This case study is part of the International Franchise Association’s ongoing effort to highlight how franchise brands and franchisees are working together to strengthen profitability, improve customer experience, and support long-term system health through collaboration, innovation, and disciplined execution.

We interviewed Robert Branca, Multi-unit Dunkin’ franchisee; Chair, Dunkin’ Government Affairs Committee; Member of the Dunkin’ Brand Advisory Council (BAC).

What was the opportunity your value re-engineering strategy addressed?

Like many large, mature restaurant brands, Dunkin’ faced growing pressure to modernize its restaurants while ensuring those investments remained economically viable for franchisees.

Remodels had become increasingly expensive, and the timing couldn’t have been more challenging. COVID disrupted cash flow, labor shortages strained operations, and depreciation benefits for capital investments were being phased out year over year. At the same time, many remodel requirements were based on uniform brand standards that didn’t always reflect the wide variation in store formats, sales volumes, or customer behaviors across the system.

High-volume drive-thru locations, low-volume inline stores, and drive-thru-only units operate under fundamentally different economics. Treating them the same—particularly when it came to major capital investments—created financial strain without always delivering meaningful improvements to the customer experience.

The opportunity was to rethink remodels not as a binary, contractual obligation, but as a strategic lever—one that could modernize the brand, protect franchisee profitability, and deliver tangible value to customers when executed thoughtfully.

What did your brand do — what was the project or initiative?

Rather than focusing solely on cost-cutting, Dunkin’ took a holistic, system-wide approach to remodels that combined value engineering, customer experience evaluation, financial incentives, and operational simplification.

Franchisees and brand leaders closely examined each remodel component to determine whether it:

• Improved customer experience or order accuracy

• Increased throughput or reduced transaction friction

• Lowered labor complexity or improved employee retention

• Delivered a clear return on investment

If a change did not deliver value in at least one of these areas, it was either eliminated or redesigned.

This process surfaced both large and small opportunities. In some cases, it meant replacing expensive design changes with lower-cost alternatives. In others, it meant eliminating aesthetic updates that customers neither noticed nor valued. The guiding principle remained consistent: modernization should serve the customer and the business—not novelty for its own sake.

At the same time, Dunkin’ introduced tiered remodel scopes—full, limited, and ultra-limited—based on store format and sales volume. This allowed franchisees to align investment levels with the economic realities of their individual locations, rather than forcing a one-size-fits-all solution.

How were franchisees and the franchisor involved?

This initiative was driven through Dunkin’s established governance structure, with franchisees playing a central role alongside brand leadership.

Through the Brand Advisory Council and its subcommittees—Government Relations, Development, and Restaurant Excellence—franchisees evaluated remodel requirements from multiple perspectives. Restaurant Excellence teams focused on customer-facing outcomes, asking practical questions about transaction speed, order accuracy, employee workflow, and overall ease of experience.

Franchisees also led efforts to address the financial side of remodels. Advocacy work helped restore favorable depreciation treatment for remodel investments, improving cash flow and making upgrades more feasible.

Contractual incentives were introduced, allowing franchisees who completed full-scope remodels to extend the timeline before their next major remodel—spreading costs over a longer period and improving amortization.

Operationally, franchisees leveraged their 100% franchisee-owned supply chain to create a streamlined “store-in-a-box” remodel program. By consolidating equipment, millwork, and materials—and negotiating pricing at scale—the system reduced complexity, shortened timelines, and lowered overall costs for individual operators.

What were the results?

The collaborative approach accelerated remodel adoption while protecting franchisee economics and strengthening the overall brand.

More than half of the system completed remodels—even through the pandemic—and momentum continues as financial, operational, and logistical barriers have been reduced. Franchisees gained confidence that remodel investments were grounded in real-world economics and customer impact, rather than purely aesthetic mandates.

Customers benefited from improvements they could see and feel: clearer menus, better order accuracy, smoother drive-thru experiences, and technology that reduced friction—particularly for mobile and app-based ordering. Employees benefited from more modern environments and workflows, helping with recruitment and retention during a challenging labor market.

Importantly, remodeled restaurants also strengthened long-term asset values. As franchisees evaluated acquisitions and exits, stores that had been thoughtfully reinvested in commanded stronger valuations than those that had deferred upgrades—reinforcing the business case for disciplined, ROI-driven reinvestment.

This case study is part of Franchise.org’s ongoing effort to showcase how franchisors are identifying challenges, seizing opportunities, and building scalable solutions that benefit franchisees, customers, and the communities they serve.