex rules and regulations that surround the fundraising process, and operating through a PAC makes that much easier. We need to be ever vigilant not to besmirch our hard earned reputations as law abiding, small, family businesses,” he said.

Joseph Giannino, DDIFO’s new Legislative Affairs Coordinator, says the PAC will benefit DDIFO members because it helps put a face on the individuals and families who operate Dunkin’ Donuts stores. “Within the political landscape, it distinguishes these independent, small business owners from the large corporate brand and provides a forum for these men and women to address the real-life impact legislative and regulatory actions have on their livelihood.”

DDFO MassPAC has named David Martin Treasurer of the organization. Martin is Principal of The Chick Montana Group, a campaign finance business based in Dedham, Massachusetts. With more than 20 years of campaign financing experience, Martin is an independent, highly-skilled professional who was handpicked to ensure that the DDFO MassPAC operates according to state law and within the guidelines established by the Massachusetts Office of Campaign and Political Finance.

Among those guidelines are contribution limits, such as:

• An individual may contribute up to a total of $500, including in-kind contributions, to a PAC in a calendar year (husband and wife are two individuals, and may contribute up to $1,000 annually).
• An individual under age 18 is limited to a total of $25 in political contributions to all candidates and PACs in a calendar year.
• A PAC may not accept any contribution—including an in-kind contribution of goods, services, equipment, personnel, facilities or the like—from a business corporation, including a professional corporation, or from any association or organization comprised in whole or in part of business corporations or professional corporations.

You can learn more about DDFO MassPac at www.ddfomasspac.org. Contributions to the committee may be sent to DDFO MassPAC, 675 VFW Parkway #209, Chestnut Hill, MA 02467.

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