Posted on February 12, 2010.
No coincidence that these two went into business together Last year there were many things to do in the newspapers about a Muslim man and Orthodox Jewish (Hasidic) woman going into business together in two Dunkin Donuts franchises. Both have a spouse and four children in infancy.
Essam "Sam" Habib and Hindy "Cindy" Gluck met when she was a real estate agent showing him the location of stores. They decided to pool their savings and, in 2005, opened a Dunkin 'Donuts franchise on Church Avenue from East 17th Street in Flatbush, Brooklyn. In 2006, it will open a Dunkin 'Donuts franchise, on Flatbush Avenue and Sixth Avenue in Brooklyn.
Habib is the majority shareholder and Gluck holds less than 50% of the company. He goes to his mosque to pray on Fridays, and she takes off on Saturday to observe the Jewish Sabbath, leaving him in charge.
The fritters are made from a kosher bakery. The Jewish holidays, Ms. Gluck transfers his share of the business to Mr Habib, because it is not allowed to earn money on these holidays.
Neither Habib Gluck or take money from profits realized from the sale of pork products like bacon, sausage and ham. They assign the proceeds of the sale of these items.
The New York Times noted that last year because of a contract dispute, Mr. Habib and Ms. Gluck sold their stores back to Dunkin 'Donuts. But the truth is nastier. A fight broke out because Gluck tried to sell a small portion of his portion of the company to two employees.
Now, Dunkin 'Donuts has an interest in controlling which directs its franchised restaurants. Dunkin 'makes sure that owners and operators of its restaurants are qualified to run a first class operation, so they will do nothing to tarnish the name of the Dunkin' Donuts' brand names of great value and, effect. For this reason almost every franchise business in the world, and certainly the Dunkin 'Donuts franchise agreement provides that Dunkin' Donuts headquarters must approve any sale or transfer of participation.
The point is this. Though Gluck tried to sell part of its stake to its employees, it could not legally do so without the approval of the Dunkin 'Donuts headquarters. So that any sale, it is without the approval "as was the case here was and is void. Being reasonable people, you and I would say that, without any injuries here, "No harm, no fault." But Dunkin 'Donuts hq felt differently and continued to end Habib and Gluck's franchise for violation of their franchise agreement. Why Dunkin 'Donuts do that?
The owners say, in essence, that Dunkin 'is trying to scam. On March 23, 2008, the New York Post reported that Dunkin 'Donuts offered Habib and Gluck's "redemption Munchkin companies $ 400,000 for the two stores have opened - the stores they could sell for $ 700,000 or $ 800,000 each. And when the partners solicited offers elsewhere, Dunkin 'Donuts denied trafficking - even if the buyers were on a list approved by the company ... ".
Habib and Gluck commemorated their application in their legal response to the trial Dunkin 'Donuts' against them (called a response), a trial began with Dunkin' in Brooklyn Federal Court, alleging that:
(1) Dunkin 'has a project "... To sell franchises to people who seek to better themselves in the business";
(2) franchise Dunkin 'Donuts is "one-sided, unilateral and non-negotiable";
(3) Dunkin 'aims to find "a technical violation of the franchise agreement, which is the one who" does not affect the operation of the franchise or the integrity or honesty of the franchisee or the funds [ Dunkin is] ";
(4) Dunkin 'seems deliberately to create a defect in the franchise agreement to force franchisees to pay penalties or sell.
