| Last year, much was written in the papers | | | | could not legally do so without the approval of |
| regarding a Muslim manand an orthodox Jewish | | | | Dunkin' Donuts headquarters. So that any sale she |
| (Hasidic) woman going into business together in | | | | made without that approval ' as was the case |
| two Dunkin' Donuts franchises. Both are married | | | | here ' was and is null and void. Being reasonable |
| with four young children. | | | | people, you and I would say that, there being no |
| Essam "Sam" Habib and Hindy "Cindy" Gluck met | | | | injury here, "No harm, no foul." But Dunkin' Donuts |
| while she was a real estate broker showing him | | | | h.q. felt differently and sued to terminate Habib |
| store locations. They decided to pool their life | | | | and Gluck's franchise for violation of their |
| savings and, in 2005, opened a Dunkin' Donuts | | | | franchise agreement. Why would Dunkin' Donuts |
| franchise on Church Avenue at East 17th Street | | | | do this? |
| in Flatbush, Brooklyn. In 2006 they opened | | | | The owners allege, essentially, that Dunkin' is |
| another Dunkin' Donuts franchise, on Flatbush | | | | trying to rip them off. On March 23, 2008 the |
| Avenue and Sixth Avenue, in Brooklyn. | | | | New York Post reported that Dunkin' Donuts |
| Habib is the majority shareholder and Gluck owns | | | | offered Habib and Gluck "a munchkin-sized buyout |
| less than 50% of the business. He goes to his | | | | of $400,000 for the two stores they opened - |
| mosque to pray on Fridays and she takes off on | | | | stores they could resell for $700,000 or $800,000 |
| Saturdays to observe the Jewish Sabbath, leaving | | | | each. And when the partners solicited offers |
| him in charge. | | | | elsewhere, Dunkin' Donuts nixed the deals - even |
| The doughnuts are brought in from a kosher | | | | though the potential buyers came from a |
| bakery. On Jewish holidays, Ms. Gluck transfers | | | | corporate-approved list . . . ". |
| her share of the business to Mr. Habib, because | | | | Habib and Gluck memorialized their claim in their |
| she is not allowed to earn money on those holy | | | | legal response to Dunkin' Donuts' lawsuit against |
| days. | | | | them (called an Answer), a lawsuit started by |
| Neither Habib or Gluck take any money from the | | | | Dunkin' in Brooklyn Federal court, by alleging that: |
| profits made from selling pork products, such as | | | | (1) Dunkin' has a "scheme . . . to sell franchises to |
| bacon, sausage and ham. They give away the | | | | persons seeking to better themselves in the |
| sales proceeds from those items. | | | | business world"; |
| The New York Times noted last year that | | | | (2) Dunkin' Donuts' franchise agreement is |
| because of a contract dispute, Mr. Habib and Ms. | | | | "one-sided, unilateral and non-negotiable"; |
| Gluck were selling their stores back to Dunkin' | | | | (3) Dunkin' seeks "to find a technical violation of |
| Donuts. But the truth is nastier. A fight broke out | | | | the franchise agreement," which is one that "does |
| because Gluck tried to sell a small part of her | | | | not affect the operation of the franchise or the |
| portion of the business to two employees. | | | | integrity or honesty of the franchisee or the |
| Now, Dunkin' Donuts has an interest in controlling | | | | funds that [Dunkin gets]"; |
| who runs its franchised restaurants. Dunkin' | | | | (4) Dunkin' deliberately looks to create a default |
| makes certain that the owners and operators of | | | | of the franchise agreement to force franchisees |
| its restaurants are qualified to run a first-class | | | | to pay penalties or sell their stores, "all of which |
| operation, so that they will do nothing to tarnish | | | | enriches [Dunkin' Donuts'] bottom line"; |
| the Dunkin' Donuts name ' a very valuable name | | | | (5) Dunkin Donuts' conduct "is unconscionable" and |
| and trademark, indeed. Because of this almost | | | | violates the law and "constitutes a fraud." |
| every business franchise agreement in the world, | | | | What do you think, Dear Readers? |
| and certainly the Dunkin' Donuts franchise | | | | Commentary: You can't know the whole story |
| agreement, provides that Dunkin' Donuts | | | | just from newspaper accounts and reviewing |
| headquarters must approve any sale or transfer | | | | court papers, but in my opinion it seems that |
| of ownership interest. | | | | Dunkin' is (what we used to call as kids) |
| The point is this. While Gluck tried to sell part of | | | | "dirty-fighting. |
| her ownership interest to her employees, she | | | | |