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The Secret World of the Dunkin Donuts Franchise Kings

How men like Mark Cafua, Gary Joyal, and Dan Fireman are building empires, regular by regular. As New England’s beloved brand aggressively expands and the price of admission for franchising continues to climb, ever-growing franchisee networks are crowding out the moms and pops. More and more, the elevator is traveling only to the penthouse.

Pat Greenhouse/Globe staff
FOR EVIDENCE THAT Fitzgerald was right about the very rich being different from you and me, pull your car up to the swanky Boston Harbor Hotel. Be sure to stop at the main entrance rather than trying to save a few bucks by descending into the concrete underworld of self-parking. As you hand the valet your keys, glance over your shoulder to see how the 1 percenters do it. Driving their six-figure rides right onto the brick pavement outside the front door, they toss the valet their keys, although they know that’s probably unnecessary. Their Bentleys and Benzes will remain exactly where they left them in line. It’s a shining emblem of affluence that simultaneously buffs the hotel’s exclusive image and protects the showpieces from the paint-scratching menaces underground.

On a Wednesday afternoon in August, the row of luxury cars includes a Range Rover, a tricked-out Cadillac Escalade, and a $250,000 Bentley. And there are clues that reveal their owners’ surprising source of wealth. The black Bentley’s plates read DD 2222, and the cream-colored Escalade has two thin racing stripes in orange and pink, accented by a tiny icon of a foam cup labeled DD. Making it even clearer is the lead vehicle in the row, the comparatively low-rent Chevy Tahoe SUV (whose owner had chosen on this day to leave his Ferrari at home). The Tahoe’s plates spell it out: DUNKIN. Capitalism, it seems, runs on it.

For 60 years, owning a Dunkin’ Donuts franchise or two has been the elevator that legions of hard-working strivers have used to lift themselves up out of the ranks of factory workers and into the realm of, if not the rich, at least the pretty comfortable. But even if most regular Joes waiting in drive-through lines have no idea, the Dunkin’ franchisee landscape has been shifting dramatically. As New England’s beloved brand aggressively expands and the price of admission for franchising continues to climb, ever-growing franchisee networks are crowding out the moms and pops. More and more, the elevator is traveling only to the penthouse.

One of the most important shapers of this new landscape is sitting inside the hotel, plotting his next conquest over a detailed map of Florida. Mark Cafua, owner of the Tahoe, is a 40-year-old with light, bright eyes and dark, thinning hair. He pinches a few inches from his stomach to demonstrate his affection for the product. “I like to eat too much,” he says.

Most of Dunkin’s 7,800 US shops look alike, but they’re owned by about 1,000 franchisees who pay fees each month to their franchisor, Canton-based Dunkin’ Brands. Cafua’s Portuguese parents bought their first shop when he was 5, standing him atop two milk crates so he could reach the cash register. Today, the family’s empire encompasses nearly 300 stores, with another 50-plus in development or under agreement, making it the nation’s largest privately held Dunkin’ franchisee network. (Roughly 500 Dunkin’ outlets in gas stations are owned and operated by Hess, a publicly traded corporation.)

After some cajoling, Cafua reports that his family’s private firm, Methuen-based Cafua Management Co., grosses more than $250 million a year. Yet every day he wakes up hungry for more expansion. Now the king of Dunkin’ franchisees has shifted his focus to Florida. He’s completing a 30-store buy there, with plans to double that collection over the next couple of years.

The man who is helping him make these acquisitions is the owner of the Range Rover parked outside. Gary Joyal, who also keeps a $300,000-plus Rolls-Royce at home in Plymouth, is a tall, blond 49-year-old, with a strong chin and a physique crafted by two hours a day of cardio and weights. He allows himself four hours for sleep, then works basically the rest of the time, using his Bluetooth earpiece to convert even his strides through hotel lobbies into productivity. I had earlier seen him trade a fist bump with Cafua after he ended a Bluetooth call with the announcement that he had just persuaded a reluctant owner to sell Cafua five more Florida stores.

For the rest of this story please go to http://www.bostonglobe.com/magazine/2014/09/17/the-secret-world-dunkin-donuts-franchise-kings/pb2UmxauJrZv08wcBig6CO/story.html

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