Dunkin' Donuts Case Study
1. What does Tommy want?
Tommy was looking for a change, especially since he just finished putting his third and last child through school. Tommy also operated a food section that served breakfast items (other than doughnuts) and hamburgers, which he claimed generated half of the sales. He was interested in buying out the franchise from Dunkin' Donuts. He would take down the Dunkin' Donuts sign and continue to operate the shop under a new store name of his choice. He also planned to negotiate direct lease with the landlord instead of leasing the building and land from Dunkin' Donuts. However, he mentioned to Dunkin' Donuts that he was not interested in pursuing this option.
Tommy seemed to be interested in selling the business to Dunkin' Donuts for $80000 after several negotiations. He also looked at the options of selling the business to Royce, another franchise owner, but turned them down because the deal would have fetched him a lower selling price.
However, Tommy bought the store building and land from the current landlord and became its new landlord. He further doubled the price of selling the business to Dunkin' Donuts from $80000 to $160000. However, even after acquiring the business Dunkin' Donuts would have had to deal with Tommy as a landlord.
Bill had mentioned that Tommy told him that buying the property made good accounting sense but he was not sure whether Tommy wanted to get out of business. So, according to me Tommy wants Dunkin' Donuts to pay a heavy price and suffer for all the "so-called" atrocities which Dunkin' Donuts has done to him such as making DSM visit his store at midnight and conduct CSG, no communication for 3 years, misuse of advertising money and rebates for own benefit and not for the franchise owners. Tommy knows that despite maintaining poor standards for Dunkin' Donuts he is achieving a steady business and Dunkin' Donuts would not want to lose the opportunity of maintaining the Randolph store. So, he wants to make
Tommy was looking for a change, especially since he just finished putting his third and last child through school. Tommy also operated a food section that served breakfast items (other than doughnuts) and hamburgers, which he claimed generated half of the sales. He was interested in buying out the franchise from Dunkin' Donuts. He would take down the Dunkin' Donuts sign and continue to operate the shop under a new store name of his choice. He also planned to negotiate direct lease with the landlord instead of leasing the building and land from Dunkin' Donuts. However, he mentioned to Dunkin' Donuts that he was not interested in pursuing this option.
Tommy seemed to be interested in selling the business to Dunkin' Donuts for $80000 after several negotiations. He also looked at the options of selling the business to Royce, another franchise owner, but turned them down because the deal would have fetched him a lower selling price.
However, Tommy bought the store building and land from the current landlord and became its new landlord. He further doubled the price of selling the business to Dunkin' Donuts from $80000 to $160000. However, even after acquiring the business Dunkin' Donuts would have had to deal with Tommy as a landlord.
Bill had mentioned that Tommy told him that buying the property made good accounting sense but he was not sure whether Tommy wanted to get out of business. So, according to me Tommy wants Dunkin' Donuts to pay a heavy price and suffer for all the "so-called" atrocities which Dunkin' Donuts has done to him such as making DSM visit his store at midnight and conduct CSG, no communication for 3 years, misuse of advertising money and rebates for own benefit and not for the franchise owners. Tommy knows that despite maintaining poor standards for Dunkin' Donuts he is achieving a steady business and Dunkin' Donuts would not want to lose the opportunity of maintaining the Randolph store. So, he wants to make