“Earlier this year Dunkin’ Donuts filed suit to terminate the franchise agreement with Wometco Donas, Inc. The 18 Dunkin’ Donuts shops in Puerto Rico, all of which have been operated by Wometco, were ordered by the Federal Court to cease operations by Sunday, Oct. 5,” King explained.Because the franchisee hasn't been making its contractual payments to DD. Not that they're alone, as Puerto Rico has been mired in recession for so long that more of its citizens live elsewhere, than on the island.
Luis Davila — a lawyer, news analyst, and radio host in Puerto Rico — says that Dunkin’ Donuts is leaving the island over a dispute, but that the economic downturn is an important consideration.
....“It’s a bit of everything. The [recession] began in Puerto Rico in 2001, and even in 2014 the government has not found a way out. There are so many closed businesses, [yet] government is adding more taxes and creating barriers to trade.”Which is what governments are good at doing. As a report from the Association of Authorized Public Accountants puts it;
“Raising taxes may be a part of the solution, but not the solution,” the report says. “We must follow the pattern of other countries, where the crisis has been addressed with a substantial cut in public spending … That is to say, do not allow the tax system to obstruct the productivity of the country.”