Recent Developments that May Affect your Tax Situation

From time to time DDIFO is pleased to present Guest Commentary from valued contributors. Guest commentaries feature the views and opinions of the contributor and are not necessarily the opinions of DDIFO and it’s Board of Directors. The following is an article written and submitted by Jim Ventriglia, CPA 145 Phenix Avenue 2nd Floor, Cranston, RI 02920, 401.942.000860.

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Dunkin’ Turns to Everyday Joes

DC Dennison writes in The Boston Globe about Dunkin’ Donuts New Marketing Campaign and he mentions DDIFO’s efforts to amend the law regarding “tip pooling”.

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Dunkin’ Brands Announces Proposed Financing

Dunkin’ Brands, the parent company of two of the world’s most recognized brands, Dunkin’ Donuts and Baskin-Robbins, today announced that Dunkin’ Finance Corp., a corporate finance entity, proposes to raise approximately $625 million through an offering of senior notes. The proceeds from the notes offering would be used, together with borrowings under a new approximately $1.35 billion senior credit facility and available cash, to repay in full the outstanding securitization debt of Dunkin’ Brands’ securitization subsidiaries and to pay a cash dividend to Dunkin’ Brands’ stockholders. Following repayment of the securitization debt, the notes would be assumed by Dunkin’ Brands.

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Support the Arbitration Fairness Act

Binding arbitration clauses are increasingly being inserted by businesses when entering into contacts with other parties. These clauses, which often provide businesses with an advantage and go unnoticed by the signer, drastically limit the legal options available to the signing party. The Arbitration Fairness Act bans mandatory binding arbitration clauses in consumer and employment contracts, including franchise agreements. Specifically acknowledging the disparate economic power between the parties, the bill invalidates the enforceability of pre-dispute arbitration agreements in franchise disputes

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Political Action Committee Benefits Dunkin’ Donuts Franchise Owners

In 2010, Dunkin’ Donuts franchise owners will have the opportunity to get more involved in government relations beginning with the creation of the Dunkin’ Donuts Franchise Owners Massachusetts Political Action Committee (DDFO MassPAC). Created as an independent entity, DDFO MassPAC is completely separate from the DDIFO, but exists to leverage the combined resources of Dunkin’ Donuts franchise owners to promote and protect the business interests of that group.

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Aught Naught: The “Worst” Decade

The first 10 years of the new millennium are done, and looking back we can dub it the “Decade of the Worst.”
Gary Weiss publishesat Portfolio.com his top ten worst list of the decade:

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Congress Boosts SBA Loans

Portfolio.com reports that after weeks of talk about the credit crunch facing small businesses, Washington finally is doing something about it.

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Bain Gets Poor Moody’s Review

Jerry Kronenberg writes in the Boston Herald that former U.S. Senate hopeful Steve Pagliuca is touting one-time rival Martha Coakley’s job-creation credentials, but a new study questions his own firm’s ability to turn companies around. Moody’s recently ranked Boston-based Bain Capital – where Pagliuca serves as a managing director – the fifth-worst major private-equity firm in terms of buying businesses and saddling them with risky debts.

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DDIFO Releases AAFD Grading Report to Members and Takes the Clock Down

Over a year ago DDIFO commissioned the American Association of Franchisees and Dealers (AAFD) to review and grade the Dunkin Brands franchise agreement. The AAFD thru a group of executives, entrepreneurs and attorneys have worked for over 15 years to set standards for franchise agreements to make them more fair and equitable. The ultimate goal was to make franchising work better for everyone, believing that a spirit of communication and mediation led to better relations and business results. The AAFD set of standards are referred to as the “Fair Franchising Standards”, In the fall of 2008 DDIFO felt that the existing franchise agreement was causing excess friction and litigation between Dunkin Brands and the franchisees. DDIIFO felt this situation was caused in part by an inequitable franchise agreement, and that the litigation had not been good for the Dunkin’ Donuts franchisee community.

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