Northern Management Group bought 14 Dunkin’ stores in MetroWest Boston from JCM Franchise Development, marking the first time in decades a franchise group new to the Dunkin’ system has purchased a network this size in Massachusetts. The aggregate transaction value of the deal is worth $44 million.
JCM Franchise Development—a financing, advisory, and mergers and acquisitions firm—is a subsidiary of Joyal Capital Management. Northern Management Group is a family-run, multi-unit franchise company with more than 100 properties in the Northeast, mainly comprised of hotels, convenience and retail stores.
“We’ve been working on this for the past eight to 10 months in 2020,” said Jigar Patel, partner at Northern Management Group, which closed the deal on December 22, 2020. “It’s always been a dream of our company and family to be a part of the Dunkin’ family, especially to own stores in our hometown we live in and work from.”
This is Northern Management Group’s first venture with Dunkin’, but it won’t be the last. Nilesh Patel, Jigar’s cousin and a partner at Northern Management Group, said the plan is to add more Dunkin’ stores in the New England area and expand their portfolio the next five years, then eventually start looking at the New York and New Jersey markets.
“We’re not here for just 14 stores,” Jigar added. “We’re very passionate about the quality of growth and want to make sure we can develop new sites in addition to existing acquisitions.”
The Patel family’s experience with hospitality and customer service will help them run the 14 Dunkin’ stores, both said, and they hope to retain the more than 250 employees at the stores. “It’s a people business first, and it’s all about giving the best service and quality that we can,” Jigar said.
When asked about the impact of Inspire Brands buying Dunkin’ Brands Group for $11.3 billion in the largest restaurant industry take-private transaction ever, Jigar and Nilesh both expressed excitement.
“I think Inspire Brands brings fresh energy and good vibes to the team and the brand itself on the Dunkin’ side,” Jigar said. “Obviously they paid for it because they believe in it, and we believe with them that we’ll have a great future together.”
“We have seen what Inspire Brands has done in the past with other brands in their portfolio, and they’ve done a tremendous job, like coming in and taking over different franchises and helping the bottom line,” Nilesh added. “With Dunkin’ brands, we’re expecting Inspire to come in and help make sure all the franchisees will be happy. We’re very excited and looking forward to working with the brand.”
Gary Joyal, CEO and manager partner of Joyal Capital Management, said he is seeing a significant change among new buyers showing interest in the Dunkin’ brand.
“What was traditionally an existing Dunkin’ franchisee buyer pool is now shifting to other brand owners and operators who want to expand their portfolio within Dunkin’,” Joyal said in a statement. “This expansion, in my opinion, will create new value and opportunities, and will add to the prestige of owning a Dunkin’ franchise.”