Thousands of Dunkin’ Donuts franchises are expected to undergo remodels in the next three years. Many operators agreed to remodel stores as a condition of extending their term with Dunkin’ Brands but, in many cases, franchisees have been unable to find attractive lending terms that don’t diminish cash flow.

 Earlier this month, Joyal Capital Management (JCM) announced a Remodel Line of Credit program in conjunction with Northern Bank & Trust Company. The initiative, according to JCM Managing Partner Gary F. Joyal, was prompted by calls from their many Dunkin’ Donuts clients.

“It’s been a 911 call from the franchisees we represent,” said Joyal. “Franchisees were telling us that getting capital to fund these remodels was a top priority for them. It’s also been a hot topic at many of the recent advisory board meetings.”

The program allows for 30 days of interest-only financing after which franchisees can decide if they want the term of the note to extend for five, seven, 10 or 15 years. Joyal says Northern Bank & Trust will pre-approve remodel funds for qualified Dunkin’ Donuts franchisee owners based on the number of shops, their remodel schedule and estimated costs needed.

“Many banks that offer financing for remodels have terms and pre-payment penalties that are not franchisee friendly,” said Joyal. “What we’ve enjoyed about Northern Bank & Trust is that they were built on old school principles— treating customers the way you want to be treated.”

Before finalizing the program with Northern Bank & Trust, Joyal assembled a committee of Dunkin’ Donuts franchise owners to determine how it could best fit their needs. That committee was comprised of Dinart Serpa, Mark Cafua and Mitzi Lawlor.

“Having a financing partner that understands our needs and makes the process easy gives you one less thing to worry about when remodeling a store,” said Lawlor. “With this program, Northern Bank & Trust will wire the money directly into your account to make sure you have cash on hand to cover expenses without forcing you to deplete your cash reserves.”

Owners who need to borrow for multiple remodels will only have to fill out the paperwork once—with the assistance of JCM. After that, JCM will process each loan request with the bank so franchisees don’t have to take time away from their business to prepare documents.

Franchisees interested in learning more can contact Kathy Rebello, who heads the banking department at JCM: or 1-800-56-JOYAL.