BELLINGHAM Mass. A Dunkin’ Donuts franchisee group is seeking increased oversight of the chain’s co-op advertising fund following the indictment last week of a former executive of brand parent Dunkin’ Brands, who was accused of siphoning off nearly $400,000 in a kickback scheme.
Officials of DD Independent Franchise Owners, the organization here that claims to be the largest association of Dunkin’ Donuts franchise owners in the United States, said the arrest of Carolyn Kravetz resulted from her reportedly steering $400,000 in business to Boris Levitin, owner of a graphic design company called Luminore, in exchange for half the money. The funds Dunkin’ Brands paid Luminore came from the ad fund, which is financed by Dunkin’ Donuts franchisees, the organization said.
“That such an alleged breach occurred is totally unacceptable,” DDIFO president Mark Dubinsky said in a written statement. “The DDIFO feels that appropriate controls of the ad fund, including direct franchisee oversight and CPA audit, must be instituted immediately.”
In a statement, Dunkin’ Brands spokesman Stephen J. Caldeira said the company regularly conducts “independent auditing of all our financial statements, including the advertising fund, by one of the country’s most respected accounting firms.
“Regarding the indictment of our former employee,” he continued, “we detected the fraud and promptly reported it to the authorities and we have recovered all monies.”
Caldeira also said the company would not comment further on the case because of its status as a pending legal matter.