Rich Smith
10/6/11
Business & Society
Homework #4
Owning A Dunkin Donuts
Owning a Dunkin Franchise isn’t like starting up your own business there are many qualifications you must posse in order to buy in the franchise. When buying into the Dunkin Donuts franchise or a franchise in general a prominent business man and successful entrepreneur should always ask if your territory will be exclusive for the length of the franchise. When buying into the Dunkin’s franchise you are guaranteed and exclusive territory too. “However, franchising has grown so rapidly that many weak franchises have entered the field, so you need to be careful and invest wisely”. (Pg. 133)
Dunkin Donuts has been a successful and steadily growing business since it was first founded in 1950 in Quincy, Mass. Therefore it has been around for over 60 years, knowing that information I would come to a conclusion it is a smart business decision to open a Dunkin’s. Like any prominent business there always are legal battles, Dunkin Donuts has had its fair share or legal cases including two of them being with McDonald’s and Subway. But this hasn’t affected or altered any of the franchises business preventing them from growing. With that note being said I would say Dunkin’s has an honest and fair dealing reputation with local firms holding its franchise. There have been over 150 times since 2006 that Dunkin Donuts has sued franchise owners, but that is between the corporate sector and the owners.
Going into the Dunkin’s franchise is quite expensive at first but the benefits from a successful store inevitable. The capital required at first to invest in the franchise is $250,000, but the total investment after it’s all said and done could run you up to $500,000. This industry as a child stinks, because what kid wants to stand up all day making coffee and serving food at minimum wage; “I can say that I have worked at many fast food services, and I have found one yet to keep me from leaving”. But don’t get me wrong this business are very successful and are great to buy into if you have the business background and ability to show for the start-up costs.
Dunkin Donuts is a northeast breed company; there are thousands of them just in the northeast itself. Therefore if I was to open a Dunkin’s in the northeast which I would I should have no reason to not have a target market. Like there slogan “America Runs On Dunkin’s”.
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