As noted on the podcast yesterday, CIT Group, the company that's in the news, that you may never have heard of before, does make loans to lots of places you have heard of, including the individual operators of Dunkin' Donuts stores.
CIT asked for government assistance, arguing its failure could precipitate a crisis for as many as 300,000 retailers.
Dunkin' Donuts doesn't seem to count itself among them...
We got this statement from Michelle King, Director, Global Public Relations Dunkin' Brands, Inc:
"Dunkin' Donuts has had a 50-year relationship with CIT and they have been very supportive of our franchisees' businesses. CIT is a valued partner and one of a number of lenders that make credit available to our franchisees. Our franchisees currently have credit access from a variety of national, regional and community banks, and they ultimately choose who to borrow from. If CIT were to go away, it would take a financing option away from our franchisees who want to buy stores or expand their networks."
Some franchise operators are having trouble though. Kainos Parters, which ran 56 Dunkin' Donuts locations just filed for bankruptcy. The company blamed the recession, and noted something else. From Reuters:
"Kainos Partners also said it discovered that its chief financial officer had engaged in $420,000 worth of financial transactions involving company assets for his personal use. The executive was fired in February."