Interview with Dunkin's Luther-- excerpt re franchisees:
The new owners could be especially helpful in China and other developing countries Dunkin' hasn't yet dipped into. Carlyle, for instance, has an Asia-Pacific real-estate team that could help find good storefront space. "They bring a dimensional perspective we don't have," says Luther.
Such connections aren't free. Dunkin' pays its owners an undisclosed "management fee," which Luther describes as "moderate," for their time, advice and overhead. The sudden change has also left some franchisees feeling shut out, with management raising the bar too high, too fast.
"They paid a premium price for the brands, and now management is under a lot of pressure to crank up performance," says Mark Dubinsky, president of DD Independent Franchise Owners, which represents about 200 owners with 1,500 stores.
One complaint: promotions on coffee and baked goods, which draw traffic to stores but cut into profit margins. Franchisees also tried to purchase a small equity stake in Dunkin' Brands and get a board seat during the sale last year -- and were rebuffed. Dunkin' says franchisees are adequately represented on an advisory council that will give input to the board twice a year, starting in 2007.Full article at:
http://articles.moneycentral.msn.com/Investing/Extra/ArtOfTheCEOTakeover.aspx
