Ex-franchisee sues Dunkin', claims anti-immigrant bias

Nation's Restaurant News,  Oct 29, 2007  

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WHITE PLAINS, N.Y. -- An immigrant couple whose four-unit Dunkin' Donuts franchise was terminated by legal means has sued the Dunkin' Brands Inc.-owned franchisor in federal court here for allegedly discriminating against minority franchisees, according to an attorney identified as their legal counsel.

Also named as a defendant was Dunkin's sister brand, Baskin-Robbins, according to a statement issued on behalf of Mahendra and Nita Patel. Their lawsuit alleges that the defendants invent reasons to wrest restaurants away from newly immigrated entrepreneurs, resulting in the termination of franchises or the forced sale of stores to Dunkin' Brands or "more sophisticated Caucasian operators," according to the statement from attorney Gerald A. Marks of Marks & Klein LLP of Red Bank, N.J.

Margie Myers, senior vice president of communications, for Canton, Mass.-based Dunkin' Brands, said the franchisor "only pursues legal action with respect to franchisees who do not adhere to federal and state laws or fail to meet the obligations as required by their franchise contract."

Myers said Dunkin' Brands regards the action it took to terminate the Patels' franchise as "appropriate, and we are confident the court will find in favor of Dunkin' Donuts."

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