This issue was published in December 2011.

We are able to bring this to you via the web in a format that closely resembles the look and feel of a magazine.

Read the magazine online, just start flipping the pages…..

Fidelity Bank

Based in Central Massachusetts, Fidelity Bank is one of the oldest, strongest and continually growing independent community banks in the region. Fidelity Bank offers the experience of a big bank with the personal service of a community lender. As a franchise owner client, you deal directly with the decision makers who are committed to responding quickly and knowledgably from day one of your relationship.

Fidelity Bank offers mid-to-large scale financing to franchisees throughout New England and New York State. The lender provides network financing for new stores, store acquisitions, expansions, remodels and related real estate. Fidelity Bank tends to work with franchise owners or owner networks with at least four or five shops. Its minimum transaction amount is $500,000 and the maximum is $10 million. The bank is a “relationship lender,” meaning its aim is to finance the relationship and be the primary lender for an operation, not just to fund a single transaction. Fidelity Bank can fit the bill no matter the size of the network, serving all of the needs of a network with a handful of stores or helping franchise owners with more than 100 stores to diversify their banking relationships.

While Fidelity Bank just initiated its Dunkin’ Donuts Commercial Lending Program six months ago, President and Chief Lending Officer John Merrill and Senior Business Banking Officer Sally Buffum each have more than 10 years experience providing financing to Dunkin’ franchise owners.

“We may be small, but we’re experienced. We understand the capital needs of a growing or existing network of Dunkin’ Donuts stores, but also recognize that each network is different and we’re nimble in our customization of services for individual franchise owners,” said Merrill. “We’re putting a lot of effort into growing our lending program, and we’ve had a number of early successes.”

Through Fidelity Bank’s LifeDesign approach, your relationship would typically begin with a conversation with one of the bank’s commercial lending Relationship Managers to discuss what you’re trying to accomplish and what your capital needs are. Your Relationship Manager would require financial statements and other documentation to fully grasp how your needs and goals fit into your overall business plan. When it comes to the application and decision-making process, everything is tailored to the transaction type and complexity as well as the franchisee’s needs. Fidelity Bank would ask for a project timetable upfront and design a plan to meet that timetable. This would be part of the complete financial package and transaction outline ultimately provided by the lender. Throughout the process, your Relationship Manager is there to walk you and your associates (e.g., your accountant) through the steps and/or to answer any questions.

To find out more, visit www.fidelitybankonline.com or contact Sally Buffum at 508-762-3604 or sbuffum@fidelitybankonline.com.

Direct Capital Franchise Group

Headquartered in Portsmouth, New Hampshire, Direct Capital is a national direct lender that has worked with Dunkin’ Donuts and Baskin-Robbins franchise owners for more than a decade. In fact, the lender has a team of Franchise Finance Managers specifically trained to work with the Dunkin’ Donuts community. Offering small-to-mid scale financing for new store development, equipment and technology replacement and upgrades, remodels, store acquisitions and even relocations; Direct Capital’s typical minimum transaction amount is $2,500 and the maximum is $1 million.

In addition to traditional finance structures, working capital loans are available. Direct Capital has a brand new program exclusively for Dunkin’ Donuts and Baskin-Robbins franchise owners: All are automatically pre-approved for $25,000 of working capital financing per location and may be eligible for higher amounts. These short-term, unsecured loans can be used to boost liquidity and cover general business expenses such as inventory, labor, advertising and taxes.

Express underwriting and approval services streamline financing for Dunkin’ Donuts clients. A one-page application is all that is required for loans under $100,000, and approvals and documentation are processed the day of the application. For larger loans, the process is initiated with that same application, but additional financial review is required. Once financials are received, Direct Capital typically makes decisions within two business days on remodels, new stores, acquisitions and relocations in two business days. What’s more, the lender’s ClickFund™ electronic documentation system allows you to review and sign financial documents through a secure website, significantly reducing the turn-around time of “hard copy” processing. For multi-unit franchise owners, Direct Capital designed a Master Finance Agreement to simplify applications for subsequent financing with the completion of a one-page addendum to simplify the process of securing additional funds over time. Direct Capital also can consolidate all of your invoicing and offers flexible payment options (deferred and seasonal).

“We have grown so comfortable with the Brand and are so confident in the ability of franchise owners to perform that, even in a generally tight lending climate, we’ve had a wider credit window for franchisees in the Dunkin’ system,” said Robyn Gault, Vice President of Strategic Accounts. “In 2012, we are looking to expand our programs and allocate even more funding to the Dunkin’ Donuts community because it has been so successful.”

For more information check out http://franchise.lendedge.com or contact Robyn Gault at 603-433-9476 or rgault@directcapital.com.

GE Capital, Franchise Finance

GE Capital, Franchise Finance (GE Capital) has more than 30 years experience serving mid-market owner/operators with multiple stores in the restaurant and hospitality industries. In January of 2010, GE Capital reorganized to a regional model and put a major focus on Dunkin’ Donuts becoming a core brand. While headquartered in Scottsdale, Arizona, GE Capital is dedicated to lending to franchisees across the country with originations teams embedded in the East, Central and West regions.

“We have the expertise in the restaurant space to understand key issues for franchise owners, and our regional focuses give us a better grasp of each client’s local marketplace,” said Brian Frank, Managing Director, East Region. “And because GE has the knowledge and expertise in a variety of industries, we not only provide the capital but also the insight on topics such as market competition, energy costs, local and global economies, health care and government. Our experts can tap into these and other areas to help a franchise owner grow their business.”

GE Capital stands true to its tagline, “We’re not just bankers. We’re builders.” The lender is committed to helping you do more than maintain your business; it aims to facilitate your growth vision. GE Capital offers term loans, refinancing, real estate mortgages, sales leaseback, acquisition financing and development lines for new stores and remodels. It predominantly does financing across the board for an entire business, working with seasoned owner/operators with at least three to five years experience and six to 10 stores. Decisions are made on a case-by-case basis, however, so the lender is always open to speaking with franchisees who might not fit this exact profile.

GE Capital has more than 300 employees nationwide who are solely dedicated to the restaurant finance business, so it can truly provide a national perspective. The lender also has a Brand Manager, Christine Keating, who works with Dunkin’ Brands directly to ensure GE Capital understands all of the brand’s issues and expectations, and to forge a triangle partnership since it works best when the franchisee, franchisor and lender are all working together to grow the business.

While GE Capital clearly has expansive operations, it remains committed to serving each franchise owner client as an individual. You typically begin by talking with an account executive in your region to establish the groundwork. The regional account executive gathers basic information about your business such as history and performance, scope of anticipated projects, overall business plan, financial history and documentation. The account executive then brings in an underwriter and closer to form a “Deal Team” specifically dedicated to you. This team subsequently walks you through the transactions step-by-step.

Learn more at www.gefranchisefinance.com or contact Ab Igram at     203-229-1885 or ab.igram@ge.com.

Joyal Capital Management

For 25 years, Joyal Capital Management, LLC (JCM) and its affiliates have provided financial services to Dunkin’ Donuts franchisees. This longstanding association began with estate, business and financial planning and evolved into lending-related services. Today, JCM offers exclusive financing arrangements to Dunkin’ Donuts franchisees along with outstanding personalized service, including a dedicated team that handles transactions in a 100% turnkey process requiring minimal franchisee involvement.

Based in Plymouth, Massachusetts, JCM primarily serves franchise owners on the East Coast, supplying traditional franchise financing for new store development, acquisitions, expansions, remodels, refinancing, and so on. What makes JCM unique, however, are the funding and debt structuring services available only to Dunkin’ Donuts clients. If you need immediate access to capital, JCM can help. The firm has very substantial secured funds set aside to provide the capital now and subsequently structure that debt, meaning you can get the money you need today, literally.

JCM also offers exceptional debt restructuring. When you have loans with more than one bank, often the banks and loan covenants make it impossible to access additional capital. In this situation, JCM will work with you to restructure your loans, getting rid of the other banks and terming out your existing debt in ways that meet your ongoing cash flow needs.

“We are proud to offer services to our Dunkin’ Donuts clients that go ‘above and beyond.’ It’s our mission to be there as a resource they can rely on to help grow their business,” said JCM Chairman and CEO Gary Joyal. “We currently serve the full spectrum—from franchisees who own just one shop to the largest franchisee in the system—and we believe in developing long-term relationships, not transactional-based relationships.”

In fact, JCM stood by its Dunkin’ Donuts clients through a serious crisis. In 2007, while managing the Dunkin’ Donuts Lending Program created by Sovereign Bank in the early 1990s, JCM began getting panicked calls from franchisees: Sovereign was calling in loans that were technically in default solely due to not meeting growth criteria stipulated in the loan agreements. Gary Joyal immediately contacted Northern Bank & Trust Company (a small, privately owned community bank) to explore solutions. Joyal wanted: simple loan approval, no financial covenants and no overly burdensome cross-collateralization provisions—a key component that would allow larger franchisee networks to grow and prosper. Northern Bank President and CEO James Mawn agreed and further said the only criteria would be that franchisees make their monthly payments. In addition, Mawn would meet clients face-to-face and share his home phone number for use in case of an emergency. JCM established a partnership with Northern Bank in 2008 and began transferring business from Sovereign. The program has been extremely successful and, whenever a franchisee has faced an urgent problem, Mawn has come through with a resolution.

To find out more, see www.jcmfranchise.com or contact Manager of Client Services Kathy Rebello at 508-747-2237 or krebello@joycapmgt.com.

DTT Screen Shot

DTT Surveillance, a DDIFO Sponsor  and a provider of surveillance technology, managed services and loss prevention solutions for the restaurant industry, added more than 1,300 subscribers in the McDonald’s restaurant chain in 2011.

Rick Crady, McDonald’s owner/operator, said the DTT SmartAudit system unveiled fraudulent activity at the register when it was first installed.

“The amount of money we saved easily paid for our system and quickly convinced us to install DTT at all our stores. We soon caught theft at other stores and found that employees had stolen quite a large sum of money – much more than enough to pay for the systems,” Crady said.

DTT, which was founded in 1999, has installed more than 27,000 systems at various restaurants.

“Our long term partnership with the McDonald’s enterprise reinforces DTT’s marketplace value for hospitality locations. By focusing on those critical inspection areas for restaurant operations, we answer vital questions related to who, how, when and what occurs on a daily basis with video validation,” added Thomas Moran, EVP, DTT.

Headquartered in Los Angeles, DTT also provides Digital Video Surveillance solutions to brands such as Subway, Dairy Queen, Burger King, D unkin’ Brands, Taco Bell, KFC, Auntie Anne’s, Potbelly Sandwich Works and Pinkberry.

QSR Web

“I always knew today would be special, but I never dreamed it would be this grand,” said Octavio.

In a tent outside the shop, servers in retro uniforms offered free donuts, peppermint mocha lattes and cheddar bacon flatbread sandwiches to guests. The re-opening ceremony kicked off with a performance by marching bands from two local high schools. Emcees, from popular Boston radio station WROR, welcomed the crowd and introduced the first speaker John Costello, Dunkin’ Brands Chief Global Marketing and Innovation Officer.

Costello congratulated the Carvalho brothers and spoke of the location and brand’s rich heritage and bright future. “Franchisees like Victor and Octavio are our secret weapon. They are the ones who build a bond with Dunkin’ guests and with the community,” he said. “Today captures the best of the old and the new. We couldn’t be more proud of what this store represents.”

Quincy Mayor Tom Koch, State Senator John Keenan and Representative Tackey Chan followed Costello, expressing their congratulations and sincere appreciation for all the Carvalho brothers do to support the community. Each also shared his thoughts on the history and outlook of Dunkin’ Donuts in Quincy. “It seems to me the future is yesterday and it starts right here,” said Chan.

The final speaker, Victor Carvalho, received a rousing ovation as he took the podium. Victor spoke of his family’s involvement with the franchise, which began when his and Octavio’s father, Jose, took over the Southern Artery shop in 1979 from Hy Schwarz, brother-in-law of Dunkin’ Donuts Founder Bill Rosenberg.

“Octavio and I grew to understand what our family had—the history of the brand and this location. We take great pride in being able to say we own and work in the first Dunkin’ Donuts,” he said. “I can’t say enough about our team and our guests. Our guests are unique because they have an emotional connection with Dunkin’ Donuts. It’s a brand they love and want to come back to every day.”

At the close of his remarks, Victor invited his brother to join him to present a $5,000 check to Kathy Quigley and Claire Brennan of the Germantown Neighborhood Center (GNC), one of the local charities the brothers support. Since 1982, the GNC has provided critical services to youth and families in the Germantown community of Quincy.

At the close of the ceremony, guests gathered for the re-dedication of a plaque commemorating the location as the site of the original Dunkin’ Donuts and proceeded to tour the remodeled shop.

Franchise Owners Victor & Octavio Carvalo Beeming with Pride

At ages 12 and 14 respectively, Victor and Octavio began working at the store on day one of their father’s ownership. “We fell in love with it immediately,” Victor said. The brothers officially took over the franchise when their father retired in 1994. Now, Victor’s 20-year-old son works at the store while also attending Salve Regina University.

When the shop came up for its 10-year remodel, the brothers approached Dunkin’ Brands with the idea of doing something special to commemorate the historical nature of the location. Together they planned this one-of-a-kind retro remodel. To achieve the makeover, the store closed for 11 days before unveiling its new look last month.

“We’ve always been proud of this shop, but today surpassed our expectations,” said Victor. “We couldn’t be more proud to have the support of the community, our fellow franchisees and Dunkin’ corporate. We’ve all been on the same page working towards the same goal, and it all came together today in a big way. It’s such a great feeling.”

This issue was published in September 2011.

We are able to bring this to you via the web in a format that closely resembles the look and feel of a magazine.

Read the magazine online, just start flipping the pages…..

“United Capital is committed to working closely with Dunkin’ Donuts^® franchisees to provide financing for new store development, acquisitions, remodels and debt refinancing,” saysTrey Grimm, vice president and business development officer for United Capital. “We’re proud to play a part in the growth of the Dunkin’ brand.”

United Capital Business Lending, which in late 2010 acquired the small business lending operations of Butler Capital, is a subsidiary of BankUnited (NYSE: BKU), the largest bank in Florida with over $12 billion in assets. United Capital Business Lending now brings the experience of Butler Capital together with the financial strength of BankUnited.

In addition to Dunkin’ Donuts^®, the United Capital team has financed franchisees for Subway^®, Burger King^®, Wendy’s^®, Denny’s^®, Jiffy Lube^® , Five Guys^® Burgers and Fries and Jimmy John’s^® Gourmet Sandwiches among others.

For information about financing for franchise acquisition, new unit development, remodeling or refinancing, call United Capital at 866-218-4793 or visit the company’s website at www.unitedcapitalbusinesslending.com.

###

On July 1, 2011, Delphi Display Systems acquired the assets of Phase Research, including the Fast Track drive-thru timing systems. One of Delphi’s top priorities following this acquisition was to re-establish its relationship with Dunkin’ Brands and ensure delivery of the highest quality products and service. 

“Fast Track products were introduced at Dunkin’ Donuts stores when the drive-thru first became a key strategic initiative for the brand. As a pioneer in drive-thru timer technology, we helped Dunkin’ Donuts develop speed-of-service and drive-thru timer configuration standards and measure actual performance using Fast Track Timers,” said David Skinner, Vice President of Sales. “We are very pleased to have and continue our relationships with all Dunkin’ customers.”

Delphi provides turnkey site preparation and installation services throughout the US and serves major brands in 47 countries worldwide. With well over 20,000 timer systems installed in QSRs globally, Delphi is very proud that more than 2,300 of those are in Dunkin’ Donuts stores. Delphi continues to support all existing Fast Track timer systems. The company offers free video and webinar training as well as a toll-free customer service number manned by live technical support staff. When utilizing Delphi’s support staff, a striking majority of system problems—about 95 percent—are repairable by phone.

According to Delphi, its new Fast Track 3000 Series Drive-Thru Timer is the industry’s most accurate and reliable system. It is sleek and compact in design and network-ready for high-speed remote access. The system provides real-time speed-of-service data on LCD screens that are easy to read and easily customizable. Multi-colored graphs and other visual indicators allow you, your managers and crew to instantaneously see critical and detailed vehicle timing information as well as how your store is performing against benchmarks.

The Fast Track 3000 Series Drive-Thru Timer continually measures and logs service times and, with Fast Track PC software, makes generating corporate-required reports a snap. You can quickly download timer data; generate reports locally or remotely by daypart, shift, day or hour as well as month-to-month comparisons and weekly or quarterly reports; and automatically email reports. If you own multiple stores, an Enterprise edition enables you to download data from all locations into a single file to create customized reports and execute detailed performance analysis across all of your shops. Cost-effective upgrade packages and trade-in programs are available for Dunkin’ Donuts stores that already have a Fast Track timer but are looking to increase its functionality. 

 Delphi is looking forward to an order confirmation trial with Dunkin’ Brands and hopes to be able to offer its Order Confirmation Systems (OCS) to Dunkin’ Donuts franchise owners in the future. Delphi says its OCS displays have the longest product life, highest reliability and lowest total cost of ownership, and they are field repairable. Delphi displays are also readable in direct sunlight, operate reliably in harsh weather and are energy efficient. 

“We remain committed to improving our customer service and doing a great job for Dunkin’ Donuts,” said Skinner. “We continue to evolve Fast Track products to help franchise owners increase their operational efficiency and profits.”

For more information, call Delphi Display Systems at 1-800-456-0060 or send an email to sales@delphidisplay.com. You can also learn more at www.delphidisplay.com.

The Globe’s research partner, WorkplaceDynamics, received 73,813 completed surveys from employers across Massachusetts. Each was asked to grade their organization’s performance according to 24 statements, ranging from “New ideas are encouraged at this company” to “It’s easy to tell my boss the truth.” To compile the ranking, each employer was measured according to six factors: direction from leadership; execution by senior managers; responsiveness of managers to employee concerns and needs; formal training and other opportunities to learn and grow; work.

Fidelity Bank believes in helping our clients and employees get where they want to be – it’s our LifeDesign difference and it is why we are so honored that our employees voted us one of Boston Globe’s Top places to Work.

Congratulations Fidelity Bank!

Download list of top 40 employers in Massachusetts

Allen Cicchitelli joins the DDIFO Board of Directors.

The DD Independent Franchise Owners Group (DDIFO), which represents the largest association of Dunkin’ Donuts franchise owners in the US, is pleased to announce the addition of Rhode Island businessman Allen Cicchitelli to the DDIFO Board of Directors.

In 1976, Cicchitelli took over Nature’s Best Dairy in Cranston, RI and began selling milk, cream and other products to more than 150 Dunkin’ Donuts franchise owners in the Northeast. Over the course of 24 years, Cicchitelli grew the business by 100 times, opened Dairy World–a well-known Rhode Island attraction–and forged numerous relationships with business leaders, politicians and civic associations. He sold the business in 2000 and now operates Northeast Ventures, a real estate management and holding company.

“For most of my career I have know and done business with many Dunkin’ Donuts franchise owners. I have always looked at the Dunkin’ Donuts business from the franchisee perspective and believe they are the wheel that turns the business,” said Cicchitelli. “I am excited about working with DDIFO to help protect their interests.”

DDIFO’s Board of Directors is comprised of seven professionals who are not franchise owners. Aside from Cicchitelli they include: Tom Colitsas, Mark Dubinsky, Pat Kaufmann, Joseph Kimball, Asheesh Seth and Chairman Dan Connelly.

“I believe Allen will add a strong voice to our board,” said Connelly. “His experience doing business with Dunkin’ Donuts franchisees will provide a new perspective to our ongoing discussions about how to protect franchisee equity.”

About DDIFO

Created in 1989, DDIFO is the largest, independent organization of Dunkin’ Donuts franchise owners. DDIFO’s mission is to protect, enhance and defend the business interests of its member Dunkin’ Donuts franchisees. Learn more at www.ddifo.org

SOURCE: DD Independent Franchise Owners Group

• In 2010, Quiznos sandwich chain in Denver agreed to pay current and former franchisees a total of $206 million to settle lawsuits
• In February, a Delaware court ruled in favor of the Association of Kentucky Fried Chicken Franchisees, in a dispute with KFC over advertising funds
• And this July, a U.S. District Court in Connecticut ruled 170-member Edible Arrangements Independent Franchisee Association had the “legal standing” to sue its franchisor.

Attorney Justin Klein (justin@marksklein.com) who represents the Edible Arrangements franchisees, said the ruling is a significant victory for franchisee associations all over the country, because it gives associations the power to litigate claims on behalf of their members.

By banding together, franchisees are able to hire high-caliber attorneys and advisors – just like their franchisors, said Eric Karp, an attorney with Witmer, Karp, Warner & Ryan, which represents 12 national franchisee associations.  The new Federal Trade Commission’s Franchise Rule also gives a boost to IndFAs, Karp said, because it requires franchisors with franchisee associations to include information about them in their Franchise Disclosure Documents.

Representatives of independent associations also helped push a Fair Franchising bill through the Rhode Island legislature three years ago and this June, Jim Coen, president of the 2,500 member Dunkin’ Donuts Independent Franchisee Organization, testified for a similar bill now under consideration by lawmakers in Massachusetts.  “If you represent a significant organization with significant resources, elected officials will listen to you,” Coen said.

Read more at: BlueMauMau