By James Dowd, The Commercial Appeal
To re-brand the adage, every economic storm cloud has a silver lining.
And with a lot of hard work and dedication, all that silver could be spun into gold.
Keynote speaker Reggie Wright, franchising director for Dunkin’ Donuts, offered encouraging words to about two dozen business professionals and stressed that despite the dismal economy, some almost-recession-proof opportunities still exist.
“In this economy, there’s more interest in franchises and it can be an excellent way to pursue a career dream and make a good living,” Wright said. “Franchising spans more than 100 different industries, but franchising is not itself an industry. It’s a business model and for the right person; it’s the path to a successful career.”
That’s a lesson the company, founded in 1950, learned the hard way.
From 1971 to 1995 Dunkin’ Donuts had nearly 30 locations in the Memphis market, but all the stores eventually closed. Today, there are about 20 of the franchises in Tennessee.
Faced with a branding dilemma, the chain’s leaders closed underperforming stores, revamped policies and restructured the organization.
In addition, Dunkin’ Donuts broadened its menu to include specialty coffees and breakfast foods.
The company also made franchises more exclusive — and expensive. Franchise fees start at $40,000 and the company gets nearly 6 percent of gross weekly revenues. In return, the franchisees have access to corporate support, training and marketing assistance.
And that’s vital for anyone considering a franchise, said Wayne Anderton, the local representative of the Housewarmers chain.
“It costs a lot to get into a franchise, so you want to make sure that the people at the top know what they’re doing and will be there for you when you need it,” Anderton said. “Otherwise, you’re just throwing your money away.”
William Adler of The Entrepreneur’s Source agreed.
“Franchisees are dependent upon the corporate brand and the best ones are going to involve significant investments,” Adler said. “That’s understandable, though, because if the company falters, there goes your livelihood.”
These days, Dunkin’ Donuts is committing plenty of resources to attracting more franchisees in the Mid-South, Wright said. Some may be workers affected by corporate downsizing — those who want the stability of a solid company combined with the opportunity to be their own boss.
After re-entering the Memphis market in March — with a store at 1674 Whitten Road, the company is embarking on a more aggressive expansion in this area.
The strategy is part of a plan to have 15,000 stores open by 2020.
“It’s not without risk, but the economic climate makes franchising attractive and feasible for a growing number of business professionals,” Wright said. “We advise candidates to do their homework, make sure they really want this and then contact us. We’re ready to talk.”
For more details on the company, visit online at dunkindonuts.com or for more information on franchising, visit franchise.org
– James Dowd: 529-2737
Dunkin’ Donuts
Founded: 1950
Headquarters: Canton, Mass.
Locations: Nearly 6,900 worldwide, with heaviest concentration in Northeast, Florida and Chicago
2008 sales: $5.5 billion
Local flavor: One store at 1674 Whitten Road, opened March 11
Online: dunkindonuts.com
Copyright The Commercial Appeal, Memphis, TN. Used with permission.
