I’m a cop. If you don’t want to get hurt, don’t challenge me.

I think we can all agree that Dunkin Donuts creamer being sold in grocery stores these days abso-fuckin-lutely sucks.

 

I think we can agree that coffee with cream and sugar sucks.

 

The story says he is insured, but how? As a regular personal vehicle,or as a glorified taxi service? What would happen if there was a fatal crash with one of those vans? Would there be enough insurance? Story doesn't say.

 

Not to mention unhealthy.

A flaw of DD coffee is that it does not hold up served black.

 

Let's work off of the basic premise that Dunkin' Donuts franchises make money -- because they do.

Now, if you had worked at a Dunkin' for several years, including the last two as a manager at a successful store, and you had the opportunity to purchase your own franchise, don't you think you would be able to raise capital?

Wouldn't you invest in this guy if you could?

If you're Amrit Patel, wouldn't you invest?

No one is going to invest a couple of hundred grand in Jay Farrar to open a doughnut shop, because he doesn't have experience running a doughnut shop, and would likely lose his investors money. But, and experienced manager, would likely make money for his investors.

 

Depends on how successful the store was before the manager got there. Did he increase profits exponentially? Was he taking over an existing store that had been around for decades and had been well established by the people who came before him? Where is the location of the new store?

He only has two years of managerial experience. Unless there was something that showed that he was the greatest Dunkin' Donuts manager alive, there would be considerable reasons to give me pause in investing in a store just because a guy had a couple of years experience managing a store that was already successful.

 

You'd probably be a really antsy investor Baron.

We'll look for funding elsewhere.

 

Hey, if you want to throw your money down the drain on an unknown quantity, be my guest.

 

LOL.

Did you read the strong towns article? Do you believe that your personal anecdotes are superior to data? Do you believe that one persons experience in Chicago with a dunkin donuts identical to the experience a person might have in California or Tennessee?

Or are you simply talking out of your ass?

If you had read the article you would have seen that dunkin donuts requires franchisees to have a net worth of $500,000 with liquid assets of $250,000 that's in addition to whatever the fees are to buy a franchise.

While it isn't clear for dd but true for others is that you need recommendations from other franchisees to buy in.

And, just for the record, my family owned a small business but it wasn't a one man coffee pot repair shop so maybe it doesn't meet your lofty standards.

 

OK. Let's try this again.

For many of these franchisees, they are a minority partner in their first deal. Someone like Amrit Patel, or some other current franchisee backs them.

By the time they do their second or third deal, they have the money to be the majority investor, and they bring in others as minority investors.

There are over 400 Dunkin' Donuts locations in Chicagoland. The article I linked to is from 2003, but I would guess that 90% of them are still owned by Gujaratis and Pakistanis, and almost all of them can be traced to Mr. Patel's original franchise.

He brought in other owners, who brought in other owners, and so on.

 

http://www.businessinsider.com/is-dunkin-the-right-investment-2011-7

 

Seriously Baron, no one wants your investment. You're a downer.