August 27, 2007
Dunkin’ Says “Obey All Laws”
According to this article, Dunkin’ Brands Inc. has taken its contractual mandate that franchisees “obey all laws” a step further. After terminating numerous franchise agreements for, among other things, franchisees’ employment of illegal immigrants, Dunkin’ has now filed suit in U.S. District Court in Boston against a group of Dunkin’ franchisees in Western Massachusetts, “accusing them of using the identities of former employees to hide the extent of overtime work done by their current employees.” It is too early to tell if other franchisors will adopt Dunkin’s aggressive approach to enforcing the “obey all laws” clause in their franchise agreements, which are common in franchising.