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Case 16
Dunkin’ Donuts Inc.
Case Objectives
1) To show the importance of franchisor training as a means of standardizing services to
their customer base.
Problem Situation
This is less of a “problem situation” than an example of how powerful channel members can
foster cooperation by the effective use of training. In this case, Dunkin’ Donuts Inc., a large fast–
Teaching Suggestions
Chapter 4 (Behavioral Processes in Marketing Channels) and Chapter 9 (Motivating Channel
Members) both address issues relating to franchise channels. The instructor should instruct
students to read and understand Chapter 4 to help them understand the power dynamics of this
case. First, students might be asked to consider how the success of the franchisees is linked to
Case Discussion
As the text explains, conflict exists when when one member of a channel believes that the
attainment of its goals are being impeded by other channel member actions (or inactions).
Imagine the challenge facing Dunkin’ Donut Inc. in trying to reach its goals of revenue, profit,
and maintaining brand equity, through its army of more than 9,700 franchisees. The real
challenge is to ensure that each franchisee operates in the same manner according to the proven
system that Dunkin’ Donut has created.
Dunkin’ Donut’s use of training programs represents a careful mix of legitimate and expertise
power bases. Its legitimate power is evidenced by the a contractual link between it and its
franchises. This means Dunkin’ Donut has the legal basis for requiring compliance with its
training routine. However, Dunkin’ Donuts’s expertise is its trump card. Franchisees may be
inexperienced in management, production, or both; and the franchisor’s expertise is critical in
helping franchisees to succeed. It is precisely this expertise that is so valuable to each franchisee
and makes the Dunkin’ Donut business model attractive. Thus, what really matters to franchisor
and franchisee alike is that the use of franchise training is probably the best means by which
Dunkin’ Donut can transfer its expertise of business and donut making. This can then lead to the
desired outcomes of enhancing efficiency and effectiveness within the entire franchise channel
network.
While there are no pat answers as to how Dunkin’ Donuts accomplishes this difficult training
task in such a short time, the following features of the program appear to be major positive
factors:
1. Key topics needed to run a successful franchise are covered in the program. These include:
a) selecting employees, b) rating their job performance, c) training of a franchisee’s
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How can Dunkin’ Donut Franchise Training Improve? A discussion among students may lead to
some suggestions as to how Dunkin’ Donut might improve its training. Because its training
program is already ongoing, this might lead to discussions regarding what topics should be