Quebec Dunkin' Donut Franchisees Launch Lawsuit Against Parent Company

Montreal--Thirty Dunkin' Donuts franchisees filed a $7 million (Cdn.) lawsuit in Quebec Superior Court against the chain's franchisor and parent company to recover losses incurred allegedly as a result of management errors. The franchisees claim that Allied Domecq Retailing Int'l (Canada) Ltd. and Dunkin' Donuts (Canada) Ltd., which operate the chain, made marketing, advertising and management errors that have damaged the chain's brand. The operators argued that inferior advertising campaigns in the face of competition, an unsuitable product offering for the Quebec market, an ineffective marketing strategy and unstable administration have caused the decline. -Canadian Press