An Analysis of Recent Franchise Non-Compete Decisions

From time time DDIFO is pleased to present Guest Commentary from valued contributors. The following is an Analysis of Recent Franchise Non-Compete Decisions written and submitted by Eric Karp and David J. Meretta of Witmer, Karp, Warner & Ryan LLP 22 Batterymarch Street, Boston, MA 02109 Tel: 617-423-7250

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Overseas Investors Brew Growth at Ann Arbor-based Bearclaw

Jaclyn Trop reports in the The Detroit News that when Debi Scroggins needed investors to grow her Bearclaw Coffee Co. franchise, she looked to the Middle East. The founder of the Ann Arbor-based coffee company has recruited nearly a dozen Iranians — with more to follow — to open mobile coffee carts in the United States at $180,000 a pop.

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Starbucks Outlines Strategy for Accelerating Profitable Global Growth

At its 19th annual meeting of shareholders, Starbucks Corporation (NASDAQ:SBUX) credited the success of its transformation agenda and the hard work of its partners (employees) for delivering strong financial results and positioning the company for long-term, profitable growth. Watch the video of Howard Schultz from CNN Money.

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URGE YOUR SENATORS TO OPPOSE THE HEALTH CARE RECONCILIATION PACKAGE!

The Reconciliation Act of 2010 contains increased penalties for non-compliance and requires employers to include part-time workers when determining whether their company qualifies as a small business. The Senate is currently debating the bill and will begin considering amendments shortly before voting on the bill. As you may recall, the bill only needs 50 votes (with Vice-President Biden as the tie-breaker) for passage. Take Action Now!

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McDonald’s Bets Pricing Sodas At $1 Will Heat Up Summer Sales

Paul Ziobro writes in the Wall Street Journal that McDonald’s Corp.’s summer sales may get extra juice with a push to sell all soft drinks, no matter the size, for $1.

McDonald’s executives have been trying to sell franchisees on the offer in recent weeks at regional meetings. McDonald’s has been asking franchisees to increase $1 drink offers this summer.

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Battling Barre Vermont’s Drug Problem

WCAX.com reports that Senator Patrick Leahy took Washington D.C. on a road trip Monday to Barre to hear about a growing problem drug related crimes in rural communities. The goal, find out what’s working and get more funding for it. Damartin Quadros has owned this Dunkin Donuts in the heart of Barre for 14 years. Open 24 hours a day, he says this area was not always safe.

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South Asians pave way for Freshii expansion plans

Martin Desmarais reports at IndUS Business Journal that new franchise chain Freshii is in the middle of an aggressive expansion campaign and the brand is counting on a number of South Asian franchisees to lead the way including a pair of Dunkin’ Donuts franchise owners.

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Exclusive R&I Research: What Diners Want at Breakfast

Allison Perlik reports at Restaurants & Institutions that the New American Diner Study offers operators a peek into what consumers look for at their morning meals. Breakfast sales at restaurants declined 3.4% from 2007 to 2009, reports Chicago-based market-research company Mintel, but the daypart still is expected to post 13% growth from 2009 to 2014. As competition heats up for diners’ morning-meal dollars, data from R&I’s 2010 New American Diner Study offers valuable insights into customers’ habits and what they want from restaurants at breakfast.

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