Dunkin' Donuts 2015 Annual Report Download - page 33

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Nearly 100% of Dunkin’ Donuts and Baskin-Robbins restaurants are owned and operated by franchisees. We have construction
and site management personnel who oversee the construction of restaurants by outside contractors. The restaurants are built to
our specifications as to exterior style and interior decor. As of December 26, 2015, there were 11,750 Dunkin’ Donuts points of
distribution, operating in 41 states and the District of Columbia in the U.S. and 42 foreign countries. Baskin-Robbins points of
distribution totaled 7,607, operating in 43 states and the District of Columbia in the U.S. and 47 foreign countries. All but 49 of
the Dunkin’ Donuts and Baskin-Robbins points of distribution were franchisee-owned. The following table illustrates domestic
and international points of distribution by brand and whether they are operated by the Company or our franchisees as of
December 26, 2015.
Franchised points of
distribution
Company-operated
points of distribution
Dunkin’ Donuts—US* 8,392 39
Dunkin’ Donuts—International 3,319 —
Total Dunkin’ Donuts* 11,711 39
Baskin-Robbins—US* 2,493 10
Baskin-Robbins—International 5,104 —
Total Baskin-Robbins* 7,597 10
Total US 10,885 49
Total International 8,423 —
* Combination restaurants, as more fully described below, count as both a Dunkin’ Donuts and a Baskin-Robbins point of
distribution.
Dunkin’ Donuts and Baskin-Robbins restaurants operate in a variety of formats. Dunkin’ Donuts traditional restaurant formats
include free standing restaurants, end-caps (i.e., end location of a larger multi-store building), and gas and convenience
locations. A free-standing building typically ranges in size from 1,200 to 2,500 square feet, and may include a drive-thru
window. An end-cap typically ranges in size from 1,000 to 2,000 square feet and may include a drive-thru window. Dunkin’
Donuts also has other restaurants designed to fit anywhere, consisting of small full-service restaurants and/or self-serve kiosks
in offices, hospitals, colleges, airports, grocery stores, and drive-thru-only units on smaller pieces of property (collectively
referred to as alternative points of distributions or “APODs”). APODs typically range in size between 400 to 1,800 square feet.
The majority of our Dunkin’ Donuts restaurants have their fresh baked goods delivered to them from franchisee-owned and -
operated CMLs.
Baskin-Robbins traditional restaurant formats include free standing restaurants and end-caps. A free-standing building typically
ranges in size from 600 to 1,200 square feet, and may include a drive-thru window. An end-cap typically ranges in size from
800 to 1,200 square feet and may include a drive-thru window. We also have other restaurants, consisting of small full-service
restaurants and/or self-serve kiosks (collectively referred to as APODs). APODs typically range in size between 400 to 1,000
square feet.
In the U.S., Baskin-Robbins can also be found in 1,241 combination restaurants (“combos”) that also include a Dunkin’ Donuts
restaurant, and are typically either free-standing or an end-cap. These combos, which we count as both a Dunkin’ Donuts and a
Baskin-Robbins point of distribution, typically range from 1,400 to 3,500 square feet.
Of the 9,654 U.S. franchised locations, 86 were sites owned by the Company and leased to franchisees, 856 were leased by us,
and in turn, subleased to franchisees, with the remainder either owned or leased directly by the franchisee. Our land or land and
building leases are generally for terms of ten years to twenty years, and often have one or more five-year or ten-year renewal
options. In certain lease agreements, we have the option to purchase, or the right of first refusal to purchase, the real estate.
Certain leases require the payment of additional rent equal to a percentage of annual sales in excess of specified amounts.
Of the sites owned or leased by the Company in the U.S., 14 are locations that no longer have a Dunkin’ Donuts or Baskin-
Robbins restaurant (“surplus properties”). Some of these surplus properties have been sublet to other parties while the
remaining are currently vacant.
We have 9 surplus leased franchised restaurant properties in the U.S. We also have leased office space in Brazil, China, Dubai,
and the United Kingdom.