Brewing Up Campaign Cash

Livia Gershon writes in the Worcester Business Journal that in 2004, the state passed a law that kept restaurant staff with managerial responsibilities from being part of any tip pool.

According to Jim Coen, president of Bellingham-based Dunkin’ Donuts Independent Franchise Owners Inc., it was a good idea, but the specific legal language has caused problems for his members. He said crew leaders at Dunkin’ stores have minimal managerial responsibilities, but the law still appears to keep them from sharing in tip jars. To avoid conflicts around the issue, Coen said, many franchise owners have eliminated tip jars altogether.

To help address political questions like the tip law, Dunkin’ franchise owners have formed the

Dunkin’ Donuts Franchise Owners Massachusetts Political Action Committee. DDIFO, which already uses a lobbyist on Beacon Hill, is legally a separate entity from the PAC, but Coen said it helped set the fund up and is encouraging its members to contribute.

For The Little Guy

Coen said one purpose of the PAC is simply to help elect politicians who support small businesses in general, but it will also look out for the specific interests of Dunkin’ franchise owners. He said the PAC could contribute to other PACs that work for small businesses or restaurant owners, or make direct contributions to politicians.

“Certainly there are times when our needs align with other organizations, but there are other times when our needs don’t align,” Coen said.

The new PAC isn’t the only one representing franchise owners. Coen said the most prominent franchisee PAC is the International Pizza Hut Franchise Holders Association PAC.

Regional Appeal

DDIFO represents the owners of more than 2,000 Dunkin’ shops both in Massachusetts and elsewhere, Coen said. He said most members are connected to a Dunkin’ distribution center in Bellingham that is cooperatively owned by franchisees, mainly in Massachusetts and upstate New York.

Coen said the new PAC is specifically focused on Massachusetts, but he’s already received inquiries from franchise owners in other states about the possibility of forming equivalent groups elsewhere.

Besides revisiting the tip pool issue, Coen said another issue for Dunkin’ franchises is the push for chain restaurants to post nutrition information.

He said the DDIFO sees the idea as inevitable on the national level but worries about the way it’s being implemented by individual cities and states.

Right now, he said, New York City and parts of upstate New York have their own posting rules, while Massachusetts and New Jersey are considering slightly different ones. That makes things more complicated, and more expensive, for franchisees who own stores in multiple locations.

Dunkin’ Donuts parent corporation is based in Canton and was founded in Quincy in 1950. Its first franchise was licensed in 1955.

There were 8,835 Dunkin’ Donuts stores worldwide at the end of 2008, according to the Dunkin’ Donuts web site.

Political Action Committee Benefits Dunkin’ Donuts Franchise Owners

In 2010, Dunkin’ Donuts franchise owners will have the opportunity to get more involved in government relations beginning with the creation of the Dunkin’ Donuts Franchise Owners Massachusetts Political Action Committee (DDFO MassPAC).

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.