DUNKIN’ DONUTS Accused of Franchise Discrimination Against African Americans

(UnhappyFranchisee.com)  DUNKIN’ DONUTS Accused of Franchise Discrimination Against African Americans

A lawsuit expected to be filed Monday, August 20, 2012 by Marks & Klein, LLP of Red Bank, NJ alleges that Dunkin’ Donuts engages in discriminatory franchise practices that deprive African-American and female Indian American franchisees the economically advantageous opportunities afforded to their non-African American franchisees.

In the Amended Complaint and Jury Demand titled Priti Shetty, Amy Pretto, and Reggie Pretto, Plaintiffs, vs. Dunkin Donuts Franchised Restaurants, LLC, a Delaware Limited Liability Company, Baskin-Robbins Franchised Shops, LLC, a Delaware Limited Liability Company and Wayne Miller, individually, Defendants to be filed in the Superior Court of New Jersey, Middlesex County, Marks & Klein contends that of the over 6,990 Dunkin/Baskin Robbins franchises, less than fifty (50) are owned by African Americans.

The lawsuit contends that the few African American multi-unit franchisees that do exist were overwhelmingly steered to economically disadvantaged minority areas, while Dunkin Donuts reserved the economically better areas for white franchisees.

African American franchisees Amy & Reggie Pretto went bankrupt due to Dunkin’ Deception, suit alleges.

The lawsuit alleges that Dunkin’ Donuts engaged in “a systematic course of discriminatory business practices and a scheme against Amy and Reggie Pretto because they are African Americans and Priti Shetty, because she is an Indian American female, in violation of 42 U.S.C. 1981.”

[Read more about the allegations regarding Indian American women here:  DUNKIN’ DONUTS Accused of Franchise Discrimination Against Indian American Women]

This excerpt gives an overview of the allegations regarding Dunkin’ Donuts franchise discrimination against African American couple Amy & Reggie Pretto:

Specifically, Dunkin racially “steers” African American franchisees away from higher socioeconomic and predominantly “white” areas, into lower socioeconomic primarily minority-populated areas.

Similarly, the Prettos were desirous of developing Dunkin locations in the Greater New York region.

The Prettos were falsely told that no SDAs were available in the New York/New Jersey region and instead were steered to minority areas outside New Jersey, New York, Connecticut and Rhode Island.

At first they were steered to a minority area of Philadelphia, Pennsylvania which they rejected.

Then the Prettos were steered by Dunkin to Washington, D.C., which they also rejected.

Dunkin then steered the Prettos to an economically disadvantaged minority area in Baltimore, Maryland which they rejected.

Finally, they were steered to Bowie, Maryland, also an African American minority area, which they accepted because of the innaccurate and false income representations given to them by Dunkin…

Upon information and belief, of the few African American multi-unit franchisees in New York, they are overwhelmingly steered to economically disadvantaged minority areas, with Dunkin reserving the economically better areas for white franchisees.

Upon further information and belief Dunkin does not have any African-American female or male multi-unit franchisees in the State of New Jersey and has intentionally prevented African Americans from becoming franchisees in New Jersey.

Upon further information and belief Dunkin does not have any African-American unit franchisees in the State of Connecticut or the State of Rhode Island and has intentionally prevented African Americans from becoming franchisees in those states.

Upon further information and belief of the over 6,990 Dunkin/Baskin Robbins franchises, less than fifty (50) are owned by African Americans.

Of those franchises owned by African Americans outside of New York, the majority of the franchises are located in less advantageous minority areas…

Dunkin engages in this discriminatory conduct with the intent of depriving African-Americans the economically advantageous opportunities afforded non-African American franchisees.

The suit further alleges that the Prettos were deceived (by misleading and illegal sales projections furnished by Dunkin’ Donuts) into developing three Dunkin’ Donuts locations in bad locations.  The Prettos eventually lost their entire investment and had to declare bankruptcy.

Read the entire complaint here:

Dunkin’ Donuts Discrimination Complaint (.pdf)

Also Read: BASKIN-ROBBINS Franchise Complaints

DUNKIN’ DONUTS: SCLC Accuses Dunkin’ Donuts of Racial Discrimination Against Franchisees

ARE YOU A DUNKIN’ DONUTS FRANCHISE OWNER OR FRANCHISEE? 

ARE YOU FAMILIAR WITH THE DUNKIN’ DONUTS FRANCHISE OPPORTUNITY? 

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Tags: Dunkin’ Donuts, Dunkin’ Donuts franchise, Dunkin’ Donuts franchise lawsuit, Dunkin’ Donuts discrimination, Dunkin’ Donuts complaints, Dunkin’ Donuts litigation, Priti Shetty, Amy Pretto, Reggie Pretto, Baskin Robbins franchise, Baskin Robbins lawsuit, Baskin Robbins franchise complaints, Baskin Robbins discrimination, Jerry Marks, Marks & Klein, franchise lawsuits

4 thoughts on “DUNKIN’ DONUTS Accused of Franchise Discrimination Against African Americans

  • October 13, 2016 at 9:32 am
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    Wow, my co-worker said her black mother, retired general surgeon, was told there were no franchise opportunities in Stockbridge, GA–an area just south of Atlanta. There was only one in the entire city…then within a few months, a NEW Dunkin opened alongside a convenient store in Stockbridge parallel to interstate I-675 North!!!!

    As a black professional, I personally know I spend over $1500 annually at Dunkins in 3 states during corporate travel. I have hundreds of upper-class black and Indian female corporate acquaintances that probably spend more. After I dump my remaining Dunkin balance on my app, I will no longer patronize this business nor will my husband and his employees. I prefer Starbucks anyway, but they don’t have a large variety of muffins to go with their beverages….but, I don’t need any damn muffins anyway, too fattening.

    Adios Dunkin Donuts!

    Too many thousands of affluent blacks, Latinos, as well as SINGLE WHITE WOMEN that keep saying they have had similar experiences to that of my co-worker’s mother to believe this practice will ever change. My dad used to own a Wendy’s that was a Burger Chef previously, they are fair, go to them or Dairy Queen Grill n Chill for franchise opportunities.

    Reading this makes me sick, and I am saddened that I am just hearing about this from my co-worker. I wonder why this really didn’t make the news?!?! When I searched for these stories after speaking with her, I was hoping I wouldn’t find so much info on what she said, but I did. I am sick at how hard blacks work to get into our 65% middle & upper-classes, only to have the establishment try their damn best to keep us from advancing any further than we already have. It is DISGUSTING! And it makes this so-called “free market economy” not so free to people of color and single white women.

    Pardon me while I go vomit!

  • October 13, 2016 at 12:01 pm
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    Susan:

    I think this is a very important time for individuals to speak out against racist and sexist practices… if only for our collective self-interest.

    Last night I watched the CNN special “We Will Rise: Michelle Obama’s Mission to Educate Girls Around the World.” http://www.cnn.com/shows/cnn-films-we-will-rise

    It made me wonder what the cost of the wasted potential and gains that could have been made if we had nurtured all of our best and brightest… not marginalized and held back huge portions of our potential brain trust – in this country and others – and the individuals who may have found a cure for cancer by now, who may have provided the leadership to have averted that pointless war, or prevented greedy Wall Street psychopaths the freedom to tank the world economy and plunge America into a depression.

    One thing Americans agree on is that the two current candidates are both pretty unacceptable. Are these two the best we can come up with? With Obama being the rare exception, the suppression of women and minorities has diminished our pool of potential leaders to old, rich white men and a few women who were politically cunning and conniving enough to rise through the old boy political machine. All Hillary’s traits her detractors hate are the very traits it took for her to get to where she is.

    Susan, your friend should speak to an attorney and/or share with us her story. She can reach me us at Unhappyfranchisee[at]gmail.com

  • October 13, 2016 at 3:50 pm
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    I don’t know if it will be of any comfort to your friend but I would research further the profitability or lack there of, for Dunkin Donuts franchisees.
    It seems to be a very expensive opportunity to make minimal or no profit.
    Very high initial investment and equipment costs with low returns.
    You might want to google for information on prior lawsuits against Dunkin Donuts for discrimination.
    There is plenty of information. They have already been accused through the legal system.

  • October 13, 2016 at 3:58 pm
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    Thanks admin for posting the lawsuit information.

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