Dunkin' (Donuts) Cracking Down On Undocumented Workers?

According to a recent report from not-for-profit food industry news source The New Food Economy, Dunkin'""the coffee and donut-centric chain of restaurants that once went by the name Dunkin' Donuts""has been cracking down on restaurants within its system that have hired undocumented workers.

According to The New Food Economy's reporting, the brand has tried to close nearly 30 of its East Coast restaurants since September of last year, and in at least three instances, Dunkin' found franchisees' workers hadn't had their employment status verified. The brand then took the storeowners to court to terminate the franchise contract for the stores in question.

In response to the report, Dunkin' released the following statement: "Our franchise agreement requires franchisees to follow all laws, including those pertaining to the hiring of workers legally allowed to work in the United States. There have been isolated instances of non-compliance which have resulted in two cases being recently filed as well as the case that was filed over nine months ago."

Dunkin' has a history of strictly enforcing the rules laid out in its franchise agreements. Between January 1, 2006, and June 30, 2007, Dunkin' was the plaintiff in 101 federal lawsuits, mostly against franchisees, according to a report by Franchise Times. In that same period, the Times notes, Subway""the largest franchise on the planet in terms of location count""brought suits against only five of its franchisees.

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Karsten Strauss
Forbes Staff

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