Vendor Finance
Dunkin’ Donuts
®
America runs on Dunkin’ —and so does much of the world.
Dunkin’ Donuts is indisputably one of the world’s best-known
brands. With more than 7,600 locations worldwide, including
5,600 locations in 34 U.S. states and 31 countries (as of December 2007), the company is
the world’s largest coffee and baked goods chain, serving high-quality coffee, donuts,
bagels and other baked goods to 3 million loyal customers each day. Internationally,
Dunkin’ Donuts has locations in 30 countries, with a significant presence in the Philippines,
Indonesia, South Korea and Thailand. The company is a wholly owned subsidiary of
Dunkin’ Brands, Inc., based in Canton, Massachusetts.
SM
Challenge
“CIT has been a true partner in
helping Dunkin’ Donuts grow.
They developed creative solutions
for financing new franchises,
both individuals and groups,
based on extensive knowledge
of the franchising business and
our specific growth strategy and
business model.”
Jason Maceda
Director of Treasury Services
Dunkin’ Brands
Several years ago, Dunkin’ Donuts
embarked on a growth plan to take the
brand national. The company is executing
an ambitious expansion plan, intending to
open approximately 10,000 new franchised
stores. Many of these stores will be in the
western U.S., where Dunkin’ Donuts has
relatively few locations.
Dunkin’ Donuts was considered a
Northeast regional brand, and lenders
outside the northeast were hesitant to
provide capital in some newer markets.
This was the case when the company
announced its expansion into the western
U.S. Prospective franchisees faced the
possibility of being unable to leverage
the power of the Dunkin’ Donuts brand
in high-potential markets like Texas
and Nevada.
The company turned to CIT for a
solution. Because of our long-standing
relationship with the company, and our
in‑depth understanding of its operations,
CIT created a comprehensive franchisee
financing plan. For more than half a
century, CIT has partnered with Dunkin’
Donuts to grow its business, providing
more than $2 billion in financing to
franchisees. With deep roots in vendor and
franchise financing, we understand the
company’s business model, including the
unique challenges and opportunities it
faces as it expands its global brand.
to finance locations across the country,
even in new markets for Dunkin’ Donuts.
This commitment was based on our
in-depth knowledge of the company,
which enabled us to understand the true
potential of the brand, the company’s
management team and its growth strategy.
Supplementing our franchise financing,
CIT Small Business Lending is providing
commercial real estate financing to
franchisees. With this seamless, full-service
solution, franchisees can meet all their
financing needs from a single source. At
the same time, our vendor-centric
approach ensures that the needs of the
franchisees are met with customized,
full-service solutions that make the
complex franchise financing process easy
to navigate.
Results
In 2007, CIT was named Preferred Lender
to Dunkin’ Donuts franchisees, a significant
validation of the success of our past
relationship and our commitment to
helping the company grow. We are
working with several large-area developers
to finance multiple new locations, as well
as with individual entrepreneurs seeking
to leverage the power of the Dunkin’
Donuts brand to realize their personal
dreams. Most importantly, the company
has a supportive, long-term partner that
will enable it to continue to execute its
growth strategy.
Solution
CIT Group Inc.
505 Fifth Avenue
New York, NY 1001
CIT offered a comprehensive franchise
financing plan that encompassed creative
financing structures to accommodate the
needs of a diverse range of franchisees.
Significantly, our plan included commitment
Dunkin’ Donuts trademarks, service marks and logos are
registered trademarks and service marks of DD IP Holder, LLC
and are used under license.