10-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________ 

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the year ended December 28, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from             to             

Commission file number 001-35258

____________________________ 

DUNKIN’ BRANDS GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-4145825
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

130 Royall Street

Canton, Massachusetts 02021

(Address of principal executive offices) (zip code)

(781) 737-3000

(Registrants’ telephone number, including area code)

____________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.001 par value per share	The NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: NONE

____________________________ 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The aggregate market value of the voting and non-voting stock of the registrant held by non-affiliates of Dunkin’ Brands Group, Inc. computed by reference to the closing price of the registrant’s common stock on the NASDAQ Global Select Market as of June 29, 2013, was approximately $4.55 billion.

As of February 18, 2014, 106,423,121 shares of common stock of the registrant were outstanding.

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DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement for the 2014 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K, are incorporated by reference in Part III, Items 10-14 of this Form 10-K.

DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
Part I.
Item 1.	Business	1
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	21
Item 2.	Properties	21
Item 3.	Legal Proceedings	22
Item 4.	Mine Safety Disclosures	23
Part II.
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	Selected Financial Data	26
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	50
Item 8.	Financial Statements and Supplementary Data	52
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	97
Item 9A.	Controls and Procedures	97
Item 9B.	Other Information	98
Part III.
Item 10.	Directors, Executive Officers and Corporate Governance	99
Item 11.	Executive Compensation	100
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	100
Item 13.	Certain Relationships and Related Transactions, and Director Independence	100
Item 14.	Principal Accounting Fees and Services	100
Part IV.
Item 15.	Exhibits, Financial Statement Schedules	100

Forward-Looking Statements

This report on Form 10-K, as well as other written reports and oral statements that we make from time to time, includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth under “Risk Factors” and elsewhere in this report and in our other public filings with the Securities and Exchange Commission, or SEC.

Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate, are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods.

Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.

PART I

Item 1. Business.

Our Company

We are one of the world's leading franchisors of quick service restaurants (“QSRs”) serving hot and cold coffee and baked goods, as well as hard serve ice cream. We franchise restaurants under our Dunkin' Donuts and Baskin-Robbins brands. With more than 18,000 points of distribution in nearly 60 countries, we believe that our portfolio has strong brand awareness in our key markets.

We believe that our nearly 100% franchised business model offers strategic and financial benefits. For example, because we do not own or operate a significant number of stores, our Company is able to focus on menu innovation, marketing, franchisee coaching and support, and other initiatives to drive the overall success of our brand. Financially, our franchised model allows us to grow our points of distribution and brand recognition with limited capital investment by us.

We operate our business in four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International and Baskin-Robbins U.S. In 2013, our Dunkin' Donuts segments generated revenues of $539.5 million, or 77% of our total segment revenues, of which $521.2 million was in the U.S. segment and $18.3 million was in the international segment. In 2013, our Baskin-Robbins segments generated revenues of $162.5 million, of which $120.3 million was in the international segment and $42.2 million was in the U.S. segment. As of December 28, 2013, there were 10,858 Dunkin' Donuts points of distribution, of which 7,677 were in the U.S. and 3,181 were international, and 7,300 Baskin-Robbins points of distribution, of which 4,833 were international and 2,467 were in the U.S. See note 12 to our consolidated financial statements included herein for segment revenues and segment profit for fiscal years 2013, 2012, and 2011.

We generate revenue from five primary sources: (i) royalty income and fees associated with franchised restaurants; (ii) rental income from restaurant properties that we lease or sublease to franchisees; (iii) sales of ice cream products to franchisees in certain international markets; (iv) retail store revenue at our company-owned restaurants, and (v) other income including fees for the licensing of the Dunkin' Donuts brand for products sold in non-franchised outlets (such as retail packaged coffee), the licensing of the rights to manufacture Baskin-Robbins ice cream to a third party for ice cream and related products sold to U.S. franchisees, refranchising gains, transfer fees from franchisees, and online training fees.

Our history

Both of our brands have a rich heritage dating back to the 1940s, when Bill Rosenberg founded his first restaurant, subsequently renamed Dunkin' Donuts, and Burt Baskin and Irv Robbins each founded a chain of ice cream shops that eventually combined to form Baskin-Robbins. Baskin-Robbins and Dunkin' Donuts were individually acquired by Allied Domecq PLC in 1973 and 1989, respectively. The brands were organized under the Allied Domecq Quick Service Restaurants subsidiary, which was renamed Dunkin' Brands, Inc. in 2004. Allied Domecq was acquired in July 2005 by Pernod Ricard S.A. In March of 2006, we were acquired by investment funds affiliated with Bain Capital Partners, LLC, The Carlyle Group and Thomas H. Lee Partners, L.P. through a holding company that was incorporated in Delaware on November 22, 2005, and was later renamed Dunkin' Brands Group, Inc. In July 2011, we completed our initial public offering (the “IPO”). Upon the completion of the IPO, our common stock became listed on the NASDAQ Global Select Market under the symbol “DNKN.”

Our brands

Dunkin' Donuts-U.S.

Dunkin' Donuts is a leading U.S. QSR concept, and is among the QSR market leaders in coffee, donut, bagel, muffin and breakfast sandwich categories. Since the late 1980s, Dunkin' Donuts has transformed itself into a coffee and beverage-based concept, and is the national QSR leader in servings in the hot regular/decaf/flavored coffee category, with sales of over 1 billion servings of coffee annually. From the fiscal year ended August 31, 2003 to the fiscal year ended December 28, 2013, Dunkin' Donuts U.S. systemwide sales have grown at an 8.2% compound annual growth rate. Total U.S. Dunkin' Donuts points of distribution grew from 4,021 at August 31, 2003 to 7,677 as of December 28, 2013. Approximately 84% of these points of distribution are traditional restaurants consisting of end-cap, in-line and stand-alone restaurants, many with drive-thrus, and gas and convenience locations. In addition, we have alternative points of distribution ("APODs"), such as full- or self-service kiosks in grocery stores, hospitals, airports, offices and other smaller-footprint properties. We believe that Dunkin' Donuts continues to have significant growth potential in the U.S. given its strong brand awareness and variety of restaurant formats. For fiscal year 2013, the Dunkin' Donuts franchise system generated U.S. franchisee-reported sales of $6.7 billion, which accounted for approximately 72.4% of our global franchisee-reported sales, and had 7,677 U.S. points of distribution (including more than 3,600 restaurants with drive-thrus) at period end.

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Baskin-Robbins-U.S.

Baskin-Robbins is one of the leading QSR chains in the U.S. for servings of hard-serve ice cream and develops and sells a full range of frozen ice cream treats such as cones, cakes, sundaes and frozen beverages. Baskin-Robbins enjoys 90% aided brand awareness in the U.S., and we believe the brand is known for its innovative flavors, popular “Birthday Club” program and ice cream flavor library of over 1,000 different offerings. Additionally, our Baskin-Robbins U.S. segment has experienced comparable store sales growth in each of the last three fiscal years. We believe we can capitalize on the brand's strengths and continue generating renewed excitement for the brand. Baskin-Robbins' “31 flavors,” offering consumers a different flavor for each day of the month, is recognized by ice cream consumers nationwide. For fiscal year 2013, the Baskin-Robbins franchise system generated U.S. franchisee-reported sales of $513 million, which accounted for approximately 5.5% of our global franchisee-reported sales, and had 2,467 U.S. points of distribution at period end.

International operations

Our international business is primarily conducted via joint ventures and country or territorial license arrangements with “master franchisees,” who both operate and sub-franchise the brand within their licensed areas. Increasingly, in certain high potential markets, we are migrating to a model with multiple franchisees in one country, including markets in the United Kingdom, Germany, and China. Our international franchise system, predominantly located across Asia and the Middle East, generated franchisee-reported sales of $2.0 billion for fiscal year 2013, which represented 22.1% of Dunkin' Brands' global franchisee-reported sales. Dunkin' Donuts had 3,181 restaurants in 32 countries (excluding the U.S.), representing $684 million of international franchisee-reported sales for fiscal year 2013, and Baskin-Robbins had 4,833 restaurants in 46 countries (excluding the U.S.), representing approximately $1.4 billion of international franchisee-reported sales for the same period. From August 31, 2003 to December 28, 2013, total international Dunkin' Donuts points of distribution grew from 1,720 to 3,181, and total international Baskin-Robbins points of distribution grew from 2,475 to 4,833. We believe that we have opportunities to continue to grow our Dunkin' Donuts and Baskin-Robbins concepts internationally in new and existing markets through brand and menu differentiation.

Overview of franchising

Franchising is a business arrangement whereby a service organization, the franchisor, grants an operator, the franchisee, a license to sell the franchisor's products and services and use its system and trademarks in a given area, with or without exclusivity. In the context of the restaurant industry, a franchisee pays the franchisor for its concept, strategy, marketing, operating system, training, purchasing power, and brand recognition.

Franchisee relationships

We seek to maximize the alignment of our interests with those of our franchisees. For instance, we do not derive additional income through serving as the supplier to our domestic franchisees. In addition, because the ability to execute our strategy is dependent upon the strength of our relationships with our franchisees, we maintain a multi-tiered advisory council system to foster an active dialogue with franchisees. The advisory council system provides feedback and input on all major brand initiatives and is a source of timely information on evolving consumer preferences, which assists new product introductions and advertising campaigns.

Unlike certain other QSR franchise systems, we generally do not guarantee our franchisees' financing obligations. As of December 28, 2013, if all of our outstanding guarantees of franchisee financing obligations came due, we would be liable for $3.0 million. We intend to continue our past practice of limiting our guarantee of financing for franchisees.

Franchise agreement terms

For each franchised restaurant in the U.S., we enter into a franchise agreement covering a standard set of terms and conditions. A prospective franchisee may elect to open either a single-branded distribution point or a multi-branded distribution point. In addition, and depending upon the market, a franchisee may purchase the right to open a franchised restaurant at one or multiple locations (via a store development agreement, or “SDA”). When granting the right to operate a restaurant to a potential franchisee, we will generally evaluate the potential franchisee's prior food-service experience, history in managing profit and loss operations, financial history, and available capital and financing. We also evaluate potential new franchisees based on financial measures, including liquid asset and net worth minimums for each brand.

The typical franchise agreement in the U.S. has a 20-year term. The majority of our franchisees have entered into prime leases with a third-party landlord. The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to other franchisees. When we sublease properties to franchisees, the sublease generally follows the prime lease term. Our leases to franchisees are typically for an overall term of 20 years.

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We help domestic franchisees select sites and develop restaurants that conform to the physical specifications of our typical restaurant. Each domestic franchisee is responsible for selecting a site, but must obtain site approval from us based on accessibility, visibility, proximity to other restaurants, and targeted demographic factors including population density and traffic patterns. Additionally, the franchisee must also refurbish and remodel each restaurant periodically (typically every five and ten years, respectively).

We currently require each domestic franchisee's managing owner and designated manager to complete initial and ongoing training programs provided by us, including minimum periods of classroom and on-the-job training. We monitor quality and endeavor to ensure compliance with our standards for restaurant operations through restaurant visits in the U.S. In addition, a formal restaurant review is conducted throughout our domestic operations at least once per year. To complement these procedures, we use “Guest Satisfaction Surveys” in the U.S. to assess customer satisfaction with restaurant operations, such as product quality, restaurant cleanliness, and customer service.

Store development agreements

We grant domestic franchisees the right to open one or more restaurants within a specified geographic area pursuant to the terms of store development agreements ("SDAs"). An SDA specifies the number of restaurants and the mix of the brands represented by such restaurants that a franchisee is obligated to open. Each SDA also requires the franchisee to meet certain milestones in the development and opening of the restaurant and, if the franchisee meets those obligations, we agree, during the term of such SDA, not to operate or franchise new restaurants in the designated geographic area covered by such SDA. In addition to an SDA, a franchisee signs a separate franchise agreement for each restaurant developed under such SDA.

Master franchise model and international arrangements

Master franchise arrangements are used on a limited basis domestically (the Baskin-Robbins brand has two “territory” franchise agreements for certain Midwestern and Northwestern markets) but more widely internationally for both the Baskin-Robbins brand and the Dunkin' Donuts brand. In addition, international arrangements include joint venture agreements in Korea (both brands), Spain (Dunkin' Donuts brand), Australia (Baskin-Robbins brands), and Japan (Baskin-Robbins brand), as well as single unit franchises, such as in Canada (both brands). We are increasingly utilizing a multi-franchise system in certain high potential markets, including in the United Kingdom, Germany, and China.

Master franchise agreements are the most prevalent international relationships for both brands. Under these agreements, the applicable brand grants the master franchisee the exclusive right to develop and operate a certain number of restaurants within a particular geographic area, such as selected cities, one or more provinces or an entire country, pursuant to a development schedule that defines the number of restaurants that the master franchisee must open annually. Those development schedules customarily extend for five to ten years. If the master franchisee fails to perform its obligations, the exclusivity provision of the agreement terminates and additional franchise agreements may be put in place to develop restaurants.

The master franchisee is required to pay an upfront initial franchise fee for each developed restaurant and, for the Dunkin' Donuts brand, royalties. For the Baskin-Robbins brand, the master franchisee is typically required to purchase ice cream from Baskin-Robbins or an approved supplier. In most countries, the master franchisee is also required to spend a certain percentage of gross sales on advertising in such foreign country in order to promote the brand. Generally, the master franchise agreement serves as the franchise agreement for the underlying restaurants operating pursuant to such model. Depending on the individual agreement, we may permit the master franchisee to subfranchise within its territory.

Within each of our master franchisee and joint venture organizations, training facilities have been established by the master franchisee or joint venture based on our specifications. From those training facilities, the master franchisee or joint venture trains future staff members of the international restaurants. Our master franchisees and joint venture entities also periodically send their primary training managers to the U.S. for re-certification.

Franchise fees

In the U.S., once a franchisee is approved, a restaurant site is approved, and a franchise agreement is signed, the franchisee will begin to develop the restaurant. Franchisees pay us an initial franchise fee for the right to operate a restaurant for one or more franchised brands. The franchisee is required to pay all or part of the initial franchise fee upfront upon execution of the franchise agreement, regardless of when the restaurant is actually opened. Initial franchise fees vary by brand, type of development agreement and geographic area of development, but generally range from $25,000 to $100,000, as shown in the table below.

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Restaurant type	Initial franchise fee*
Dunkin’ Donuts Single-Branded Restaurant	$ 40,000-90,000
Baskin-Robbins Single-Branded Restaurant	$	25,000
Dunkin’ Donuts/Baskin-Robbins Multi-Branded Restaurant	$ 50,000-100,000

* Fees effective as of January 1, 2014 and excludes alternative points of distribution

In addition to the payment of initial franchise fees, our U.S. Dunkin' Donuts brand franchisees, U.S. Baskin-Robbins brand franchisees, and our international Dunkin' Donuts brand franchisees pay us royalties on a percentage of the gross sales made from each restaurant. In the U.S., the majority of our franchise agreement renewals and the vast majority of our new franchise agreements require our franchisees to pay us a royalty of 5.9% of gross sales. During 2013, our effective royalty rate in the Dunkin' Donuts U.S. segment was approximately 5.4% and in the Baskin-Robbins U.S. segment was approximately 5.0%. The arrangements for Dunkin' Donuts in the majority of our international markets require royalty payments to us of 5.0% of gross sales. However, many of our larger international partners, including our Korean joint venture partner, have agreements at a lower rate, resulting in an effective royalty rate in the Dunkin' Donuts international segment in 2013 of approximately 2.1%. We typically collect royalty payments on a weekly basis from our domestic franchisees. For the Baskin-Robbins brand in international markets, we do not generally receive royalty payments from our franchisees; instead we earn revenue from such franchisees as a result of our sale of ice cream products to them, and in 2013 our effective royalty rate in this segment was approximately 0.7%. In certain instances, we supplement and modify certain SDAs, and franchise agreements entered into pursuant to such SDAs, for restaurants located in certain new or developing markets, by (i) reducing the royalties for a specified period of the term of the franchise agreements depending on the details related to each specific incentive program; (ii) reimbursing the franchisee for certain local marketing activities in excess of the minimum required; and (iii) providing certain development incentives. To qualify for any or all of these incentives, the franchisee must meet certain requirements, each of which are set forth in an addendum to the SDA and the franchise agreement. We believe these incentives will lead to accelerated development in our less mature markets.

Franchisees in the U.S. also pay advertising fees to the brand-specific advertising funds administered by us. Franchisees make weekly contributions, generally 5% of gross sales, to the advertising funds. Franchisees may elect to increase the contribution to support general brand-building efforts or specific initiatives. In the first quarter of 2013, the Baskin-Robbins franchisees voted to increase the advertising fee contribution rate from 5.0% to 5.25% for a twelve month period beginning in May 2013. The advertising funds for the U.S., which received $356.1 million in contributions from franchisees in fiscal year 2013, are almost exclusively franchisee-funded and cover all expenses related to marketing, research and development, innovation, advertising and promotion, including market research, production, advertising costs, public relations, and sales promotions. We use no more than 20% of the advertising funds to cover the administrative expenses of the advertising funds and for other strategic initiatives designed to increase sales and to enhance the reputation of the brands. As the administrator of the advertising funds, we determine the content and placement of advertising, which is done through print, radio, television, online, billboards, sponsorships, and other media, all of which is sourced by agencies. Under certain circumstances, franchisees are permitted to conduct their own local advertising, but must obtain our prior approval of content and promotional plans.

Other franchise related fees

We lease and sublease properties to franchisees in the U.S. and in Canada, generating net rental fees when the cost charged to the franchisee exceeds the cost charged to us. For fiscal year 2013, we generated 13.5%, or $96.1 million, of our total revenue from rental fees from franchisees and incurred related occupancy expenses of $52.1 million.

We also receive a license fee from Dean Foods Co. (“Dean Foods”) as part of an arrangement whereby Dean Foods manufactures and distributes ice cream products to Baskin-Robbins franchisees in the U.S. In connection with this agreement, Dunkin' Brands receives a license fee based on total gallons of ice cream sold. For fiscal year 2013, we generated 1.0%, or $7.0 million, of our total revenue from license fees from Dean Foods.

We distribute ice cream products to Baskin-Robbins franchisees who operate Baskin-Robbins restaurants located in certain foreign countries and receive revenue associated with those sales. For fiscal year 2013, we generated 15.7%, or $112.3 million, of our total revenue from the sale of ice cream products to franchisees in certain foreign countries.

Other revenue sources include online training fees, licensing fees earned from the sale of retail packaged coffee, net refranchising gains, and other one-time fees such as transfer fees and late fees. For fiscal year 2013, we generated 2.7%, or $19.5 million, of our total revenue from these other sources.

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International operations

Our international business is organized by brand and by country and/or region. Operations are primarily conducted through master franchise agreements with local operators. In certain instances, the master franchisee may have the right to sub-franchise. In addition, we have joint ventures with a local, publicly-traded company in Japan, and with local companies in Australia for the Baskin-Robbins brand, in Spain for the Dunkin' Donuts brand, and in South Korea for both the Dunkin' Donuts and Baskin-Robbins brands. By teaming with local operators, we believe we are better able to adapt our concepts to local business practices and consumer preferences. We have had an international presence since 1961 when the first Dunkin' Donuts restaurant opened in Canada. As of December 28, 2013, there were 4,833 Baskin-Robbins restaurants in 46 countries outside the U.S. and 3,181 Dunkin' Donuts restaurants in 32 countries outside the U.S. Baskin-Robbins points of distribution represent the majority of our international presence and accounted for 67% of international franchisee-reported sales and 87% of our international revenues for fiscal year 2013.

Our key markets for both brands are predominantly based in Asia and the Middle East, which accounted for approximately 71.8% and 15.4%, respectively, of international franchisee-reported sales for fiscal year 2013. For fiscal year 2013, $2.0 billion of total franchisee-reported sales were generated by restaurants located in international markets, which represented 22.1% of total franchisee-reported sales, with the Dunkin' Donuts brand accounting for $684 million and the Baskin-Robbins brand accounting for $1.4 billion of our international franchisee-reported sales. For the same period, our revenues from international operations totaled $138.6 million, with the Baskin-Robbins brand generating approximately 87% of such revenues.

Overview of key markets

As of December 28, 2013, the top foreign countries and regions in which the Dunkin' Donuts brand and/or the Baskin-Robbins brand operated were:

Country	Type	Franchised brand(s)	Number of restaurants
South Korea	Joint Venture	Dunkin’ Donuts	902
		Baskin-Robbins	1,065
Japan	Joint Venture	Baskin-Robbins	1,157
Middle East	Master Franchise Agreements	Dunkin’ Donuts	338
		Baskin-Robbins	706

South Korea

Restaurants in South Korea accounted for approximately 38% of total franchisee-reported sales from international operations for fiscal year 2013. Baskin-Robbins accounted for 61% of such sales. In South Korea, we conduct business through a 33.3% ownership stake in a combination Dunkin' Donuts brand/Baskin-Robbins brand joint venture, with South Korean shareholders owning the remaining 66.7% of the joint venture. The joint venture acts as the master franchisee for South Korea, sub-franchising the Dunkin' Donuts and Baskin-Robbins brands to franchisees. The joint venture also manufactures and supplies the franchisees operating restaurants located in South Korea with ice cream, donuts and coffee products.

Japan

Restaurants in Japan accounted for approximately 22% of total franchisee-reported sales from international operations for fiscal year 2013, 100% of which came from Baskin-Robbins. We conduct business in Japan through a 43.3% ownership stake in a Baskin-Robbins brand joint venture. Our partner also owns a 43.3% interest in the joint venture, with the remaining 13.4% owned by public shareholders. The joint venture manufactures and sells ice cream to franchisees operating restaurants in Japan and acts as master franchisee for the country.

Middle East

The Middle East represents another key region for us. Restaurants in the Middle East accounted for approximately 15% of total franchisee-reported sales from international operations for fiscal year 2013. Baskin-Robbins accounted for approximately 76% of such sales. We conduct operations in the Middle East through master franchise arrangements.

Industry overview

According to The NPD Group/CREST^® (“CREST^®”), the QSR segment of the U.S. restaurant industry accounted for approximately $255 billion of the total $423 billion restaurant industry sales in the US for the twelve months ended December 2013. The U.S. restaurant industry is generally categorized into segments by price point ranges, the types of food and beverages offered, and service available to consumers. QSR is a restaurant format characterized by counter or drive-thru ordering and

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limited, or no, table service. QSRs generally seek to capitalize on consumer desires for quality and convenient food at economical prices. Technomic Information Services (“Technomic”) reports that, in 2012, QSRs comprised seven of the top ten chain restaurants by U.S. systemwide sales and nine of the top ten chain restaurants by number of units.

Our Dunkin' Donuts brand competes in the QSR segment categories and subcategories that include coffee, donuts, muffins, bagels, and breakfast sandwiches. In addition, in the U.S., our Dunkin' Donuts brand has historically focused on the breakfast daypart, which we define to include the portion of each day from 5:00 a.m. until 11:00 a.m. While, according to The NPD Group/CREST^® (“CREST^®”) data, the compound annual growth rate for total QSR daypart visits in the U.S. has been flat over the five-year period ended December 2013, the compound annual growth rate for QSR visits in the U.S. during the breakfast daypart averaged 1% over the same five-year period. There can be no assurance that such growth rates will be sustained in the future.

For the twelve months ended December 2013, there were sales of nearly 7.7 billion restaurant servings of coffee in the U.S., 82% of which were attributable to the QSR segment, according to CREST^® data. Over the years, our Dunkin' Donuts brand has evolved into a predominantly coffee-based concept, with approximately 57% of Dunkin' Donuts' U.S. franchisee-reported sales for fiscal year 2013 generated from coffee and other beverages. We believe QSRs, including Dunkin' Donuts, are positioned to capture additional coffee market share through an increased focus on coffee offerings.

Our Baskin-Robbins brand competes primarily in QSR segment categories and subcategories that include hard-serve ice cream as well as those that include soft serve ice cream, frozen yogurt, shakes, malts, and floats. While both of our brands compete internationally, over 65% of Baskin-Robbins restaurants are located outside of the U.S. and represent the majority of our total international sales and points of distribution.

Competition

We compete primarily in the QSR segment of the restaurant industry and face significant competition from a wide variety of restaurants, convenience stores, and other outlets that provide consumers with coffee, baked goods, sandwiches, and ice cream on an international, national, regional, and local level. We believe that we compete based on, among other things, product quality, restaurant concept, service, convenience, value perception, and price. Our competition continues to intensify as competitors increase the breadth and depth of their product offerings, particularly during the breakfast daypart, and open new units. Although new competitors may emerge at any time due to the low barriers to entry, our competitors include: 7-Eleven, Burger King, Cold Stone Creamery, Cumberland Farms, Dairy Queen, McDonald's, Panera Bread, Quick Trip, Starbucks, Subway, Tim Hortons, WaWa, and Wendy's, among others. Additionally, we compete with QSRs, specialty restaurants, and other retail concepts for prime restaurant locations and qualified franchisees.

Licensing

We derive licensing revenue from agreements with Dean Foods for domestic ice cream sales, with The J.M. Smucker Co. (“Smuckers”) for the sale of packaged coffee in non-franchised outlets (primarily grocery retail) as well as from other licensees. Dean Foods manufactures and sells ice cream to U.S. Baskin-Robbins brand franchisees and pays us a royalty on each gallon sold. The Dunkin' Donuts branded 12 oz. original blend coffee, which is distributed by Smuckers, is the #1 stock-keeping unit nationally in the premium coffee category. According to Nielsen, for the 52 weeks ending December 28, 2013, sales of our 12 oz. original blend, as expressed in total equivalent units and dollar sales, were double that of the next closest competitor.

Marketing

We coordinate domestic advertising and marketing at the national and local levels. The goals of our marketing strategy include driving comparable store sales and brand differentiation, increasing our total coffee and beverage sales, protecting and growing our morning daypart sales, and growing our afternoon daypart sales. Generally, our domestic franchisees contribute 5% of weekly gross retail sales to fund brand specific advertising funds. The funds are used for various national and local advertising campaigns including print, radio, television, online, mobile, loyalty, billboards, and sponsorships. Over the past ten years, our U.S. franchisees have invested approximately $2.3 billion on advertising to increase brand awareness and restaurant performance across both brands. Additionally, we have various pricing strategies, so that our products appeal to a broad range of customers. In August 2012, we launched the Dunkin' Donuts mobile application for payment and gifting, which built the foundation for one-to-one marketing with our customers. In January 2014, we launched a new DD Perks® Rewards loyalty program nationally, which is fully integrated with the Dunkin' Donuts mobile application and allows us to engage our customers in these one-to-one marketing interactions. As of December 28, 2013, our mobile application had over five million downloads.

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The supply chain

Domestic

We do not typically supply products to our domestic franchisees. With the exception of licensing fees paid by Dean Foods on domestic ice cream sales, we do not typically derive revenues from product distribution. Our franchisees' suppliers include Rich Products Corp., Dean Foods Co., The Coca-Cola Company, and Green Mountain Coffee Roasters, Inc. In addition, our franchisees' primary coffee roasters currently are New England Tea & Coffee Co., Inc., Mother Parkers Tea & Coffee Inc., S&D Coffee, Inc., and Massimo Zanetti Beverage USA, Inc., and their primary donut mix suppliers currently are General Mills, Inc., Harlan Foods, and Aryzta. Our franchisees also purchase donut mix from CSM Bakery Products NA, Inc. and EFCO Products, Inc. We periodically review our relationships with licensees and approved suppliers and evaluate whether those relationships continue to be on competitive or advantageous terms for us and our franchisees.

Purchasing

Purchasing for the Dunkin' Donuts brand is facilitated by National DCP, LLC (the “NDCP”), which is a Delaware limited liability company operated as a cooperative owned by its franchisee members. The NDCP is managed by a staff of supply chain professionals who report directly to the NDCP's executive management team, members of which in turn report directly to the NDCP's board of directors. The NDCP has over 1,100 employees including executive leadership, sourcing professionals, warehouse staff, and drivers. The NDCP board of directors has eight franchisee members. In addition, the Senior Vice President, Chief Supply Officer from Dunkin' Brands, Inc. is a voting member of the NDCP board. The NDCP engages in purchasing, warehousing, and distribution of food and supplies on behalf of participating restaurants and some international markets. The NDCP program provides franchisee members nationwide the benefits of scale while fostering consistent product quality across the Dunkin' Donuts brand. We do not control the NDCP and have only limited contractual rights associated with managing that franchisee-owned purchasing and distribution cooperative.

Manufacturing of Dunkin' Donuts bakery goods

Centralized production is another element of our supply chain that is designed to support growth for the Dunkin' Donuts brand. Centralized manufacturing locations ("CMLs") are franchisee-owned and -operated facilities for the centralized production of donuts and bakery goods. The CMLs deliver freshly baked products to Dunkin' Donuts restaurants on a daily basis and are designed to provide consistent quality products while simplifying restaurant-level operations. As of December 28, 2013, there were 114 CMLs (of varying size and capacity) in the U.S. CMLs are an important part of franchise economics, and we believe the brand is supportive of profit building initiatives as well as protecting brand quality standards and consistency.

Certain of our Dunkin' Donuts brand restaurants produce donuts and bakery goods on-site rather than relying upon CMLs. Many of such restaurants, known as full producers, also supply other local Dunkin' Donuts restaurants that do not have access to CMLs. In addition, in newer markets, Dunkin' Donuts brand restaurants rely on donuts and bakery goods that are finished in restaurants. We believe that this “just baked on demand” donut manufacturing platform enables the Dunkin' Donuts brand to more efficiently expand its restaurant base in newer markets where franchisees may not have access to a CML.

Baskin-Robbins ice cream

Prior to 2000, we manufactured and sold ice cream products to substantially all of our Baskin-Robbins brand franchisees. Beginning in 2000, we made the strategic decision to outsource the manufacturing and distribution of ice cream products for the domestic Baskin-Robbins brand franchisees to Dean Foods. The transition to this outsourcing arrangement was completed in 2003. We believe that this outsourcing arrangement was an important strategic shift and served the dual purpose of further strengthening our relationships with franchisees and allowing us to focus on our core franchising operations.

International

Dunkin' Donuts

International Dunkin' Donuts franchisees are responsible for sourcing their own supplies, subject to compliance with our standards. They also produce their own donuts following the Dunkin' Donuts brand's approved processes. In certain countries, our international franchisees source virtually everything locally within their market while in others our international franchisees may source virtually everything from the NDCP. Where supplies are sourced locally, we help identify and approve those suppliers. Supplies that cannot be sourced locally are sourced through the NDCP. In addition, we assist our international franchisees in identifying regional and global suppliers with the goal of leveraging the purchasing volume for pricing and product continuity advantages.

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Baskin-Robbins

The Baskin-Robbins manufacturing network is comprised of nine facilities, none of which are owned or operated by us, that supply our international markets with ice cream products. We utilize a facility owned by Dean Foods to produce ice cream products which we purchase and distribute to many of our international markets. Certain international franchisees rely on third party-owned facilities to supply ice cream products to them, including facilities in Ireland and Canada. The Baskin-Robbins brand restaurants in India and Russia are supported by master franchisee-owned facilities in those respective countries while the restaurants in Japan and South Korea are supported by the joint venture-owned facilities located within each country.

Research and development

New product innovation is a critical component of our success. We believe the development of successful new products for each brand attracts new customers, increases comparable store sales, and allows franchisees to expand into other dayparts. New product research and development is located in a state-of-the-art facility at our headquarters in Canton, Massachusetts. The facility includes a sensory lab, a quality assurance lab and a demonstration test kitchen. We rely on our internal culinary team, which uses consumer research, to develop and test new products.

Operational support

Substantially all of our executive management, finance, marketing, legal, technology, human resources, and operations support functions are conducted from our global headquarters in Canton, Massachusetts. In the U.S. and Canada, our franchise operations for both brands are organized into regions, each of which is headed by a regional vice president and directors of operations supported by field personnel who interact directly with the franchisees. Our international businesses, excluding Canada, are organized by brand, and each brand has dedicated marketing and restaurant operations support teams. These teams, which are organized by geographic regions, work with our master licensees and joint venture partners to improve restaurant operations and restaurant-level economics. Management of a franchise restaurant is the responsibility of the franchisee, who is trained in our techniques and is responsible for ensuring that the day-to-day operations of the restaurant are in compliance with our operating standards. We have implemented a computer-based disaster recovery program to address the possibility that a natural (or other form of) disaster may impact the information technology systems located at our Canton, Massachusetts headquarters.

Regulatory matters

Domestic

We and our franchisees are subject to various federal, state, and local laws affecting the operation of our respective businesses, including various health, sanitation, fire, and safety standards. In some jurisdictions our restaurants are required by law to display nutritional information about our products. Each restaurant is subject to licensing and regulation by a number of governmental authorities, which include zoning, health, safety, sanitation, building, and fire agencies in the jurisdiction in which the restaurant is located. Franchisee-owned NDCP and CMLs are licensed and subject to similar regulations by federal, state, and local governments.

We and our franchisees are also subject to the Fair Labor Standards Act and various other laws governing such matters as minimum wage requirements, overtime and other working conditions, and citizenship requirements. A significant number of food-service personnel employed by franchisees are paid at rates related to the federal minimum wage.

Our franchising activities are subject to the rules and regulations of the Federal Trade Commission (“FTC”) and various state laws regulating the offer and sale of franchises. The FTC's franchise rule and various state laws require that we furnish a franchise disclosure document (“FDD”) containing certain information to prospective franchisees and a number of states require registration of the FDD with state authorities. We are operating under exemptions from registration in several states based on our experience and aggregate net worth. Substantive state laws that regulate the franchisor-franchisee relationship exist in a substantial number of states, and bills have been introduced in Congress from time to time that would provide for federal regulation of the franchisor-franchisee relationship. The state laws often limit, among other things, the duration and scope of non-competition provisions, the ability of a franchisor to terminate or refuse to renew a franchise and the ability of a franchisor to designate sources of supply. We believe that our FDDs for each of our Dunkin' Donuts brand and our Baskin-Robbins brand, together with any applicable state versions or supplements, and franchising procedures, comply in all material respects with both the FTC franchise rule and all applicable state laws regulating franchising in those states in which we have offered franchises.

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International

Internationally, we and our franchisees are subject to national and local laws and regulations that often are similar to those affecting us and our franchisees in the U.S., including laws and regulations concerning franchises, labor, health, sanitation, and safety. International Baskin-Robbins brand and Dunkin' Donuts brand restaurants are also often subject to tariffs and regulations on imported commodities and equipment, and laws regulating foreign investment. We believe that the international disclosure statements, franchise offering documents, and franchising procedures for our Baskin-Robbins brand and Dunkin' Donuts brand comply in all material respects with the laws of the applicable countries.

Environmental

Our operations, including the selection and development of the properties we lease and sublease to our franchisees and any construction or improvements we make at those locations, are subject to a variety of federal, state, and local laws and regulations, including environmental, zoning, and land use requirements. Our properties are sometimes located in developed commercial or industrial areas and might previously have been occupied by more environmentally significant operations, such as gasoline stations and dry cleaners. Environmental laws sometimes require owners or operators of contaminated property to remediate that property, regardless of fault. While we have been required to, and are continuing to, clean up contamination at a limited number of our locations, we have no known material environmental liabilities.

Employees

As of December 28, 2013, excluding employees at our company-owned restaurants, we employed 1,144 people, 1,103 of whom were based in the U.S. and 41 of whom were based in other countries. Of our domestic employees, 480 worked in the field and 623 worked at our corporate headquarters or our satellite office in California. Of these employees, 181, who are almost exclusively in marketing positions, were paid by certain of our advertising funds. None of our employees are represented by a labor union, and we believe our relationships with our employees are healthy.

Our franchisees are independent business owners, so they and their employees are not included in our employee count.

Additional Information

The Company makes available, free of charge, through its internet website www.dunkinbrands.com, its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after electronically filing such material with the Securities and Exchange Commission. You may read and copy any materials filed with the Securities and Exchange Commission at the Securities and Exchange Commission's Public Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information on the operation of the Public Reference Room by calling the Securities and Exchange Commission at 1-800-SEC-0330. This information is also available at www.sec.gov. The reference to these website addresses does not constitute incorporation by reference of the information contained on the websites and should not be considered part of this document.

Item 1A. Risk Factors.

Risks related to our business and industry

Our financial results are affected by the operating results of our franchisees.

We receive a substantial majority of our revenues in the form of royalties, which are generally based on a percentage of gross sales at franchised restaurants, rent, and other fees from franchisees. Accordingly, our financial results are to a large extent dependent upon the operational and financial success of our franchisees. If sales trends or economic conditions worsen for franchisees, their financial results may deteriorate and our royalty, rent, and other revenues may decline and our accounts receivable and related allowance for doubtful accounts may increase. In addition, if our franchisees fail to renew their franchise agreements, our royalty revenues may decrease which in turn could materially and adversely affect our business and operating results.

Our franchisees could take actions that could harm our business.

Our franchisees are contractually obligated to operate their restaurants in accordance with the operations, safety, and health standards set forth in our agreements with them. However, franchisees are independent third parties whom we do not control. The franchisees own, operate, and oversee the daily operations of their restaurants. As a result, the ultimate success and quality of any franchised restaurant rests with the franchisee. If franchisees do not successfully operate restaurants in a manner consistent with required standards, franchise fees paid to us and royalty income will be adversely affected and brand image and

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reputation could be harmed, which in turn could materially and adversely affect our business and operating results.

Although we believe we generally enjoy a positive working relationship with the vast majority of our franchisees, active and/or potential disputes with franchisees could damage our brand reputation and/or our relationships with the broader franchisee group.

Sub-franchisees could take actions that could harm our business and that of our master franchisees.

In certain of our international markets, we enter into agreements with master franchisees that permit the master franchisee to develop and operate restaurants in defined geographic areas. As permitted by our master franchisee agreements, certain master franchisees elect to sub-franchise rights to develop and operate restaurants in the geographic area covered by the master franchisee agreement. Our master franchisee agreements contractually obligate our master franchisees to operate their restaurants in accordance with specified operations, safety, and health standards and also require that any sub-franchise agreement contain similar requirements. However, we are not party to the agreements with the sub-franchisees and, as a result, are dependent upon our master franchisees to enforce these standards with respect to sub-franchised restaurants. As a result, the ultimate success and quality of any sub-franchised restaurant rests with the master franchisee. If sub-franchisees do not successfully operate their restaurants in a manner consistent with required standards, franchise fees and royalty income paid to the applicable master franchisee and, ultimately, to us could be adversely affected and our brand image and reputation may be harmed, which could materially and adversely affect our business and operating results.

Our success depends substantially on the value of our brands.

Our success is dependent in large part upon our ability to maintain and enhance the value of our brands, our customers' connection to our brands and a positive relationship with our franchisees. Brand value can be severely damaged even by isolated incidents, particularly if the incidents receive considerable negative publicity or result in litigation. Some of these incidents may relate to the way we manage our relationship with our franchisees, our growth strategies, our development efforts in domestic and foreign markets, or the ordinary course of our, or our franchisees', business. Other incidents may arise from events that are or may be beyond our ability to control and may damage our brands, such as actions taken (or not taken) by one or more franchisees or their employees relating to health, safety, welfare, or otherwise; litigation and claims; security breaches or other fraudulent activities associated with our electronic payment systems; and illegal activity targeted at us or others. Consumer demand for our products and our brands' value could diminish significantly if any such incidents or other matters erode consumer confidence in us or our products, which would likely result in lower sales and, ultimately, lower royalty income, which in turn could materially and adversely affect our business and operating results.

The quick service restaurant segment is highly competitive, and competition could lower our revenues.

The QSR segment of the restaurant industry is intensely competitive. The beverage and food products sold by our franchisees compete directly against products sold at other QSRs, local and regional beverage and food operations, specialty beverage and food retailers, supermarkets, and wholesale suppliers, many bearing recognized brand names and having significant customer loyalty. In addition to the prevailing baseline level of competition, major market players in noncompeting industries may choose to enter the restaurant industry. Key competitive factors include the number and location of restaurants, quality and speed of service, attractiveness of facilities, effectiveness of advertising, marketing, and operational programs, price, demographic patterns and trends, consumer preferences and spending patterns, menu diversification, health or dietary preferences and perceptions, and new product development. Some of our competitors have substantially greater financial and other resources than us, which may provide them with a competitive advantage. In addition, we compete within the restaurant industry and the QSR segment not only for customers but also for qualified franchisees. We cannot guarantee the retention of any, including the top-performing, franchisees in the future, or that we will maintain the ability to attract, retain, and motivate sufficient numbers of franchisees of the same caliber, which could materially and adversely affect our business and operating results. If we are unable to maintain our competitive position, we could experience lower demand for products, downward pressure on prices, the loss of market share, and the inability to attract, or loss of, qualified franchisees, which could result in lower franchise fees and royalty income, and materially and adversely affect our business and operating results.

If we or our franchisees or licensees are unable to protect our customers' credit card data and other personal information, we or our franchisees could be exposed to data loss, litigation, and liability, and our reputation could be significantly harmed.

Privacy protection is increasingly demanding and the use of electronic payment methods and collection of other personal information exposes us and our franchisees to increased risk of privacy and/or security breaches as well as other risks. In connection with credit card transactions in-store and online, we and our franchisees collect and transmit confidential credit card information by way of secure private retail networks. Additionally, we collect and store personal information from individuals,

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including our customers, franchisees, and employees. We rely on commercially available systems, software, tools, and monitoring to provide security for processing, transmitting, and storing confidential information. Further, the systems currently used for transmission and approval of electronic payment transactions, and the technology utilized in electronic payment themselves, all of which can put electronic payment at risk, are determined and controlled by the payment card industry, not by us. In addition, our franchisees, contractors, or third parties with whom we do business or to whom we outsource business operations may attempt to circumvent our security measures in order to misappropriate such information, and may purposefully or inadvertently cause a breach involving such information. Third parties may have the technology or know-how to breach the security of the personal information collected, stored, or transmitted by us or our franchisees, and our franchisees' and our security measures, as well as those of our technology vendors, may not effectively prohibit others from obtaining improper access to this information. Advances in computer and software capabilities and encryption technology, new tools, and other developments may increase the risk of such a breach. If a person is able to circumvent our data security measures or that of third parties with whom we do business, he or she could destroy or steal valuable information or disrupt our operations. Any security breach could expose us to risks of data loss, litigation, liability, and could seriously disrupt our operations. Any resulting negative publicity could significantly harm our reputation and could materially and adversely affect our business and operating results.

We cannot predict the impact that the following may have on our business: (i) new or improved technologies, (ii) alternative methods of delivery, or (iii) changes in consumer behavior facilitated by these technologies and alternative methods of delivery.

Advances in technologies or alternative methods of delivery, including advances in vending machine technology and home coffee makers, or certain changes in consumer behavior driven by these or other technologies and methods of delivery could have a negative effect on our business. Moreover, technology and consumer offerings continue to develop, and we expect that new or enhanced technologies and consumer offerings will be available in the future. We may pursue certain of those technologies and consumer offerings if we believe they offer a sustainable customer proposition and can be successfully integrated into our business model. However, we cannot predict consumer acceptance of these delivery channels or their impact on our business. In addition, our competitors, some of whom have greater resources than us, may be able to benefit from changes in technologies or consumer acceptance of alternative methods of delivery, which could harm our competitive position. There can be no assurance that we will be able to successfully respond to changing consumer preferences, including with respect to new technologies and alternative methods of delivery, or to effectively adjust our product mix, service offerings, and marketing and merchandising initiatives for products and services that address, and anticipate advances in, technology and market trends. If we are not able to successfully respond to these challenges, our business, financial condition, and operating results could be harmed.

Economic conditions adversely affecting consumer discretionary spending may negatively impact our business and operating results.

We believe that our franchisees' sales, customer traffic, and profitability are strongly correlated to consumer discretionary spending, which is influenced by general economic conditions, unemployment levels, and the availability of discretionary income. Negative consumer sentiment in the wake of the economic downturn has been widely reported over the past five years and may continue in 2014. Our franchisees' sales are dependent upon discretionary spending by consumers; any reduction in sales at franchised restaurants will result in lower royalty payments from franchisees to us and adversely impact our profitability. If the economic downturn continues for a prolonged period of time or becomes more pervasive, our business and results of operations could be materially and adversely affected. In addition, the pace of new restaurant openings may be slowed and restaurants may be forced to close, reducing the restaurant base from which we derive royalty income. As long as the weak economic environment continues, our franchisees' sales and profitability and our overall business and operating results could be adversely affected.

Our substantial indebtedness could adversely affect our financial condition.

We have a significant amount of indebtedness. As of December 28, 2013, we had total indebtedness of approximately $1.8 billion, excluding $3.0 million of undrawn letters of credit and $97.0 million of unused commitments under our senior credit facility.

Subject to the limits contained in the credit agreement governing our senior credit facility and our other debt instruments, we may be able to incur substantial additional debt from time to time to finance working capital, capital expenditures, investments, or acquisitions, or for other purposes. If we do so, the risks related to our high level of debt could intensify. Specifically, our high level of debt could have important consequences, including:

• limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions, or other general corporate requirements;

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• requiring a substantial portion of our cash flow to be dedicate to debt service payments instead of other purposes, thereby reducing the amount of cash flow available for working capital, capital expenditures, acquisitions, and other general corporate purposes;

• increasing our vulnerability to adverse changes in general economic, industry, and competitive conditions;

• exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under the senior credit facility, are at variable rates of interest;

• limiting our flexibility in planning for and reacting to changes in the industry in which we compete;

• placing us at a disadvantage compared to other, less leveraged competitors or competitors with comparable debt at more favorable interest rates; and

• increasing our costs of borrowing. 

Our variable rate debt exposes us to interest rate risk which could adversely affect our cash flow.

The borrowings under our senior credit facility bear interest at variable rates. Other debt we incur also could be variable rate debt. If market interest rates increase, variable rate debt will create higher debt service requirements, which could adversely affect our cash flow. Although we have variable-to-fixed interest rate swap agreements to hedge the floating interest rate on $900.0 million notional amount of our outstanding term loan borrowings to limit our exposure to higher interest rates, they do not offer complete protection from this risk given the total amount of our outstanding variable rate indebtedness.

The terms of our indebtedness restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.

The credit agreement governing our senior credit facility contains a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interest, including restrictions on our ability to:

• incur certain liens;

• incur additional indebtedness and guarantee indebtedness;

• pay dividends or make other distributions in respect of, or repurchase or redeem, capital stock;

• prepay, redeem, or repurchase certain debt;

• make investments, loans, advances, and acquisition;

• sell or otherwise dispose of assets, including capital stock of our subsidiaries;

• enter into transactions with affiliates;

• alter the business we conduct;

• enter into agreements restricting our subsidiaries' ability to pay dividends; and

• consolidate, merge, or sell all or substantially all of our assets.

In addition, the restrictive covenants in the credit agreement governing our senior credit facility require us to maintain specified financial ratios and satisfy other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our control.

A breach of the covenants under the credit agreement governing our senior credit facility could result in an event of default under the applicable indebtedness. Such a default may allow the creditors to accelerate the related debt and may result in the acceleration of any other debt to which a cross-acceleration or cross-default provision applies, including our interest rate swap agreements. In addition, an event of default under the credit agreement governing our senior credit facility would permit the lenders under our senior credit facility to terminate all commitments to extend further credit under that facility. Furthermore, if we were unable to repay the amounts due and payable under our senior credit facility, those lenders could proceed against the collateral granted to them to secure that indebtedness, which could force us into bankruptcy or liquidation. In the event our lenders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness.

If our operating performance declines, we may in the future need to obtain waivers from the required lenders under our senior credit facility to avoid being in default. If we breach our covenants under our senior credit facility and seek a waiver, we may

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not be able to obtain a waiver from the required lenders. If this occurs we would be in default under our senior credit facility, the lenders could exercise their rights, as described above, and we could be forced into bankruptcy or liquidation. See “Management's discussion and analysis of financial condition and results of operations—Liquidity and capital resources,” and “Description of indebtedness.”

Infringement, misappropriation, or dilution of our intellectual property could harm our business.

We regard our Dunkin' Donuts^® and Baskin-Robbins^® trademarks as having significant value and as being important factors in the marketing of our brands. We have also obtained trademark protection for several of our product offerings and advertising slogans, including “America Runs on Dunkin' ^® ” and “What are you Drinkin'? ^® ”. We believe that these and other intellectual property are valuable assets that are critical to our success. We rely on a combination of protections provided by contracts, as well as copyright, patent, trademark, and other laws, such as trade secret and unfair competition laws, to protect our intellectual property from infringement, misappropriation, or dilution. We have registered certain trademarks and service marks and have other trademark and service mark registration applications pending in the U.S. and foreign jurisdictions. However, not all of the trademarks or service marks that we currently use have been registered in all of the countries in which we do business, and they may never be registered in all of those countries. Although we monitor trademark portfolios both internally and through external search agents and impose an obligation on franchisees to notify us upon learning of potential infringement, there can be no assurance that we will be able to adequately maintain, enforce, and protect our trademarks or other intellectual property rights. We are aware of names and marks similar to our service marks being used by other persons in certain geographic areas in which we have restaurants. Although we believe such uses will not adversely affect us, further or currently unknown unauthorized uses or other infringement of our trademarks or service marks could diminish the value of our brands and may adversely affect our business. Effective intellectual property protection may not be available in every country in which we have or intend to open or franchise a restaurant. Failure to adequately protect our intellectual property rights could damage our brands and impair our ability to compete effectively. Even where we have effectively secured statutory protection for our trade secrets and other intellectual property, our competitors may misappropriate our intellectual property and our employees, consultants, and suppliers may breach their contractual obligations not to reveal our confidential information, including trade secrets. Although we have taken measures to protect our intellectual property, there can be no assurance that these protections will be adequate or that third parties will not independently develop products or concepts that are substantially similar to ours. Despite our efforts, it may be possible for third-parties to reverse-engineer, otherwise obtain, copy, and use information that we regard as proprietary. Furthermore, defending or enforcing our trademark rights, branding practices, and other intellectual property, and seeking an injunction and/or compensation for misappropriation of confidential information, could result in the expenditure of significant resources and divert the attention of management, which in turn may materially and adversely affect our business and operating results.

Although we monitor and restrict franchisee activities through our franchise and license agreements, franchisees may refer to our brands improperly in writings or conversation, resulting in the dilution of our intellectual property. Franchisee noncompliance with the terms and conditions of our franchise or license agreements may reduce the overall goodwill of our brands, whether through the failure to meet health and safety standards, engage in quality control or maintain product consistency, or through the participation in improper or objectionable business practices. Moreover, unauthorized third parties may use our intellectual property to trade on the goodwill of our brands, resulting in consumer confusion or dilution. Any reduction of our brands' goodwill, consumer confusion, or dilution is likely to impact sales, and could materially and adversely impact our business and operating results.

Under certain license agreements, our subsidiaries have licensed to Dunkin' Brands the right to use certain trademarks, and in connection with those licenses, Dunkin' Brands monitors the use of trademarks and the quality of the licensed products. While courts have generally approved the delegation of quality-control obligations by a trademark licensor to a licensee under appropriate circumstances, there can be no guarantee that these arrangements will not be deemed invalid on the ground that the trademark owner is not controlling the nature and quality of goods and services sold under the licensed trademarks.

The restaurant industry is affected by consumer preferences and perceptions. Changes in these preferences and perceptions may lessen the demand for our products, which could reduce sales by our franchisees and reduce our royalty revenues.

The restaurant industry is affected by changes in consumer tastes, national, regional, and local economic conditions, and demographic trends. For instance, if prevailing health or dietary preferences cause consumers to avoid donuts and other products we offer in favor of foods that are perceived as more healthy, our franchisees' sales would suffer, resulting in lower royalty payments to us, and our business and operating results would be harmed.

If we fail to successfully implement our growth strategy, which includes opening new domestic and international restaurants, our ability to increase our revenues and operating profits could be adversely affected.

Our growth strategy relies in part upon new restaurant development by existing and new franchisees. We and our franchisees

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face many challenges in opening new restaurants, including:

• availability of financing;

• selection and availability of suitable restaurant locations;

• competition for restaurant sites;

• negotiation of acceptable lease and financing terms;

• securing required domestic or foreign governmental permits and approvals;

• consumer tastes in new geographic regions and acceptance of our products;

• employment and training of qualified personnel;

• impact of inclement weather, natural disasters, and other acts of nature; and

• general economic and business conditions.

In particular, because the majority of our new restaurant development is funded by franchisee investment, our growth strategy is dependent on our franchisees' (or prospective franchisees') ability to access funds to finance such development. We do not provide our franchisees with direct financing and therefore their ability to access borrowed funds generally depends on their independent relationships with various financial institutions. If our franchisees (or prospective franchisees) are not able to obtain financing at commercially reasonable rates, or at all, they may be unwilling or unable to invest in the development of new restaurants, and our future growth could be adversely affected.

To the extent our franchisees are unable to open new stores as we anticipate, our revenue growth would come primarily from growth in comparable store sales. Our failure to add a significant number of new restaurants or grow comparable store sales would adversely affect our ability to increase our revenues and operating income and could materially and adversely harm our business and operating results. 

Increases in commodity prices may negatively affect payments from our franchisees and licensees.

Coffee and other commodity prices are subject to substantial price fluctuations, stemming from variations in weather patterns, shifting political or economic conditions in coffee-producing countries, and delays in the supply chain. If commodity prices rise, franchisees may experience reduced sales, due to decreased consumer demand at retail prices that have been raised to offset increased commodity prices, which may reduce franchisee profitability. Any such decline in franchisee sales will reduce our royalty income, which in turn may materially and adversely affect our business and operating results.

Our joint ventures in Japan and South Korea (the “International JVs”), as well as our licensees in Russia and India, manufacture ice cream products independently. Each of the International JVs owns a manufacturing facility in its country of operation. The revenues derived from the International JVs differ fundamentally from those of other types of franchise arrangements in the system because the income that we receive from the International JVs is based in part on the profitability, rather than the gross sales, of the restaurants operated by the International JVs. Accordingly, in the event that the International JVs experience staple ingredient price increases that adversely affect the profitability of the restaurants operated by the International JVs, that decrease in profitability would reduce distributions by the International JVs to us, which in turn could materially and adversely impact our business and operating results.

Shortages of coffee could adversely affect our revenues.

If coffee consumption continues to increase worldwide or there is a disruption in the supply of coffee due to natural disasters, political unrest, or other calamities, the global coffee supply may fail to meet demand. If coffee demand is not met, franchisees may experience reduced sales which, in turn, would reduce our royalty income. Such a reduction in our royalty income may materially and adversely affect our business and operating results.

We and our franchisees rely on computer systems to process transactions and manage our business, and a disruption or a failure of such systems or technology could harm our ability to effectively manage our business.

Network and information technology systems are integral to our business. We utilize various computer systems, including our FAST System and our EFTPay System, which are customized, web-based systems. The FAST System is the system by which our U.S. and Canadian franchisees report their weekly sales and pay their corresponding royalty fees and required advertising fund contributions. When sales are reported by a U.S. or Canadian franchisee, a withdrawal for the authorized amount is initiated from the franchisee's bank after 12 days (from the week ending or month ending date). The FAST System is critical to our ability to accurately track sales and compute royalties due from our U.S. and Canadian franchisees. The EFTPay System is

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used by our U.S. and Canadian franchisees to make payments against open, non-fee invoices (i.e., all invoices except royalty and advertising funds). When a franchisee selects an invoice and submits the payment, on the following day a withdrawal for the selected amount is initiated from the franchisee's bank. Despite the implementation of security measures, our systems, including the FAST System and the EFTPay System, are subject to damage and/or interruption as a result of power outages, computer and network failures, computer viruses and other disruptive software, security breaches, catastrophic events, and improper usage by employees. Such events could result in a material disruption in operations, a need for a costly repair, upgrade or replacement of systems, or a decrease in, or in the collection of, royalties paid to us by our franchisees. To the extent that any disruption or security breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability which could materially affect our results of operations.

Interruptions in the supply of product to franchisees and licensees could adversely affect our revenues.

In order to maintain quality-control standards and consistency among restaurants, we require through our franchise agreements that our franchisees obtain food and other supplies from preferred suppliers approved in advance. In this regard, we and our franchisees depend on a group of suppliers for ingredients, foodstuffs, beverages, and disposable serving instruments including, but not limited to, Rich Products Corp., Dean Foods Co., The Coca-Cola Company, and Silver Pail Dairy, Ltd. as well as four primary coffee roasters and three primary donut mix suppliers. In 2013, we and our franchisees purchased products from over 400 approved domestic suppliers, with approximately 12 of such suppliers providing half, based on dollar volume, of all products purchased domestically. We look to approve multiple suppliers for most products, and require any single sourced supplier, such as The Coca-Cola Company, to have contingency plans in place to ensure continuity of supply. In addition we believe that, if necessary, we could obtain readily available alternative sources of supply for each product that we currently source through a single supplier. To facilitate the efficiency of our franchisees' supply chain, we have historically entered into several preferred-supplier arrangements for particular food or beverage items.

The Dunkin' Donuts system is supported domestically by the franchisee-owned purchasing and distribution cooperative known as the National Distributor Commitment Program. We have a long-term agreement with the National DCP, LLC (the “NDCP”) for the NDCP to provide substantially all of the goods needed to operate a Dunkin' Donuts restaurant in the U.S. The NDCP also supplies some international markets. The NDCP aggregates the franchisee demand, sends requests for proposals to approved suppliers, and negotiates contracts for approved items. The NDCP also inventories the items in its seven regional distribution centers and ships products to franchisees at least one time per week. We do not control the NDCP and have only limited contractual rights under our agreement with the NDCP associated with supplier certification and quality assurance and protection of our intellectual property. While the NDCP maintains contingency plans with its approved suppliers and has a contingency plan for its own distribution function to restaurants, our franchisees bear risks associated with the timeliness, solvency, reputation, labor relations, freight costs, price of raw materials, and compliance with health and safety standards of each supplier (including those of the International JVs) including, but not limited to, risks associated with contamination to food and beverage products. We have little control over such suppliers. Disruptions in these relationships may reduce franchisee sales and, in turn, our royalty income.

Overall difficulty of suppliers (those of the International JVs) meeting franchisee product demand, interruptions in the supply chain, obstacles or delays in the process of renegotiating or renewing agreements with preferred suppliers, financial difficulties experienced by suppliers, or the deficiency, lack, or poor quality of alternative suppliers could adversely impact franchisee sales which, in turn, would reduce our royalty income and could materially and adversely affect our business and operating results.

We may not be able to recoup our expenditures on properties we sublease to franchisees.

Pursuant to the terms of certain prime leases we have entered into with third-party landlords, we may be required to construct or improve a property, pay taxes, maintain insurance, and comply with building codes and other applicable laws. The subleases we enter into with franchisees related to such properties typically pass through such obligations, but if a franchisee fails to perform the obligations passed through to them, we will be required to perform those obligations, resulting in an increase in our leasing and operational costs and expenses. Additionally, in some locations, we may pay more rent and other amounts to third-party landlords under a prime lease than we receive from the franchisee who subleases such property. Typically, our franchisees' rent is based in part on a percentage of gross sales at the restaurant, so a downturn in gross sales would negatively affect the level of the payments we receive.

If the international markets in which we compete are affected by changes in political, social, legal, economic, or other factors, our business and operating results may be materially and adversely affected.

As of December 28, 2013, we had 8,014 international restaurants located in 54 foreign countries. The international operations of our franchisees may subject us to additional risks, which differ in each country in which our franchisees operate, and such risks may negatively affect our result in a delay in or loss of royalty income to us.

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The factors impacting the international markets in which restaurants are located may include:

• recessionary or expansive trends in international markets;

• changes in foreign currency exchange rates and hyperinflation or deflation in the foreign countries in which we or the International JVs operate;

• the imposition of restrictions on currency conversion or the transfer of funds;

• availability of credit for our franchisees, licensees, and International JVs to finance the development of new restaurants;

• increases in the taxes paid and other changes in applicable tax laws;

• legal and regulatory changes and the burdens and costs of local operators' compliance with a variety of laws, including trade restrictions and tariffs;

• interruption of the supply of product;

• increases in anti-American sentiment and the identification of the Dunkin' Donuts brand and Baskin-Robbins brand as American brands;

• political and economic instability; and

• natural disasters and other calamities.

Any or all of these factors may reduce distributions from our International JVs or other international partners and/or royalty income, which in turn may materially and adversely impact our business and operating results.

Termination of an arrangement with a master franchisee could adversely impact our revenues.

Internationally, and in limited cases domestically, we enter into relationships with “master franchisees” to develop and operate restaurants in defined geographic areas. Master franchisees are granted exclusivity rights with respect to larger territories than the typical franchisee, and in particular cases, expansion after minimum requirements are met is subject to the discretion of the master franchisee. In fiscal years 2013, 2012, and 2011, we derived approximately 15.7%, 13.7%, and 15.1%, respectively, of our total revenues from master franchisee arrangements. The termination of an arrangement with a master franchisee or a lack of expansion by certain master franchisees could result in the delay of the development of franchised restaurants, or an interruption in the operation of one of our brands in a particular market or markets. Any such delay or interruption would result in a delay in, or loss of, royalty income to us whether by way of delayed royalty income or delayed revenues from the sale of ice cream products by us to franchisees internationally, or reduced sales. Any interruption in operations due to the termination of an arrangement with a master franchisee similarly could result in lower revenues for us, particularly if we were to determine to close restaurants following the termination of an arrangement with a master franchisee.

Fluctuations in exchange rates affect our revenues.

We are subject to inherent risks attributed to operating in a global economy. Most of our revenues, costs, and debts are denominated in U.S. dollars. However, sales made by franchisees outside of the U.S. are denominated in the currency of the country in which the point of distribution is located, and this currency could become less valuable prior to calculation of our royalty payments in U.S. dollars as a result of exchange rate fluctuations. As a result, currency fluctuations could reduce our royalty income. Unfavorable currency fluctuations could result in a reduction in our revenues. Income we earn from our joint ventures is also subject to currency fluctuations. These currency fluctuations affecting our revenues and costs could adversely affect our business and operating results.

Adverse public or medical opinions about the health effects of consuming our products, as well as reports of incidents involving food-borne illnesses or food tampering, whether or not accurate, could harm our brands and our business.

Some of our products contain caffeine, dairy products, sugar, and other active compounds, the health effects of which are the subject of increasing public scrutiny, including the suggestion that excessive consumption of caffeine, dairy products, sugar, and other active compounds can lead to a variety of adverse health effects. There has also been greater public awareness that sedentary lifestyles, combined with excessive consumption of high-calorie foods, have led to a rapidly rising rate of obesity. In the U.S. and certain other countries, there is increasing consumer awareness of health risks, including obesity, as well as increased consumer litigation based on alleged adverse health impacts of consumption of various food products. While we offer some healthier beverage and food items, including reduced fat items, an unfavorable report on the health effects of caffeine or other compounds present in our products, or negative publicity or litigation arising from other health risks such as obesity, could significantly reduce the demand for our beverages and food products. Similarly, instances or reports, whether true or not,

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of unclean water supply, food-borne illnesses, and food tampering have in the past severely injured the reputations of companies in the food processing, grocery, and QSR segments and could in the future affect us as well. Any report linking us or our franchisees to the use of unclean water, food-borne illnesses, or food tampering could damage our brands' value immediately, severely hurt sales of beverages and food products, and possibly lead to product liability claims. In addition, instances of food-borne illnesses or food tampering, even those occurring solely at the restaurants of competitors, could, by resulting in negative publicity about the foodservice or restaurant industry, adversely affect our sales on a regional or global basis. A decrease in customer traffic as a result of these health concerns or negative publicity could materially and adversely affect our brands and our business.

We may not be able to enforce payment of fees under certain of our franchise arrangements.

In certain limited instances, a franchisee may be operating a restaurant pursuant to an unwritten franchise arrangement. Such circumstances may arise where a franchisee arrangement has expired and new or renewal agreements have yet to be executed or where the franchisee has developed and opened a restaurant but has failed to memorialize the franchisor-franchisee relationship in an executed agreement as of the opening date of such restaurant. In certain other limited instances, we may allow a franchisee in good standing to operate domestically pursuant to franchise arrangements which have expired in their normal course and have not yet been renewed. As of December 28, 2013, less than 1% of our stores were operating without a written agreement. There is a risk that either category of these franchise arrangements may not be enforceable under federal, state, and local laws and regulations prior to correction or if left uncorrected. In these instances, the franchise arrangements may be enforceable on the basis of custom and assent of performance. If the franchisee, however, were to neglect to remit royalty payments in a timely fashion, we may be unable to enforce the payment of such fees which, in turn, may materially and adversely affect our business and operating results. While we generally require franchise arrangements in foreign jurisdictions to be entered into pursuant to written franchise arrangements, subject to certain exceptions, some expired contracts, letters of intent, or oral agreements in existence may not be enforceable under local laws, which could impair our ability to collect royalty income, which in turn may materially and adversely impact our business and operating results.

Our business activities subject us to litigation risk that could affect us adversely by subjecting us to significant money damages and other remedies or by increasing our litigation expense.

In the ordinary course of business, we are the subject of complaints or litigation from franchisees, usually related to alleged breaches of contract or wrongful termination under the franchise arrangements. In addition, we are, from time to time, the subject of complaints or litigation from customers alleging illness, injury, or other food-quality, health, or operational concerns and from suppliers alleging breach of contract. We may also be subject to employee claims based on, among other things, discrimination, harassment, or wrongful termination. Finally, litigation against a franchisee or its affiliates by third parties, whether in the ordinary course of business or otherwise, may include claims against us by virtue of our relationship with the defendant-franchisee. In addition to decreasing the ability of a defendant-franchisee to make royalty payments and diverting our management resources, adverse publicity resulting from such allegations may materially and adversely affect us and our brands, regardless of whether such allegations are valid or whether we are liable. Our international operations may be subject to additional risks related to litigation, including difficulties in enforcement of contractual obligations governed by foreign law due to differing interpretations of rights and obligations, compliance with multiple and potentially conflicting laws, new and potentially untested laws and judicial systems, and reduced or diminished protection of intellectual property. A substantial unsatisfied judgment against us or one of our subsidiaries could result in bankruptcy, which would materially and adversely affect our business and operating results. 

Our business is subject to various laws and regulations and changes in such laws and regulations, and/or failure to comply with existing or future laws and regulations, could adversely affect us.

We are subject to state franchise registration requirements, the rules and regulations of the Federal Trade Commission (the “FTC”), various state laws regulating the offer and sale of franchises in the U.S. through the provision of franchise disclosure documents containing certain mandatory disclosures, and certain rules and requirements regulating franchising arrangements in foreign countries. Although we believe that the Franchisors' Franchise Disclosure Documents, together with any applicable state-specific versions or supplements, and franchising procedures that we use comply in all material respects with both the FTC guidelines and all applicable state laws regulating franchising in those states in which we offer new franchise arrangements, noncompliance could reduce anticipated royalty income, which in turn may materially and adversely affect our business and operating results.

Our franchisees are subject to various existing U.S. federal, state, local, and foreign laws affecting the operation of the restaurants including various health, sanitation, fire, and safety standards. Franchisees may in the future become subject to regulation (or further regulation) seeking to tax or regulate high-fat foods, to limit the serving size of beverages containing sugar, to ban the use of certain packaging materials (including polystyrene used in the iconic Dunkin' Donuts cup), or requiring

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the display of detailed nutrition information. Each of these regulations would be costly to comply with and/or could result in reduced demand for our products.

In connection with the continued operation or remodeling of certain restaurants, franchisees may be required to expend funds to meet U.S. federal, state, and local and foreign regulations. Difficulties in obtaining, or the failure to obtain, required licenses or approvals could delay or prevent the opening of a new restaurant in a particular area or cause an existing restaurant to cease operations. All of these situations would decrease sales of an affected restaurant and reduce royalty payments to us with respect to such restaurant.

The franchisees are also subject to the Fair Labor Standards Act of 1938, as amended, and various other laws in the U.S. and in foreign countries governing such matters as minimum-wage requirements, overtime and other working conditions, and citizenship requirements. A significant number of our franchisees' food-service employees are paid at rates related to the U.S. federal minimum wage, and past increases in the U.S. federal minimum wage have increased labor costs, as would future increases. Any increases in labor costs might result in franchisees inadequately staffing restaurants. Understaffed restaurants could reduce sales at such restaurants, decrease royalty payments, and adversely affect our brands.

Our and our franchisees' operations and properties are subject to extensive U.S. federal, state, and local laws and regulations, including those relating to environmental, building, and zoning requirements. Our development of properties for leasing or subleasing to franchisees depends to a significant extent on the selection and acquisition of suitable sites, which are subject to zoning, land use, environmental, traffic, and other regulations and requirements. Failure to comply with legal requirements could result in, among other things, revocation of required licenses, administrative enforcement actions, fines, and civil and criminal liability. We may incur investigation, remediation, or other costs related to releases of hazardous materials or other environmental conditions at our properties, regardless of whether such environmental conditions were created by us or a third party, such as a prior owner or tenant. We have incurred costs to address soil and groundwater contamination at some sites, and continue to incur nominal remediation costs at some of our other locations. If such issues become more expensive to address, or if new issues arise, they could increase our expenses, generate negative publicity, or otherwise adversely affect us.

Our tax returns and positions are subject to review and audit by foreign, federal, state, and local taxing authorities, and adverse outcomes resulting from examination of our income or other tax returns could adversely affect our operating results and financial condition.

We are subject to income taxes in both the United States and numerous foreign jurisdictions. The Internal Revenue Service (“IRS”) concluded its examination of the federal income tax returns for the fiscal year 2010 during fiscal year 2013 and agreed to a settlement regarding the recognition of revenue for gift cards and other matters. The Company made a cash payment for the additional federal tax due totaling $3.0 million. Based on this and previous settlements, additional state taxes and federal and state interest owed, net of federal and state benefits, are approximately $1.5 million, of which approximately $0.8 million was paid during fiscal year 2013. As the additional federal and state taxes owed for all periods represent temporary differences that will be deductible in future years, the potential tax expense is limited to federal and state interest, net of federal and state benefits, which we do not expect to be material. See Note 16 of the notes to our audited consolidated financial statements included herein.

We are subject to a variety of additional risks associated with our franchisees.

Our franchise system subjects us to a number of risks, any one of which may impact our ability to collect royalty payments from our franchisees, may harm the goodwill associated with our brands, and/or may materially and adversely impact our business and results of operations.

Bankruptcy of U.S. Franchisees. A franchisee bankruptcy could have a substantial negative impact on our ability to collect payments due under such franchisee's franchise arrangements and, to the extent such franchisee is a lessee pursuant to a franchisee lease/sublease with us, payments due under such franchisee lease/sublease. In a franchisee bankruptcy, the bankruptcy trustee may reject its franchise arrangements and/or franchisee lease/sublease pursuant to Section 365 under the United States bankruptcy code, in which case there would be no further royalty payments and/or franchisee lease/sublease payments from such franchisee, and there can be no assurance as to the proceeds, if any, that may ultimately be recovered in a bankruptcy proceeding of such franchisee in connection with a damage claim resulting from such rejection.

Franchisee Changes in Control. The franchise arrangements prohibit “changes in control” of a franchisee without our consent as the franchisor, except in the event of the death or disability of a franchisee (if a natural person) or a principal of a franchisee entity. In such event, the executors and representatives of the franchisee are required to transfer the relevant franchise arrangements to a successor franchisee approved by the franchisor. There can be, however, no assurance that any such successor would be found or, if found, would be able to perform the former franchisee's obligations under such franchise arrangements or successfully operate the restaurant. If a successor franchisee is not found, or if the successor franchisee that is found is not as successful in operating the restaurant as the then-deceased or disabled franchisee or franchisee principal, the

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sales of the restaurant could be adversely affected.

Franchisee Insurance. The franchise arrangements require each franchisee to maintain certain insurance types and levels. Certain extraordinary hazards, however, may not be covered, and insurance may not be available (or may be available only at prohibitively expensive rates) with respect to many other risks. Moreover, any loss incurred could exceed policy limits and policy payments made to franchisees may not be made on a timely basis. Any such loss or delay in payment could have a

material and adverse effect on a franchisee's ability to satisfy its obligations under its franchise arrangement, including its ability to make royalty payments.

Some of Our Franchisees are Operating Entities. Franchisees may be natural persons or legal entities. Our franchisees that are operating companies (as opposed to limited purpose entities) are subject to business, credit, financial, and other risks, which may be unrelated to the operations of the restaurants. These unrelated risks could materially and adversely affect a franchisee that is an operating company and its ability to make its royalty payments in full or on a timely basis, which in turn may materially and adversely affect our business and operating results.

Franchise Arrangement Termination; Nonrenewal. Each franchise arrangement is subject to termination by us as the franchisor in the event of a default, generally after expiration of applicable cure periods, although under certain circumstances a franchise arrangement may be terminated by us upon notice without an opportunity to cure. The default provisions under the franchise arrangements are drafted broadly and include, among other things, any failure to meet operating standards and actions that may threaten our licensed intellectual property.

In addition, each franchise agreement has an expiration date. Upon the expiration of the franchise arrangement, we or the franchisee may, or may not, elect to renew the franchise arrangements. If the franchisee arrangement is renewed, the franchisee will receive a “successor” franchise arrangement for an additional term. Such option, however, is contingent on the franchisee's execution of the then-current form of franchise arrangements (which may include increased royalty payments, advertising fees, and other costs), the satisfaction of certain conditions (including modernization of the restaurant and related operations), and the payment of a renewal fee. If a franchisee is unable or unwilling to satisfy any of the foregoing conditions, the expiring franchise arrangements will terminate upon expiration of the term of the franchise arrangements.

Product Liability Exposure. We require franchisees to maintain general liability insurance coverage to protect against the risk of product liability and other risks and demand strict franchisee compliance with health and safety regulations. However, franchisees may receive through the supply chain (from central manufacturing locations (“CMLs”), NDCP, or otherwise), or produce defective food or beverage products, which may adversely impact our brands' goodwill.

Americans with Disabilities Act. Restaurants located in the U.S. must comply with Title III of the Americans with Disabilities Act of 1990, as amended (the “ADA”). Although we believe newer restaurants meet the ADA construction standards and, further, that franchisees have historically been diligent in the remodeling of older restaurants, a finding of noncompliance with the ADA could result in the imposition of injunctive relief, fines, an award of damages to private litigants, or additional capital expenditures to remedy such noncompliance. Any imposition of injunctive relief, fines, damage awards, or capital expenditures could adversely affect the ability of a franchisee to make royalty payments, or could generate negative publicity, or otherwise adversely affect us.

Franchisee Litigation. Franchisees are subject to a variety of litigation risks, including, but not limited to, customer claims, personal-injury claims, environmental claims, employee allegations of improper termination and discrimination, claims related to violations of the ADA, religious freedom, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and intellectual-property claims. Each of these claims may increase costs and limit the funds available to make royalty payments and reduce the execution of new franchise arrangements.

Potential Conflicts with Franchisee Organizations. Although we believe our relationship with our franchisees is open and strong, the nature of the franchisor-franchisee relationship can give rise to conflict. In the U.S., our approach is collaborative in that we have established district advisory councils, regional advisory councils, and a national brand advisory council for each of the Dunkin' Donuts brand and the Baskin-Robbins brand. The councils are comprised of franchisees, brand employees, and executives, and they meet to discuss the strengths, weaknesses, challenges, and opportunities facing the brands as well as the rollout of new products and projects. Internationally, our operations are primarily conducted through joint ventures with local licensees, so our relationships are conducted directly with our licensees rather than separate advisory committees. No material disputes exist in the U.S. or internationally at this time.

Failure to retain our existing senior management team or the inability to attract and retain new qualified personnel could hurt our business and inhibit our ability to operate and grow successfully.

Our success will continue to depend to a significant extent on our executive management team and the ability of other key management personnel to replace executives who retire or resign. We may not be able to retain our executive officers and key

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personnel or attract additional qualified management personnel to replace executives who retire or resign. Failure to retain our leadership team and attract and retain other important personnel could lead to ineffective management and operations, which could materially and adversely affect our business and operating results.

Unforeseen weather or other events may disrupt our business.

Unforeseen events, including war, terrorism, and other international, regional, or local instability or conflicts (including labor issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, or water supply or widespread/pandemic illness such as the avian or H1N1 flu), and natural disasters such as earthquakes, tsunamis, hurricanes, or other adverse weather and climate conditions, whether occurring in the U.S. or abroad, could disrupt our operations or that of our franchisees or suppliers; or result in political or economic instability. These events could reduce traffic in our restaurants and demand for our products; make it difficult or impossible for our franchisees to receive products from their suppliers; disrupt or prevent our ability to perform functions at the corporate level; and/or otherwise impede our or our franchisees' ability to continue business operations in a continuous manner consistent with the level and extent of business activities prior to the occurrence of the unexpected event or events, which in turn may materially and adversely impact our business and operating results.

Risks related to our common stock

Our stock price could be extremely volatile and, as a result, you may not be able to resell your shares at or above the price you paid for them.

Since our initial public offering in July 2011, the price of our common stock, as reported by NASDAQ, has ranged from a low of $23.24 on December 15, 2011 to a high of $50.80 on February 19, 2014. In addition, the stock market in general has been highly volatile. As a result, the market price of our common stock is likely to be similarly volatile, and investors in our common stock may experience a decrease, which could be substantial, in the value of their stock, including decreases unrelated to our operating performance or prospects, and could lose part or all of their investment. The price of our common stock could be subject to wide fluctuations in response to a number of factors, including those described elsewhere in this report and others such as:

• variations in our operating performance and the performance of our competitors;

• actual or anticipated fluctuations in our quarterly or annual operating results;

• publication of research reports by securities analysts about us, our competitors, or our industry;

• our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may give to the market;

• additions and departures of key personnel;

• strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic investments, or changes in business strategy;

• the passage of legislation or other regulatory developments affecting us or our industry;

• speculation in the press or investment community;

• changes in accounting principles;

• terrorist acts, acts of war, or periods of widespread civil unrest;

• natural disasters and other calamities; and

• changes in general market and economic conditions.

As we operate in a single industry, we are especially vulnerable to these factors to the extent that they affect our industry, our products, or to a lesser extent our markets. In the past, securities class action litigation has often been initiated against companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert our management's attention and resources, and could also require us to make substantial payments to satisfy judgments or to settle litigation.

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Provisions in our charter documents and Delaware law may deter takeover efforts that you feel would be beneficial to stockholder value.

Our certificate of incorporation and bylaws and Delaware law contain provisions which could make it harder for a third party to acquire us, even if doing so might be beneficial to our stockholders. These provisions include a classified board of directors and limitations on actions by our stockholders. In addition, our board of directors has the right to issue preferred stock without stockholder approval that could be used to dilute a potential hostile acquirer. Our certificate of incorporation also imposes some restrictions on mergers and other business combinations between us and a holder of 15% or more of our outstanding common stock. As a result, you may lose your ability to sell your stock for a price in excess of the prevailing market price due to these protective measures, and efforts by stockholders to change the direction or management of the company may be unsuccessful.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Our corporate headquarters, located in Canton, Massachusetts, houses substantially all of our executive management and employees who provide our primary corporate support functions: legal, marketing, technology, human resources, public relations, financial and research and development.

As of December 28, 2013, we owned 98 properties and leased 911 locations across the U.S. and Canada, a majority of which we leased or subleased to franchisees. For fiscal year 2013, we generated 13.5%, or $96.1 million, of our total revenue from rental fees from franchisees who lease or sublease their properties from us.

The remaining balance of restaurants selling our products are situated on real property owned by franchisees or leased directly by franchisees from third-party landlords. All international restaurants (other than 10 located in Canada) are owned by licensees and their sub-franchisees or leased by licensees and their sub-franchisees directly from a third-party landlord.

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 28, 2013, there were 10,858 Dunkin' Donuts points of distribution, operating in 40 states and the District of Columbia in the U.S. and 32 foreign countries. Baskin-Robbins points of distribution totaled 7,300, operating in 43 states and the District of Columbia in the U.S. and 46 foreign countries. All but 36 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 28, 2013.

	Franchisee-owned points of distribution	Company-owned points of distribution
Dunkin’ Donuts—US*	7,648	29
Dunkin’ Donuts—International	3,181	—
Total Dunkin’ Donuts*	10,829	29
Baskin-Robbins—US*	2,460	7
Baskin-Robbins—International	4,833	—
Total Baskin-Robbins*	7,293	7
Total US	10,108	36
Total International	8,014	—

* 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.

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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 1,182 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 10,108 U.S. franchised restaurants, 92 were sites owned by the Company and leased to franchisees, 852 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 to 20 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., 17 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 10 leased franchised restaurant properties and 2 surplus leased properties in Canada. We also have leased office space in Australia, China, Dubai, and the United Kingdom.

The following table sets forth the Company’s owned and leased office and training facilities, including the approximate square footage of each facility. None of these owned properties, or the Company’s leasehold interest in leased property, is encumbered by a mortgage.

Location	Type	Owned/Leased	Approximate Sq. Ft.
Canton, MA	Office	Leased	175,000
Braintree, MA (training facility)	Office	Owned	15,000
Burbank, CA (training facility)	Office	Leased	19,000
Dubai, United Arab Emirates (regional office space)	Office	Leased	3,200
Shanghai, China (regional office space)	Office	Leased	1,700
Various (regional sales offices)	Office	Leased	Range of 150 to 300

Item 3. Legal Proceedings.

In May 2003, a group of Dunkin’ Donuts franchisees from Quebec, Canada filed a lawsuit against the Company on a variety of claims, based on events which primarily occurred 10 to 15 years ago, including but not limited to, alleging that the Company breached its franchise agreements and provided inadequate management and support to Dunkin’ Donuts franchisees in Quebec (“Bertico litigation”). On June 22, 2012, the Quebec Superior Court found for the plaintiffs and issued a judgment against the Company in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest, representing loss in value of the franchises and lost profits. During the second quarter of 2012, the Company increased its estimated liability related to the Bertico litigation by $20.7 million to reflect the judgment amount and estimated plaintiff legal costs and interest. During fiscal years 2013 and 2012, the Company accrued additional interest on the judgment amount of $952 thousand and $493 thousand, respectively, resulting in an estimated liability of $25.1 million, including the impact of foreign exchange, as of December 28, 2013. The Company strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. As such, the Company is vigorously appealing the decision in the Quebec Court of Appeals (Montreal).

In addition, the Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. While the Company intends to vigorously defend its positions against all claims in these lawsuits and disputes, it is reasonably possible that the losses in connection with all matters could increase by up to an additional $12.0 million based on the outcome of ongoing litigation or negotiations.

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Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock has been listed on the NASDAQ Global Select Market under the symbol “DNKN” since July 27, 2011. Prior to that time, there was no public market for our common stock. The following table sets forth for the periods indicated the high and low sale prices of our common stock on the NASDAQ Global Select Market.

Fiscal Quarter	High		Low
2013
Fourth Quarter (13 weeks ended December 28, 2013)	$	49.48	$	43.91
Third Quarter (13 weeks ended September 28, 2013)	$	46.50	$	40.51
Second Quarter (13 weeks ended June 29, 2013)	$	43.52	$	36.67
First Quarter (13 weeks ended March 30, 2013)	$	40.00	$	32.32
2012
Fourth Quarter (13 weeks ended December 29, 2012)	$	33.49	$	28.62
Third Quarter (13 weeks ended September 29, 2012)	$	36.11	$	27.93
Second Quarter (13 weeks ended June 30, 2012)	$	37.02	$	29.58
First Quarter (13 weeks ended March 31, 2012)	$	32.44	$	24.35

On February 18, 2014, we had 547 holders of record of our common stock.

Dividend policy

During fiscal years 2013 and 2012, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2013:
First quarter	$	0.19	$	20,191	February 20, 2013
Second quarter	$	0.19	$	20,259	June 6, 2013
Third quarter	$	0.19	$	20,257	September 4, 2013
Fourth quarter	$	0.19	$	20,301	November 26, 2013
Fiscal year 2012:
First quarter	$	0.15	$	18,046	March 28, 2012
Second quarter	$	0.15	$	18,068	May 16, 2012
Third quarter	$	0.15	$	18,075	August 24, 2012
Fourth quarter	$	0.15	$	15,880	November 14, 2012

On February 6, 2014, we announced that our board of directors approved an increase to the next quarterly dividend to $0.23 per share of common stock payable March 19, 2014.

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The following table contains information regarding purchases of our common stock made during the quarter ended December 28, 2013 by or on behalf of Dunkin' Brands Group, Inc. or any “affiliated purchaser,” as defined by Rule 10b-18(a)(3) of the Securities Exchange Act of 1934:

	Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(a)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (a)
09/29/2013 - 10/26/2013	—	$	—	—	$	32,813,356
10/27/2013 - 11/30/2013	31,200	46.84		31,200	31,351,948
12/01/2013 - 12/28/2013	199,500	46.66		199,500	22,043,278
Total	230,700	$	46.69	230,700

^(a) On July 25, 2012, our board of directors approved a share repurchase program of up to $500 million of outstanding shares of our common stock. Under the authorization, purchases may be made in the open market or in privately negotiated transactions from time to time subject to market conditions. This repurchase authorization expires two years from the date of approval.

On February 4, 2014, our board of directors approved an additional share repurchase program of up to $125 million of outstanding shares of our common stock. Under the authorization, purchases may be made in the open market or in privately negotiated transactions from time to time subject to market conditions. This repurchase authorization expires two years from the date of approval.

Securities authorized for issuance under our equity compensation plans

	(a)	(b)		(c)
Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants, and rights	Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
Equity compensation plans approved by security holders	4,328,068	$	16.52	9,831,164
Equity compensation plans not approved by security holders	—	—		—
TOTAL	4,328,068	$	16.52	9,831,164

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Performance Graph

The following graph depicts the total return to shareholders from July 27, 2011, the date our common stock became listed on the NASDAQ Global Select Market, through December 28, 2013, relative to the performance of the Standard & Poor’s 500 Index and the Standard & Poor’s 500 Consumer Discretionary Sector, a peer group. The graph assumes an investment of $100 in our common stock and each index on July 27, 2011 and the reinvestment of dividends paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price performance.

	7/27/2011		12/31/2011		12/29/2012		12/28/2013
Dunkin’ Brands Group, Inc. (DNKN)	$	100.00	$	99.92	$	132.02	$	198.43
S&P 500	$	100.00	$	94.42	$	105.29	$	138.25
S&P Consumer Discretionary	$	100.00	$	95.65	$	114.27	$	163.04

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Item 6. Selected Financial Data.

The following table sets forth our selected historical consolidated financial and other data, and should be read in conjunction with “Management’s discussion and analysis of financial condition and results of operations” and the consolidated financial statements and the related notes thereto appearing elsewhere in this Annual Report on Form 10-K. The selected historical financial data has been derived from our audited consolidated financial statements. Historical results are not necessarily indicative of the results to be expected for future periods. The data in the following table related to adjusted operating income, adjusted net income, points of distribution, comparable store sales growth, franchisee-reported sales, company-owned store sales, and systemwide sales growth are unaudited for all periods presented. The data for fiscal year 2011 reflects the results of operations for a 53-week period. All other periods presented reflect the results of operations for 52-week periods.

	Fiscal Year
	2013			2012		2011		2010		2009
	($ in thousands, except per share data or as otherwise noted)
Consolidated Statements of Operations Data:
Franchise fees and royalty income	$	453,976		418,940		398,474		359,927		344,020
Rental income	96,082			96,816		92,145		91,102		93,651
Sales of ice cream products	112,276			94,659		100,068		84,989		75,256
Sales at company-owned restaurants	24,976			22,922		12,154		17,362		2,170
Other revenues	26,530			24,844		25,357		23,755		22,976
Total revenues	713,840			658,181		628,198		577,135		538,073
Amortization of intangible assets	26,943			26,943		28,025		32,467		35,994
Long-lived asset impairment charges	563			1,278		2,060		7,075		8,517
Other operating costs and expenses(1)(2)	406,288			412,882		389,329		361,893		323,318
Total operating costs and expenses	433,794			441,103		419,414		401,435		367,829
Net income (loss) of equity method investments(3)	18,370			22,351		(3,475	)	17,825		14,301
Operating income	304,736			239,429		205,309		193,525		184,545
Interest expense, net	(79,831		)	(73,488	)	(104,449	)	(112,532	)	(115,019	)
Gain (loss) on debt extinguishment and refinancing transactions	(5,018		)	(3,963	)	(34,222	)	(61,955	)	3,684
Other gains (losses), net	(1,799		)	23		175		408		1,066
Income before income taxes	218,088			162,001		66,813		19,446		74,276
Net income attributable to Dunkin' Brands	$	146,903		108,308		34,442		26,861		35,008
Earnings (loss) per share:
Class L—basic and diluted	n/a			n/a		6.14		4.87		4.57
Common—basic	$	1.38		0.94		(1.41	)	(2.04	)	(1.69	)
Common—diluted	1.36			0.93		(1.41	)	(2.04	)	(1.69	)

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	Fiscal Year
	2013			2012		2011		2010		2009
	($ in thousands, except per share data or as otherwise noted)
Consolidated Balance Sheet Data:
Total cash, cash equivalents, and restricted cash(4)	$	257,238		252,985		246,984		134,504		171,403
Total assets	3,234,690			3,217,513		3,224,018		3,147,288		3,224,717
Total debt(5)	1,831,037			1,857,580		1,473,469		1,864,881		1,451,757
Total liabilities	2,822,402			2,867,538		2,478,082		2,841,047		2,454,109
Common stock, Class L(6)	—			—		—		840,582		1,232,001
Total stockholders’ equity (deficit)(6)	407,358			349,975		745,936		(534,341	)	(461,393	)
Other Financial Data:
Capital expenditures	$	31,099		22,398		18,596		15,358		18,012
Adjusted operating income(7)	340,396			307,157		270,740		233,067		229,056
Adjusted net income(7)	165,761			149,700		101,744		87,759		59,504
Points of Distribution(8):
Dunkin’ Donuts U.S.	7,677			7,306		7,015		6,772		6,566
Dunkin’ Donuts International(9)	3,181			3,043		2,871		2,931		2,600
Baskin-Robbins U.S.	2,467			2,463		2,493		2,585		2,637
Baskin-Robbins International(9)	4,833			4,556		4,217		3,848		3,570
Total distribution points	18,158			17,368		16,596		16,136		15,373
Comparable Store Sales Growth (Decline)(10):
Dunkin’ Donuts U.S.	3.4		%	4.2	%	5.1	%	2.3	%	(1.3	)%
Dunkin’ Donuts International(11)	(0.4		)%	2.0	%	n/a		n/a		n/a
Baskin-Robbins U.S.	0.8		%	3.8	%	0.5	%	(5.2	)%	(6.0	)%
Baskin-Robbins International(11)	1.9		%	2.8	%	n/a		n/a		n/a
Franchisee-Reported Sales ($ in millions)(12):
Dunkin’ Donuts U.S.	$	6,717.5		6,242.0		5,919.2		5,403.3		5,173.8
Dunkin’ Donuts International	683.6			663.2		636.7		583.6		508.1
Baskin-Robbins U.S.	513.3			509.3		501.7		500.6		530.4
Baskin-Robbins International	1,362.0			1,356.8		1,286.3		1,151.5		963.2
Total franchisee-reported sales	$	9,276.4		8,771.3		8,343.9		7,639.0		7,175.5
Company-Owned Store Sales ($ in millions)(13):
Dunkin’ Donuts U.S.	$	24.6		22.2		11.6		16.9		1.8
Baskin-Robbins U.S.	0.4			0.7		0.5		0.4		0.4
Systemwide Sales Growth(14):
Dunkin’ Donuts U.S.	7.6		%	5.6	%	9.4	%	4.7	%	3.4	%
Dunkin’ Donuts International	3.1		%	4.2	%	9.1	%	15.0	%	(4.0	)%
Baskin-Robbins U.S.	0.7		%	1.5	%	0.2	%	(5.6	)%	(6.5	)%
Baskin-Robbins International	0.4		%	5.5	%	11.7	%	19.5	%	21.5	%
Total systemwide sales growth	5.8		%	5.2	%	9.1	%	6.7	%	4.1	%

(1) Includes management fees paid to our former private equity owners of $16.4 million for fiscal year 2011, and $3.0 million for each of the fiscal years 2010 and 2009 under a management agreement, which was terminated in connection with our IPO.

(2) Fiscal year 2012 includes a $20.7 million incremental legal reserve recorded in the second quarter related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately $C16.4 million (approximately $15.9 million), plus costs and interest.

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(3) Fiscal year 2013 includes an impairment of the investments in the Spain joint venture of $873 thousand. Fiscal year 2011 includes an impairment of the investment in the Korea joint venture of $19.8 million.

(4) Amount as of December 26, 2009 includes cash held in restricted accounts pursuant to the terms of a securitization indebtedness of $118.2 million. Following the redemption and discharge of the securitization indebtedness in fiscal year 2010, this amount is no longer restricted. The amount also includes cash held as advertising funds or reserved for gift card/certificate programs.

(5) Includes capital lease obligations of $7.4 million, $7.6 million, $5.2 million, $5.4 million, and $5.4 million as of December 28, 2013, December 29, 2012, December 31, 2011, December 25, 2010, and December 26, 2009, respectively.

(6) Prior to our IPO in fiscal year 2011, the Company had two classes of common stock, Class L and common. Class L common stock was classified outside of permanent equity at its preferential distribution amount, as the Class L stockholders controlled the timing and amount of distributions. Immediately prior to our IPO, each share of Class L common stock converted into 2.4338 shares of common stock, and the preferential distribution amount of Class L common stock at the date of conversion was reclassified into additional paid-in capital within permanent equity.

(7) Adjusted operating income and adjusted net income are non-GAAP measures reflecting operating income and net income adjusted for amortization of intangible assets, impairment charges, and other non-recurring, infrequent, or unusual charges, net of the tax impact of such adjustments in the case of adjusted net income. The Company uses adjusted operating income and adjusted net income as key performance measures for the purpose of evaluating performance internally. We also believe adjusted operating income and adjusted net income provide our investors with useful information regarding our historical operating results. These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Use of the terms adjusted operating income and adjusted net income may differ from similar measures reported by other companies. Adjusted operating income and adjusted net income are reconciled from operating income and net income, respectively, determined under GAAP as follows:

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	Fiscal Year
	2013			2012		2011		2010		2009
	(Unaudited, $ in thousands)
Operating income	$	304,736		239,429		205,309		193,525		184,545
Adjustments:
Amortization of other intangible assets	26,943			26,943		28,025		32,467		35,994
Impairment charges	563			1,278		2,060		7,075		8,517
Third-party product volume guarantee	7,500			—		—		—		—
Sponsor termination fee	—			—		14,671		—		—
Secondary offering costs	—			4,783		1,899		—		—
Peterborough plant closure(a)	654			14,044		—		—		—
Korea joint venture impairment, net(b)	—			—		18,776		—		—
Bertico litigation(c)	—			20,680		—		—		—
Adjusted operating income	$	340,396		307,157		270,740		233,067		229,056
Net income attributable to Dunkin' Brands	$	146,903		108,308		34,442		26,861		35,008
Adjustments:
Amortization of other intangible assets	26,943			26,943		28,025		32,467		35,994
Impairment charges	563			1,278		2,060		7,075		8,517
Third-party product volume guarantee	7,500			—		—		—		—
Sponsor termination fee	—			—		14,671		—		—
Secondary offering costs	—			4,783		1,899		—		—
Peterborough plant closure(a)	654			14,044		—		—		—
Korea joint venture impairment, net(b)	—			—		18,776		—		—
Bertico litigation(c)	—			20,680		—		—		—
Loss (gain) on debt extinguishment and refinancing transactions	5,018			3,963		34,222		61,955		(3,684	)
Tax impact of adjustments, excluding Bertico litigation(d)	(16,271		)	(20,404	)	(32,351	)	(40,599	)	(16,331	)
Tax impact of Bertico adjustment(e)	—			(3,980	)	—		—		—
Income tax audit settlements(f)	(8,417		)	(10,514	)	—		—		—
State tax apportionment(g)	2,868			4,599		—		—		—
Adjusted net income	$	165,761		149,700		101,744		87,759		59,504

(a) For fiscal year 2013, the adjustment represents transition-related general and administrative costs incurred related to the closure of the Baskin-Robbins ice cream manufacturing plant in Peterborough, Canada, such as information technology integration, project management, and transportation costs. For fiscal year 2012, the adjustment included $3.4 million of severance and other payroll-related costs, $4.2 million of accelerated depreciation, $2.7 million of incremental costs of ice cream products, and $1.6 million of other transition-related costs. The amount for fiscal year 2012 also reflects the one-time delay in revenue recognition, net of related cost of ice cream products, related to the shift in manufacturing to Dean Foods of $2.1 million.

(b) Amount consists of an impairment of the investment in the Korea joint venture of $19.8 million, less a reduction in depreciation and amortization, net of tax, of $1.0 million resulting from the allocation of the impairment charge to the underlying intangible and long-lived assets of the joint venture.

(c) Represents the incremental legal reserve recorded in the second quarter of 2012 related to the Quebec Superior Court's ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin' Brands in the amount of approximately $C16.4 million (approximately $15.9 million), plus costs and interest.

(d) Tax impact of adjustments calculated at a 40% effective tax rate for each period presented, excluding the Korea joint venture impairment in fiscal year 2011 as there was no tax impact related to that charge and the Bertico litigation adjustment for which the tax impact is calculated separately.

(e) Tax impact of Bertico litigation adjustment calculated as if the incremental reserve had not been recorded, considering statutory tax rates and deductibility.

(f) Represents income tax benefits resulting from the settlement of historical tax positions settled during the period, primarily related to the accounting for the acquisition of the Company by private equity firms in 2006.

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(g) Represents deferred tax expense recognized due to an increase in our overall state tax rate for a shift in the apportionment of income to state jurisdictions, as a result of the closure of the Peterborough manufacturing plant and transition to Dean Foods.

(8) Represents period end points of distribution.

(9) During fiscal year 2013, the Company performed an internal review of international franchised points of distribution, and determined that certain franchises opened and closed had not been accurately reported in prior years. As such, the points of distribution information above has been adjusted to reflect the results of this internal review for fiscal years 2012, 2011, 2010, and 2009 for Dunkin’ Donuts International, and fiscal years 2012 and 2011 for Baskin-Robbins International. The adjustments to the prior years were not material, and had no impact on the Company's financial position or results of operations.

(10) Represents the growth in average weekly sales for franchisee- and company-owned restaurants that have been open at least 54 weeks that have reported sales in the current and comparable prior year week.

(11) Comparable store sales growth data was not available for our international segments until fiscal year 2012.

(12) Franchisee-reported sales include sales at franchisee restaurants, including joint ventures.

(13) Company-owned store sales include sales at restaurants majority owned and operated by Dunkin’ Brands.

(14) Systemwide sales growth represents the percentage change in sales at both franchisee- and company-owned restaurants from the comparable period of the prior year. Changes in systemwide sales are driven by changes in average comparable store sales and changes in the number of restaurants.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion of our financial condition and results of operations should be read in conjunction with the selected financial data and the audited financial statements and related notes appearing elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements about our markets, the demand for our products and services and our future results and involves numerous risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and generally contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates,” or similar expressions. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected or implied by the forward-looking statement. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. See “Risk factors” for a discussion of factors that could cause our actual results to differ from those expressed or implied by forward-looking statements.

Introduction and overview

We are one of the world’s leading franchisors of quick service restaurants (“QSRs”) serving hot and cold coffee and baked goods, as well as hard serve ice cream. We franchise restaurants under our Dunkin’ Donuts and Baskin-Robbins brands. With more than 18,000 points of distribution in nearly 60 countries worldwide, we believe that our portfolio has strong brand awareness in our key markets. QSR is a restaurant format characterized by counter or drive-thru ordering and limited or no table service. As of December 28, 2013, Dunkin’ Donuts had 10,858 global points of distribution with restaurants in 40 U.S. states and the District of Columbia and in 32 foreign countries. Baskin-Robbins had 7,300 global points of distribution as of the same date, with restaurants in 43 U.S. states and the District of Columbia and in 46 foreign countries.

We are organized into four reporting segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. We generate revenue from five primary sources: (i) royalty income and franchise fees associated with franchised restaurants, (ii) rental income from restaurant properties that we lease or sublease to franchisees, (iii) sales of ice cream products to franchisees in certain international markets, (iv) retail store revenue at our company-owned restaurants, and (v) other income including fees for the licensing of our brands for products sold in non-franchised outlets, the licensing of the right to manufacture Baskin-Robbins ice cream sold to U.S. franchisees, refranchising gains, transfer fees from franchisees, and online training fees.

Approximately 64% of our revenue for fiscal year 2013 was derived from royalty income and franchise fees. Rental income from franchisees that lease or sublease their properties from us accounted for 13% of our revenue for fiscal year 2013. An additional 16% of our revenue for fiscal year 2013 was generated from sales of ice cream products to Baskin-Robbins franchisees in certain international markets. The balance of our revenue for fiscal year 2013 consisted of revenue from our company-owned restaurants, license fees on products sold in non-franchised outlets, license fees on sales of ice cream products to Baskin-Robbins franchisees in the U.S., refranchising gains, transfer fees from franchisees, and online training fees.

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Franchisees fund the vast majority of the cost of new restaurant development. As a result, we are able to grow our system with lower capital requirements than many of our competitors. With only 36 company-owned points of distribution as of December 28, 2013, we are less affected by store-level costs, profitability, and fluctuations in commodity costs than other QSR operators.

Our franchisees fund substantially all of the advertising that supports both brands. Those advertising funds also fund the cost of our marketing, research and development, and innovation personnel. Royalty payments and advertising fund contributions typically are made on a weekly basis for restaurants in the U.S., which limits our working capital needs. For fiscal year 2013, franchisee contributions to the U.S. advertising funds were $356.1 million.

We operate and report financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2013, 2012, and 2011 reflect the results of operations for the 52-week, 52-week, and 53-week periods ending on December 28, 2013, December 29, 2012, and December 31, 2011, respectively. Certain financial measures and other metrics have been presented with the impact of the additional week on the results for fiscal year 2011. The impact of the additional week in fiscal year 2011 reflects our estimate of the 53^rd week on systemwide sales growth, revenues, and expenses.

Selected operating and financial highlights

	Fiscal year
	2013			2012		2011
Systemwide sales growth	5.8		%	5.2	%	9.1	%
Comparable store sales growth (decline):
Dunkin’ Donuts U.S.	3.4		%	4.2	%	5.1	%
Dunkin' Donuts International(1)	(0.4		)%	2.0	%	n/a
Baskin-Robbins U.S.	0.8		%	3.8	%	0.5	%
Baskin-Robbins International(1)	1.9		%	2.8	%	n/a
Total revenues	$	713,840		658,181		628,198
Operating income	304,736			239,429		205,309
Adjusted operating income	340,396			307,157		270,740
Net income attributable to Dunkin’ Brands	146,903			108,308		34,442
Adjusted net income	165,761			149,700		101,744

(1) Comparable store sales growth data was not available for our international segments until fiscal year 2012.

Adjusted operating income and adjusted net income are non-GAAP measures reflecting operating income and net income adjusted for amortization of intangible assets, long-lived asset impairments, and other non-recurring, infrequent, or unusual charges, net of the tax impact of such adjustments in the case of adjusted net income. The Company uses adjusted operating income and adjusted net income as key performance measures for the purpose of evaluating performance internally. We also believe adjusted operating income and adjusted net income provide our investors with useful information regarding our historical operating results. These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Use of the terms adjusted operating income and adjusted net income may differ from similar measures reported by other companies. See note 7 to "Selected Financial Data" for reconciliations of operating income and net income determined under GAAP to adjusted operating income and adjusted net income, respectively.

Fiscal year 2013 compared to fiscal year 2012

Overall growth in systemwide sales of 5.8% for fiscal year 2013, resulted from the following:

• Dunkin’ Donuts U.S. systemwide sales growth of 7.6%, which was the result of comparable store sales growth of 3.4% driven by both increased average ticket and transaction counts, as well as net development of 371 restaurants in 2013. The increase in average ticket resulted primarily from guests purchasing more units per transaction, including add-on items, and positive mix as guests purchased more premium-priced cold beverages and differentiated sandwiches. Increased traffic was driven by our focus on operational excellence and product and marketing innovation, resulting in strong growth in beverages, breakfast sandwiches, donuts, and our afternoon platform.

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• Dunkin’ Donuts International systemwide sales growth of 3.1% as a result of sales increases in the Middle East, Southeast Asia, and Germany driven by net new restaurant development, offset by a decline in systemwide sales in South Korea and a decline in comparable store sales of 0.4%.

• Baskin-Robbins U.S. systemwide sales growth of 0.7% resulting primarily from comparable store sales growth of 0.8%. Baskin-Robbins U.S. comparable store sales growth was driven by new product news and signature Flavors of the Month, custom cake sales, and take-home ice cream quarts.

• Baskin-Robbins International systemwide sales growth of 0.4% resulting from increased sales in South Korea and the Middle East, which resulted from both comparable store sales growth and net development. Offsetting this growth was a decrease in systemwide sales in Japan driven by unfavorable foreign currency impact.

Changes in systemwide sales are impacted, in part, by changes in the number of points of distribution. Points of distribution and net openings as of and for the fiscal years ended December 28, 2013 and December 29, 2012 were as follows:

	December 28, 2013	December 29, 2012
Points of distribution, at period end:
Dunkin’ Donuts U.S.	7,677	7,306
Dunkin’ Donuts International	3,181	3,043
Baskin-Robbins U.S.	2,467	2,463
Baskin-Robbins International	4,833	4,556
Consolidated global points of distribution	18,158	17,368
	Fiscal year ended
	December 28, 2013	December 29, 2012
Net openings (closings), during the period:
Dunkin’ Donuts U.S.	371	291
Dunkin’ Donuts International	138	172
Baskin-Robbins U.S.	4	(30	)
Baskin-Robbins International	277	339
Consolidated global net openings	790	772

The increase in total revenues of $55.7 million, or 8.5%, for fiscal year 2013 resulted primarily from a $35.0 million increase in franchise fees and royalty income driven by the increase in Dunkin’ Donuts U.S. systemwide sales and favorable development mix. Additionally, sales of ice cream products increased by $17.6 million due primarily to additional sales of ice cream products in the Middle East and an increase in distribution costs billed to customers, as well as a one-time delay in revenue recognition related to the shift in manufacturing to Dean Foods that impacted fourth quarter sales of ice cream products in the prior year.

Operating income increased $65.3 million, or 27.3%, for fiscal year 2013 driven by the $35.0 million increase in franchise fees and royalty income, as well as a gain of $6.3 million recognized on the sale of 80% of our Baskin-Robbins Australia business. The increase in operating income was also attributable to a $20.7 million increase in the Bertico litigation legal reserve recorded in the prior year, as well as an unfavorable impact of approximately $14.0 million associated with the closure of our ice cream manufacturing plant in Peterborough, Ontario, Canada in fiscal year 2012. Offsetting these increases in operating income was a $7.5 million charge related to a third-party product volume guarantee recorded in fiscal year 2013, as well as $3.7 million in write-downs related to our investments in the Dunkin’ Donuts Spain joint venture.

Adjusted operating income increased $33.2 million, or 10.8%, for fiscal year 2013 driven by the $35.0 million increase in franchise fees and royalty income and the $6.3 million gain recognized on the Baskin-Robbins Australia sale, offset by additional general and administrative costs and write-downs related to our investments in the Dunkin' Donuts Spain joint venture.

Net income attributable to Dunkin’ Brands increased $38.6 million, or 35.6%, for fiscal year 2013 as a result of the $65.3 million increase in operating income, offset by a $17.4 million increase in income tax expense driven by increased profit before tax, and a $6.3 million increase in net interest expense due to additional term loan borrowings in August 2012.

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Adjusted net income increased $16.1 million, or 10.7%, for fiscal year 2013 resulting primarily from a $33.2 million increase in adjusted operating income, offset by an $8.9 million increase in income tax expense, and the $6.3 million increase in net interest expense.

Fiscal year 2012 compared to fiscal year 2011

Overall growth in systemwide sales of 5.2% for fiscal year 2012, or 7.0% on a 52-week basis, resulted from the following:

• Dunkin’ Donuts U.S. systemwide sales growth of 5.6%, which was the result of comparable store sales growth of 4.2% driven by both increased average ticket and transaction counts, as well as net development of 291 restaurants in 2012, offset by approximately 190 basis points of a decline attributable to the extra week in fiscal year 2011. Increases in average ticket and transactions resulted from our continued focus on product and marketing innovation resulting in strong beverage sales growth, especially in cold beverages, strong breakfast sandwich sales across both core and limited-time offerings, continued growth in bakery sandwiches, and sales of Dunkin' Donuts K-Cup® portion packs including successful limited-time offerings.

• Dunkin’ Donuts International systemwide sales growth of 4.2% as a result of sales increases in the Middle East and Southeast Asia driven by net new restaurant development and comparable store sales growth of 2.0%, offset by an unfavorable foreign currency impact.

• Baskin-Robbins U.S. systemwide sales growth of 1.5% resulting primarily from comparable store sales growth of 3.8%, offset by approximately 140 basis points of a decline attributable to the extra week in fiscal year 2011, as well as 30 net restaurant closures during 2012. Baskin-Robbins U.S. comparable store sales growth was driven by new product news and signature Flavors of the Month, custom cake sales, and new beverages.

• Baskin-Robbins International systemwide sales growth of 5.5% resulting from increased sales in South Korea and Japan, which resulted from both comparable store sales growth and net development. Offsetting this growth was approximately 170 basis points of a decline attributable to the extra week in fiscal year 2011, as well as an unfavorable foreign currency impact.

Changes in systemwide sales are impacted, in part, by changes in the number of points of distribution. Points of distribution and net openings as of and for the fiscal years ended December 29, 2012 and December 31, 2011 were as follows:

	December 29, 2012		December 31, 2011
Points of distribution, at period end:
Dunkin’ Donuts U.S.	7,306		7,015
Dunkin’ Donuts International	3,043		2,871
Baskin-Robbins U.S.	2,463		2,493
Baskin-Robbins International	4,556		4,217
Consolidated global points of distribution	17,368		16,596
	Fiscal year ended
	December 29, 2012		December 31, 2011
Net openings (closings), during the period:
Dunkin’ Donuts U.S.	291		243
Dunkin’ Donuts International	172		80
Baskin-Robbins U.S.	(30	)	(90	)
Baskin-Robbins International	339		368
Consolidated global net openings	772		601

The increase in total revenues of $30.0 million, or 4.8%, for fiscal year 2012 primarily resulted from a $20.5 million increase in franchise fees and royalty income driven by the increase in Dunkin’ Donuts U.S. systemwide sales, a $10.8 million increase in sales at company-owned restaurants due to additional locations acquired, and a $4.7 million increase in rental income. The overall $30.0 million growth in revenues reflects the unfavorable impact of the extra week in fiscal year 2011, which contributed approximately $8.0 million of incremental revenue in the prior year consisting primarily of additional royalty income and sales of ice cream products. Sales of ice cream products were also unfavorably impacted by approximately $5.8 million in the fourth quarter of 2012 from a one-time delay in revenue recognition as a result of a change in shipping terms related to the shift in ice cream manufacturing to Dean Foods.

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Operating income increased $34.1 million, or 16.6%, for fiscal year 2012 driven by the $20.5 million increase in franchise fees and royalty income, as well as a $25.8 million increase in income from equity method investments driven by an impairment of the investment in the Korea joint venture recorded in fiscal year 2011. The increase in operating income was also attributable to a $14.7 million expense incurred in the prior year related to the termination of the Sponsor management agreement in connection with the Company's initial public offering, as well as a $4.5 million increase in net rental income. Offsetting these increases in operating income was a $20.7 million increase in the Bertico litigation legal reserve recorded in the second quarter of 2012, and an approximately $14.0 million unfavorable impact associated with the closure of our ice cream manufacturing plant in Peterborough, Ontario, Canada.

Adjusted operating income increased $36.4 million, or 13.5%, for fiscal year 2012 driven by the $20.5 million increase in franchise fees and royalty income, a $7.1 million increase in income from equity method investments driven by our Korea joint venture, and a $4.5 million increase in net rental income.

Net income attributable to Dunkin’ Brands increased $73.9 million, or 214.5%, for fiscal year 2012 as a result of the $34.1 million increase in operating income, a $31.0 million decrease in net interest expense, and a $30.3 million decrease in loss on debt extinguishment and refinancing transactions, offset by a $22.0 million increase in income tax expense driven by increased profit before tax.

Adjusted net income increased $48.0 million, or 47.1%, for fiscal year 2012 resulting primarily from a $36.4 million increase in adjusted operating income and a $31.0 million decrease in net interest expense, offset by a $20.0 million increase in income tax expense.

Earnings per share

Earnings per common share and adjusted earnings per pro forma common share were as follows:

	Fiscal year
	2013		2012	2011
Earnings (loss) per share:
Class L – basic and diluted	n/a		n/a	$	6.14
Common – basic	$	1.38	0.94	(1.41		)
Common – diluted	1.36		0.93	(1.41		)
Diluted adjusted earnings per pro forma common share	1.53		1.28	0.94

On August 1, 2011, the Company completed an initial public offering in which 22,250,000 shares of common stock were sold at an initial public offering price of $19.00 per share. Immediately prior to the offering, each share of the Company’s Class L common stock converted into 2.4338 shares of common stock. The number of common shares used in the calculation of diluted adjusted earnings per pro forma common share for fiscal year 2011 gives effect to the conversion of all outstanding shares of Class L common stock at the conversion factor of 2.4338 common shares for each Class L share, as if the conversion was completed at the beginning of the respective fiscal year. The calculation of diluted adjusted earnings per pro forma common share also includes the dilutive effect of common restricted shares and stock options, using the treasury stock method. Shares sold in the offering are included in the diluted adjusted earnings per pro forma common share calculation beginning on the date that such shares were actually issued. Diluted adjusted earnings per pro forma common share is calculated using adjusted net income, as defined above.

Diluted adjusted earnings per pro forma common share is not a presentation made in accordance with GAAP, and our use of the term diluted adjusted earnings per pro forma common share may vary from similar measures reported by others in our industry due to the potential differences in the method of calculation. Diluted adjusted earnings per pro forma common share should not be considered as an alternative to earnings (loss) per share derived in accordance with GAAP. Diluted adjusted earnings per pro forma common share has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, we rely primarily on our GAAP results. However, we believe that presenting diluted adjusted earnings per pro forma common share is appropriate to provide additional information to investors to compare our performance prior to and after the completion of our initial public offering and related conversion of Class L shares into common stock as well as to provide investors with useful information regarding our historical operating results. The following table sets forth the computation of diluted adjusted earnings per pro forma common share:

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	Fiscal year
	2013		2012		2011
Adjusted net income available to common shareholders (in thousands):
Adjusted net income	$	165,761	149,700		101,744
Less: Adjusted net income allocated to participating securities	—		(179	)	(494	)
Adjusted net income available to common shareholders	$	165,761	149,521		101,250
Pro forma weighted average number of common shares – diluted:
Weighted average number of Class L shares over period in which Class L shares were outstanding(1)	—		—		22,845,378
Adjustment to weight Class L shares over respective fiscal year(1)	—		—		(9,790,933	)
Weighted average number of Class L shares over fiscal year	—		—		13,054,445
Class L conversion factor	—		—		2.4338
Weighted average number of converted Class L shares	—		—		31,772,244
Weighted average number of common shares	106,501,733		114,584,063		74,835,697
Pro forma weighted average number of common shares – basic	106,501,733		114,584,063		106,607,941
Incremental dilutive common shares(2)	1,715,278		1,989,281		1,064,587
Pro forma weighted average number of common shares – diluted	108,217,011		116,573,344		107,672,528
Diluted adjusted earnings per pro forma common share	$	1.53	1.28		0.94

(1) The weighted average number of Class L shares in the actual Class L earnings per share calculation for fiscal year 2011 represents the weighted average from the beginning of the fiscal year up through the date of conversion of the Class L shares into common shares. As such, the pro forma weighted average number of common shares includes an adjustment to the weighted average number of Class L shares outstanding to reflect the length of time the Class L shares were outstanding prior to conversion relative to the fiscal year. The converted Class L shares are already included in the weighted average number of common shares outstanding for the period after their conversion.

(2) Represents the dilutive effect of restricted shares and stock options, using the treasury stock method.

Results of operations

Fiscal year 2013 compared to fiscal year 2012

Consolidated results of operations

	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Franchise fees and royalty income	$	453,976	418,940	35,036		8.4	%
Rental income	96,082		96,816	(734	)	(0.8	)%
Sales of ice cream products	112,276		94,659	17,617		18.6	%
Sales at company-owned restaurants	24,976		22,922	2,054		9.0	%
Other revenues	26,530		24,844	1,686		6.8	%
Total revenues	$	713,840	658,181	55,659		8.5	%

Total revenues increased $55.7 million, or 8.5%, in fiscal year 2013, driven by an increase in franchise fees and royalty income of $35.0 million, or 8.4%, primarily as a result of Dunkin’ Donuts U.S. systemwide sales growth and favorable development mix. Sales of ice cream products increased $17.6 million primarily due to increases in sales of ice cream products in the Middle East and an increase in distribution costs billed to customers, as well as a one-time delay in revenue recognition related to the shift in manufacturing to Dean Foods that impacted fourth quarter sales of ice cream products in the prior year. Sales at company-owned restaurants also increased $2.1 million, or 9.0%, driven by higher average sales volumes and the timing of acquisitions and development of restaurants during the periods.

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	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Occupancy expenses – franchised restaurants	$	52,097	52,072	25		—	%
Cost of ice cream products	79,278		69,019	10,259		14.9	%
Company-owned restaurant expenses	24,480		23,133	1,347		5.8	%
General and administrative expenses, net	228,010		239,574	(11,564	)	(4.8	)%
Depreciation and amortization	49,366		56,027	(6,661	)	(11.9	)%
Long-lived asset impairment charges	563		1,278	(715	)	(55.9	)%
Total operating costs and expenses	$	433,794	441,103	(7,309	)	(1.7	)%
Net income of equity method investments	18,370		22,351	(3,981	)	(17.8	)%
Other operating income, net	6,320		—	6,320		n/m
Operating income	$	304,736	239,429	65,307		27.3	%

Occupancy expenses for franchised restaurants for fiscal year 2013 remained flat with the prior year as increases in base rent and sales-based rental expense was offset by fewer reserves recorded for leased locations.

Cost of ice cream products increased $10.3 million, or 14.9%, from the prior year, as a result of the 18.6% increase in sales of ice cream products driven primarily by the increases in sales of ice cream products in the Middle East and the prior year being unfavorably impacted by the one-time delay in revenue recognition as a result of the change in shipping terms. The increases were offset by a reduced cost of ice cream products primarily resulting from the shift in manufacturing to Dean Foods.

Company-owned restaurant expenses increased $1.3 million, or 5.8%, from the prior year primarily as a result of higher sales volumes, offset by operating efficiencies realized.

General and administrative expenses for fiscal year 2012 included an incremental legal reserve of $20.7 million recorded upon the Canadian court’s ruling in June 2012 in the Bertico litigation, as well as $5.0 million of costs associated with the closure of our ice cream manufacturing plant in Canada, consisting primarily of severance, payroll, and other transition-related costs. General and administrative expenses for fiscal year 2012 also included $4.8 million of transaction costs and incremental share-based compensation related to the secondary offerings and share repurchases that were completed in April and August 2012. General and administrative expenses for fiscal year 2013 were impacted by a $7.5 million charge related to a third-party product volume guarantee, as well as $0.7 million of costs associated with the closure of our ice cream manufacturing plant in Canada.

Excluding the items noted above, general and administrative expenses increased $10.8 million, or 5.1%, in fiscal year 2013. This increase was driven primarily by a $6.5 million increase in personnel costs related to continued investments in our Dunkin’ Donuts U.S. contiguous growth strategy and our international brands, as well as additional stock compensation expense, offset by a reduction in incentive compensation payouts. Also contributing to the increase in general and administrative expenses was $2.8 million of reserves on accounts and notes receivable from our Dunkin' Donuts Spain joint venture Offsetting these increases was additional breakage income recorded in fiscal year 2013 of $2.3 million on unredeemed gift card and gift certificate balances. The remaining increase in other general and administrative costs of $3.8 million resulted primarily from additional investments in advertising and other brand-building activities.

Depreciation and amortization decreased $6.7 million in fiscal year 2013 resulting primarily from accelerated depreciation recorded in the prior year as a result of the closure of the ice cream manufacturing plant in Canada.

As a result of the closure of our ice cream manufacturing plant, the Company expects to incur additional costs of approximately $3 million to $4 million primarily related to the settlement of our Canadian pension plan upon final government approval, which will likely be obtained in 2014.

The decrease in impairment charges in fiscal year 2013 of $0.7 million resulted primarily from the timing of lease terminations in the ordinary course, which results in the write-off of favorable lease intangible assets and leasehold improvements.

Net income of equity method investments decreased $4.0 million in fiscal year 2013 driven by a decline of $1.6 million in the reduction of depreciation and amortization expense for South Korea resulting from the impairment charge recorded by the Company in fiscal year 2011 related to the underlying long-lived assets of the South Korea joint venture. Also contributing to the decrease in net income of equity method investments was a decline in income from our Japan joint venture, losses realized from our Dunkin’ Donuts joint venture in Spain, as well as a $0.9 million impairment of our investment in the Dunkin’ Donuts Spain joint venture. Partially offsetting these declines was an increase in income from our South Korea joint venture. Net

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income of equity method investments for the years ended December 28, 2013 and December 29, 2012 also includes an unfavorable adjustment of $0.7 million and a favorable adjustment of $0.3 million, respectively, related to differences between local accounting principles applied by our Japan and South Korea joint ventures and U.S. GAAP, which contributed to the decrease for the year.

Other operating income of $6.3 million in fiscal year 2013 represents the gain, net of transaction costs, recognized on the Baskin-Robbins Australia sale.

	Fiscal  year				Increase (Decrease)
	2013		2012		$	%
	(In thousands, except percentages)
Interest expense, net	$	79,831	73,488		6,343	8.6	%
Loss on debt extinguishment and refinancing transactions	5,018		3,963		1,055	26.6	%
Other losses (gains), net	1,799		(23	)	1,822	n/m
Total other expense	$	86,648	77,428		9,220	11.9	%

The increase in net interest expense for fiscal year 2013 resulted primarily from incremental interest expense on $400.0 million of additional term loan borrowings, which were used along with cash on hand to repurchase 15.0 million shares of common stock from certain shareholders in August 2012. Also contributing to the increase in interest expense was incremental interest incurred as a result of entering into variable-to-fixed interest rate swap agreements in September 2012 on $900.0 million notional amount of our outstanding term loan borrowings. Offsetting these increases in interest expense was a reduction in the interest rate on the term loans by 25 basis points as a result of the February 2013 repricing. Considering the February 2014 amendment of the senior credit facility and amended interest rate swaps agreements more fully described under "Liquidity and capital resources" contained herein, we expect net interest expense to be approximately $70 million in fiscal year 2014.

The loss on debt extinguishment and refinancing transactions for fiscal year 2013 of $5.0 million resulted from the February 2013 repricing transaction. The loss on debt extinguishment and refinancing transactions for fiscal year 2012 of $4.0 million related primarily to the $400.0 million of additional term loan borrowings in August 2012.

Other losses (gains), net, for fiscal year 2013 was driven primarily by foreign exchange losses resulting from the Baskin-Robbins Australia sale due to the strengthening of the U.S. dollar against the Australian dollar, as well as an overall negative impact of foreign exchange resulting from the general strengthening of the U.S. dollar compared to other currencies.

	Fiscal  year
	2013			2012
	(In thousands, except percentages)
Income before income taxes	$	218,088		162,001
Provision for income taxes	71,784			54,377
Effective tax rate	32.9		%	33.6	%

The reduced effective tax rate for fiscal year 2013 primarily resulted from the net reversal of approximately $8.4 million of reserves for uncertain tax positions for which settlement with taxing authorities was reached during the year. Additionally, the effective tax rate for fiscal year 2013 reflects an approximately $3.1 million benefit resulting from a change in mix of income between domestic and international tax jurisdictions resulting from changes in operations, which we expect to continue to favorably impact the effective tax rate in future years.

The effective tax rate for fiscal year 2012 reflects the impact of net tax benefits of $10.2 million related to the reversal of reserves for uncertain tax positions for which settlement with the taxing authorities was reached during the period. Offsetting these tax benefits was $4.6 million of deferred tax expense recorded in fiscal year 2012 primarily related to an increase in our overall state tax rate for a shift in the apportionment of income to state jurisdictions, as a result of the closure of the Peterborough manufacturing plant and transition to Dean Foods.

Operating segments

We operate four reportable operating segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. We evaluate the performance of our segments and allocate resources to them based on earnings before interest, taxes, depreciation, amortization, impairment charges, loss on debt extinguishment and refinancing transactions, other gains and losses, and unallocated corporate charges, referred to as segment profit. Segment profit for the Dunkin’ Donuts International and Baskin-Robbins International segments includes net income (loss) of equity method investments, except for the impairment charge, net of the related reduction in depreciation and amortization, net of tax, recorded in fiscal year 2011 on

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the investment in our South Korea joint venture. For a reconciliation to total revenues and income before income taxes, see note 12 to our consolidated financial statements. Revenues for all segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues not included in segment revenues include revenue earned through arrangements with third parties in which our brand names are used and revenue generated from online training programs for franchisees that are not allocated to a specific segment.

Dunkin’ Donuts U.S.

	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Royalty income	$	362,342	337,170	25,172		7.5	%
Franchise fees	36,192		29,445	6,747		22.9	%
Rental income	91,918		92,049	(131	)	(0.1	)%
Sales at company-owned restaurants	24,976		22,765	2,211		9.7	%
Other revenues	5,751		3,970	1,781		44.9	%
Total revenues	$	521,179	485,399	35,780		7.4	%
Segment profit	$	379,751	355,274	24,477		6.9	%

The increase in Dunkin’ Donuts U.S. revenues for fiscal year 2013 was primarily driven by an increase in royalty income of $25.2 million as a result of an increase in systemwide sales, as well as increased franchise fees of $6.7 million due to additional gross development, favorable development mix, and incremental franchise renewals. The increase in revenues was also driven by an increase in sales at company-owned restaurants of $2.2 million driven by higher average sales volumes and the timing of acquisitions and development of restaurants during the periods, as well as an increase in gains from refranchising transactions.

The increase in Dunkin’ Donuts U.S. segment profit for fiscal year 2013 was primarily driven by revenue growth, partially offset by the $7.5 million third-party product volume guarantee charge and an increase in personnel costs of $2.7 million as a result of continued investments in our Dunkin’ Donuts U.S. contiguous growth strategy.

Dunkin’ Donuts International

	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Royalty income	$	14,249	13,474	775		5.8	%
Franchise fees	3,531		1,715	1,816		105.9	%
Rental income	133		179	(46	)	(25.7	)%
Other revenues	403		117	286		244.4	%
Total revenues	$	18,316	15,485	2,831		18.3	%
Segment profit	$	7,479	9,670	(2,191	)	(22.7	)%

The increase in Dunkin’ Donuts International revenue for fiscal year 2013 resulted primarily from an increase in franchise fees of $1.8 million due to income recognized in connection with the termination of development agreements in Asia and franchise fees for openings in new international markets, and an increase in royalty income of $0.8 million driven by the increase in systemwide sales. Dunkin’ Donuts International revenues for fiscal year 2013 also includes a $0.3 million increase in other revenues driven by incremental transfer fee income.

The decrease in Dunkin’ Donuts International segment profit for fiscal year 2013 was primarily driven by $3.7 million in write-downs related to our investments in the Dunkin’ Donuts Spain joint venture, as well as a decline in net income of equity method investments of $0.9 million. For Dunkin’ Donuts International, net income of equity method investments includes an unfavorable adjustment of $0.3 million for fiscal year 2013 and a favorable adjustment of $0.6 million for fiscal year 2012 related to differences between local accounting principles applied by our South Korea joint venture and U.S. GAAP, which were drivers for the decline in net income of equity method investments for the segment. Losses realized from our Spain joint venture were offset by increased net income from our South Korea joint venture. In addition to the decline in net income of equity method investments, segment profit also declined as a result of investments in personnel, marketing, and other initiatives to grow the Dunkin’ Donuts International business, offset by the increase in total revenues.

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Baskin-Robbins U.S.

	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Royalty income	$	25,728	25,768	(40	)	(0.2	)%
Franchise fees	1,160		775	385		49.7	%
Rental income	3,420		3,949	(529	)	(13.4	)%
Sales of ice cream products	3,808		3,942	(134	)	(3.4	)%
Sales at company-owned restaurants	—		157	(157	)	(100.0	)%
Other revenues	8,036		7,483	553		7.4	%
Total revenues	$	42,152	42,074	78		0.2	%
Segment profit	$	27,081	26,274	807		3.1	%

Baskin-Robbins U.S. revenue remained consistent from fiscal year 2012 to fiscal year 2013. Franchise fees increased $0.4 million driven primarily by incremental franchise renewals, while other revenues increased by $0.6 million primarily due to additional income received from the licensing of ice cream manufacturing. The increases in revenue were offset by decreases in rental income of $0.5 million due to a reduction in the number of leased locations, as well as decreases in sales at company-owned restaurants and sales of ice cream products.

Baskin-Robbins U.S. segment profit for fiscal year 2013 increased primarily as a result of additional breakage income of $0.5 million related to unredeemed gift certificate balances, as well as increases in franchise fees and other revenues, offset by an increase in personnel costs.

Baskin-Robbins International

	Fiscal  year			Increase (Decrease)
	2013		2012	$		%
	(In thousands, except percentages)
Royalty income	$	9,109	9,301	(192	)	(2.1	)%
Franchise fees	1,665		1,292	373		28.9	%
Rental income	535		561	(26	)	(4.6	)%
Sales of ice cream products	108,435		90,717	17,718		19.5	%
Other revenues	589		104	485		466.3	%
Total revenues	$	120,333	101,975	18,358		18.0	%
Segment profit	$	54,321	42,004	12,317		29.3	%

The increase in Baskin-Robbins International revenues for fiscal year 2013 was driven by a $17.7 million increase in sales of ice cream products, primarily due to increases in sales of ice cream products in the Middle East and an increase in distribution costs billed to customers, as well as a one-time delay in revenue recognition related to the shift in manufacturing to Dean Foods which unfavorably impacted fiscal year 2012 revenue by approximately $5.8 million.

Baskin-Robbins International segment profit increased $12.3 million for fiscal year 2013 primarily due to an increase in net margin on ice cream of $7.9 million driven by increased sales volumes and cost savings from the transition to Dean Foods, partially offset by Australia inventory write-offs. Also contributing to the increase was the $6.3 million gain recognized on the sale of the Baskin-Robbins Australia business. The increases in segment profit were offset by a decrease in net income of equity method investments of $0.7 million, driven by a decrease in income from our Japan joint venture, partially offset by an increase in income from our South Korea joint venture. Offsetting these increases were incremental costs incurred to support the growth of the Baskin-Robbins international segment.

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Fiscal year 2012 compared to fiscal year 2011

Consolidated results of operations

	Fiscal year				Increase (Decrease)
	2012		2011		$		%
	(In thousands, except percentages)
Franchise fees and royalty income	$	418,940	$	398,474	20,466		5.1	%
Rental income	96,816		92,145		4,671		5.1	%
Sales of ice cream products	94,659		100,068		(5,409	)	(5.4	)%
Sales at company-owned restaurants	22,922		12,154		10,768		88.6	%
Other revenues	24,844		25,357		(513	)	(2.0	)%
Total revenues	$	658,181	628,198		29,983		4.8	%

Total revenues for the prior year benefited approximately $8.0 million from the impact of an extra week, consisting primarily of additional royalty income and sales of ice cream products. Additionally, total revenues for fiscal year 2012 were unfavorably impacted by approximately $5.8 million from a one-time delay in revenue recognition as a result of a change in shipping terms related to the shift in ice cream manufacturing to Dean Foods.

Without the effect of these two items, total revenues increased $43.8 million, or 7.1%, in fiscal year 2012 driven by an increase in royalty income, on a 52-week basis, of $28.4 million, or 7.9%, mainly as a result of Dunkin’ Donuts U.S. systemwide sales growth. Sales at company-owned restaurants also increased $10.8 million, or 88.6%, as a result of company-owned stores acquired during 2012 and the full year impact of company-owned stores acquired at the end of 2011. Also contributing to the increase in total revenues was an increase in rental income of $4.7 million, or 5.1%, driven by incremental sales-based rental income resulting from growth in Dunkin' Donuts U.S. systemwide sales.

	Fiscal year				Increase (Decrease)
	2012		2011		$		%
	(In thousands, except percentages)
Occupancy expenses – franchised restaurants	$	52,072	51,878		194		0.4	%
Cost of ice cream products	69,019		72,329		(3,310	)	(4.6	)%
Company-owned restaurant expenses	23,133		12,854		10,279		80.0	%
General and administrative expenses, net	239,574		227,771		11,803		5.2	%
Depreciation and amortization	56,027		52,522		3,505		6.7	%
Impairment charges	1,278		2,060		(782	)	(38.0	)%
Total operating costs and expenses	$	441,103	419,414		21,689		5.2	%
Net income (loss) of equity method investments	22,351		(3,475	)	25,826		n/m
Operating income	$	239,429	205,309		34,120		16.6	%

Occupancy expenses for franchised restaurants for fiscal year 2012 remained flat with the prior year as an increase in sales-based rental expense was offset by a decline in the number of leased properties.

Cost of ice cream products declined $3.3 million, or 4.6% from the prior year, as a result of the 5.4% decline in sales of ice cream products driven by the one-time delay in revenue recognition as a result of the change in shipping terms.

General and administrative expenses for fiscal year 2012 were impacted by an incremental legal reserve of $20.7 million recorded upon the Canadian court’s ruling in June 2012 in the Bertico litigation, as well as $5.0 million of costs associated with the announced closure of our ice cream manufacturing plant in Canada, consisting primarily of severance, payroll, and other transition-related costs. General and administrative expenses for fiscal year 2012 also include $4.8 million of transaction costs and incremental share-based compensation related to the secondary offerings and share repurchases that were completed in April and August 2012. For fiscal year 2011, general and administrative expenses include $14.7 million related to the termination of the Sponsor management agreement upon completion of the Company’s initial public offering ("IPO"), $1.8 million of Sponsor management fees prior to the IPO, and $2.6 million of share-based compensation expense recognized for awards that became eligible to vest upon completion of the IPO. General and administrative expenses for fiscal year 2011 also include transaction costs of $1.0 million and share-based compensation expense of $0.9 million related to the secondary offering completed in November 2011.

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Excluding the items noted above, general and administrative expenses increased $2.3 million, or 1.1%, in fiscal year 2012. This increase was driven by a $10.3 million increase in personnel costs related to continued investments in our Dunkin’ Donuts U.S. contiguous growth strategy and our international brands, additional stock compensation expense, and higher incentive compensation payouts. Offsetting this increase was additional breakage income recorded in fiscal year 2012 of $5.4 million on unredeemed gift card and gift certificate balances. The remaining decrease in other general and administrative costs of $2.6 million resulted primarily from costs incurred in the prior year related to the roll-out of a new point-of-sale system for Baskin-Robbins franchisees and additional contributions made in 2011 to the advertising funds to support brand-building advertising.

Depreciation and amortization increased $3.5 million in fiscal year 2012 resulting primarily from accelerated depreciation recorded as a result of the announced closure of the ice cream manufacturing plant in Canada, offset by terminations of lease agreements in the normal course of business resulting in the write-off of favorable lease intangible assets, which thereby reduced future amortization.

The Company incurred a $14.0 million reduction to operating income associated with the plant closing and transition in fiscal year 2012, including $5.0 million of general and administrative costs related to severance and other transition-related costs, $4.2 million of accelerated depreciation on property, plant, and equipment, $2.7 million of incremental ice cream production costs, and a one-time delay in revenue recognition, net of related cost of ice cream products, as a result of the change in shipping terms of $2.1 million. The remaining costs to be incurred associated with the plant closing and transition primarily consist of a loss of approximately $3 million to $4 million related to the settlement of our Canadian pension plan.

The decrease in impairment charges in fiscal year 2012 of $0.8 million resulted primarily from the timing of lease terminations in the ordinary course, which results in the write-off of favorable lease intangible assets and leasehold improvements.

Net income (loss) of equity method investments increased $25.8 million in fiscal year 2012 primarily as a result of a $19.8 million impairment charge recorded in the fourth quarter of 2011 on the investment in our South Korea joint venture. Additionally, the allocation of the impairment charge to the underlying intangible and long-lived assets of the joint venture reduced depreciation and amortization, resulting in an increase in income from the joint venture in fiscal year 2012 of $2.6 million. The remaining increase in net income (loss) of equity method investments resulted from stronger sales and earnings performance at our South Korea joint venture.

	Fiscal year					Increase (Decrease)
	2012			2011		$		%
	(In thousands, except percentages)
Interest expense, net	$	73,488		104,449		(30,961	)	(29.6	)%
Loss on debt extinguishment and refinancing transactions	3,963			34,222		(30,259	)	(88.4	)%
Other gains, net	(23		)	(175	)	152		(86.9	)%
Total other expense	$	77,428		138,496		(61,068	)	(44.1	)%

The decrease in net interest expense for fiscal year 2012 resulted primarily from the repayment of $375.0 million of 9.625% senior notes with proceeds from the Company’s initial public offering completed in August 2011. Net interest expense for fiscal year 2012 also benefited from the re-pricing of outstanding term loans in conjunction with additional term loan borrowings in February and May 2011, the proceeds of which were used to repay the higher rate senior notes, as well as the impact of the extra week of interest expense in the prior year. Offsetting these decreases was incremental interest expense on $400.0 million of additional term loan borrowings at an interest rate of 4.0%, which were used to repurchase 15.0 million shares of common stock from certain shareholders in August 2012.

The loss on debt extinguishment and refinancing transactions for fiscal year 2012 of $4.0 million primarily related to the $400.0 million of additional term loan borrowings in August 2012. The loss on debt extinguishment and refinancing transactions of $34.2 million for fiscal year 2011 resulted from the term loan refinancing transactions and related repayments of senior notes completed in the first and second quarters of 2011, as well as the repayment of senior notes with proceeds from the Company's initial public offering in the third quarter of 2011.

The decline in other gains from fiscal year 2011 to fiscal year 2012 resulted primarily from reduced net foreign exchange gains.

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	Fiscal year
	2012			2011
	(In thousands, except percentages)
Income before income taxes	$	162,001		66,813
Provision for income taxes	54,377			32,371
Effective tax rate	33.6		%	48.5	%

The reduced effective tax rate for fiscal year 2012 primarily resulted from net tax benefits of $10.2 million related to the reversal of reserves for uncertain tax positions for which settlement with the taxing authorities was reached during the period. Offsetting these tax benefits was $4.6 million of deferred tax expense recorded in fiscal year 2012 primarily related to an increase in our overall state tax rate for a shift in the apportionment of income to state jurisdictions, as a result of the closure of the Peterborough manufacturing plant and transition to Dean Foods.

The higher effective tax rate for fiscal year 2011 primarily resulted from the impairment related to the Korea joint venture investment, which reduced income before income taxes but for which there is no corresponding tax benefit, as well as enacted increases in state tax rates that resulted in additional deferred tax expense of approximately $1.9 million.

Operating segments

Dunkin’ Donuts U.S.

	Fiscal  year			Increase (Decrease)
	2012		2011	$		%
	(In thousands, except percentages)
Royalty income	$	337,170	317,203	19,967		6.3	%
Franchise fees	29,445		29,905	(460	)	(1.5	)%
Rental income	92,049		86,590	5,459		6.3	%
Sales at company-owned restaurants	22,765		11,764	11,001		93.5	%
Other revenues	3,970		4,030	(60	)	(1.5	)%
Total revenues	$	485,399	449,492	35,907		8.0	%
Segment profit	$	355,274	334,308	20,966		6.3	%

The increase in Dunkin’ Donuts U.S. revenues for fiscal year 2012 was primarily driven by an increase in royalty income of $20.0 million as a result of an increase in systemwide sales, as well as an increase in sales at company-owned restaurants of $11.0 million as a result of company-owned stores acquired during 2012 and the full year impact of company-owned stores acquired at the end of 2011. An increase in rental income of $5.5 million also contributed to the increase in Dunkin' Donuts U.S. revenues. Overall, Dunkin' Donuts U.S. revenues were unfavorably impacted by approximately $6.4 million as a result of the extra week in the prior year.

The increase in Dunkin’ Donuts U.S. segment profit for fiscal year 2012 was primarily driven by the increases in royalty income and rental income totaling $25.4 million, offset by an increase in personnel costs of $4.5 million primarily related to continued investment in our Dunkin’ Donuts U.S. contiguous growth strategy and higher projected incentive compensation payouts.

Dunkin’ Donuts International

	Fiscal  year			Increase (Decrease)
	2012		2011	$		%
	(In thousands, except percentages)
Royalty income	$	13,474	12,657	817		6.5	%
Franchise fees	1,715		2,294	(579	)	(25.2	)%
Rental income	179		258	(79	)	(30.6	)%
Other revenues	117		44	73		165.9	%
Total revenues	$	15,485	15,253	232		1.5	%
Segment profit	$	9,670	11,528	(1,858	)	(16.1	)%

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The increase in Dunkin’ Donuts International revenue for fiscal year 2012 resulted primarily from an increase in royalty income of $0.8 million driven by the increase in systemwide sales, slightly offset by a decrease of $0.6 million in franchise fees as a result of the prior year including a deposit retained from a former licensee in Mexico and fewer store openings.

The decrease in Dunkin’ Donuts International segment profit for fiscal year 2012 was primarily driven by a $3.4 million increase in general and administrative costs primarily as a result of investments in personnel and advertising. Offsetting this decline in segment profit was an increase in income from the South Korea joint venture of $1.4 million, as well as the increase in total revenues.

Baskin-Robbins U.S.

	Fiscal  year			Increase (Decrease)
	2012		2011	$		%
	(In thousands, except percentages)
Royalty income	$	25,768	25,177	591		2.3	%
Franchise fees	775		1,271	(496	)	(39.0	)%
Rental income	3,949		4,544	(595	)	(13.1	)%
Sales of ice cream products	3,942		3,780	162		4.3	%
Sales at company-owned restaurants	157		390	(233	)	(59.7	)%
Other revenues	7,483		8,293	(810	)	(9.8	)%
Total revenues	$	42,074	43,455	(1,381	)	(3.2	)%
Segment profit	$	26,274	21,593	4,681		21.7	%

The decline in Baskin-Robbins U.S. revenue for fiscal year 2012 resulted from a decline in other revenues of $0.8 million primarily due to a decrease in licensing income related to the sale of Baskin-Robbins ice cream products to franchisees. Additionally, rental income declined $0.6 million due to a reduction in the number of leased locations, and franchise fees declined $0.5 million driven by fewer store openings. Offsetting these declines in revenue was an increase in royalty income of $0.6 million driven by the increase in systemwide sales. Approximately $0.3 million of the overall decrease in total revenues was attributable to the extra week in fiscal year 2011.

Baskin-Robbins U.S. segment profit for fiscal year 2012 increased as a result of a $4.6 million decline in general and administrative expenses driven by costs incurred in the prior year related to the roll-out of a new point-of-sale system for Baskin-Robbins franchisees and additional contributions made to the Baskin-Robbins advertising fund to support brand-building advertising in the prior year. Additionally, occupancy expenses declined $1.5 million from the prior year as a result of a reduction in the number of leased locations, as well as reserves recorded on leased locations in the prior year. Offsetting these increases in segment profit was the $1.4 million decline in total revenues.

Baskin-Robbins International

	Fiscal year				Increase (Decrease)
	2011		2010		$		%
	(In thousands, except percentages)
Royalty income	$	9,301	8,422		879		10.4	%
Franchise fees	1,292		1,593		(301	)	(18.9	)%
Rental income	561		616		(55	)	(8.9	)%
Sales of ice cream products	90,717		96,288		(5,571	)	(5.8	)%
Other revenues	104		(32	)	136		n/m
Total revenues	$	101,975	106,887		(4,912	)	(4.6	)%
Segment profit	$	42,004	42,844		(840	)	(2.0	)%

The decline in Baskin-Robbins International revenues for fiscal year 2012 was driven by a $5.6 million decline in sales of ice cream products, primarily from a one-time delay in revenue recognition as a result of a change in shipping terms related to the shift in ice cream manufacturing to Dean Foods, which unfavorably impacted fiscal year 2012 revenue by approximately $5.8 million. The decline in sales of ice cream products also resulted from the impact of the extra week in the prior year, which contributed approximately $1.2 million of revenue in fiscal year 2011. Without the effect of these two items, Baskin-Robbins

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International sales of ice cream products increased $1.4 million driven by strong sales to the Middle East, offset by a decline in sales to Afghanistan as a result of the border closure earlier in 2012.

Offsetting the decline in sales of ice cream products was an increase in royalty income of $0.9 million primarily as a result of higher sales and additional royalties earned in South Korea and Russia.

The decrease in Baskin-Robbins International segment profit for fiscal year 2012 resulted primarily from an increase in general and administrative expenses of $2.0 million driven primarily by investments in personnel and advertising, as well as a $1.6 million decline in net margin on sales of ice cream products due primarily to the one-time delay in revenue recognition and the extra week in the prior year. Offsetting these declines in segment profit was an increase in income from the South Korea joint venture of $2.2 million, as well as the increase in royalty income of $0.9 million.

Liquidity and capital resources

As of December 28, 2013, we held $256.9 million of cash and cash equivalents, which included $134.5 million of cash held for advertising funds and reserved for gift card/certificate programs. In addition, as of December 28, 2013, we had a borrowing capacity of $97.0 million under our $100.0 million revolving credit facility. During fiscal year 2013, net cash provided by operating activities was $141.8 million, as compared to net cash provided by operating activities of $154.4 million for fiscal year 2012. Net cash provided by operating activities for fiscal years 2013 and 2012 includes net cash inflows of $2.0 million and $2.3 million, respectively, related to advertising funds and gift card/certificate programs. Excluding cash flows related to advertising funds and gift card/certificate programs, we generated $116.9 million and $129.2 million of free cash flow during fiscal years 2013 and 2012, respectively.

The decrease in free cash flow from fiscal year 2012 to 2013 was primarily due to an unfavorable impact from changes in operating assets and liabilities, driven by a delay in cash collections of accounts receivable as a result of a change in shipping terms related to ice cream shipments to certain international markets, as well as fluctuations in other current liabilities, due primarily to the timing of interest payments. The unfavorable impacts were offset by the increase in net income.

Free cash flow is a non-GAAP measure reflecting net cash provided by operating and investing activities, excluding the cash flows related to advertising funds and gift card/certificate programs. The Company uses free cash flow as a key performance measure for the purpose of evaluating performance internally and our ability to generate cash. We also believe free cash flow provides our investors with useful information regarding our historical cash flow results. This non-GAAP measurement is not intended to replace the presentation of our financial results in accordance with GAAP. Use of the term free cash flow may differ from similar measures reported by other companies.

Free cash flow is reconciled from net cash provided by operating activities determined under GAAP as follows (in thousands):

	Fiscal year
	2013			2012
Net cash provided by operating activities	$	141,799		154,420
Less: Increase related to advertising funds and gift card/certificate programs	(2,006		)	(2,315	)
Less: Net cash used in investing activities	(22,906		)	(22,947	)
Free cash flow	$	116,887		129,158

Net cash provided by operating activities of $141.8 million during fiscal year 2013 was primarily driven by net income of $146.3 million, increased by depreciation and amortization of $49.4 million, and dividends received from joint ventures of $7.2 million, offset by $21.2 million of other net non-cash reconciling adjustments, as well as $39.9 million of changes in operating assets and liabilities. The $21.2 million of other net non-cash reconciling adjustments primarily resulted from net income from equity method investments, gain on sale of 80% of our Baskin-Robbins Australia business, and a deferred tax benefit, offset by share-based compensation expense, loss on debt extinguishment and refinancing transactions, and the amortization of deferred financing costs and original issue discount. The $39.9 million of changes in operating assets and liabilities was primarily driven by cash paid for income taxes, increases in accounts receivable related to sales of ice cream products, and increases in receivables related to gift cards, offset by the reserve related to the third-party product volume guarantee. During fiscal year 2013, we invested $31.1 million in capital additions to property and equipment, and received net proceeds from the Baskin-Robbins Australia sale of $6.7 million. Net cash used in financing activities was $114.2 million during fiscal year 2013, driven primarily by dividend payments of $81.0 million, the repurchase of common stock of $28.0 million, and repayment of long-term debt of $24.2 million, offset by additional tax benefits of $15.4 million realized from the exercise of stock options.

Net cash provided by operating activities of $154.4 million during fiscal year 2012 was primarily driven by net income of $107.6 million, increased by depreciation and amortization of $56.0 million, and dividends received from joint ventures of $6.5

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million, offset by $15.1 million of other net non-cash reconciling adjustments, as well as $0.6 million of changes in operating assets and liabilities. The $15.1 million of other net non-cash reconciling adjustments primarily resulted from net income from equity method investments and a deferred tax benefit, offset by share-based compensation expense and the amortization of deferred financing costs and original issue discount. The $0.6 million of changes in operating assets and liabilities was primarily driven by cash paid for income taxes, offset by the increase in the legal reserve for the Bertico litigation and an increase in accrued interest based on the timing of interest payments. During fiscal year 2012, we invested $22.4 million in capital additions to property and equipment. Net cash used in financing activities was $125.6 million during fiscal year 2012, driven primarily by the repurchase of common stock of $450.4 million and dividend payments of $70.1 million, offset by net proceeds from the issuance of long-term debt of $380.6 million and additional tax benefits of $12.0 million realized from the exercise of stock options. The cash used for the repurchase of common stock was related to 15.0 million shares of common stock repurchased directly from certain shareholders in a private, non-underwritten transaction in August 2012. In connection with that repurchase, we borrowed an additional $400.0 million, less original issue discount of $4.0 million, under our existing term loan facility.

Our senior credit facility is guaranteed by certain of Dunkin’ Brands, Inc.’s wholly-owned domestic subsidiaries and includes term loan and revolving credit facilities. The original aggregate borrowings available under the senior credit facility are approximately $2.00 billion, consisting of a fully-drawn approximately $1.90 billion term loan facility and an undrawn $100.0 million revolving credit facility. As of December 28, 2013, there was $1.83 billion of total principal outstanding on the term loans, while there was $97.0 million in available borrowings under the revolving credit facility as $3.0 million of letters of credit were outstanding.

In February 2014, we amended the senior credit facility to reduce the applicable interest rate. The senior credit facility now consists of $1.38 billion in term loans due February 2021 ("2021 Term Loans"), $450.0 million in term loans due September 2017 ("2017 Term Loans"), and a $100.0 million revolving credit facility due February 2019. Pursuant to the February 2014 amendment to the senior credit facility, principal amortization repayments are required to be made on the 2017 Term Loans equal to $4.5 million per calendar year, payable in quarterly installments beginning June 2014 through June 2017. Pursuant to the February 2014 amendment to the senior credit facility, principal amortization repayments are required to be made on the 2021 Term Loans equal to approximately $13.8 million per calendar year, payable in quarterly installments beginning June 2015 through December 2020. The final scheduled principal payments on the outstanding borrowings under the 2017 Term Loans and 2021 Term Loans are due in September 2017 and February 2021, respectively. Additionally, following the end of each fiscal year, the Company is required to prepay an amount equal to 25% of excess cash flow (as defined in the senior credit facility) for such fiscal year. If DBI’s leverage ratio, which is a measure of DBI’s outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the credit facility), is less than 4.75x, no excess cash flow payments are required. The Company intends to make quarterly payments of $5.0 million.

As a result of the February 2014 amendment to the senior credit facility, the 2021 Term Loans bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, (c) the LIBOR rate plus 1.0%, and (d) 1.75% or (2) a LIBOR rate provided that LIBOR shall not be lower than 0.75%. The applicable margin under the term loan facility is 1.50% for loans based upon the base rate and 2.50% for loans based upon the LIBOR rate.

As a result of the February 2014 amendment to the senior credit facility, the 2017 Term Loans bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, and (c) the LIBOR rate plus 1.0%, or (2) a LIBOR rate. The applicable margin under the term loan facility is 1.50% for loans based upon the base rate and 2.50% for loans based upon the LIBOR rate.

As a result of the February 2014 amendment to the senior credit facility, borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, and (c) the LIBOR rate plus 1.0%, or (2) a LIBOR rate. The applicable margin under the revolving credit facility is 1.25% for loans based upon the base rate and 2.25% for loans based upon the LIBOR rate. In addition, we are required to pay a 0.5% commitment fee per annum on the unused portion of the revolver and a fee for letter of credit amounts outstanding of 2.25%.

As of December 28, 2013, we had variable-to-fixed interest rate swap agreements to hedge the floating interest rate on $900.0 million notional amount of our outstanding term loan borrowings. We are required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.37%. In exchange, we receive interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a 1.0% floor.

As a result of the February 2014 amendment to the senior credit facility, we amended the interest rate swap agreements to align the embedded floors with the amended term loans. As a result of the amendments to the interest rate swap agreements, we will be required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.22%. In exchange, we will receive interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a 0.75% floor. There was no change to the notional amount of the term loan borrowings being hedged.

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The senior credit facility requires us to comply on a quarterly basis with certain financial covenants, including a maximum ratio (the “leverage ratio”) of debt to adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and a minimum ratio (the “interest coverage ratio”) of adjusted EBITDA to interest expense, each of which becomes more restrictive over time. As of December 28, 2013, the terms of the senior credit facility require that we maintain a leverage ratio of no more than 8.00 to 1.00 and a minimum interest coverage ratio of 1.65 to 1.00. The leverage ratio financial covenant will become more restrictive over time and will require us to maintain a leverage ratio of no more than 6.25 to 1.00 by the second quarter of fiscal year 2017. The interest coverage ratio financial covenant will also become more restrictive over time and will require us to maintain an interest coverage ratio of no less than 1.95 to 1.00 by the second quarter of fiscal year 2017. Failure to comply with either of these covenants would result in an event of default under our senior credit facility unless waived by our senior credit facility lenders. An event of default under our senior credit facility can result in the acceleration of our indebtedness under the facility. Adjusted EBITDA is a non-GAAP measure used to determine our compliance with certain covenants contained in our senior credit facility, including our leverage ratio. Adjusted EBITDA is defined in our senior credit facility as net income/(loss) before interest, taxes, depreciation and amortization and impairment of long-lived assets, as adjusted for the items summarized in the table below. Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term adjusted EBITDA varies from others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. Adjusted EBITDA should not be considered as an alternative to net income, operating income, or any other performance measures derived in accordance with GAAP, as a measure of operating performance, or as an alternative to cash flows as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations we rely primarily on our GAAP results. However, we believe that presenting adjusted EBITDA is appropriate to provide additional information to investors to demonstrate compliance with our financing covenants. As of December 28, 2013, we were in compliance with our senior credit facility financial covenants, including a leverage ratio of 4.64 to 1.00 and an interest coverage ratio of 4.99 to 1.00, which were calculated for fiscal year 2013 based upon the adjustments to EBITDA, as provided for under the terms of our senior credit facility. The following is a reconciliation of our net income to such adjusted EBITDA for fiscal year 2013 (in thousands):

	Fiscal year 2013
Net income including noncontrolling interests	$	146,304
Interest expense	80,235
Income tax expense	71,784
Depreciation and amortization	49,366
Impairment charges	1,436
EBITDA	349,125
Adjustments:
Non-cash adjustments(a)	12,602
Loss on debt extinguishment and refinancing transactions(b)	5,018
Severance charges(c)	598
Third-party product volume guarantee	7,500
Gain on sale of joint venture	(6,320		)
Other(d)	4,412
Total adjustments	23,810
Adjusted EBITDA	$	372,935

(a) Represents non-cash adjustments, including stock compensation expense, legal reserves, and other non-cash gains and losses.

(b) Represents transaction costs associated with the refinancing and repayment of long-term debt, including fees paid to third parties and write-off of deferred financing costs and original issue discount.

(c) Represents severance and related benefits costs associated with reorganizations.

(d) Represents costs and fees associated with various franchisee-related information technology and other investments, bank fees, the closure of the Company's Canadian ice cream manufacturing plant, as well as the net impact of other insignificant adjustments.

Based upon our current level of operations and anticipated growth, we believe that the cash generated from our operations and amounts available under our revolving credit facility will be adequate to meet our anticipated debt service requirements, capital

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expenditures and working capital needs for at least the next twelve months. We believe that we will be able to meet these obligations even if we experience no growth in sales or profits. There can be no assurance, however, that our business will generate sufficient cash flows from operations or that future borrowings will be available under our revolving credit facility or otherwise to enable us to service our indebtedness, including our senior secured credit facility, or to make anticipated capital expenditures. Our future operating performance and our ability to service, extend or refinance the senior secured credit facility will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.

Off balance sheet obligations

In limited instances, we issue guarantees to financial institutions so that our franchisees can obtain financing with terms of approximately three to ten years for various business purposes. We recognize a liability and offsetting asset for the fair value of such guarantees. The fair value of a guarantee is based on historical default rates of our total guaranteed loan pool. We monitor the financial condition of our franchisees and record provisions for estimated losses on guaranteed liabilities of our franchisees if we believe that our franchisees are unable to make their required payments. As of December 28, 2013, if all of our outstanding guarantees of franchisee financing obligations came due simultaneously, we would be liable for approximately $3.0 million. As of December 28, 2013, no reserves had been recorded for such guarantees. We generally have cross-default provisions with these franchisees that would put the franchisee in default of its franchise agreement in the event of non-payment under such loans. We believe these cross-default provisions significantly reduce the risk that we would not be able to recover the amount of required payments under these guarantees and, historically, we have not incurred significant losses under these guarantees due to defaults by our franchisees.

In 2012, we entered into a third-party guarantee with a distribution facility of franchisee products that guaranteed franchisees would sell a certain volume of cooler beverages each year over a 4-year period. During the second quarter of fiscal year 2013, the Company determined that the franchisees will not achieve the required sales volume, and therefore, the Company accrued the maximum guarantee under the agreement of $7.5 million. The Company expects to make the required guarantee payment during the first quarter of 2014. No additional guarantee payments will be required under the agreement.

We have also entered into a third-party guarantee with this distribution facility of franchisee products that ensures franchisees will purchase a certain volume of product over a 10-year period. As product is purchased by our franchisees over the term of the agreement, the amount of the guarantee is reduced. As of December 28, 2013, we were contingently liable for $5.7 million, under this guarantee. Additionally, we have various supply chain contracts that provide for purchase commitments or exclusivity, the majority of which result in the Company being contingently liable upon early termination of the agreement or engaging with another supplier. As of December 28, 2013, we were contingently liable under such supply chain agreements for approximately $52.6 million. We assess the risk of performing under each of these guarantees on a quarterly basis, and, based on various factors including internal forecasts, prior history, and ability to extend contract terms, we have not recorded any liabilities related to these commitments, except for the liability recorded in connection with the cooler beverage commitment discussed above.

As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants and the guarantee of certain other leases, we are contingently liable on certain lease agreements. These leases have varying terms, the latest of which expires in 2024. As of December 28, 2013, the potential amount of undiscounted payments we could be required to make in the event of nonpayment by the primary lessee was $6.4 million. Our franchisees are the primary lessees under the majority of these leases. We generally have cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of nonpayment under the lease. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases, and we have not recorded a liability for such contingent liabilities.

Contractual obligations

The following table sets forth our contractual obligations as of December 28, 2013, and additionally reflects the impact of the February 2014 refinancing transaction and related amendments of our interest rate swap agreements:

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(In millions)	Total		Less than 1 year	1-3 years	3-5 years	More than 5 years
Long-term debt(1)	$	2,386.8	68.3	170.6	626.2	1,521.7
Capital lease obligations	12.0		1.0	2.1	2.2	6.7
Operating lease obligations	639.8		52.9	102.3	100.3	384.3
Purchase obligations and guarantees(2)(3)	8.4		7.8	0.6	—	—
Short and long-term obligations(4)	1.6		1.6	—	—	—
Total(5)	$	3,048.6	131.6	275.6	728.7	1,912.7

(1) Amounts include mandatory principal payments on long-term debt, as well as estimated interest of $64.9 million, $137.5 million, $161.0 million, and $189.5 million for less than 1 year, 1-3 years, 3-5 years, and more than 5 years, respectively. Interest on the $1.8 billion of term loans under our senior credit facility is variable, subject to an interest rate floor for a portion of the term loans, and has been estimated based on a current LIBOR yield curve. Additionally, estimated interest also reflects the impact of our amended variable-to-fixed interest rate swap agreements. Our term loans also require us to prepay an amount equal to 25% of excess cash flow (as defined in the senior credit facility) for the preceding fiscal year based on our leverage ratio at the end of the fiscal year. If our leverage ratio is less than 4.75x, then no excess cash flow prepayment is required. No excess cash flow payment is required related to fiscal year 2013 based on our current leverage ratio, and therefore no excess cash flow payments have been reflected for any years in the contractual obligation amounts above.

(2) We have entered into two third-party guarantees with a distribution facility of franchisee products that ensures franchisees will purchase or sell a certain volume of product. As of December 28, 2013, we were contingently liable for $5.7 million under one of these guarantees, and are currently obligated to pay $7.5 million in the first quarter of 2014 under the other guarantee. We also have various supply chain contracts that provide for purchase commitments or exclusivity, the majority of which result in our being contingently liable upon early termination of the agreement or engaging with another supplier. . As of December 28, 2013, we were contingently liable under such supply chain agreements for approximately $52.6 million, and considering various factors including internal forecasts, prior history, and ability to extend contract terms, we have accrued $0.9 million related to these supply chain commitments. Such amounts, with the exception of the $7.5 million guarantee payment due in the first quarter of 2014 and the supply chain commitments accrued, are not included in the table above as timing of payment, if any, is uncertain.

(3) We are guarantors of and are contingently liable for certain lease arrangements primarily as the result of our assigning our interest. As of December 28, 2013, we were contingently liable for $6.4 million under these guarantees, which are discussed further above in “Off Balance Sheet Obligations.” Additionally, in certain cases, we issue guarantees to financial institutions so that franchisees can obtain financing. If all outstanding guarantees, which are discussed further below in “Critical accounting policies,” came due as of December 28, 2013, we would be liable for approximately $3.0 million. Such amounts are not included in the table above as timing of payment, if any, is uncertain.

(4) Amounts include obligations to former employees under severance agreements. Excluded from these amounts are any payments that may be required related to pending litigation, such as the Bertico matter more fully described in note 17(d) to our consolidated financial statements included herein, as the amount and timing of cash requirements, if any, are uncertain.

(5) Income tax liabilities for uncertain tax positions, gift card/certificate liabilities, and liabilities to various advertising funds are excluded from the table above as we are not able to make a reasonably reliable estimate of the amount and period of related future payments. As of December 28, 2013, we had a liability for uncertain tax positions, including accrued interest and penalties thereon, of $12.4 million. As of December 28, 2013, we had a gift card/certificate liability of $139.7 million and a gift card breakage liability of $14.1 million (see note 2(v) to our consolidated financial statements included herein). As of December 28, 2013, we had a net payable of $17.6 million to the various advertising funds.

Critical accounting policies

Our significant accounting policies are more fully described under the heading “Summary of significant accounting policies” in Note 2 of the notes to the consolidated financial statements. However, we believe the accounting policies described below are particularly important to the portrayal and understanding of our financial position and results of operations and require application of significant judgment by our management. In applying these policies, management uses its judgment in making certain assumptions and estimates.

These judgments involve estimations of the effect of matters that are inherently uncertain and may have a significant impact on our quarterly and annual results of operations or financial condition. Changes in estimates and judgments could significantly affect our result of operations, financial condition, and cash flow in future years. The following is a description of what we consider to be our most significant critical accounting policies.

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Revenue recognition

Initial franchise fee revenue is recognized upon substantial completion of the services required of us as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Rental income for base rentals is recorded on a straight-line basis over the lease term. Contingent rent is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Revenue from the sale of ice cream is recognized when title and risk of loss transfers to the buyer, which is generally upon delivery. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at risk equity, and we are satisfied that the buyer can meet its financial obligations to us.

Allowances for franchise, license, and lease receivables / guaranteed financing

We reserve all or a portion of a franchisee’s receivable balance when deemed necessary based upon detailed review of such balances, and apply a pre-defined reserve percentage based on an aging criteria to other balances. We perform our reserve analysis during each fiscal quarter or when events or circumstances indicate that we may not collect the balance due. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control.

In limited instances, we issue guarantees to financial institutions so that our franchisees can obtain financing with terms of approximately three to ten years for various business purposes. We recognize a liability and offsetting asset for the fair value of such guarantees. The fair value of a guarantee is based on historical default rates of our total guaranteed loan pool. We monitor the financial condition of our franchisees and record provisions for estimated losses on guaranteed liabilities of our franchisees if we believe that our franchisees are unable to make their required payments. As of December 28, 2013, if all of our outstanding guarantees of franchisee financing obligations came due simultaneously, we would be liable for approximately $3.0 million. As of December 28, 2013, the Company had no reserves recorded for such guarantees. We generally have cross-default provisions with these franchisees that would put the franchisee in default of its franchise agreement in the event of non-payment under such loans. We believe these cross-default provisions significantly reduce the risk that we would not be able to recover the amount of required payments under these guarantees and, historically, we have not incurred significant losses under these guarantees due to defaults by our franchisees.

Impairment of goodwill and other intangible assets

Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them.

We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired. No impairment of indefinite-lived intangible assets was recorded during fiscal years 2012, 2011, or 2010.

We have intangible assets other than goodwill and trade names that are amortized on a straight-line basis over their estimated useful lives or terms of their related agreements. Other intangible assets consist primarily of franchise and international license rights ("franchise rights"), ice cream distribution and territorial franchise agreement license rights ("license rights"), and operating lease interests acquired related to our prime leases and subleases ("operating leases acquired"). Franchise rights,

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license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method. Unfavorable operating leases acquired related to our prime leases and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. Our amortizable intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed impaired is written down to its estimated fair value, which is based on discounted cash flows.

Income taxes

Our major tax jurisdictions subject to income tax are the U.S. and Canada. The majority of our legal entities were converted to limited liability companies (“LLCs”) on March 1, 2006 and a number of new LLCs were created on or about March 15, 2006. All of these LLCs are single member entities which are treated as disregarded entities and included as part of DBGI in the consolidated federal income tax return. We also have subsidiaries in foreign jurisdictions that file separate tax returns in their respective countries and local jurisdictions, as required. In addition to Canada, the foreign jurisdictions that our subsidiaries file tax returns include the United Kingdom, Australia, Spain, and China. The current income tax liabilities for our foreign subsidiaries are calculated on a stand-alone basis. The current federal tax liability for each entity included in our consolidated federal income tax return is calculated on a stand-alone basis, including foreign taxes, for which a separate company foreign tax credit is calculated in lieu of a deduction for foreign withholding taxes paid. As a matter of course, we are regularly audited by federal, state, and foreign tax authorities.

Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rate and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when we do not believe it is more likely than not that we will realize the benefit of identified tax assets.

A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Legal contingencies

We are engaged in litigation that arises in the ordinary course of business as a franchisor. Such matters typically include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by us. We record reserves for legal contingencies when information available to us indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

Foreign exchange risk

We are subject to inherent risks attributed to operating in a global economy. Most of our revenues, costs and debts are denominated in U.S. dollars. Our investments in, and equity income from, joint ventures are denominated in foreign currencies, and are therefore subject to foreign currency fluctuations. For fiscal year 2013, a 5% change in foreign currencies relative to the U.S. dollar would have had an approximately $0.9 million impact on equity in net income of joint ventures. Additionally, a 5%

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change in foreign currencies as of December 28, 2013 would have had an $8.5 million impact on the carrying value of our investments in joint ventures. In the future, we may consider the use of derivative financial instruments, such as forward contracts, to manage foreign currency exchange rate risks.

Interest rate risk

We are subject to interest rate risk in connection with our long-term debt. Our principal interest rate exposure mainly relates to a portion of the term loans outstanding under our senior credit facility. We have a $1.90 billion term loan facility bearing interest at variable rates. We have entered into variable-to-fixed interest rate swap agreements to hedge the floating interest rate on $900.0 million notional amount of our outstanding term loan borrowings. These swaps are scheduled to mature in November 2017. Pursuant to the amendments to the swap agreements as more fully described in Item 7 under "Liquidity and capital resources," we are required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.22%. In exchange, we receive interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a 0.75% floor. Based on the principal amount of term loan borrowings outstanding at December 28, 2013 and considering the amended interest rate swaps, each eighth of a percentage point change in interest rates above the minimum interest rate specified in the senior credit facility would result in a $1.2 million change in annual interest expense on our term loan facility. We also have a revolving credit facility, which provides for borrowings of up to $100.0 million and bears interest at variable rates. Assuming the revolver is fully drawn, each eighth of a percentage point change in interest rates above the minimum interest rate specified in the senior credit facility would result in a $0.1 million change in annual interest expense on our revolving loan facility. There was no material impact to our interest rate risk above the minimum interest rate specified as a result of the February 2014 amendment to our senior credit facility.

In the future, we may enter into additional hedging instruments, involving the exchange of floating for fixed rate interest payments, to reduce interest rate volatility.

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Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Dunkin’ Brands Group, Inc.:

We have audited the accompanying consolidated balance sheets of Dunkin’ Brands Group, Inc. and subsidiaries as of December 28, 2013 and December 29, 2012, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three‑year period ended December 28, 2013. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Dunkin’ Brands Group, Inc. and subsidiaries as of December 28, 2013 and December 29, 2012, and the results of their operations and their cash flows for each of the years in the three‑year period ended December 28, 2013, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Dunkin’ Brands Group, Inc.’s internal control over financial reporting as of December 28, 2013, based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 20, 2014 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

/s/ KPMG LLP

Boston, Massachusetts

February 20, 2014

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share data)

	December 28, 2013			December 29, 2012
Assets
Current assets:
Cash and cash equivalents	$	256,933		252,618
Accounts receivable, net	47,162			32,407
Notes and other receivables, net	32,603			20,649
Assets held for sale	1,663			2,400
Deferred income taxes, net	46,461			47,263
Restricted assets of advertising funds	31,493			31,849
Prepaid income taxes	25,699			10,825
Prepaid expenses and other current assets	19,746			21,769
Total current assets	461,760			419,780
Property and equipment, net	182,858			181,172
Equity method investments	170,644			174,823
Goodwill	891,598			891,900
Other intangible assets, net	1,452,205			1,479,784
Restricted cash	305			367
Other assets	75,320			69,687
Total assets	$	3,234,690		3,217,513
Liabilities, Redeemable Noncontrolling Interests, and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	5,000		26,680
Capital lease obligations	432			371
Accounts payable	12,445			16,256
Liabilities of advertising funds	49,077			45,594
Deferred income	28,426			24,683
Other current liabilities	248,918			239,931
Total current liabilities	344,298			353,515
Long-term debt, net	1,818,609			1,823,278
Capital lease obligations	6,996			7,251
Unfavorable operating leases acquired	16,834			19,061
Deferred income	11,135			15,720
Deferred income taxes, net	561,714			569,126
Other long-term liabilities	62,816			79,587
Total long-term liabilities	2,478,104			2,514,023
Commitments and contingencies (note 17)
Redeemable noncontrolling interests	4,930			—
Stockholders’ equity:
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at December 28, 2013 and December 29, 2012, respectively	—			—
Common stock, $0.001 par value; 475,000,000 shares authorized; 106,876,919 shares issued and 106,646,219 shares outstanding at December 28, 2013; 106,146,984 shares issued and outstanding at December 29, 2012	107			106
Additional paid-in capital	1,196,426			1,251,498
Treasury stock, at cost	(10,773		)	—
Accumulated deficit	(779,741		)	(914,094	)
Accumulated other comprehensive income	1,339			9,141
Total stockholders’ equity of Dunkin' Brands	407,358			346,651
Noncontrolling interests	—			3,324
Total stockholders' equity	407,358			349,975
Total liabilities, redeemable noncontrolling interests, and stockholders' equity	$	3,234,690		3,217,513

See accompanying notes to consolidated financial statements.

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except per share data)

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Revenues:
Franchise fees and royalty income	$	453,976		418,940		398,474
Rental income	96,082			96,816		92,145
Sales of ice cream products	112,276			94,659		100,068
Sales at company-owned restaurants	24,976			22,922		12,154
Other revenues	26,530			24,844		25,357
Total revenues	713,840			658,181		628,198
Operating costs and expenses:
Occupancy expenses—franchised restaurants	52,097			52,072		51,878
Cost of ice cream products	79,278			69,019		72,329
Company-owned restaurant expenses	24,480			23,133		12,854
General and administrative expenses, net	228,010			239,574		227,771
Depreciation	22,423			29,084		24,497
Amortization of other intangible assets	26,943			26,943		28,025
Long-lived asset impairment charges	563			1,278		2,060
Total operating costs and expenses	433,794			441,103		419,414
Net income (loss) of equity method investments:
Net income, excluding impairment	19,243			22,351		16,277
Impairment charge, net of tax	(873		)	—		(19,752		)
Total net income (loss) of equity method investments	18,370			22,351		(3,475		)
Other operating income, net	6,320			—		—
Operating income	304,736			239,429		205,309
Other income (expense):
Interest income	404			543		623
Interest expense	(80,235		)	(74,031	)	(105,072		)
Loss on debt extinguishment and refinancing transactions	(5,018		)	(3,963	)	(34,222		)
Other gains (losses), net	(1,799		)	23		175
Total other expense	(86,648		)	(77,428	)	(138,496		)
Income before income taxes	218,088			162,001		66,813
Provision for income taxes	71,784			54,377		32,371
Net income including noncontrolling interests	146,304			107,624		34,442
Net loss attributable to noncontrolling interests	(599		)	(684	)	—
Net income attributable to Dunkin' Brands	$	146,903		108,308		34,442
Earnings (loss) per share:
Class L—basic and diluted	n/a			n/a		$	6.14
Common—basic	$	1.38		0.94		(1.41		)
Common—diluted	1.36			0.93		(1.41		)
Cash dividends declared per common share	0.76			0.60		—

See accompanying notes to consolidated financial statements.

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands)

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Net income including noncontrolling interests	$	146,304		107,624		34,442
Other comprehensive income (loss), net:
Effect of foreign currency translation, net of deferred tax expense (benefit) of $205, $(260), and $295 for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively	(14,909		)	(5,996	)	6,560
Unrealized gains (losses) on interest rate swaps, net of deferred tax expense (benefit) of $5,290 and $(1,154) for the fiscal years ended December 28, 2013 and December 29, 2012, respectively	7,740			(1,655	)	—
Unrealized loss on pension plan, net of deferred tax benefit of $200, $415, and $85 for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively	(612		)	(1,180	)	(233	)
Other	(21		)	(1,629	)	(353	)
Total other comprehensive income (loss)	(7,802		)	(10,460	)	5,974
Comprehensive income including noncontrolling interests	138,502			97,164		40,416
Comprehensive loss attributable to noncontrolling interests	(599		)	(684	)	—
Comprehensive income attributable to Dunkin' Brands	$	139,101		97,848		40,416

See accompanying notes to consolidated financial statements.

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity

(In thousands)

	Stockholders' equity																	Redeemable noncontrolling interests
	Common stock					Additional paid-in capital		Treasury stock, at cost		Accumulated deficit		Accumulated other comprehensive income		Noncontrolling interests		Total
	Shares		Amount
Balance at December 25, 2010	41,853		$	42		195,212		(1,807	)	(741,415	)	13,627		—		(534,341	)	—
Net income	—		—			—		—		34,442		—		—		34,442		—
Other comprehensive income	—		—			—		—		—		5,974		—		5,974		—
Accretion of Class L preferred return	—		—			—		—		(45,102	)	—		—		(45,102	)	—
Conversion of Class L shares into common stock	55,653		55			887,786		—		—		—		—		887,841		—
Issuance of common stock in connection with initial public offering	22,250		22			389,939		—		—		—		—		389,961		—
Issuance of common stock	129		—			942		—		—		—		—		942		—
Exercise of stock options	62		—			266		—		—		—		—		266		—
Share-based compensation expense	105		—			4,632		—		—		—		—		4,632		—
Repurchases of common stock	—		—			—		(173	)	—		—		—		(173	)	—
Retirement of treasury stock	(558	)	—			(1,980	)	1,980		—		—		—		—		—
Excess tax benefits from share-based compensation	—		—			1,494		—		—		—		—		1,494		—
Balance at December 31, 2011	119,494		119			1,478,291		—		(752,075	)	19,601		—		745,936		—
Net income	—		—			—		—		108,308		—		(684	)	107,624		—
Other comprehensive loss	—		—			—		—		—		(10,460	)	—		(10,460	)	—
Exercise of stock options	1,277		2			4,416		—		—		—		—		4,418		—
Contributions from noncontrolling interests	—		—			—		—		—		—		4,008		4,008		—
Dividends paid on common stock	—		—			(70,069	)	—		—		—		—		(70,069	)	—
Share-based compensation expense	372		—			6,920		—		—		—		—		6,920		—
Repurchases of common stock	—		—			—		(450,369	)	—		—		—		(450,369	)	—
Retirement of treasury stock	(15,001	)	(15		)	(180,027	)	450,369		(270,327	)	—		—		—		—
Excess tax benefits from share-based compensation	—		—			11,978		—		—		—		—		11,978		—
Other	—		—			(11	)	—		—		—		—		(11	)	—
Balance at December 29, 2012	106,142		106			1,251,498		—		(914,094	)	9,141		3,324		349,975		—
Net income	—		—			—		—		146,903		—		(239	)	146,664		(360	)
Other comprehensive loss	—		—			—		—		—		(7,802	)	—		(7,802	)	—
Exercise of stock options	1,140		1			7,962		—		—		—		—		7,963		—
Reclassification to redeemable noncontrolling interests	—		—			—		—		—		—		(3,085	)	(3,085	)	3,085
Contributions from redeemable noncontrolling interests	—		—			—		—		—		—		—		—		2,205
Dividends paid on common stock	—		—			(81,008	)	—		—		—		—		(81,008	)	—
Share-based compensation expense	12		—			7,323		—		—		—		—		7,323		—
Repurchases of common stock	—		—			—		(27,963	)	—		—		—		(27,963	)	—
Retirement of treasury stock	(417	)	—			(4,688	)	17,190		(12,502	)	—		—		—		—
Excess tax benefits from share-based compensation	—		—			15,366		—		—		—		—		15,366		—
Other	—		—			(27	)	—		(48	)	—		—		(75	)	—
Balance at December 28, 2013	106,877		$	107		1,196,426		(10,773	)	(779,741	)	1,339		—		407,358		4,930

See accompanying notes to consolidated financial statements.

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Cash flows from operating activities:
Net income including noncontrolling interests	$	146,304		107,624		34,442
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	49,366			56,027		52,522
Amortization of deferred financing costs and original issue discount	4,706			5,727		6,278
Loss on debt extinguishment and refinancing transactions	5,018			3,963		34,222
Impact of unfavorable operating leases acquired	(2,177		)	(2,352	)	(3,230	)
Deferred income taxes	(13,191		)	(6,946	)	(11,363	)
Long-lived asset impairment charges	563			1,278		2,060
Provision for (recovery of) bad debt	3,484			(542	)	2,019
Share-based compensation expense	7,323			6,920		4,632
Net loss (income) of equity method investments	(18,370		)	(22,351	)	3,475
Dividends received from equity method investments	7,226			6,497		7,362
Gain on sale of joint venture	(6,320		)	—		—
Other, net	(2,268		)	(845	)	(2,633	)
Change in operating assets and liabilities:
Accounts, notes, and other receivables, net	(27,444		)	6,321		19,123
Other current assets	1,879			(1,480	)	4,406
Accounts payable	46			2,804		85
Other current liabilities	8,163			38,767		17,904
Liabilities of advertising funds, net	4,795			(5,688	)	(3,572	)
Income taxes payable, net	(27,847		)	(38,928	)	473
Deferred income	(842		)	(1,491	)	(5,658	)
Other, net	1,385			(885	)	156
Net cash provided by operating activities	141,799			154,420		162,703
Cash flows from investing activities:
Additions to property and equipment	(31,099		)	(22,398	)	(18,596	)
Proceeds from sale of joint venture	6,682			—		—
Other, net	1,511			(549	)	(1,211	)
Net cash used in investing activities	(22,906		)	(22,947	)	(19,807	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	—			396,000		250,000
Repayment of long-term debt	(24,157		)	(15,441	)	(654,608	)
Payment of deferred financing and other debt-related costs	(6,157		)	(5,978	)	(20,087	)
Proceeds from initial public offering, net of offering costs	—			—		389,961
Repurchases of common stock	(27,963		)	(450,369	)	(286	)
Dividends paid on common stock	(81,008		)	(70,069	)	—
Exercise of stock options	7,963			4,418		266
Excess tax benefits from share-based compensation	15,366			11,978		1,494
Other, net	1,782			3,859		3,186
Net cash used in financing activities	(114,174		)	(125,602	)	(30,074	)
Effect of exchange rate changes on cash and cash equivalents	(404		)	32		(207	)
Increase in cash and cash equivalents	4,315			5,903		112,615
Cash and cash equivalents, beginning of year	252,618			246,715		134,100
Cash and cash equivalents, end of year	$	256,933		252,618		246,715
Supplemental cash flow information:
Cash paid for income taxes	$	98,483		90,225		43,143
Cash paid for interest	78,127			54,115		103,147
Noncash investing activities:
Property and equipment included in accounts payable and other current liabilities	1,366			5,244		1,641
Purchase of leaseholds in exchange for capital lease obligations	173			2,818		—

See accompanying notes to consolidated financial statements.

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DUNKIN’ BRANDS GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(1) Description of business and organization

Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s largest franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We develop, franchise, and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, own and operate individual locations. Through our Dunkin’ Donuts brand, we develop and franchise restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. Through our Baskin-Robbins brand, we develop and franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international markets.

Throughout these consolidated financial statements, “Dunkin’ Brands,” “the Company,” “we,” “us,” “our,” and “management” refer to DBGI and its consolidated subsidiaries taken as a whole.

(2) Summary of significant accounting policies

(a) Fiscal year

The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2013 and 2012 reflect the results of operations for the 52-week periods ended December 28, 2013 and December 29, 2012, respectively, and fiscal year 2011 reflects the results of operations for the 53-week period ended December 31, 2011.

(b) Basis of presentation and consolidation

The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries have been eliminated in consolidation.

We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities, the advertising funds (see note 4), and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method or are otherwise consolidated. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchise entities. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees (see note 17(b)), and future lease payments due from franchisees (see note 11).

The Company holds a 51% interest in a limited partnership that owns and operates Dunkin' Donuts restaurants in the Dallas, Texas area. The Company possesses control of this entity and, therefore, consolidates the results of the limited partnership. During fiscal year 2013, the Company amended the partnership agreement with the noncontrolling owners to provide the noncontrolling owners the option in early 2017 to sell their entire interest to the Company. As a result of the amendment, the partnership agreement now contains a redemption feature that is not currently redeemable, but it is probable to become redeemable in the future. As such, the Company reclassified the noncontrolling interests in fiscal year 2013 to temporary equity (between liabilities and stockholders’ equity) in the consolidated balance sheets. The net loss and comprehensive loss attributable to the noncontrolling interest are presented separately in the consolidated statements of operations and comprehensive income, respectively. As of December 28, 2013, the consolidated balance sheets included $3.0 million of cash and cash equivalents and $6.4 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership.

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(c) Accounting estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) income taxes, (d) real estate reserves, (e) lease accounting estimates, (f) gift certificate breakage, and (g) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. Illiquid credit markets and volatile equity and foreign currency markets have combined to increase the uncertainty inherent in such estimates and assumptions.

(d) Cash and cash equivalents and restricted cash

The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2013 and December 29, 2012, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents.

Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 28, 2013 and December 29, 2012 were $134.5 million and $125.4 million, respectively.

(e) Fair value of financial instruments

The carrying amounts of accounts receivable, notes and other receivables, assets and liabilities related to the advertising funds, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $5.3 million and $5.8 million as of December 28, 2013 and December 29, 2012, respectively, approximates fair value.

Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

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Financial assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 and December 29, 2012 are summarized as follows (in thousands):

	December 28, 2013				December 29, 2012
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)	Total	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Total
Assets:
Mutual funds	$	1,012	—	1,012	2,505	—	2,505
Interest rate swaps	—		10,221	10,221	—	—	—
Total assets	$	1,012	10,221	11,233	2,505	—	2,505
Liabilities:
Deferred compensation liabilities	$	—	7,181	7,181	—	7,379	7,379
Interest rate swaps	—		—	—	—	2,809	2,809
Total liabilities	$	—	7,181	7,181	—	10,188	10,188

The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees (see note 18). Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds mutual funds, as well as money market funds, to partially offset the Company’s liabilities under the NQDC Plan as well as other benefit plans. The changes in the fair value of the mutual funds are derived using quoted prices in active markets for the specific funds. As such, the mutual funds are classified within Level 1, as defined under U.S. GAAP.

The Company uses readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives includes consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input, as defined under U.S. GAAP. As the magnitude of the CVA is not a significant component of the fair value of the interest rate swaps as of December 28, 2013, it is not considered a significant input and the derivatives are classified as Level 2.

The carrying value and estimated fair value of long-term debt at December 28, 2013 and December 29, 2012 were as follows (in thousands):

	December 28, 2013			December 29, 2012
Financial liabilities	Carrying value		Estimated fair value	Carrying value	Estimated fair value
Term loans	$	1,823,609	1,836,212	1,849,958	1,878,980

The estimated fair value of our term loans is based on current bid prices for our term loans. Judgment is required to develop these estimates. As such, our term loans are classified within Level 2, as defined under U.S. GAAP.

(f) Inventories

Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. Inventories are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets.

(g) Assets held for sale

Assets held for sale primarily represent costs incurred by the Company for store equipment and leasehold improvements constructed for sale to franchisees, as well as restaurants formerly operated by franchisees waiting to be resold. The value of such restaurants and related assets is reduced to reflect net recoverable values, with such reductions recorded to general and administrative expenses, net in the consolidated statements of operations. Generally, internal specialists estimate the amount to be recovered from the sale of such assets based on their knowledge of the (a) market in which the store is located, (b) results of

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the Company’s previous efforts to dispose of similar assets, and (c) current economic conditions. The actual cost of such assets held for sale is affected by specific factors such as the nature, age, location, and condition of the assets, as well as the economic environment and inflation.

We classify restaurants and their related assets as held for sale and suspend depreciation and amortization when (a) we make a decision to refranchise or sell the property, (b) the stores are available for immediate sale, (c) we have begun an active program to locate a buyer, (d) significant changes to the plan of sale are not likely, and (e) the sale is probable within one year.

(h) Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows:

	Years
Buildings	20 – 35
Leasehold improvements	5 – 20
Store, production, and other equipment	3 – 10

Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated.

(i) Leases

When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term.

We record rent expense and rent income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rent income and rent expense as they are earned or accrued, respectively.

We occasionally provide to our sublessees, or receive from our landlords, tenant improvement dollars. Tenant improvement dollars paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement dollars from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively.

Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and charged to operations at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(j)).

(j) Impairment of long-lived assets

Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, by independent third-party valuation specialists, depending on the nature of the assets or asset group.

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(k) Equity method investments

The Company's equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“BR Japan”), BR-Korea Co., Ltd. (“BR Korea”), Coffee Alliance, S.L. (“Spain JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. As a result of the acquisition of the Company by BCT (see note 19(a)) on March 1, 2006 (“BCT Acquisition”), the Company has recorded a step-up in the basis of our investment in BR Japan. The basis difference is comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill. The franchise rights and related tax liabilities are amortized in a manner that reflects the estimated benefits from the use of the intangible asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives.

(l) Goodwill and other intangible assets

Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them.

We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired.

Other intangible assets consist primarily of franchise and international license rights (“franchise rights”), ice cream distribution and territorial franchise agreement license rights (“license rights”), and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights, license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method.

Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 17 years.

Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(j)), or when such license or lease agreements are reduced or terminated.

(m) Contingencies

The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred.

(n) Foreign currency translation

We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments

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are recorded as a separate component of comprehensive income and stockholders’ equity, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, and Spain. Business transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations.

(o) Revenue recognition

Franchise fees and royalty income

Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. Our franchise agreements and SDAs typically require the franchisee to pay an initial nonrefundable fee and continuing fees, or royalty income, based upon a percentage of sales. The franchisee will typically pay us a renewal fee if we approve a renewal of the franchise agreement. Such fees are paid by franchisees to obtain the rights associated with these franchise agreements or SDAs. Initial franchise fee revenue is recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned, with deferred amounts expected to be recognized as revenue within one year classified as current deferred income in the consolidated balance sheets. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise agreement, SDA, or renewal agreement and, when appropriate, records the costs of such programs as reductions of revenue.

For our international business, we sell master territory and/or license agreements that typically allow the master licensee to either act as the franchisee or to sub-franchise to other operators. Master license and territory fees are generally recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the first restaurant or as stores are opened, depending on the specific terms of the agreement. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which generally occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee or licensee becomes effective.

Rental income

Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid (see note 2(i)). The difference between the straight-line rent amounts and amounts receivable under the leases is recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Deferred contingent rentals are recorded as deferred income in current liabilities in the consolidated balance sheets.

Sales of ice cream products

We distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international locations. Revenue from the sale of ice cream products is recognized when title and risk of loss transfers to the buyer, which was generally upon shipment through November 2012. Beginning in December 2012, title and risk of loss generally transfers to the buyer upon delivery.

Sales at company-owned restaurants

Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes.

Other revenues

Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of our restaurants to new or existing franchisees. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity, and we are satisfied that the buyer can meet its financial obligations to us. If the criteria for gain recognition are not met, we defer the gain to the extent we have any remaining financial exposure in connection with the sale transaction. Deferred gains are recognized when the gain recognition criteria are met.

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(p) Allowance for doubtful accounts

We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, lease, and licensing fee receivables.

(q) Share-based payment

We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award.

(r) Income taxes

Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets.

A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes.

(s) Comprehensive income

Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, unrealized gains and losses on interest rate swaps, and unrealized pension gains and losses, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented.

(t) Deferred financing costs

Deferred financing costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8). As of December 28, 2013 and December 29, 2012, deferred financing costs of $19.2 million and $25.0 million, respectively, are included in other assets in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt using the effective interest rate method.

(u) Derivative instruments and hedging activities

The Company uses derivative instruments to hedge interest rate risks. These derivative contracts are entered into with financial institutions. The Company does not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the consolidated statements of operations immediately. See note 9 for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information.

(v) Gift card/certificate breakage

The Company and our franchisees sell gift cards that are redeemable for product in our Dunkin' Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets.

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There are no expiration dates on our gift cards, and we do not charge any service fees. While our franchisees continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, we may recognize income from unredeemed gift cards (“breakage income”) if they are not subject to unclaimed property laws. Based on redemption data available, breakage income for gift cards was generally recognized five years from the last date of activity on the card through the first quarter of fiscal year 2013. During the second quarter of fiscal year 2013, the Company determined that sufficient historical redemption patterns existed to revise breakage estimates related to unredeemed Dunkin’ Donuts gift cards. Based on historical redemption rates, breakage on Dunkin' Donuts gift cards is now estimated and recognized over time in proportion to actual gift card redemptions. The Company recognizes breakage as income only up to the amount of gift card program costs incurred. Any incremental breakage that exceeds gift card program costs has been committed to franchisees to fund future initiatives that will benefit the gift card program, and is recorded as gift card breakage liability within other current liabilities in the consolidated balance sheets (see note 10).

For fiscal years 2013, 2012, and 2011, total breakage income recognized on gift cards, as well as historical gift certificate programs, was $10.2 million, $7.9 million, and $2.5 million, respectively, and is recorded as a reduction to general and administrative expenses, net. Breakage income for fiscal year 2013 includes a $5.4 million recovery of historical Dunkin' Donuts gift card program costs incurred prior to fiscal year 2013. Breakage income for fiscal year 2012 includes $3.5 million related to historical Baskin-Robbins gift certificates as a result of shifting to gift cards, and represents the balance of gift certificates for which the Company believes the likelihood of redemption by the customer is remote based on historical redemption patterns.

(w) Concentration of credit risk

The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. At December 28, 2013, one master licensee and majority owned subsidiaries of the master licensee accounted for approximately 17% of total accounts and notes receivable, which was due primarily to the timing of orders and shipments of ice cream to the master licensee. At December 29, 2012, no individual franchisee or master licensee accounted for more than 10% of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for the fiscal years ended 2013, 2012, or 2011.

(x) Recent accounting pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires presentation of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This guidance is effective for the Company in fiscal year 2014 with early adoption permitted. The Company has not adopted this guidance as of December 28, 2013, and does not expect the adoption of this guidance to have any impact on the Company's consolidated financial statements.

In February 2013, the FASB issued new guidance which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2011, the FASB issued guidance which enhanced existing disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. In January 2013, the FASB issued new guidance to clarify that the guidance issued in December 2011 on offsetting financial assets and financial liabilities was limited to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria or subject to a master netting arrangement or similar agreement. It further clarifies that ordinary trade receivables and other receivables are not in the scope of the existing guidance. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

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(y) Reclassifications

The Company has revised the presentation of certain captions for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The revisions had no impact on net cash provided by (used in) operating, investing, or financing activities.

(z) Subsequent events

Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.

(3) Franchise fees and royalty income

Franchise fees and royalty income consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Royalty income	$	411,428	385,713	363,458
Initial franchise fees and renewal income	42,548		33,227	35,016
Total franchise fees and royalty income	$	453,976	418,940	398,474

The changes in franchised and company-owned points of distribution were as follows:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Systemwide points of distribution:
Franchised points of distribution in operation—beginning of year	17,333		16,565		16,105
Franchises opened	1,388		1,470		1,403
Franchises closed	(600	)	(701	)	(944	)
Net transfers from (to) company-owned points of distribution	1		(1	)	1
Franchised points of distribution in operation—end of year	18,122		17,333		16,565
Company-owned points of distribution—end of year	36		35		31
Total systemwide points of distribution—end of year	18,158		17,368		16,596

During fiscal year 2013, the Company performed an internal review of international franchised points of distribution, and determined that certain franchises opened and closed had not been accurately reported in prior years. As such, the points of distribution information for fiscal years 2012 and 2011 above have been adjusted to reflect the results of this internal review. The adjustments to the prior years were not material, and had no impact on the Company's financial position or results of operations. Franchised points of distribution in operation—beginning of year were reduced by 198 and 57 for fiscal years 2012 and 2011, respectively. Franchised points of distribution in operation—end of year were reduced by 91 and 198 for fiscal years 2012 and 2011, respectively.

(4) Advertising funds

On behalf of certain Dunkin’ Donuts and Baskin-Robbins advertising funds, the Company collects a percentage, which is generally 5%, of gross retail sales from Dunkin’ Donuts and Baskin-Robbins franchisees to be used for various forms of advertising for each brand. In most of our international markets, franchisees manage their own advertising expenditures, which are not included in the advertising fund results.

The Company administers and directs the development of all advertising and promotion programs in the advertising funds for which it collects advertising fees, in accordance with the provisions of our franchise agreements. The Company acts as, in substance, an agent with regard to these advertising contributions. We consolidate and report all assets and liabilities held by these advertising funds as restricted assets of advertising funds and liabilities of advertising funds within current assets and current liabilities, respectively, in the consolidated balance sheets. The assets and liabilities held by these advertising funds consist primarily of receivables, accrued expenses, other liabilities, and any cumulative surplus or deficit related specifically to the advertising funds. The revenues, expenses, and cash flows of the advertising funds are not included in the Company’s consolidated statements of operations or consolidated statements of cash flows because the Company does not have complete discretion over the usage of the funds. Contributions to these advertising funds are restricted to advertising, product

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development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of each of the brands.

At December 28, 2013 and December 29, 2012, the Company had a net payable of $17.6 million and $13.7 million, respectively, to the various advertising funds.

To cover administrative expenses of the advertising funds, the Company charges each advertising fund a management fee for items such as rent, accounting services, information technology, data processing, product development, legal, administrative support services, and other operating expenses, which amounted to $5.5 million, $5.6 million, and $5.7 million for fiscal years 2013, 2012, and 2011, respectively. Such management fees are included in the consolidated statements of operations as a reduction in general and administrative expenses, net.

The Company made discretionary contributions to certain advertising funds for the purpose of supplementing national and regional advertising in certain markets of $2.4 million, $863 thousand, and $2.0 million for fiscal years 2013, 2012, and 2011, respectively, which are included in general and administrative expenses, net in the consolidated statements of operations. Additionally, the Company made net contributions to the advertising funds based on retail sales as owner and operator of company-owned restaurants of $1.0 million, $808 thousand, and $289 thousand for fiscal years 2013, 2012, and 2011, respectively, which are included in company-owned restaurant expenses in the consolidated statements of operations. During fiscal year 2013, the Company also made $5.9 million of contributions to fund future initiatives that will benefit the gift card program, which was contributed from the gift card breakage liability included within other current liabilities in the consolidated balance sheets (see note 2(v) and note 10); no such contributions were made in fiscal years 2012 or 2011.

(5) Property and equipment

Property and equipment at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013			December 29, 2012
Land	$	34,052		31,080
Buildings	47,946			45,447
Leasehold improvements	154,491			158,797
Store, production, and other equipment	43,124			50,046
Construction in progress	9,079			5,549
Property and equipment, gross	288,692			290,919
Accumulated depreciation and amortization	(105,834		)	(109,747	)
Property and equipment, net	$	182,858		181,172

The Company recognized impairment charges on leasehold improvements, typically due to termination of the underlying lease agreement, and other corporately-held assets of $119 thousand, $319 thousand, and $1.4 million during fiscal years 2013, 2012, and 2011, respectively, which are included in long-lived asset impairment charges in the consolidated statements of operations.

(6) Equity method investments

The Company’s ownership interests in its equity method investments as of December 28, 2013 and December 29, 2012 were as follows:

	Ownership
Entity	December 28, 2013		December 29, 2012
BR Japan	43.3	%	43.3	%
BR Korea	33.3	%	33.3	%
Spain JV	33.3	%	33.3	%
Australia JV	20.0	%	n/a

In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.3 million, net of transaction costs, which is included in other operating income in the consolidated statements of operations for the fiscal year 2013. The gain consisted of net proceeds of $6.5 million, offset by the carrying value of the business included in the sale, which totaled $216 thousand. As of December 28, 2013, unpaid transaction-related costs totaling $146 thousand are included in

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other current liabilities in the consolidated balance sheets. The Company retained the remaining 20% ownership of the Australia JV, and therefore accounts for the Australia JV in accordance with the equity method.

Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands):

	December 28, 2013		December 29, 2012
Current assets	$	261,546	248,371
Current liabilities	106,280		102,787
Working capital	155,266		145,584
Property, plant, and equipment, net	139,378		144,570
Other assets	173,491		163,511
Long-term liabilities	52,389		62,351
Equity of equity method investments	$	415,746	391,314

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Revenues	$	673,537	687,676	659,319
Net income	51,407		51,046	44,156

The comparison between the carrying value of our investments in BR Japan and BR Korea and the underlying equity in net assets of those investments is presented in the table below (in thousands):

	BR Japan			BR Korea
	December 28, 2013		December 29, 2012	December 28, 2013		December 29, 2012
Carrying value of investment	$	79,472	95,776	91,121		77,749
Underlying equity in net assets of investment	45,682		54,410	100,766		88,514
Carrying value in excess of (less than) the underlying equity in net assets(a)	$	33,790	41,366	(9,645	)	(10,765	)

(a) The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011.

The carrying value of our investments in the Spain JV and the Australia JV was not material for any period presented.

The aggregate fair value of the Company's investment in BR Japan, based on its quoted market price on the last business day of the year, is approximately $163.9 million. No quoted market prices are available for the Company's other equity method investments.

Net income (loss) of equity method investments in the consolidated statements of operations for fiscal years 2013, 2012, and 2011 includes $505 thousand, $689 thousand, and $868 thousand, respectively, of net expense related to the amortization of intangible franchise rights and related deferred tax liabilities noted above. As required under the equity method of accounting, such net expense is recorded in the consolidated statements of operations directly to net income (loss) of equity method investments and not shown as a component of amortization expense.

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Total estimated amortization expense, net of deferred tax benefits, to be included in net income of equity method investments for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	408
2015	345
2016	277
2017	205
2018	128

During the third quarter of 2013, the Company fully reserved all outstanding notes and accounts receivable totaling $2.8 million, and fully impaired its equity investment in the Spain JV of $873 thousand. The reserves on accounts and notes receivable are included in general and administrative expenses, net, and the impairment of the equity investment is included in net income (loss) of equity method investments in the consolidated statements of operations.

During the fourth quarter of 2011, management concluded that indicators of potential impairment were present related to our investment in BR Korea based on continued declines in the operating performance and future projections of the Korea Dunkin’ Donuts business. Accordingly, the Company engaged an independent third-party valuation specialist to assist the Company in determining the fair value of our investment in BR Korea. The valuation was completed using a combination of discounted cash flow and income approaches to valuation. Based in part on the fair value determined by the independent third-party valuation specialist, the Company determined that the carrying value of the investment in BR Korea exceeded fair value by $19.8 million, and as such the Company recorded an impairment charge for that amount in the fourth quarter of 2011. The impairment charge was allocated to the underlying goodwill, intangible assets, and long-lived assets of BR Korea, and therefore resulted in a reduction in depreciation and amortization, net of tax, of $2.0 million, $3.6 million, and $1.0 million, in fiscal years 2013, 2012, and 2011, respectively, which is recorded within net income (loss) of equity method investments in the consolidated statements of operations.

(7) Goodwill and other intangible assets

The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands):

	Dunkin’ Donuts U.S.							Dunkin’ Donuts International					Baskin-Robbins International				Total
	Goodwill			Accumulated impairment charges		Net Balance		Goodwill		Accumulated impairment charges	Net Balance		Goodwill	Accumulated impairment charges		Net Balance	Goodwill		Accumulated impairment charges		Net Balance
Balances at December 31, 2011	$	1,151,140		(270,441	)	880,699		10,293		—	10,293		24,037	(24,037	)	—	1,185,470		(294,478	)	890,992
Goodwill acquired	895			—		895		—		—	—		—	—		—	895		—		895
Effects of foreign currency adjustments	—			—		—		13		—	13		—	—		—	13		—		13
Balances at December 29, 2012	1,152,035			(270,441	)	881,594		10,306		—	10,306		24,037	(24,037	)	—	1,186,378		(294,478	)	891,900
Goodwill disposed	(260		)	—		(260	)	—		—	—		—	—		—	(260	)	—		(260	)
Effects of foreign currency adjustments	—			—		—		(42	)	—	(42	)	—	—		—	(42	)	—		(42	)
Balances at December 28, 2013	$	1,151,775		(270,441	)	881,334		10,264		—	10,264		24,037	(24,037	)	—	1,186,076		(294,478	)	891,598

The goodwill acquired and disposed during fiscal years 2013 and 2012 is related to the acquisition and sale of certain company-owned points of distribution.

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Other intangible assets at December 28, 2013 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	383,465	(159,719	)	223,746
Favorable operating leases acquired	16	71,788		(35,653	)	36,135
License rights	10	6,230		(4,876	)	1,354
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,652,453	(200,248	)	1,452,205

Other intangible assets at December 29, 2012 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	384,065	(139,677	)	244,388
Favorable operating leases acquired	15	77,653		(35,207	)	42,446
License rights	10	6,230		(4,250	)	1,980
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,658,918	(179,134	)	1,479,784

The changes in the gross carrying amount of other intangible assets and weighted average amortization period from December 29, 2012 to December 28, 2013 are primarily due to the impairment of favorable operating leases acquired resulting from lease terminations and the impact of foreign currency fluctuations. Impairment of favorable operating leases acquired, net of accumulated amortization, totaled $444 thousand, $959 thousand, and $624 thousand, for fiscal years 2013, 2012, and 2011, respectively, and is included within long-lived asset impairment charges in the consolidated statements of operations.

Total estimated amortization expense for other intangible assets for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	25,357
2015	25,069
2016	22,180
2017	21,673
2018	21,258

(8) Debt

Debt at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Term loans	$	1,823,609	1,849,958
Less current portion of long-term debt	5,000		26,680
Total long-term debt	$	1,818,609	1,823,278

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Senior credit facility

The Company’s senior credit facility consists of $1.90 billion aggregate principal amount term loans and a $100.0 million revolving credit facility, which were entered into by DBGI’s subsidiary, Dunkin’ Brands, Inc. (“DBI”) in November 2010. The term loans and revolving credit facility mature in February 2020 and February 2018, respectively. As of December 28, 2013 and December 29, 2012, $1.83 billion and $1.86 billion, respectively, of principal was outstanding on the term loans. As of December 28, 2013 and December 29, 2012, $3.0 million and $11.5 million, respectively, of letters of credit were outstanding against the revolving credit facility. There were no amounts drawn down on these letters of credit.

Borrowings under the term loans bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, (c) the LIBOR rate plus 1.0%, and (d) 2.0% or (2) a LIBOR rate provided that LIBOR shall not be lower than 1.0% (the “LIBOR floor”). The applicable margin under the term loan facility is 1.75% for loans based upon the base rate and 2.75% for loans based upon the LIBOR rate. The effective interest rate for term loans, including the amortization of original issue discount and deferred financing costs, was 4.0% at December 28, 2013.

Borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, and (c) the LIBOR rate plus 1.0%, or (2) a LIBOR rate. The applicable margin under the revolving credit facility is 1.5% for loans based upon the base rate and 2.5% for loans based upon the LIBOR rate. In addition, we are required to pay a 0.5% commitment fee per annum on the unused portion of the revolver and a fee for letter of credit amounts outstanding of 2.5%.

Repayments are required to be made under the term loans equal to $19.0 million per calendar year, payable in quarterly installments through December 2019, with the remaining principal balance due in February 2020. Additionally, following the end of each fiscal year, the Company is required to prepay an amount equal to 25% of excess cash flow (as defined in the senior credit facility) for such fiscal year. If DBI’s leverage ratio, which is a measure of DBI’s outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the senior credit facility), is less than 4.75x, no excess cash flow payments are required. If DBI’s leverage ratio is greater than 5.50x, the Company is required to prepay an amount equal to 50% of excess cash flow. The excess cash flow payments may be applied to required principal payments. During fiscal year 2013, the Company made total principal payments of $24.2 million, including an excess cash flow payment in the first quarter of 2013 of $4.2 million based on 2012 excess cash flow and leverage ratio requirements. Based on all payments made, including the required excess cash flow payment in the first quarter of 2013, no additional principal payments would be required in the next twelve months as of December 28, 2013, though the Company may elect to make voluntary payments. The Company has reflected a $5.0 million voluntary payment, which was paid during the first week of fiscal year 2014, within the current portion of long-term debt as of December 28, 2013. Other events and transactions, such as certain asset sales and incurrence of debt, may trigger additional mandatory prepayments.

The senior credit facility contains certain financial and nonfinancial covenants, which include restrictions on liens, investments, additional indebtedness, asset sales, certain dividend payments, and certain transactions with affiliates. At December 28, 2013 and December 29, 2012, the Company was in compliance with all of its covenants under the senior credit facility.

Certain of the Company’s wholly owned domestic subsidiaries guarantee the senior credit facility. All obligations under the senior credit facility, and the guarantees of those obligations, are secured, subject to certain exceptions, by substantially all assets of DBI and the subsidiary guarantors.

During 2011, the Company increased the size of the term loans from $1.25 billion to $1.50 billion. The incremental proceeds of the term loans were used to repay $250.0 million of the Company’s senior notes. Additionally, the Company completed two separate re-pricing transactions to reduce the stated interest rate on the senior credit facility. As a result of the additional term loan borrowings and the re-pricings of the term loans, the Company recorded a loss on debt extinguishment and refinancing transactions of $8.2 million in fiscal year 2011, which includes debt extinguishment of $477 thousand related to the write-off of original issuance discount and deferred financing costs, and $7.7 million of costs paid to creditors and third parties.

In August 2012, DBI amended its senior credit facility to provide for additional term loan borrowings of $400.0 million. The additional borrowings were issued with an original issue discount of $4.0 million, resulting in net cash proceeds of $396.0 million. The proceeds were used to fund a repurchase of common stock from certain shareholders (see note 13(c)). In addition, the amendment provides certain changes to the negative covenants contained in the senior credit facility and permits increases in future incremental facilities subject to the Company and DBI remaining in compliance with certain specified leverage ratios. In connection with the amendment, the Company recorded costs of $4.0 million, which consisted primarily of fees paid to third parties, within loss on debt extinguishment and refinancing transactions in the consolidated statements of operations.

In February 2013, the Company amended its senior credit facility, resulting in a reduction of the interest rates and an extension of the maturity dates for both the term loans and the revolving credit facility. In connection with the amendment, certain

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lenders, holding $214.3 million of term loans, exited the term loan lending syndicate. The principal of the exiting lenders was replaced with additional loans from both existing and new lenders. As a result, during the first quarter of 2013, the Company recorded a loss on debt extinguishment and refinancing transactions of $5.0 million, including $3.9 million related to the write-off of original issuance discount and deferred financing costs and $1.1 million of fees paid to third parties. The amended term loans were issued with an original issue discount of 0.25%, or $4.6 million, which was recorded as a reduction to long-term debt.

Cumulative debt issuance costs incurred and capitalized in relation to the senior credit facility were $35.0 million, including costs incurred and capitalized in connection with all refinancing transactions. The term loans, including additional term loan borrowings, were issued with an original issue discount of $14.9 million. Total amortization of original issue discount and debt issuance costs related to the senior credit facility was $4.7 million, $5.7 million, and $5.3 million for fiscal years 2013, 2012, and 2011, respectively, which is included in interest expense in the consolidated statements of operations.

In February 2014, the Company amended its senior credit facility, which now consists of$1.38 billion in term loans due February 2021 (“2021 Term Loans”), $450 million in term loans due September 2017 (“2017 Term Loans”), and a $100 million revolving credit facility due February 2019. The interest rate on the 2021 Term Loans is LIBOR plus 2.50% with a LIBOR floor of 0.75%, while the interest rate on the 2017 Term Loans is LIBOR plus 2.50% with no LIBOR floor. The new interest rate for the revolving credit facility is LIBOR plus 2.25% with no LIBOR floor. The total principal as of the date of the amendment and all other material provisions, including covenants under the existing senior credit facility, remain unchanged.

Senior notes

DBI issued $625.0 million face amount senior notes in November 2010 with a maturity of December 2018 and interest payable semi-annually at a rate of 9.625% per annum.

The senior notes were issued with an original issue discount of $9.4 million. Total debt issuance costs incurred and capitalized in relation to the senior notes were $15.6 million. Total amortization of original issue discount and debt issuance costs related to the senior notes was $1.0 million for fiscal year 2011, which is included in interest expense in the consolidated statements of operations.

In conjunction with the additional term loan borrowings during 2011, the Company repaid $250.0 million of senior notes. Using funds raised by the Company’s initial public offering (see note 13(a)) in August 2011, the Company repaid the full remaining principal balance on the senior notes. In conjunction with the repayment of senior notes, the Company recorded a loss on debt extinguishment of $26.0 million, which includes the write-off of original issuance discount and deferred financing costs totaling $22.8 million, as well as prepayment premiums and third-party costs of $3.2 million.

Maturities of long-term debt

The Company intends to make quarterly principal payments of $5.0 million. However, considering the February 2014 amendment to the senior credit facility and voluntary prepayments made, the aggregate contractual maturities of long-term debt for 2014 through 2018 are as follows (in thousands):

	2017 Term Loans		2021 Term Loans	Total
2014	$	3,375	—	3,375
2015	4,500		10,342	14,842
2016	4,500		13,789	18,289
2017	437,625		13,789	451,414
2018	—		13,789	13,789

(9) Derivative instruments and hedging transactions

The Company is exposed to global market risks, including the effect of changes in interest rates, and may use derivative instruments to mitigate the impact of these changes. The Company does not use derivatives with a level of complexity or with a risk higher than the exposures to be hedged and does not hold or issue derivatives for trading purposes. The Company's hedging instruments consist solely of interest rate swaps at December 28, 2013. The Company's risk management objective and strategy with respect to the interest rate swaps is to limit the Company's exposure to increased interest rates on its variable rate debt by reducing the potential variability in cash flow requirements relating to interest payments on a portion of its outstanding debt. The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items.

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In September 2012, the Company entered into variable-to-fixed interest rate swap agreements with three counterparties to hedge the risk of increases in cash flows (interest payments) attributable to increases in three-month LIBOR above 1.0%, the designated benchmark interest rate being hedged, through November 2017. The notional value of the swaps totals $900.0 million, and the Company is required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.37%, resulting in a total interest rate of approximately 4.12% on the hedged amount when considering the applicable margin in effect at December 28, 2013. In exchange, the Company receives interest on the notional amount at a variable rate based on a three-month LIBOR spot rate, subject to a 1.0% floor. Interest is settled quarterly on a net basis with each counterparty. The swaps have been designated as hedging instruments and are classified as cash flow hedges. They are recognized on the Company's consolidated balance sheets at fair value and classified based on the instruments' maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (loss) and/or current earnings.

The fair values of derivatives instruments consisted of the following (in thousands):

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - asset	$	10,221	—	Other assets
Total fair values of derivative instruments - asset	$	10,221	—

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - liability	$	—	2,809	Other long-term liabilities
Total fair values of derivative instruments - liability	$	—	2,809

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2013:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	9,648		(3,382	)	Interest expense	13,030
Income tax effect	(3,909		)	1,381		Provision for income taxes	(5,290	)
Net of income taxes	$	5,739		(2,001	)		7,740

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2012:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	(3,673	)	(864	)	Interest expense	(2,809	)
Income tax effect	1,509			355		Provision for income taxes	1,154
Net of income taxes	$	(2,164	)	(509	)		(1,655	)

There was no ineffectiveness of the interest rate swaps since inception, and therefore, ineffectiveness had no impact on the consolidated statements of operations for fiscal years 2012 and 2013. As of December 28, 2013 and December 29, 2012, $836 thousand and $864 thousand, respectively, of interest expense related to interest rate swaps is accrued in other current liabilities in the consolidated balance sheets. As of December 28, 2013, the Company estimates that $3.4 million will be reclassified from accumulated other comprehensive income as an increase to interest expense during the next twelve months, based on current projections of LIBOR.

The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. To mitigate counterparty credit risk, the Company only enters into contracts with major financial institutions based upon their credit ratings and other factors, and continually assesses the creditworthiness of its counterparties. At December 28, 2013, all of the counterparties to the interest rate swaps had investment grade ratings. To date, all counterparties have performed in accordance with their contractual obligations.

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The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. As of December 28, 2013, the Company has not posted any collateral related to these agreements. The Company holds one derivative instrument with each of its derivative counterparties, each of which is settled net with the respective counterparties in accordance with the swap agreements. There is no offsetting of these financial instruments on the consolidated balance sheets. As of December 28, 2013, the termination value of derivatives is a net asset position of $9.6 million, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements.

As a result of the February 2014 amendment to the senior credit facility, the Company amended the interest rate swap agreements to align the embedded floors with the amended term loans. As a result of the amendments to the interest rate swap agreements, the Company will be required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.22%. In exchange, the Company will receive interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a 0.75% floor. There was no change to the notional amount of the term loan borrowings being hedged.

(10) Other current liabilities

Other current liabilities at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Gift card/certificate liability	$	139,721	145,981
Gift card breakage liability	14,093		—
Accrued salary and benefits	26,713		31,136
Accrued legal liabilities (see note 17(d))	26,633		27,305
Accrued interest	9,999		13,564
Accrued professional costs	2,938		2,996
Other	28,821		18,949
Total other current liabilities	$	248,918	239,931

(11) Leases

The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to others. Many of these leases and subleases provide for future rent escalation and renewal options. In addition, contingent rentals, determined as a percentage of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of the sublease agreements. The Company also leases certain office equipment and a fleet of automobiles under noncancelable operating leases. Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands):

	December 28, 2013			December 29, 2012
Leased property under capital leases (included in property and equipment)	$	7,888		7,902
Accumulated depreciation	(2,326		)	(2,003	)
Net leased property under capital leases	$	5,562		5,899
Capital lease obligations:
Current	$	432		371
Long-term	6,996			7,251
Total capital lease obligations	$	7,428		7,622

Capital lease obligations exclude that portion of the minimum lease payments attributable to land, which are classified separately as operating leases. Interest expense associated with the capital lease obligations is computed using the incremental borrowing rate at the time the lease is entered into and is based on the amount of the outstanding lease obligation. Depreciation on capital lease assets is included in depreciation expense in the consolidated statements of operations. Interest expense related to capital leases for fiscal years 2013, 2012, and 2011 was $618 thousand, $600 thousand, and $481 thousand, respectively.

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Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands):

	December 28, 2013			December 29, 2012
Land	$	29,701		27,210
Buildings	41,721			39,242
Leasehold improvements	135,177			141,264
Store, production, and other equipment	146			149
Construction in progress	1,363			1,384
Assets leased to others, gross	208,108			209,249
Accumulated depreciation	(71,535		)	(71,100	)
Assets leased to others, net	$	136,573		138,149

Future minimum rental commitments to be paid and received by the Company at December 28, 2013 for all noncancelable leases and subleases are as follows (in thousands):

	Payments				Receipts Subleases		Net leases
	Capital leases		Operating leases
Fiscal year:
2014	$	1,031	52,930		(61,929	)	(7,968	)
2015	1,064		51,710		(61,043	)	(8,269	)
2016	1,068		50,563		(61,026	)	(9,395	)
2017	1,090		50,467		(60,525	)	(8,968	)
2018	1,106		49,811		(59,305	)	(8,388	)
Thereafter	6,655		384,354		(347,138	)	43,871
Total minimum rental commitments	12,014		$	639,835	(650,966	)	883
Less amount representing interest	4,586
Present value of minimum capital lease obligations	$	7,428

Rental expense under operating leases associated with franchised locations and company-owned locations is included in occupancy expenses—franchised restaurants and company-owned restaurant expenses, respectively, in the consolidated statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating leases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	53,462	52,821	52,214
Contingent rentals	5,869		5,227	4,510
Total rental expense	$	59,331	58,048	56,724

Total rental income for all leases and subleases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	66,540	67,988	66,061
Contingent rentals	29,542		28,828	26,084
Total rental income	$	96,082	96,816	92,145

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The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Increase in rental income	$	973	1,065	1,392
Decrease in rental expense	1,204		1,287	1,838
Total increase in operating income	$	2,177	2,352	3,230

Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next five years (in thousands):

	Decrease in rental expense		Increase in rental income	Total increase in operating income
Fiscal year:
2014	$	1,051	847	1,898
2015	949		789	1,738
2016	893		719	1,612
2017	893		681	1,574
2018	859		632	1,491

(12) Segment information

The Company is strategically aligned into two global brands, Dunkin’ Donuts and Baskin-Robbins, which are further segregated between U.S. operations and international operations. As such, the Company has determined that it has four operating segments, which are its reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International primarily derive their revenues through royalty income, franchise fees, and rental income. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization, impairment charges, loss on debt extinguishment and refinancing transactions, other gains and losses, and unallocated corporate charges, referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenue earned through arrangements with third parties in which our brand names are used and revenue generated from online training programs for franchisees that are not allocated to a specific segment. Revenues by segment were as follows (in thousands):

	Revenues
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	521,179	485,399	449,492
Dunkin’ Donuts International	18,316		15,485	15,253
Baskin-Robbins U.S.	42,152		42,074	43,455
Baskin-Robbins International	120,333		101,975	106,887
Total reportable segments	701,980		644,933	615,087
Other	11,860		13,248	13,111
Total revenues	$	713,840	658,181	628,198

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Revenues for foreign countries are represented by the Dunkin’ Donuts International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented.

Expenses included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, as well as the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea (see note 6). Segment profit by segment was as follows (in thousands):

	Segment profit
	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Dunkin’ Donuts U.S.	$	379,751		355,274		334,308
Dunkin’ Donuts International	7,479			9,670		11,528
Baskin-Robbins U.S.	27,081			26,274		21,593
Baskin-Robbins International	54,321			42,004		42,844
Total reportable segments	468,632			433,222		410,273
Corporate and other	(113,967		)	(136,488	)	(150,382	)
Interest expense, net	(79,831		)	(73,488	)	(104,449	)
Depreciation and amortization	(49,366		)	(56,027	)	(52,522	)
Long-lived asset impairment charges	(563		)	(1,278	)	(2,060	)
Loss on debt extinguishment and refinancing transactions	(5,018		)	(3,963	)	(34,222	)
Other gains (losses), net	(1,799		)	23		175
Income before income taxes	$	218,088		162,001		66,813

Net income (loss) of equity method investments, including amortization on intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Expenses included in “Other” in the segment profit table below represent the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea, and the related ongoing reduction in depreciation and amortization, net of tax (see note 6). Net income (loss) of equity method investments by reportable segment was as follows (in thousands):

	Net income (loss) of equity method investments
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts International	$	480	2,211	840
Baskin-Robbins International	15,913		16,578	14,461
Total reportable segments	16,393		18,789	15,301
Other	1,977		3,562	(18,776	)
Total net income (loss) of equity method investments	$	18,370	22,351	(3,475	)

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Depreciation and amortization is not included in segment profit for each reportable segment. However, depreciation and amortization is included in the financial results regularly provided to the Company’s senior management. Depreciation and amortization by reportable segments was as follows (in thousands):

	Depreciation and amortization
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	18,506	19,021	20,068
Dunkin’ Donuts International	50		92	130
Baskin-Robbins U.S.	530		1,052	522
Baskin-Robbins International	135		643	866
Total reportable segments	19,221		20,808	21,586
Corporate and other	30,145		35,219	30,936
Total depreciation and amortization	$	49,366	56,027	52,522

Property and equipment, net by geographic region as of December 28, 2013 and December 29, 2012 is based on the physical locations within the indicated geographic regions and are as follows (in thousands):

	December 28, 2013		December 29, 2012
United States	$	182,544	180,525
International	314		647
Total property and equipment, net	$	182,858	181,172

(13) Stockholders’ equity

(a) Public offerings

On August 1, 2011, the Company completed an initial public offering in which the Company sold 22,250,000 shares of common stock at an initial public offering price of $19.00 per share, less underwriter discounts and commissions, resulting in net proceeds to the Company of approximately $390.0 million after deducting underwriter discounts and commissions and expenses paid or payable by the Company. Additionally, the underwriters exercised, in full, their option to purchase 3,337,500 additional shares, which were sold by certain existing stockholders. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company used a portion of the net proceeds from the initial public offering to repay the remaining $375.0 million outstanding under the senior notes, with the remaining net proceeds being used for working capital and general corporate purposes.

In the fourth quarter of 2011, certain existing stockholders sold a total of 23,937,986 shares of our common stock at a price of $25.62 per share, less underwriting discounts and commissions, in a secondary public offering. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company incurred approximately $984 thousand of expenses in connection with the offering, which were paid by the Company in accordance with a registration rights and coordination agreement with our Sponsors (see note 19(a)).

In April 2012 and August 2012, certain existing stockholders sold 30,360,000 and 21,754,659 shares, respectively, of our common stock at prices of $29.50 and $30.00 per share, respectively, less underwriting discounts and commissions, in secondary public offerings. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company incurred approximately $1.7 million of expenses in connection with the offerings.

(b) Common stock

Prior to the initial public offering, our charter authorized the Company to issue two classes of common stock, Class L and common. The rights of the holders of Class L and common shares were identical, except with respect to priority in the event of a distribution, as defined. The Class L common stock was entitled to a preference with respect to all distributions by the Company until the holders of Class L common stock had received an amount equal to the Class L base amount of approximately $41.75 per share, plus an amount sufficient to generate an internal rate of return of 9% per annum on the Class L base amount, compounded quarterly. Thereafter, the Class L and common stock shared ratably in all distributions by the Company. Class L common stock was classified outside of permanent equity in the consolidated balance sheets at its preferential distribution amount, as the Class L stockholders controlled the timing and amount of distributions. The Class L

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preferred return of 9% per annum, compounded quarterly, was added to the Class L preferential distribution amount each period and recorded as an increase to accumulated deficit. Dividends paid on the Class L common stock reduced the Class L preferential distribution amount.

Immediately prior to the initial public offering, each outstanding share of Class L common stock converted into approximately 0.2189 of a share of common stock plus 2.2149 shares of common stock, which was determined by dividing the Class L preference amount, $38.8274, by the initial public offering price net of the estimated underwriting discount and a pro rata portion, based upon the number of shares sold in the offering, of the estimated offering-related expenses. As such, the 22,866,379 shares of Class L common stock that were outstanding at the time of the offering converted into 55,652,782 shares of common stock.

The changes in Class L common stock were as follows (in thousands):

	Fiscal year ended
	December 31, 2011
	Shares		Amount
Common stock, Class L, beginning of year	22,995		$	840,582
Issuance of Class L common stock	65		2,270
Repurchases of Class L common stock	—		(113		)
Retirement of treasury stock	(194	)	—
Accretion of Class L preferred return	—		45,102
Conversion of Class L shares to common shares	(22,866	)	(887,841		)
Common stock, Class L, end of year	—		$	—

Common shares issued and outstanding included in the consolidated balance sheets include vested and unvested restricted shares. Common stock in the consolidated statement of stockholders’ equity excludes unvested restricted shares.

(c) Treasury stock

During fiscal year 2011, the Company repurchased a total of 23,624 shares of common stock and 3,266 shares of Class L shares that were originally sold and granted to former employees of the Company. The Company accounts for treasury stock under the cost method, and as such recorded increases in common treasury stock of $173 thousand during fiscal year 2011, based on the fair market value of the shares on the respective dates of repurchase. During fiscal year 2011, the Company retired all of its treasury stock, resulting in a $2.0 million reduction in common treasury stock and additional paid-in-capital.

In August 2012, the Company repurchased a total of 15,000,000 shares of common stock at a price of $30.00 per share from certain existing stockholders, and incurred approximately $341 thousand of third-party costs in connection with the repurchase. The Company recorded an increase in common treasury stock of $450.4 million during fiscal year 2012, based on the fair market value of the shares on the date of repurchase and the direct costs incurred. During fiscal year 2012, the Company retired all outstanding treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $15 thousand and $180.0 million, respectively, and an increase in accumulated deficit of $270.3 million.

During the fiscal year 2013, the Company repurchased a total of 648,000 shares of common stock at a weighted average price per share of $43.14 from existing stockholders. The Company recorded an increase in common treasury stock of $28.0 million during fiscal year 2013, based on the fair market value of the shares on the date of repurchase and direct costs incurred. In October 2013, the Company retired 417,300 shares of treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $17.2 million and $4.7 million, respectively, and an increase in accumulated deficit of $12.5 million.

(d) Accumulated other comprehensive income

The components of accumulated other comprehensive income were as follows (in thousands):

	Effect of foreign currency translation			Unrealized gains (losses) on interest rate swaps		Unrealized loss on pension adjustment		Other		Accumulated other comprehensive income
Balances at December 29, 2012	$	14,914		(1,655	)	(2,486	)	(1,632	)	9,141
Other comprehensive income (loss)	(14,909		)	7,740		(612	)	(21	)	(7,802	)
Balances at December 28, 2013	$	5		6,085		(3,098	)	(1,653	)	1,339

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(e) Dividends

During fiscal year 2013, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2013:
First quarter	$	0.19	$	20,191	February 20, 2013
Second quarter	0.19		20,259		June 6, 2013
Third quarter	0.19		20,257		September 4, 2013
Fourth quarter	0.19		20,301		November 26, 2013

During fiscal year 2012, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2012:
First quarter	$	0.15	$	18,046	March 28, 2012
Second quarter	0.15		18,068		May 16, 2012
Third quarter	0.15		18,075		August 24, 2012
Fourth quarter	0.15		15,880		November 14, 2012

On February 6, 2014, we announced that our board of directors approved an increase to the next quarterly dividend to $0.23 per share of common stock, payable March 19, 2014 to shareholders of record as of the close of business on March 10, 2014.

(14) Equity incentive plans

The Company’s 2006 Executive Incentive Plan, as amended, (the “2006 Plan”) provides for the grant of stock-based and other incentive awards. A maximum of 12,191,145 shares of common stock may be delivered in satisfaction of awards under the 2006 Plan, of which a maximum of 5,012,966 shares may be awarded as nonvested (restricted) shares and a maximum of 7,178,179 may be delivered in satisfaction of stock options.

The Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan (the “2011 Plan”) was adopted in July 2011, and is the only plan under which the Company currently grants awards. A maximum of 7,000,000 shares of common stock may be delivered in satisfaction of awards under the 2011 Plan.

Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Restricted shares	$	3	132	2,739
2006 Plan stock options—executive	977		4,245	1,626
2006 Plan stock options—nonexecutive	162		181	202
2011 Plan stock options	4,668		2,026	32
Restricted stock units	1,513		336	33
Total share-based compensation	$	7,323	6,920	4,632
Total related tax benefit	$	2,958	2,768	1,852

The actual tax benefit realized from stock options exercised during fiscal years 2013, 2012, and 2011 was $15.9 million, $14.1 million, and $438 thousand respectively.

Nonvested (restricted) shares

The Company historically issued restricted shares of common stock to certain executive officers of the Company. The restricted shares generally vested in three separate tranches with different vesting conditions. In addition to the vesting conditions

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described below, all three tranches of the restricted shares provided for partial or full accelerated vesting upon change in control. Restricted shares that did not vest were forfeited to the Company.

Tranche 1 shares generally vested in four or five equal annual installments based on a service condition. The weighted average requisite service period for the Tranche 1 shares was approximately 4.4 years, and compensation cost was recognized ratably over this requisite service period.

The Tranche 2 shares generally vested in five annual installments beginning on the last day of the fiscal year of grant based on a service condition and performance conditions linked to annual earnings before interest, taxes, depreciation, and amortization targets ("EBITDA targets"), which were not achieved for fiscal years 2012 and 2011. Total compensation cost for the Tranche 2 shares was determined based on the most likely outcome of the performance conditions and the number of awards expected to vest based on those outcomes, and as such, no compensation cost was recognized in fiscal years 2012 or 2011 related to Tranche 2 shares. All remaining Tranche 2 shares outstanding were forfeited on the last day of fiscal year 2012 as the EBITDA targets were not achieved.

Tranche 3 shares generally vested in four annual installments based on a service condition, a performance condition, and market conditions. The Tranche 3 shares did not become eligible to vest until achievement of the performance condition, which was defined as an initial public offering or change in control. These events were not considered probable of occurring until such events actually occurred. The market condition related to the achievement of a minimum investor rate of return on the Sponsor’s (see note 19(a)) shares ranging from 20% to 24% as of specified measurement dates, which occurred on the six month anniversary of an initial public offering and every three months thereafter, or on the date of a change in control. As the Tranche 3 shares required the satisfaction of multiple vesting conditions, the requisite service period was the longest of the explicit, implicit, and derived service periods of the service, performance, and market conditions. As the performance condition could not be deemed probable of occurring until an initial public offering or change of control event was completed, no compensation cost was recognized related to the Tranche 3 shares prior to fiscal year 2011. Upon completion of the initial public offering in fiscal year 2011, $2.6 million of expense was recorded related to approximately 0.8 million Tranche 3 restricted shares that were outstanding at the date of the initial public offering. The entire value of the outstanding Tranche 3 shares was recorded upon completion of the initial public offering as the requisite service period, which was equivalent to the implicit service period of the performance condition, had been delivered. With the sale of the Sponsors' remaining shares in August 2012, no further Tranche 3 vesting could occur, and all unvested Tranche 3 shares were accordingly forfeited.

A summary of the changes in the Company’s restricted shares during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted shares at December 29, 2012	1,049		$	5.44
Granted	—		—
Vested	(1,049	)	5.44
Forfeited	—		—
Nonvested restricted shares at December 28, 2013	—		—

As of December 28, 2013, no unrecognized compensation cost remains related to restricted shares. The total grant-date fair value of shares vested during fiscal years 2013, 2012, and 2011, was $6 thousand, $1.2 million, and $484 thousand, respectively.

2006 Plan stock options—executive

During fiscal year 2011, the Company granted options to executives to purchase 828,040 shares of common stock under the 2006 Plan. The executive options vest in two separate tranches, 30% allocated as Tranche 4 and 70% allocated as Tranche 5, each with different vesting conditions. In addition to the vesting conditions described below, both tranches provide for partial accelerated vesting upon change in control. The maximum contractual term of the executive options is ten years.

The Tranche 4 executive options generally vest in equal annual amounts over a 5-year period subsequent to the grant date, and as such are subject to a service condition. Certain options provide for accelerated vesting at the date of grant, with 20% of the Tranche 4 options vesting on each subsequent anniversary of the grant date over a 3- or 4-year period. The requisite service periods over which compensation cost is being recognized ranges from 3 to 5 years.

The Tranche 5 executive options become eligible to vest based on continued service periods of 3 to 5 years that are aligned with the Tranche 4 executive options (“Eligibility Percentage”). Vesting does not actually occur until the achievement of a

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performance condition, which is the sale of shares by the Sponsors. Additionally, the options are subject to a market condition related to the achievement of specified investor returns to the Sponsors upon a sale of shares. Upon a sale of shares by the Sponsors and assuming the requisite service has been provided, Tranche 5 options vest in proportion to the percentage of the Sponsors’ shares sold by them (“Performance Percentage”), but only if the aggregate return on those shares sold is two times the Sponsors’ original purchase price. Actual vesting is determined by multiplying the Eligibility Percentage by the Performance Percentage. Additionally, 100% of the Tranche 5 options vest, assuming the requisite service has been provided, if the aggregate amount of cash received by the Sponsors through sales, distributions, or dividends is two times the original purchase price of all shares purchased by the Sponsors. As the Tranche 5 options require the satisfaction of multiple vesting conditions, the requisite service period is the longest of the explicit, implicit, and derived service periods of the service, performance, and market conditions. Based on dividends received in 2012 and 2011, and the sale of shares by the Sponsors in connection with public offerings completed in 2012 and 2011, the cumulative Performance Percentage as of December 28, 2013, December 29, 2012, and December 31, 2011 was 100.0%, 100.0%, and 28.5%, respectively, resulting in compensation expense of $478 thousand, $3.6 million, and $1.1 million being recorded in fiscal years 2013, 2012, and 2011, respectively.

The fair value of the Tranche 4 options was estimated on the date of grant using the Black-Scholes option pricing model. The fair value of the Tranche 5 options was estimated on the date of grant using a combination of lattice models and Monte Carlo simulations. These models are impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. Additionally, the value of the Tranche 5 options is impacted by the probability of achievement of the market condition. The following weighted average assumptions were utilized in determining the fair value of executive options granted during fiscal years 2011:

	Fiscal year ended(1)
	December 31, 2011
Weighted average grant-date fair value of share options granted	$6.27
Significant assumptions:
Tranche 4 options:
Risk-free interest rate	2.1%–2.7%
Expected volatility	47.0%–72.0%
Dividend yield	—
Expected term (years)	6.5
Tranche 5 options:
Risk-free interest rate	2.3%–3.2%
Expected volatility	47.0%–72.0%
Dividend yield	—

(1) The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2012 and 2013.

The expected term of the Tranche 4 options was estimated utilizing the simplified method. We utilized the simplified method because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The simplified method was used for all Tranche 4 stock options, as they required only a service vesting condition. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on historical volatility of peer companies over a period equivalent to the expected term. Additionally, the Company did not anticipate paying dividends on the underlying common stock at the date of grant.

As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures of generally 10% per year. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense.

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A summary of the status of the Company’s executive stock options as of December 28, 2013 and changes during fiscal year 2013 are presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	3,331,993		$	3.85	7.3
Exercised	(932,519	)	3.68
Forfeited or expired	(193,527	)	7.15
Share options outstanding at December 28, 2013	2,205,947		3.64		6.3	$	97.3
Share options exercisable at December 28, 2013	1,067,692		3.29		6.2	47.5

The total grant-date fair value of executive stock options vested during fiscal years 2013, 2012, and 2011 was $1.8 million, $2.8 million, and $862 thousand, respectively. The total intrinsic value of executive stock options exercised was $35.3 million, $33.8 million, and $489 thousand for fiscal years 2013, 2012, and 2011, respectively. As of December 28, 2013, there was $682 thousand of total unrecognized compensation cost related to Tranche 4 and Tranche 5 options, which is expected to be recognized over a weighted average period of approximately 1.6 years.

2006 Plan stock options—nonexecutive and 2011 Plan stock options

During fiscal year 2011, the Company granted options to nonexecutives to purchase 50,491 shares of common stock under the 2006 Plan. Additionally, during fiscal years 2013, 2012, and 2011, the Company granted options to certain employees to purchase 1,177,999, 746,100, and 292,700 shares, respectively, of common stock under the 2011 Plan. The nonexecutive options and 2011 Plan options vest in equal annual amounts over either a 4- or 5-year period subsequent to the grant date, and as such are subject to a service condition, and also fully vest upon a change of control. The requisite service period over which compensation cost is being recognized is either four or five years. The maximum contractual term of the nonexecutive and 2011 Plan options is ten years.

The fair value of nonexecutive and 2011 Plan options was estimated on the date of grant using the Black-Scholes option pricing model. This model is impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. The following weighted average assumptions were utilized in determining the fair value of nonexecutive and 2011 Plan options granted during fiscal years 2013, 2012, and 2011:

	Fiscal year ended
	December 28, 2013	December 29, 2012	December 31, 2011
Weighted average grant-date fair value of share options granted	9.92	10.65	10.27
Weighted average assumptions:
Risk-free interest rate	1.2%	0.8%-1.4%	1.2%-2.7%
Expected volatility	33.0%	43.0%	43.0%-72.0%
Dividend yield	2.0%	1.8%-2.1%	—
Expected term (years)	6.25	6.25	6.25-6.5

The expected term was estimated utilizing the simplified method. We utilized the simplified method because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on historical volatility of peer companies over a period equivalent to the expected term. Additionally, the dividend yield was estimated based on dividends currently being paid on the underlying common stock at the date of grant, if any.

As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for annualized estimated forfeitures of generally 10-13%. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense.

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A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 28, 2013 and changes during fiscal year 2013 is presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	1,295,356		$	24.34	8.8
Granted	1,177,999		37.26
Exercised	(207,679	)	21.93
Forfeited or expired	(246,526	)	29.92
Share options outstanding at December 28, 2013	2,019,150		31.45		8.5	$	32.9
Share options exercisable at December 28, 2013	279,932		20.08		7.3	7.7

The total grant-date fair value of nonexecutive and 2011 Plan stock options vested during fiscal years 2013, 2012, and 2011 was $2.9 million, $1.0 million, and $176 thousand, respectively. The total intrinsic value of nonexecutive and 2011 Plan stock options exercised was $4.1 million, $1.5 million, and $605 thousand for fiscal years 2013, 2012, and 2011, respectively. As of December 28, 2013, there was $13.9 million of total unrecognized compensation cost related to nonexecutive and 2011 Plan options. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 2.8 years.

Restricted stock units

During fiscal years 2013, 2012, and 2011, the Company granted restricted stock units of 94,495, 22,204, and 5,618, respectively, to certain employees and members of our board of directors. Restricted stock units granted to employees generally vest in three equal installments on each of the first three anniversaries of the grant date. Restricted stock units granted to our board of directors generally vest in one installment on the first anniversary of the grant date.

A summary of the changes in the Company’s restricted stock units during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted stock units at December 29, 2012	22,204		$	31.21
Granted	94,495		37.87
Vested	(12,655	)	35.44
Forfeited	(1,073	)	37.27
Nonvested restricted stock units at December 28, 2013	102,971		37.20

The fair value of each restricted stock unit is determined on the date of grant based on our closing stock price. As of December 28, 2013, there was $2.4 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.9 years. The total grant-date fair value of restricted stock units vested during fiscal years 2013 and 2012 was $448 thousand and $118 thousand, respectively. No restricted stock units vested during fiscal year 2011.

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(15) Earnings per Share

The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Net income attributable to Dunkin' Brands—basic and diluted	$	146,903	108,308	34,442
Allocation of net income (loss) to common stockholders(1):
Class L—basic and diluted	n/a		n/a	140,212
Common—basic(2)	$	146,903	108,176	(105,770		)
Common—diluted(2)	146,903		108,197	(105,770		)
Weighted average number of common shares—basic and diluted:
Class L—basic and diluted(3)	n/a		n/a	22,845,378
Common—basic	106,501,733		114,584,063	74,835,697
Common—diluted(4)	108,217,011		116,573,344	74,835,697
Earnings (loss) per common share:
Class L—basic	n/a		n/a	$	6.14
Common—basic	$	1.38	0.94	(1.41		)
Common—diluted	1.36		0.93	(1.41		)

(1) As the Company had both Class L and common stock outstanding during fiscal year 2011, and Class L had preference with respect to all distributions, earnings per share was calculated using the two-class method, which requires the allocation of earnings to each class of common stock. The numerator in calculating Class L basic and diluted earnings per share is the Class L preference amount accrued at 9% per annum during fiscal year 2011 plus, if positive, a pro rata share of an amount equal to consolidated net income less the Class L preference amount. The Class L preferential distribution amount accrued was $45.1 million during fiscal year 2011. The Class L shares converted into common stock immediately prior to the Company’s initial public offering that was completed on August 1, 2011. The numerator in calculating the Class L basic and diluted earnings per share for fiscal year 2011 includes an amount representing the excess of the fair value of the consideration transferred to the Class L shareholders upon conversion to common stock over the carrying amount of the Class L shares at the date of conversion, which occurred immediately prior to the Company’s initial public offering. As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as follows:

Class L shares outstanding immediately prior to the initial public offering	22,866,379
Number of common shares received for each Class L share	0.2189
Common stock received by Class L shareholders, excluding preferential distribution	5,005,775
Common stock fair value per share (initial public offering price per share)	$	19.00
Fair value of Class L base shares (in thousands)	$	95,110

(2) Net income allocated to common shareholders for the fiscal year 2012 excludes $132 thousand and $111 thousand for basic and diluted earnings per share, respectively, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for fiscal year 2013 as all restricted shares were fully vested as of December 28, 2013, and no net loss was allocated to participating securities for fiscal year 2011 as the participating securities do not participate in losses.

(3) The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal year 2011 represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares into common shares. There were no Class L common stock equivalents outstanding during fiscal year 2011.

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(4) The weighted average number of common shares in the common diluted earnings per share calculation for fiscal years 2013 and 2012 includes the dilutive effect of 1,715,278 and 1,989,281, respectively, restricted shares and stock options, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all performance-based restricted stock awards and stock options outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no common restricted stock awards that were performance-based and for which the performance criteria were not yet met. As of December 31, 2011, there were approximately 636,752 common restricted stock awards and 2,422,628 options to purchase common stock that were performance-based and for which the performance criteria was not yet met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes stock options of 1,100,275 and 805,015 for fiscal years 2013 and 2012, respectively, as they would be antidilutive. The weighted average number of common shares in the common diluted earnings per share calculation for fiscal year 2011 excludes all restricted stock and stock options outstanding, as they would be antidilutive.

(16) Income taxes

Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Domestic operations	$	195,277	172,576		70,034
Foreign operations	22,811		(10,575	)	(3,221	)
Income before income taxes	$	218,088	162,001		66,813

The components of the provision for income taxes were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Current:
Federal	$	70,696		52,657		34,282
State	11,758			6,065		5,733
Foreign	2,521			2,601		3,719
Current tax provision	$	84,975		61,323		43,734
Deferred:
Federal	$	(11,915	)	(5,071	)	(11,567	)
State	(984		)	4,373		892
Foreign	(292		)	(6,248	)	(688	)
Deferred tax benefit	(13,191		)	(6,946	)	(11,363	)
Provision for income taxes	$	71,784		54,377		32,371

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The provision for income taxes from continuing operations differed from the expense computed using the statutory federal income tax rate of 35% due to the following:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Computed federal income tax expense, at statutory rate	35.0	%	35.0	%	35.0	%
Permanent differences:
Impairment of investment in BR Korea	—		—		9.8
Other permanent differences	0.2		0.7		0.9
State income taxes	4.7		5.2		6.9
Benefits and taxes related to foreign operations	(4.3	)	(2.9	)	(6.8	)
Changes in enacted tax rates and apportionment	0.8		2.8		3.0
Uncertain tax positions	(3.2	)	(6.3	)	1.9
Other	(0.3	)	(0.9	)	(2.2	)
Effective tax rate	32.9	%	33.6	%	48.5	%

During fiscal year 2013, the Company recorded a net tax benefit of $8.4 million related to the reversal of reserves for uncertain tax positions for which settlement with the taxing authorities was reached, including interest and penalty, net of federal and state tax benefit as applicable, and recognized a deferred tax expense of $1.7 million due to estimated changes in apportionment and enacted changes in future state income tax rates. During fiscal year 2012, the Company recorded a net tax benefit of $10.2 million primarily related to the reversal of reserves for uncertain tax positions, including interest and penalty, net of federal and state tax benefit as applicable, for which settlement with the taxing authorities was reached, and recognized a deferred tax expense of $4.6 million due to estimated changes in apportionment and enacted changes in future state income tax rates. In addition, the Company recognized deferred tax expense of $1.9 million in fiscal year 2011 due to enacted changes in future state income tax rates. These changes in estimates and enacted tax rates affect the tax rate expected to be in effect in future periods when the deferred tax assets and liabilities reverse.

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The components of deferred tax assets and liabilities were as follows (in thousands):

	December 28, 2013				December 29, 2012
	Deferred tax assets			Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Current:
Allowance for doubtful accounts	$	1,055		—	969	—
Deferred gift cards and certificates	20,371			—	22,561	—
Rent	5,307			—	4,990	—
Deferred income	4,672			—	3,926	—
Other current liabilities	13,983			—	11,422	—
Other	1,073			—	3,395	—
Total current	46,461			—	47,263	—
Noncurrent:
Capital leases	2,830			—	2,924	—
Rent	2,243			—	2,032	—
Property and equipment	—			6,315	—	10,229
Deferred compensation liabilities	7,747			—	6,478	—
Deferred income	4,234			—	4,905	—
Real estate reserves	1,287			—	1,398	—
Franchise rights and other intangibles	—			576,567	—	584,642
Unused foreign tax credits	6,756			—	8,034	—
Other	1,103			4,322	—	26
	26,200			587,204	25,771	594,897
Valuation allowance	(710		)	—	—	—
Total noncurrent	25,490			587,204	25,771	594,897
	$	71,951		587,204	73,034	594,897

At December 28, 2013, the valuation allowance for deferred tax assets was $0.7 million. This valuation allowance related to deferred tax assets for net operating loss carryforwards attributable to our wholly-owned subsidiary in Spain. At December 28, 2013, the Company had $6.8 million of unused foreign tax credits, which expire in fiscal years 2020 and 2021.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, and projections for future taxable income over the periods for which the deferred tax assets are deductible, management believes, as of December 28, 2013, with the exception of net operating loss carryforwards attributable to our Spain subsidiary, it is more likely than not that the Company will realize the benefits of the deferred tax assets.

The Company has not recognized a deferred tax liability of $7.1 million for the undistributed earnings of foreign operations, net of foreign tax credits, relating to our foreign joint ventures that arose in fiscal year 2013 and prior years because the Company currently does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future. A deferred tax liability will be recognized when the Company is no longer able to demonstrate that it plans to permanently reinvest undistributed earnings. As of December 28, 2013 and December 29, 2012, the undistributed earnings of these joint ventures were approximately $129.7 million and $123.3 million, respectively.

The Company has not recognized a deferred tax liability of $3.1 million for the undistributed earnings of our foreign subsidiaries since such earnings are considered indefinitely reinvested outside the United States. As of December 28, 2013, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $7.5 million. If in the future we decide to repatriate such foreign earnings, we would incur incremental U.S. federal and state income tax. However, our intent is to keep these funds indefinitely reinvested outside of the United States and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

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At December 28, 2013 and December 29, 2012, the total amount of unrecognized tax benefits related to uncertain tax positions was $8.2 million and $15.4 million, respectively. At December 28, 2013 and December 29, 2012, the Company had approximately $4.2 million and $14.9 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company recorded net income tax benefits of $5.8 million and $0.2 million during fiscal years 2013 and 2012, respectively, and net income tax expense of $3.1 million during fiscal year 2011 for potential interest and penalties related to uncertain tax positions. At December 28, 2013 and December 29, 2012, there were $6.3 million and $9.4 million, respectively, of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate.

The Company’s major tax jurisdictions subject to income tax are the United States and Canada. For Canada, the Company has open tax years dating back to tax years ended August 2003 and is currently under audit for the tax periods 2009 through 2012. In the United States, the Company is currently under audits in certain state jurisdictions for tax periods after December 2006. The audits are in various stages as of December 28, 2013.

For U.S. federal taxes, the Internal Revenue Service (“IRS”) concluded its examination of fiscal year 2010 during fiscal year 2013 and agreed to a settlement regarding the recognition of revenue for gift cards and other matters. The Company made a cash payment for the additional federal tax due totaling $3.0 million. Based on this and previous settlements, additional state taxes and federal and state interest owed, net of federal and state benefits, are approximately $1.5 million, of which approximately $0.8 million was paid during fiscal year 2013. As the additional federal and state taxes owed for all periods represent temporary differences that will be deductible in future years, the potential tax expense is limited to federal and state interest, net of federal and state benefits, which we do not expect to be material.

A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Balance at beginning of year	$	15,428		41,379		17,549
Increases related to prior year tax positions	855			2,063		23,922
Increases related to current year tax positions	219			1,389		—
Decreases related to prior year tax positions	(3,091		)	(19,675	)	—
Decreases related to settlements	(4,797		)	(9,792	)	—
Lapses of statutes of limitations	—			(27	)	(43	)
Effect of foreign currency adjustments	(401		)	91		(49	)
Balance at end of year	$	8,213		15,428		41,379

(17) Commitments and contingencies

(a) Lease commitments

The Company is party to various leases for property, including land and buildings, leased automobiles, and office equipment under noncancelable operating and capital lease arrangements (see note 11).

(b) Guarantees

Financial Guarantees

The Company has established agreements with certain financial institutions whereby the Company’s franchisees can obtain financing with terms of approximately 3 to 10 years for various business purposes. Substantially all loan proceeds are used by the franchisees to finance store improvements, new store development, new central production locations, equipment purchases, related business acquisition costs, working capital, and other costs. In limited instances, the Company guarantees a portion of the payments and commitments of the franchisees, which is collateralized by the store equipment owned by the franchisee. Under the terms of the agreements, in the event that all outstanding borrowings come due simultaneously, the Company would be contingently liable for $3.0 million and $4.7 million at December 28, 2013 and December 29, 2012, respectively. At December 28, 2013 and December 29, 2012, there were no amounts under such guarantees that were due. The fair value of the guarantee liability and corresponding asset recorded on the consolidated balance sheets was $277 thousand and $309 thousand, respectively, at December 28, 2013 and $601 thousand and $572 thousand, respectively, at December 29, 2012. The Company assesses the risk of performing under these guarantees for each franchisee relationship on a quarterly basis. As of December 29, 2012, the Company had recorded reserves for such guarantees of $389 thousand. No reserves were recorded as of December 28, 2013.

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Supply Chain Guarantees

In 2012, the Company entered into a third-party guarantee with a distribution facility of franchisee products that guarantees franchisees would sell a certain volume of cooler beverages each year over a 4-year period. During the second quarter of fiscal year 2013, the Company determined that the franchisees will not achieve the required sales volume, and therefore, the Company accrued the maximum guarantee under the agreement of $7.5 million, which is included in other current liabilities in the consolidated balance sheets and general and administrative expenses, net in the consolidated statements of operations. The Company expects to make the required guarantee payment during the first quarter of 2014. No additional guarantee payments will be required under the agreement.

The Company has also entered into a third-party guarantee with this distribution facility of franchisee products that ensures franchisees will purchase a certain volume of product over a 10-year period. As product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. As of December 28, 2013 and December 29, 2012, the Company was contingently liable for $5.7 million and $6.8 million, respectively, under this guarantee. Additionally, the Company has various supply chain contracts that provide for purchase commitments or exclusivity, the majority of which result in the Company being contingently liable upon early termination of the agreement or engaging with another supplier. As of December 28, 2013 and December 29, 2012, we were contingently liable under such supply chain agreements for approximately $52.6 million and $57.5 million, respectively. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, considering various factors including internal forecasts, prior history, and ability to extend contract terms, we have accrued $906 thousand related to these commitments as of December 28, 2013, which is included in other current liabilities in the consolidated balance sheets. There were no amounts accrued as of December 29, 2012.

Lease Guarantees

As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants and the guarantee of certain other leases, we are contingently liable on certain lease agreements. These leases have varying terms, the latest of which expires in 2024. As of December 28, 2013 and December 29, 2012, the potential amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessee was $6.4 million and $5.6 million, respectively. Our franchisees are the primary lessees under the majority of these leases. The Company generally has cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of nonpayment under the lease. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases. Accordingly, we do not believe it is probable that the Company will be required to make payments under such leases, and we have not recorded a liability for such contingent liabilities.

(c) Letters of credit

At December 28, 2013 and December 29, 2012, the Company had standby letters of credit outstanding for a total of $3.0 million and $11.5 million, respectively. There were no amounts drawn down on these letters of credit.

(d) Legal matters

In May 2003, a group of Dunkin’ Donuts franchisees from Quebec, Canada filed a lawsuit against the Company on a variety of claims, based on events which primarily occurred 10 to 15 years ago, including but not limited to, alleging that the Company breached its franchise agreements and provided inadequate management and support to Dunkin’ Donuts franchisees in Quebec (“Bertico litigation”). On June 22, 2012, the Quebec Superior Court found for the plaintiffs and issued a judgment against the Company in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest, representing loss in value of the franchises and lost profits. During the second quarter of 2012, the Company increased its estimated liability related to the Bertico litigation by $20.7 million to reflect the judgment amount and estimated plaintiff legal costs and interest. During fiscal years 2013 and 2012, the Company accrued additional interest on the judgment amount of $952 thousand and $493 thousand, respectively, resulting in an estimated liability of $25.1 million, including the impact of foreign exchange, as of December 28, 2013. The Company strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. As such, the Company is vigorously appealing the decision.

The Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. At December 28, 2013 and December 29, 2012, contingent liabilities, excluding the Bertico litigation, totaling $1.5 million were included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the potential loss which may be incurred in connection with these matters. While the Company intends to vigorously defend its positions against all claims in these

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lawsuits and disputes, it is reasonably possible that the losses in connection with all matters could increase by up to an additional $12.0 million based on the outcome of ongoing litigation or negotiations.

(e) Line of Credit to Distribution Facility

In May 2013, the Company provided a secured revolving line of credit to a distribution facility of franchisee products for an aggregate maximum principal amount of up to $8.0 million plus interest. The entire principal balance and accrued and unpaid interest is due June 1, 2014. The purpose of this line of credit is to provide funding for the purchase and storage of certain inventory, which was pledged as collateral under a security agreement entered into in connection with the line of credit agreement. Through December 28, 2013, no amounts have been drawn on this line of credit.

(18) Retirement plans

401(k) Plan

Employees of the Company, excluding employees of certain international subsidiaries, participate in a defined contribution retirement plan, the Dunkin’ Brands, Inc. 401(k) Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute up to 80% of their pre-tax eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined in the sole discretion of the Company. The Company matched participants’ contributions during fiscal years 2013, 2012, and 2011, up to a maximum of 4% of the employee’s salary. Employer contributions for fiscal years 2013, 2012, and 2011, amounted to $3.1 million, $2.9 million, and $2.7 million, respectively. The 401(k) Plan also provides for an additional discretionary contribution of up to 2% of eligible wages for eligible participants based on the achievement of specified performance targets. No such discretionary contributions were made during fiscal years 2013, 2012, and 2011.

NQDC Plan

The Company, excluding employees of certain international subsidiaries, also offers to a limited group of management and highly compensated employees, as defined by the Employee Retirement Income Security Act (“ERISA”), the ability to participate in the NQDC Plan. The NQDC Plan allows for pre-tax contributions of up to 50% of a participant’s base annual salary and other forms of compensation, as defined. The Company credits the amounts deferred with earnings based on the investment options selected by the participants and holds investments to partially offset the Company’s liabilities under the NQDC Plan. The NQDC Plan liability, included in other long-term liabilities in the consolidated balance sheets, was $7.0 million and $7.4 million at December 28, 2013 and December 29, 2012, respectively. As of December 28, 2013 and December 29, 2012, total investments held for the NQDC Plan were $338 thousand and $3.1 million, respectively, and have been recorded in other assets in the consolidated balance sheets.

Canadian Pension Plan

The Company sponsors a contributory defined benefit pension plan in Canada, The Baskin-Robbins Employees’ Pension Plan (“Canadian Pension Plan”), which provides retirement benefits for the majority of its Canadian employees.

During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, where the majority of the Canadian Pension Plan participants were employed (see note 20). As a result of the closure, the Company terminated the Canadian Pension Plan as of December 29, 2012, and expects the Financial Services Commission of Ontario ("FSCO") to approve the termination of the plan in 2014. Upon approval of the termination, the Company will fund any deficit and the plan assets will be used to fund transfers to other retirement plans or for the purchase of annuities to fund future retirement payments to participants. Also upon approval, the Company will recognize any unrealized losses in accumulated other comprehensive income.

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The components of net pension expense were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Service cost	$	—		262		222
Interest cost	216			333		340
Expected return on plan assets	(263		)	(317	)	(306	)
Amortization of net actuarial loss	74			76		54
Net pension expense	$	27		354		310

The amortization of net actuarial loss included in net pension expense above represents the amount reclassified from accumulated other comprehensive income during the respective fiscal year. The table below summarizes other balances for fiscal years 2013, 2012, and 2011 (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	8,349		6,050		6,042
Service cost	—			262		222
Interest cost	216			333		340
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Curtailment gain	—			(1,084	)	—
Actuarial loss (gain)	395			2,854		(95	)
Foreign currency loss (gain), net	(530		)	121		(61	)
Benefit obligation, end of year	$	8,200		8,349		6,050
Change in plan assets:
Fair value of plan assets, beginning of year	$	5,809		4,945		4,797
Expected return on plan assets	263			317		306
Employer contributions	626			662		798
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Actuarial loss	(371		)	(27	)	(505	)
Foreign currency gain (loss), net	(307		)	99		(53	)
Fair value of plan assets, end of year	$	5,790		5,809		4,945
Reconciliation of funded status:
Funded status	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)
Amounts recognized in the balance sheet consist of:
Accrued benefit cost	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)

The investments of the Canadian Pension Plan consisted of a long-term bond fund and a short-term investment fund at December 28, 2013, and a pooled investment fund at December 29, 2012. These funds are comprised of numerous underlying investments and are valued at the unit fair value supplied by the funds' administrators, which represent the funds' proportionate share of underlying net assets at market value determined using closing market prices. The funds are considered Level 2, as defined by U.S. GAAP, because the inputs used to calculate the fair value are derived principally from observable market data. The Canadian Pension Plan's investment strategy is to mitigate fluctuations in the wind-up deficit of the plan by holding assets whose fluctuation in fair value will approximate that of the benefit obligation. The Canadian Pension Plan assumes a

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concentration of risk as it is invested in a limited number of investments. The risk is mitigated as the funds consists of a diverse range of underlying investments. The allocation of the assets within the plan consisted of the following:

	December 28, 2013		December 29, 2012
Cash and short-term investments	35	%	—	%
Equity securities	—		60
Debt securities	65		39
Other	—		1

The actuarial assumptions used in determining the present value of accrued pension benefits at December 28, 2013 and December 29, 2012 were as follows:

	December 28, 2013		December 29, 2012
Discount rate	2.65	%	2.70	%
Average salary increase for pensionable earnings	—		—

The discount rate used in determining the present value of accrued pension benefits at December 28, 2013 reflects the estimate of the rate at which pension benefits could be effectively settled. No future salary increases are assumed as of December 28, 2013 or December 29, 2012 as a result of the termination of the plan.

The actuarial assumptions used in determining the present value of our net periodic benefit cost were as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Discount rate	2.70	%	5.25	%	5.50	%
Average salary increase for pensionable earnings	—		3.25		3.25
Expected return on plan assets	4.50		6.00		6.00

The expected return on plan assets was determined based on the Canadian Pension Plan’s target asset mix, expected long-term asset class returns based on a mean return over a 30-year period using a Monte Carlo simulation, the underlying long-term inflation rate, and expected investment expenses.

The accumulated benefit obligation was $8.2 million and $8.3 million at December 28, 2013 and December 29, 2012, respectively. We recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income to report the funded status of the Canadian Pension Plan. At December 28, 2013, the net liability for the funded status of the Canadian Pension Plan was included in other current liabilities in consolidated balance sheets. Upon approval of the plan termination by the FSCO, the Company intends on funding the plan deficit and purchasing annuities to provide accrued benefits to participants.

(19) Related-party transactions

(a) Sponsors

Through the first quarter of fiscal year 2012, DBGI was majority-owned by investment funds affiliated with Bain Capital Partners, LLC, The Carlyle Group, and Thomas H. Lee Partners, L.P. (collectively, the “Sponsors” or "BCT").

In April 2012, certain existing stockholders, including the Sponsors, sold a total of 30,360,000 shares of our common stock (see note 13(a)). In August 2012, the Sponsors sold all of their remaining shares through a registered offering and related repurchase of shares by the Company (see notes 13(a) and 13(c)). One representative of each Sponsor continues to serve on the board of directors.

Prior to the closing of the Company’s initial public offering on August 1, 2011, the Company was charged an annual management fee by the Sponsors of $1.0 million per Sponsor, payable in quarterly installments. In connection with the completion of the initial public offering in August 2011, the Company incurred an expense of approximately $14.7 million related to the termination of the Sponsor management agreement. Including this termination fee, the Company recognized $16.4 million of expense during fiscal year 2011 related to Sponsor management fees, which is included in general and administrative expenses, net in the consolidated statements of operations.

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At December 29, 2012, certain affiliates of the Sponsors held $52.4 million, respectively of term loans, issued under the Company’s senior credit facility. The terms of these loans were identical to all other term loans issued to unrelated lenders in the senior credit facility. As of December 28, 2013, there were no term loans held by affiliates of the Sponsors.

The Sponsors have historically held a substantial interest in our Company as well as several other entities. The existence of such common ownership and management control could result in differences within our operating results or financial position than if the entities were autonomous; however, we believe such transactions were negotiated at arm's length. The Company made payments to entities in which the Sponsors have ownership interests totaling approximately $2.1 million, $1.6 million, and $979 thousand during fiscal years 2013, 2012, and 2011, respectively, primarily for the purchase of consulting services, training services, and leasing of restaurant space. At December 29, 2012, the Company had a net payable of $150 thousand to these entities. At December 28, 2013, the Company had no net payable to these entities.

(b) Equity method investments

The Company recognized royalty income from its equity method investments as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
BR Japan	$	2,097	2,549	2,473
BR Korea	4,156		3,662	3,371
Spain JV	130		—	—
	$	6,383	6,211	5,844

At December 28, 2013 and December 29, 2012, the Company had $1.4 million and $1.2 million, respectively, of royalties receivable from its equity method investments which were recorded in accounts receivable, net, in the consolidated balance sheets.

The Company made net payments to its equity method investments totaling approximately $3.8 million, $1.6 million, and $2.8 million, in fiscal years 2013, 2012, and 2011, respectively, primarily for the purchase of ice cream products and incentive payments.

The Company made loans of $2.1 million and $666 thousand during fiscal years 2013 and 2012, respectively to the Spain JV. As of December 28, 2013 and December 29, 2012, the Company had $2.7 million and $666 thousand, respectively, of notes receivable from the Spain JV, which are included in other assets in the consolidated balance sheets. During the third quarter of fiscal year 2013, the Company fully reserved all outstanding notes and accounts receivable from the Spain JV, and fully impaired its equity investment in the Spain JV (see note 6).

During fiscal year 2013, the Company recognized sales of ice cream products of $4.8 million in the consolidated statements of operations from the sale of ice cream products to the Australia JV. As of December 28, 2013, the Company had $733 thousand of net receivables from the Australia JV, consisting of accounts receivable and notes and other receivables, net of other current liabilities.

(c) Board of directors

Certain family members of one of our directors, who retired in May 2013, hold an ownership interest in an entity that owns and operates Dunkin’ Donuts restaurants and holds the right to develop additional restaurants under store development agreements. During fiscal years 2013, 2012, and 2011, the Company received $343 thousand, $961 thousand, and $713 thousand, respectively, in royalty and rental payments from this entity. During fiscal year 2013, the Company recognized $6 thousand of income related to initial franchise fees from this entity. All material terms of the franchise and store development agreements with this entity are consistent with other unrelated franchisees in the market.

(20) Closure of manufacturing plant

During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, which supplied ice cream to certain of Baskin-Robbins' international markets. Manufacturing of ice cream products that had been produced in Peterborough began transitioning to existing third-party partner suppliers during the third quarter of 2012, and production ceased at the plant at the end of September 2012. The majority of the costs and activities related to the closure of the plant and transition to third-party suppliers occurred in fiscal year 2012, with the

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exception of the settlement of our Canadian pension plan, which is subject to government approval that may not be obtained until 2014.

The Company recorded cumulative costs related to the plant closure of $12.6 million, of which, $654 thousand and $11.9 million were recorded in fiscal years 2013 and 2012, respectively. Costs recorded in fiscal year 2012 included $4.2 million of accelerated depreciation on property, plant, and equipment, $2.7 million of incremental ice cream production costs, $2.0 million of ongoing termination benefits, $1.1 million of one-time termination benefits, and $1.9 million of other costs related to the closing and transition. The accelerated depreciation and the incremental ice cream production costs are included in depreciation and cost of ice cream products, respectively, in the consolidated statements of operations, while all other costs are included in general and administrative expenses, net in the consolidated statements of operations. The Company also expects to incur additional costs of approximately $3.0 million to $4.0 million primarily related to the settlement of our Canadian pension plan upon final government approval.

As of December 29, 2012, the Company had recorded reserves for ongoing termination benefits and one-time termination benefits of $636 thousand and $55 thousand, respectively, substantially all of which were paid during fiscal year 2013.

(21) Allowance for doubtful accounts

The changes in the allowance for doubtful accounts were as follows (in thousands):

	Accounts receivable			Short-term notes and other receivables		Long-term notes and other receivables
Balance at December 25, 2010	$	5,518		2,443		—
Provision for doubtful accounts, net	745			1,274		—
Write-offs and other	(3,550		)	(1,396	)	—
Balance at December 31, 2011	2,713			2,321		—
Provision for (recovery of) doubtful accounts, net	513			(1,055	)	—
Write-offs and other	(743		)	(62	)	—
Balance at December 29, 2012	2,483			1,204		—
Provision for (recovery of) doubtful accounts, net	1,015			(339	)	2,808
Write-offs and other	(899		)	(206	)	—
Balance at December 28, 2013	$	2,599		659		2,808

(22) Quarterly financial data (unaudited)

	Three months ended
	March 30, 2013		June 29, 2013	September 28, 2013	December 28, 2013
	(In thousands, except per share data)
Total revenues	$	161,858	182,488	186,317	183,177
Operating income	63,459		76,805	82,237	82,235
Net income attributable to Dunkin' Brands	23,798		40,812	40,221	42,072
Earnings per share:
Common – basic	0.22		0.38	0.38	0.39
Common – diluted	0.22		0.38	0.37	0.39

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	Three months ended
	March 31, 2012		June 30, 2012	September 29, 2012	December 29, 2012
	(In thousands, except per share data)
Total revenues	$	152,372	172,387	171,719	161,703
Operating income(1)	55,195		46,138	70,345	67,751
Net income attributable to Dunkin' Brands(1)	25,950		18,497	29,526	34,335
Earnings per share(1):
Common – basic	0.22		0.15	0.26	0.32
Common – diluted	0.21		0.15	0.26	0.32

(1) The second quarter of fiscal year 2012 includes a $20.7 million incremental legal reserve related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest (see note 17(d)).

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), that are designed to ensure that information that would be required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision, and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of December 28, 2013. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 28, 2013, such disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) promulgated under the Exchange Act as a process, designed by, or under the supervision of the Company's principal executive and principal financial officers and effected by the Company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions and disposition of assets; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures are made only in accordance with management and board authorizations; and providing reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate.

Management, with the participation of the Company's principal executive and principal financial officers, conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 28, 2013 based on the framework and criteria established in Internal Control - Integrated Framework (1992), issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as of December 28, 2013.

Our independent registered public accounting firm, KPMG LLP, audited the effectiveness of our internal control over financial reporting as of December 28, 2013, as stated in their report which appears herein.

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders

Dunkin' Brands Group, Inc.:

We have audited Dunkin’ Brands Group, Inc.’s internal control over financial reporting as of December 28, 2013, based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Dunkin’ Brands Group, Inc.’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Dunkin’ Brands Group, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 28, 2013, based on criteria established in Internal Control - Integrated Framework (1992) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Dunkin’ Brands Group, Inc. and subsidiaries as of December 28, 2013 and December 29, 2012, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 28, 2013, and our report dated February 20, 2014 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG LLP

Boston, Massachusetts

February 20, 2014

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Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Executive Officers of the Registrant

Set forth below is certain information about our executive officers. Ages are as of February 20, 2014.

Nigel Travis, age 64, has served as Chief Executive Officer of Dunkin’ Brands since January 2009 and assumed the additional role of Chairman of the Board in May 2013. From 2005 through 2008, Mr. Travis served as President and Chief Executive Officer, and on the board of directors of Papa John’s International, Inc., a publicly-traded international pizza chain. Prior to Papa John’s, Mr. Travis was with Blockbuster, Inc. from 1994 to 2004, where he served in increasing roles of responsibility, including President and Chief Operating Officer. Mr. Travis previously held numerous senior positions at Burger King Corporation. Mr. Travis currently serves on the board of directors of Office Depot, Inc. and formerly served on the boards of Lorillard, Inc. and Bombay Company, Inc.

Paul Carbone, age 47, was named Senior Vice President and Chief Financial Officer on June 4, 2012. Prior to that, Mr. Carbone had served as Vice President, Financial Management of Dunkin’ Brands since 2008. Prior to joining Dunkin’ Brands, he most recently served as Senior Vice President and Chief Financial Officer for Tween Brands, Inc. Before Tween Brands, Mr. Carbone spent seven years with Limited Brands, Inc., where his roles included Vice President, Finance, for Victoria’s Secret.

John Costello, age 66, joined Dunkin’ Brands in 2009 and currently serves as our President, Global Marketing & Innovation. Prior to joining Dunkin’ Brands, Mr. Costello was an independent consultant and served as President and CEO of Zounds, Inc., an early stage developer and hearing aid retailer, from September 2007 to January 2009. Following his departure, Zounds filed for bankruptcy in March 2009. From October 2006 to August 2007, he served as President of Consumer and Retail for Solidus Networks, Inc. (d/b/a Pay By Touch), which filed for bankruptcy in March 2008. Mr. Costello previously served as the Executive Vice President of Merchandising and Marketing at The Home Depot, Senior Executive Vice President of Sears, and Chief Global Marketing Officer of Yahoo!. He has also held leadership roles at several companies, including serving as President of Nielsen Marketing Research U.S. Mr. Costello currently serves on the board of directors of Fantex, Inc. and was a director of Ace Hardware Corporation from June 2009 to February 2014.

Richard Emmett, age 58, was named Chief Legal and Human Resources Officer in January 2014, and prior to that, served as Senior Vice President and Chief Legal Officer since joining Dunkin' Brands in December 2009. Mr. Emmett joined Dunkin’ Brands from QCE HOLDING LLC (Quiznos) where he served as Executive Vice President, Chief Legal Officer and Secretary. Prior to Quiznos, Mr. Emmett served in various roles including as Senior Vice President, General Counsel and Secretary for Papa John’s International. Mr. Emmett currently serves on the board of directors of Francesca’s Holdings Corporation.

Bill Mitchell, age 50, joined Dunkin’ Brands in August 2010 and currently serves as President, Baskin-Robbins U.S and Canada and Baskin-Robbins and Dunkin’ Donuts for Japan, China, and Korea. Mr. Mitchell joined Dunkin’ Brands from Papa John’s International, where he had served in a variety of roles since 2000, including President of Global Operations, President of Domestic Operations, Operations VP, Division VP and Senior VP of Domestic Operations. Prior to Papa John’s, Mr. Mitchell was with Popeyes, a division of AFC Enterprises where he served in various capacities including Senior Director of Franchise Operations.

Scott Murphy, age 41, was named Senior Vice President and Chief Supply Officer in February 2013. Mr. Murphy joined Dunkin’ Brands in 2004 and prior to his current position, served as Vice President, Global Supply Chain for Dunkin’ Donuts. Mr. Murphy serves on the board of directors of the National Coffee Association of America as well as the National DCP, LLC, the Dunkin’ Donuts franchisee-owned purchasing and distribution cooperative.

Karen Raskopf, age 59, joined Dunkin' Brands in 2009 and currently serves as Senior Vice President and Chief Communications Officer. Prior to joining Dunkin' Brands, she spent 12 years as Senior Vice President, Corporate Communications for Blockbuster, Inc. She also served as head of communications for 7-Eleven, Inc.

Paul Twohig, age 60, joined Dunkin’ Donuts U.S. in October 2009 and currently serves as President, Dunkin’ Donuts U.S. and Canada, and Dunkin’ Donuts & Baskin-Robbins Europe and Latin America. Prior to his current position, Mr. Twohig served as Senior Vice President and Chief Operating Officer. Prior to joining Dunkin’ Brands, Mr. Twohig served as a Division Senior

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Vice President for Starbucks Corporation from December 2004 to March 2009. Mr. Twohig also previously served as Chief Operating Officer for Panera Bread Company.

John Varughese, age 48, joined Dunkin’ Brands in 2002 and currently serves as Vice President, Middle East, Southeast Asia and India. Prior to his current position, Mr. Varughese served as Vice President, Baskin-Robbins International Operations and Managing Director, International, Baskin-Robbins and Dunkin’ Donuts.

The remaining information required by this item will be contained in our definitive Proxy Statement for our 2014 Annual Meeting of Stockholders, which will be filed not later than 120 days after the close of our fiscal year ended December 28, 2013 (the “Definitive Proxy Statement”) and is incorporated herein by reference.

Item 11. Executive Compensation

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by reference.

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) The following documents are filed as part of this report:

1. Financial statements: All financial statements are included in Part II, Item 8 of this report.

2. Financial statement schedules: All financial statement schedules are omitted because they are not required or are not applicable, or the required information is provided in the consolidated financial statements or notes described in Item 15(a)(1) above.

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3. Exhibits:

Exhibit Number	Exhibit Title
3.1	Form of Second Restated Certificate of Incorporation of Dunkin’ Brands Group, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on July 11, 2011)
3.2	Form of Second Amended and Restated Bylaws of Dunkin’ Brands Group, Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on July 11, 2011)
4.2	Specimen Common Stock certificate of Dunkin’ Brands Group, Inc. (incorporated by reference to Exhibit 4.6 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on July 11, 2011)
10.1*	Dunkin’ Brands Group, Inc. (f/k/a Dunkin’ Brands Group Holdings, Inc.) Amended and Restated 2006 Executive Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.2*	Form of Option Award under 2006 Executive Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.3*	Form of Restricted Stock Award under 2006 Executive Incentive Plan (incorporated by reference to Exhibit 10.3 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.4*	Dunkin’ Brands Group, Inc. Amended & Restated 2011 Omnibus Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.5*	Form of Amended Option Award under 2011 Omnibus Long-Term Incentive Plan
10.6*	Form of Amended Restricted Stock Unit Award under 2011 Omnibus Long-Term Incentive Plan (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.7*	Dunkin’ Brands Group, Inc. Annual Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.8*	Amended and Restated Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan
10.9*	First Amended and Restated Executive Employment Agreement between Dunkin’ Brands, Inc., Dunkin’ Brands Group, Inc. and Nigel Travis (incorporated by reference to Exhibit 10.10 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.10*	Amendment No. 1 to First Amended and Restated Executive Employment Agreement between Dunkin’ Brands, Inc., Dunkin’ Brands Group, Inc. and Nigel Travis (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, File No. 001-35258, filed with the SEC on December 3, 2012)
10.11*	Offer Letter to Paul Carbone dated June 4, 2012 (incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.12*	Offer Letter to John Costello dated September 30, 2009 (incorporated by reference to Exhibit 10.15 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.13*	Offer Letter to Paul Twohig dated September 10, 2009 (incorporated by reference to Exhibit 10.16 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.14*	Offer Letter to Richard Emmett dated November 23, 2009 (incorporated by reference to Exhibit 10.14 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.15*	Form of amendment to Offer Letters (incorporated by reference to Exhibit 10.16(a) to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on July 11, 2011)
10.16*	Separation Agreement with Giorgio Minardi, dated October 29, 2013 as revised November 15, 2013
10.17*	Transition Agreement of Jon Luther, dated as of June 30, 2010 (incorporated by reference to Exhibit 10.9 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)

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10.18	Form of Non-Competition/Non-Solicitation/Confidentiality Agreement (incorporated by reference to Exhibit 10.17 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.19	Credit Agreement among Dunkin’ Finance Corp, Dunkin’ Brands Holdings, Inc., Dunkin’ Brands, Inc., Barclays Bank PLC and the other lenders party thereto, dated as of November 23, 2010 (incorporated by reference to Exhibit 10.20 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on June 7, 2011)
10.20	Joinder to Credit Agreement dated as of December 3, 2010 (incorporated by reference to Exhibit 10.21 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.21	Amendment 1, dated as of February 18, 2011, to the Credit Agreement among Dunkin’ Brands, Inc., Dunkin’ Brands Holdings, Inc., Barclays Bank PLC and the other lenders party thereto (incorporated by reference to Exhibit 10.22 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.22	Amendment 2, dated as of May 25, 2011, to the Credit Agreement among Dunkin’ Brands, Inc., Dunkin’ Brands Holdings, Inc., Barclays Bank PLC and the other lenders party thereto (incorporated by reference to Exhibit 10.29 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on June 7, 2011)
10.23	Amendment 3, dated as of August 9, 2012, to the Credit Agreement among Dunkin’ Brands, Inc., Dunkin’ Brands Holdings, Inc., Barclays Bank PLC and the other lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, File No. 001-35258, filed with the SEC on August 9, 2012)
10.24	Amendment 4, dated as of February 14, 2013, to the Credit Agreement among Dunkin’ Brands, Inc., Dunkin’ Brands Holdings, Inc., Barclays Bank PLC and the other lenders party thereto and Amendment No. 1 to the Guaranty among Dunkin' Brands Holdings, Inc., the other guarantors named therein and the Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, File No. 001-35258, filed with the SEC on February 14, 2013)
10.25	Amendment No. 5 to the Credit Agreement, dated as of February 7, 2014 by and among Dunkin’ Brands, Inc. Dunkin’ Brands Holdings, Inc., Barclays Bank PLC, as administrative agent and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, File No. 001-35258, filed with the SEC on February 7, 2014)
10.26	Security Agreement among the Grantors identified therein and Barclays Bank PLC, dated as of December 3, 2010 (incorporated by reference to Exhibit 10.23 to the Company’s Registration Statement on Form S-1, File No. 333-173898, filed with the SEC on May 4, 2011)
10.27	Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.24 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on June 7, 2011)
10.28	Lease between 130 Royall, LLC and Dunkin’ Brands, Inc., dated as of December 20, 2013
10.29	Form of Baskin-Robbins Franchise Agreement (incorporated by reference to Exhibit 10.30 to the Company’s Registration Statement on Form S-1, File No. 333-173898, as amended on June 23, 2011)
10.30	Form of Dunkin’ Donuts Franchise Agreement (incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.31	Form of Combined Baskin-Robbins and Dunkin’ Donuts Franchise Agreement (incorporated by reference to Exhibit 10.34 to the Company's Annual Report on Form 10-K, File No. 001-35258, filed the with SEC on February 22, 2013)
10.32	Form of Dunkin’ Donuts Store Development Agreement (incorporated by reference to Exhibit 10.34 to the Company’s Annual Report on Form 10-K, File No. 001—35258, filed with the SEC on February 24, 2012)
10.33	Form of Baskin-Robbins Store Development Agreement (incorporated by reference to Exhibit 10.35 to the Company’s Annual Report on Form 10-K, File No. 001—35258, filed with the SEC on February 24, 2012)
21.1	Subsidiaries of Dunkin’ Brands Group, Inc.
23.1	Consent of KPMG LLP
31.1	Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002 by Chief Executive Officer
31.2	Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002 by Chief Financial Officer

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32.1	Certification of periodic financial report pursuant to Section 906 of Sarbanes Oxley Act of 2002
32.2	Certification of periodic financial report pursuant to Section 906 of Sarbanes Oxley Act of 2002
101	The following financial information from the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2013, formatted in Extensible Business Reporting Language, (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Stockholders’ Equity (Deficit), (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to the Consolidated Financial Statements

* Management contract or compensatory plan or arrangement

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 20, 2014

DUNKIN’ BRANDS GROUP, INC.
By:	/s/ Nigel Travis
Name:	Nigel Travis
Title:	Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Nigel Travis	Chairman and Chief Executive Officer (Principal Executive Officer)	February 20, 2014
Nigel Travis
/s/ Paul Carbone	Chief Financial Officer (Principal Financial and Accounting Officer)	February 20, 2014
Paul Carbone
/s/ Raul Alvarez	Director	February 20, 2014
Raul Alvarez
/s/ Anthony DiNovi	Director	February 20, 2014
Anthony DiNovi
/s/ Michael Hines	Director	February 20, 2014
Michael Hines
/s/ Sandra Horbach	Director	February 20, 2014
Sandra Horbach
/s/ Mark Nunnelly	Director	February 20, 2014
Mark Nunnelly
/s/ Carl Sparks	Director	February 20, 2014
Carl Sparks
/s/ Joseph Uva	Director	February 20, 2014
Joseph Uva

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EX-10.5

Name:	[●]
Number of Shares of Stock subject to Option:	[●]
Price Per Share:	$[●]
Date of Grant:	[●]

DUNKIN’ BRANDS GROUP, INC.
2011 OMNIBUS LONG-TERM INCENTIVE PLAN

NON-STATUTORY STOCK OPTION AGREEMENT

This agreement (the “Agreement”) evidences a stock option granted by Dunkin’ Brands Group, Inc. (the “Company”) to the undersigned (the “Optionee”), pursuant to and subject to the terms of the Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan (as amended from time to time, the “Plan”), which is incorporated herein by reference.

1.Grant of Stock Option. The Company grants to the Optionee on the date set forth above (the “Date of Grant”) an option (the “Stock Option”) to purchase, on the terms provided herein and in the Plan (including, without limitation, the exercise provisions in Section 6(b)(3) of the Plan), the number of shares of Stock of the Company set forth above (the “Shares”) with an exercise price per Share as set forth above, in each case subject to adjustment pursuant to Section 7 of the Plan in respect of transactions occurring after the date hereof.

The Stock Option evidenced by this Agreement is a non-statutory option (that is, an option that is not to be treated as a stock option described in subsection (b) of Section 422 of the Code) and is granted to the Optionee in connection with the Optionee’s employment by the Company and its qualifying subsidiaries. For purposes of the immediately preceding sentence, “qualifying subsidiary” means a subsidiary of the Company as to which the Company has a “controlling interest” as described in Treas. Regs. §1.409A-1(b)(5)(iii)(E)(1).

2.Meaning of Certain Terms. Except as otherwise defined herein, all capitalized terms used herein have the same meaning as in the Plan. The following terms have the following meanings:

(a) “Beneficiary” means, in the event of the Optionee’s death, the beneficiary named in the written designation (in form acceptable to the Administrator) most recently filed with the Administrator by the Optionee prior to the Optionee’s death and not subsequently revoked, or, if there is no such designated beneficiary, the executor or administrator of the Optionee’s estate. An effective beneficiary designation will be treated as having been revoked only upon receipt by the Administrator, prior to the Optionee’s death, of an instrument of revocation in form acceptable to the Administrator.

(b) “Good Reason” means the occurrence of any of the following:

(i) a material diminution in the nature or scope of the Optionee’s responsibilities, duties, authority or status; provided that each of (A) a change in reporting relationships resulting from the direct or indirect control of the Company (or a successor corporation) by another corporation, (B) any diminution of the business of the Company or any of its Affiliates and (C) any sale or transfer of equity, property or other assets of the Company or any of its Affiliates (including any such sale or transfer or any other transaction or series of such transactions that results in a Change in Control) will be deemed not to constitute “Good Reason”;

(ii) relocation of the Optionee’s place of employment, without the Optionee’s consent, to a location that is more than fifty (50) miles from Canton, Massachusetts; or

(iii) the Company’s failure to perform substantially any material term of this Agreement or any employment agreement with the Company or any of its Affiliates to which the Optionee is subject;

provided that, if the Optionee is subject to an employment, severance-benefit or other similar agreement with the Company or an Affiliate containing a separate definition of “Good Reason”, the definition contained in such agreement will apply for purposes of this Agreement for so long as such agreement is in effect. A termination will qualify as a termination for Good Reason only if (1) the Optionee gives the Company notice, within ninety (90) days of its first existence or occurrence (without the Optionee’s consent), of any or any combination of the eligibility conditions specified above; (2) the Company fails to cure the eligibility condition(s) within thirty (30) days of receiving such notice; and (3) the Optionee terminates his or her Employment not later than six months following the end of such 30-day period.

(c) “Option Holder” means the Optionee or, if as of the relevant time the Stock Option has passed to a Beneficiary, the Beneficiary.

3.Vesting; Method of Exercise; Treatment of the Stock Option Upon Cessation of Employment.

(a) Vesting. As used herein with respect to the Stock Option or any portion thereof, the term “vest” means to become exercisable and the term “vested” as applied to any outstanding Stock Option means that the Stock Option is then exercisable, subject in each case to the terms of the Plan. Unless earlier terminated, forfeited, relinquished or expired, and subject to subsection (b) below, the Stock Option shall become vested as to 25% of the total number of Shares subject to the Stock Option on each of the first four anniversaries of the Date of Grant. Notwithstanding the foregoing, Shares subject to the Stock Option shall not vest on any vesting date unless the Optionee has remained in continuous Employment from the Date of Grant through such vesting date.

(b) Change in Control. If (i) in connection with a Change in Control the Stock Option, to the extent outstanding immediately prior to such Change of Control, is assumed or continued, or a new award is substituted for the Stock Option by the acquiror or survivor (or an affiliate of the acquiror or survivor) in accordance with the provisions of Section 7 of the Plan, and (ii) at any time within the 18-month period following the Change in Control, the Optionee’s Employment is terminated by the Company (or its successor) without Cause or the Optionee terminates his or her Employment for Good Reason, the Stock Option (or the award substituted for the Stock Option), to the extent then outstanding but not then vested, will automatically vest in full at the time of such termination.

If in connection with a Change in Control the Stock Option is not assumed or continued, and a new award is not substituted for the Stock Option by the acquiror or survivor (or an affiliate of the acquiror or survivor) in accordance with the provisions of Section 7 of the Plan, the Stock Option, to the extent outstanding immediately prior to such Change in Control but not then vested, will automatically vest in full upon the occurrence of such Change in Control.

(c) Exercise of the Stock Option. No portion of the Stock Option may be exercised until such portion vests. Each election to exercise any vested portion of the Stock Option will be subject to the terms and conditions of the Plan and shall be in writing, signed by the Option Holder (or in such other form as is acceptable to the Administrator). Each such written exercise election must be received by the Company at its principal office or by such other party as the Administrator may prescribe and be accompanied by payment in full as provided in the Plan. The exercise price may be paid (i) by cash or check acceptable to the Administrator, (ii) to the extent permitted by the Administrator, through a broker-assisted cashless exercise program acceptable to the Administrator, (iii) by such other means, if any, as may be acceptable to the Administrator, or (iv) by any combination of the foregoing permissible forms of payment. In the event that the Stock Option is exercised by a person other than the Optionee, the Company will be under no obligation to deliver shares hereunder unless and until it is satisfied as to the authority of the Option Holder to exercise the Stock Option and compliance with applicable securities laws. The latest date on which the Stock Option or any portion thereof may be exercised will be the 7th anniversary of the Date of Grant (the “Final Exercise Date”); provided, however, if at such time the Optionee is prohibited by applicable law or written Company policy applicable to similarly situated employees from engaging in any open-market sales of Stock, the Final Exercise Date will be automatically extended to thirty (30) days following the date the Optionee is no longer prohibited from engaging in such open-market sales. If the Stock Option is not exercised by the Final Exercise Date the Stock Option or any remaining portion thereof will thereupon immediately terminate.

(d) Treatment of the Stock Option Upon Cessation of Employment. If the Optionee’s Employment ceases, the Stock Option, to the extent not already vested will be immediately forfeited, and any vested portion of the Stock Option that is then outstanding will be treated as follows:

(i)Subject to clauses (ii) and (iii) below and Section 4 of this Agreement, the Stock Option, to the extent vested immediately prior to the cessation of the Optionee’s Employment (after giving effect to any accelerated vesting as provided for herein), will remain exercisable until the earlier of (A) the date which is three months following the date of such cessation of Employment, or (B) the Final Exercise Date, and except to the extent previously exercised as permitted by this Section 3(c)(i) will thereupon immediately terminate.

(ii)Subject to clauses (iii) below and Section 4 of this Agreement, the Stock Option, to the extent vested immediately prior to the cessation of the Optionee’s Employment due to death, will remain exercisable until the earlier of (A) the first anniversary of the Optionee’s death or (B) the Final Exercise Date, and except to the extent previously exercised as permitted by this Section 3(c)(ii) will thereupon immediately terminate.

(iii)If the Optionee’s Employment is terminated by the Company and its subsidiaries in connection with an act or failure to act constituting Cause (as the Administrator, in its sole discretion, may determine), or such termination occurs in circumstances that in the determination of the Administrator would have entitled the Company and its subsidiaries to terminate the Optionee’s Employment for Cause, the Stock Option (whether or not vested) will immediately terminate and be forfeited upon such termination.

4.Forfeiture; Recovery of Compensation.

(a) The Administrator may cancel, rescind, withhold or otherwise limit or restrict the Stock Option at any time if the Optionee is not in compliance with all applicable provisions of this Agreement and the Plan.

(b) The Stock Option is subject to Section 6(a)(5) of the Plan. The Stock Option (whether or not vested or exercisable) is subject to forfeiture, termination and rescission, and the Optionee will be obligated to return to the Company the value received with respect to the Stock Option (including Shares delivered under the Stock Option, and any gain realized on a subsequent sale or disposition of Shares), (i) upon or in connection with (A) a breach by the Optionee of a non-competition, non-solicitation, confidentiality or similar covenant or agreement with the Company or its subsidiaries or (B) an overpayment to the Optionee of incentive compensation due to inaccurate financial data, (ii) in accordance with Company policy relating to the recovery of erroneously-paid incentive compensation, as such policy may be amended and in effect from time to time, or (iii) as otherwise required by law or applicable stock exchange listing standards, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act.

5.Transfer of Stock Option. The Stock Option may not be transferred except as expressly permitted under Section 6(a)(3) of the Plan.

6.Withholding. The exercise of the Stock Option will give rise to “wages” subject to withholding. The Optionee expressly acknowledges and agrees that the Optionee’s rights hereunder, including the right to be issued shares upon exercise, are subject to the Optionee promptly paying to the Company in cash (or by such other means as may be acceptable to the Administrator in its discretion) all taxes required to be withheld. No shares will be transferred pursuant to the exercise of this Stock Option unless and until the person exercising this Stock Option has remitted to the Company an amount in cash sufficient to satisfy any federal, state, or local withholding tax requirements, or has made other arrangements satisfactory to the Company with respect to such taxes. The Optionee authorizes the Company and its subsidiaries to withhold such amount from any amounts otherwise owed to the Optionee, but nothing in this sentence shall be construed as relieving the Optionee of any liability for satisfying his or her obligation under the preceding provisions of this Section.

7.Effect on Employment. Neither the grant of the Stock Option, nor the issuance of shares upon exercise of the Stock Option, will give the Optionee any right to be retained in the employ of the Company or any of its Affiliates, affect the right of the Company or any of its Affiliates to discharge or discipline such Optionee at any time, or affect any right of such Optionee to terminate his or her Employment at any time.

8.Stock Ownership Guidelines. The Stock Option and any Shares delivered under the Stock Option are subject to the Company’s Stock Ownership Guidelines, as adopted on May 15, 2012, as such guidelines may be amended, revised or supplemented from time to time (the “Guidelines”). The Optionee acknowledges and agrees to comply with the terms and conditions of the Guidelines, including the retention ratios set forth therein.

9.Governing Law. This Agreement and all claims or disputes arising out of or based upon this Agreement or relating to the subject matter hereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

By acceptance of the Stock Option, the undersigned agrees to be subject to the terms of the Plan. The Optionee further acknowledges and agrees that (i) the signature to this Agreement on behalf of the Company is an electronic signature that will be treated as an original signature for all purposes hereunder and (ii) such electronic signature will be binding against the Company and will create a legally binding agreement when this Agreement is countersigned by the Optionee.

[The remainder of this page is intentionally left blank]

Executed as of the ___ day of [●], [●].

Company: DUNKIN’ BRANDS GROUP, INC.

By: ______________________________

Name:

Title:

Optionee: __________________________________

Name:

Address:

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EX-10.8

AMENDED AND RESTATED DUNKIN’ BRANDS, INC.

NON-QUALIFIED DEFERRED COMPENSATION PLAN

March 27, 2013

ARTICLE 1. ESTABLISHMENT OF PLAN    1

ARTICLE 2. DEFINITIONS    1

ARTICLE 3. ADMINISTRATION    3

3.1. Committee.    3

3.2. Delegation by Committee.    4

3.4. Claims Review Procedure.    4

3.5. Indemnification.    5

3.6. Benefit Funding.    5

ARTICLE 4. SELECTION OF PARTICIPANTS    6

ARTICLE 5. DEFERRAL OF COMPENSATION    6

5.1. Deferral Elections.    6

5.2. Annual Company Matching Amount.    6

ARTICLE 6. INTEREST EQUIVALENT FACTOR & MEASUREMENT FUNDS    7

6.1. Measurement Funds.    7

6.2. Upon Change of Control.    7

6.3. Crediting/Debiting of Account Balances.    7

ARTICLE 7. PARTICIPANT ACCOUNTS    10

7.1. Establishment of Accounts.    10

7.2. Adjustments to Accounts.    10

ARTICLE 8. DISTRIBUTION OF ACCOUNT BENEFITS    10

8.1. Following Separation from Service    10

8.2. In-Service Distribution at Specified Date as Elected by the Participant.    12

8.3. Unforeseeable Emergency.    12

8.4. Disability.    12

8.5. Distributions to Non-Employee Directors.    13

8.6. Change of Control.    13

8.7. Death of Participant.    13

8.8. Tax Withholding.    13

8.9. Default Election.    13

8.10. Compliance with Section 409A.    13

ARTICLE 9. BENEFICIARY BENEFITS    14

ARTICLE 10. NATURE OF CLAIM FOR PAYMENTS    14

ARTICLE 11. ASSIGNMENT OR ALIENATION    14

11.1. Prohibition on Assignment.    14

11.2. Domestic Relations Orders.    15

ARTICLE 12. NO CONTRACT OF EMPLOYMENT    16

ARTICLE 13. AMENDMENT OR TERMINATION OF PLAN    16

13.1. Right to Amend.    16

13.2. Amendment Required By Law.    16

ARTICLE 14. TERMINATION    16

14.1. Right to Terminate Future Accruals.    16

14.2. Termination and Liquidation of the Plan.    16

ARTICLE 15. MISCELLANEOUS    16

15.1. Entire Agreement.    16

15.2. Payment for the Benefit of an Incapacitated Individual.    17

15.3. Governing Law.    17

15.4. Severability.    17

15.5. Headings and Subheadings.    17

ARTICLE 1. ESTABLISHMENT OF PLAN

Dunkin’ Brands, Inc. established the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan effective as of January 1, 2005. The purpose of the Plan is to attract, retain and motivate certain executive employees of the Company, its subsidiaries and affiliates, and members of the Board, by providing them with the opportunity to defer receipt of certain amounts of compensation. The Plan is intended to be an unfunded plan maintained by the employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA. It is also intended to be compliant with the requirements of Section 409A of the Code. The Plan shall be administered in a manner consistent with those intents.

The Plan was amended and restated, effective as of January 1, 2009, to comply with final regulations issued by the Internal Revenue Service (the “IRS”) under Code Section 409A. The Plan is hereby amended and restated, effective as of March [_], 2013 (the “Restatement Date”), to permit members of the Board to participate in the Plan and to permit the deferral of compensation into the Stock Unit Fund.

ARTICLE 2. DEFINITIONS

As used herein, the masculine pronoun shall include the feminine gender, and the singular shall include the plural, and the plural, the singular, and the following terms shall have the following meanings unless a different meaning is clearly required by the context.

“Account” means the separate account for a Participant established pursuant to Article VII, §7.1 which consists of the Participant’s Deferrals and the Annual Company Matching Amounts (if any) (including earnings and losses thereon), which may pass to a Beneficiary pursuant to Article 9.

“Annual Company Matching Amount” for any one Plan Year shall be the amount determined in accordance with Article V, §5.2.

“Beneficiary” means any person or persons so designated in accordance with the provision of Article 9.

“Board” means the Board of Directors of the Company.

“Change of Control” means one of the following circumstances, determined in accordance with Section 409A and IRS regulations issued thereunder and, in each case, only to the extent meeting the requirements of Section 1.409A-3(i)(5) of the Treasury Regulations: (1) a change in ownership, which occurs when one person (or more than one person acting as a group) acquires ownership of corporate stock constituting more than 50% of the total fair market value or total voting power of stock of the Company; (2) a change in effective control, which occurs when any one person (or more than one person acting as a group) acquires (during the 12-month

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period ending on the date of the most recent acquisition) ownership of corporate stock constituting 35% or more of the total voting power of stock of the Company, or when a majority of the Board of Directors is replaced during a 12-month period and such new appointments are not supported by a majority of the members of the current Board; or (3) a change in ownership of a substantial portion of the assets of the corporation, which occurs when one person (or more than one person acting as a group) acquires (during the 12-month period ending on the date of the most recent acquisition by such person) assets from the corporation that have a gross fair market value of at least 40% of the total gross fair market value of all assets of the Company immediately prior to such acquisitions.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means a committee of no less that two and no more than five persons appointed from time to time by the Chief Executive Officer or President who is responsible for the administration of the plan and/or, to the extent necessary or desirable under applicable law, including Section 16 of the Securities Exchange Act of 1934, as amended, the Compensation Committee of the Board.

“Company” means Dunkin’ Brands, Inc.

“Deferral Date” is defined in Section 8.2.

“Deferrals” means Eligible Deferral Compensation credited to a Participant’s Account during a calendar year as a result of a Participant’s elections pursuant to Section 5.1, plus, except where the context otherwise requires, amounts attributable to amounts deferred during such calendar year (i.e., earnings and losses).

“Eligible Deferral Compensation” means (as applicable) a Participant’s base salary, annual cash bonus, executive perquisite allowance, director retainer or meeting fees paid in cash and, if and to the extent designated by the Committee in respect of a Plan Year, with respect to Non-Employee Directors, equity-based awards (other than stock options) and, with respect to all Participants, other designated compensation.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Fixed Rate Fund” means a Measurement Fund, as may be selected by the Committee from time to time, that measures investment performance by an annual interest equivalent factor established by the Committee from time to time.

“401(k) Savings Plan” means the qualified 401(k) Savings Plan offered by the Company to employees meeting the proper service requirements.

“Investment Designation Form” means a form prescribed by the Committee and submitted by the Participant in accordance with Section 6.3.

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“Measurement Funds” means the funds, as selected by the Committee, to be used as a performance measure when designated by a Participant for investment of amounts in the Participant’s Account in accordance with Article VI.

“Non-Employee Director” means a member of the Board who is not an employee of the Company or any of its subsidiaries.

“Participant” means an executive or other senior management-level employee who becomes eligible to participate in the Plan and who is so notified of such eligibility, as provided in Article 4, or a Non-Employee Director, in either case, who elects to participate in the Plan, in accordance with Article 4.

“Performance-Based Compensation” means compensation, the amount of which or entitlement to which, is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months; provided that such performance criteria are established in writing not later than 90 days after the commencement of the performance period to which the criteria relate and that the outcome is not substantially certain at the time the criteria are established.

“Plan” means the Amended and Restated Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan as set forth herein, as amended and in effect from time to time.

“Plan Year” means the calendar year.

“Section 409A” means Section 409A of the Code, or any successor provision thereto.

“Stock” means the Company’s common stock or any other equity security of the Company (or its successor) designated by the Committee from time to time.

“Stock Unit” shall mean a unit that is equivalent in value to one share of Stock.

“Stock Unit Fund” means the Measurement Fund notionally invested in Stock.

“Trust” means the trust fund established pursuant to the Plan under the Trust Agreement.

“Trust Agreement” means the Trust Agreement dated as of May 17, 1999, as subsequently amended, or any successor trust agreement, as in effect from time to time.

“Trustee” means the trustee named in the Trust Agreement establishing the Trust and such successor and/or additional trustees, as may be named thereafter establishing the Trust

ARTICLE 3. ADMINISTRATION

3.1.Committee. The Plan shall be administered by the Committee. The Committee is the administrator of the Plan and shall have full discretionary authority to (i) interpret the provisions of the Plan, (ii) except as otherwise provided in the Plan, determine the amount of various types of Eligible Deferral Compensation for a Plan Year, and (iii) decide all questions

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and settle all disputes which may arise in connection with the Plan, including the power to determine the rights of Participants and Beneficiaries, and to remedy any ambiguities, inconsistencies, or omissions in the Plan. All interpretations, decisions and determinations made by the Committee shall be binding on all persons concerned. No action of the Committee may reduce the amount of a Participant’s Account below the amount of such Account immediately before such action. No member of the Committee who is a Participant in the Plan may vote or otherwise participate in any decision or act with respect to a matter relating solely to himself (or to his Beneficiaries). The Committee may adopt such rules of procedure and regulations as may be necessary for the proper and efficient administration of the Plan.

3.2.Delegation by Committee. Except as the Committee may otherwise provide by written resolution or as required by applicable law or as otherwise set forth herein, the Committee expressly delegates its duties and responsibilities under Section 3.1 (except for the duty to establish eligibility criteria under Article 4) to the Vice President Human Resources or such other person or persons as may be nominated by the Committee, who may further expressly delegate certain of such duties and responsibilities to other employees of the Company or outside persons or entities. For purposes of the Plan, any action taken by any such delegate pursuant to such delegation shall be considered to have been taken by the Committee.

3.3.Claims Review Procedure.

(a)The Committee shall notify Participants and, where appropriate, Beneficiaries, of their right to claim benefits under the claims procedures, and may, if appropriate, make forms available for filing of such claims, and shall provide the name of the person(s) with whom such claims should be filed.

(b)The Committee shall establish procedures for action upon claims initially made and the communication of a decision to the claimant promptly and, in any event, not later than 90 days after the claim is received by the Committee, unless special circumstances require an extension of time for processing the claim. If an extension is required, notice of the extension shall be furnished to the claimant prior to the end of the initial 90-day period, which notice shall indicate the reasons for the extension and the expected decision date. The extension shall not exceed 90 days. The claim may be deemed by the claimant to have been denied for purposes of further review described below in the event a decision is not furnished to the claimant within the period described in the three preceding sentences. Every claim for benefits which is denied shall be denied by written notice setting forth in a manner calculated to be understood by the claimant (i) the specific reason or reasons for the denial, (ii) specific reference to any provisions of the Plan on which denial is based, (iii) description of any additional material or information necessary for the claimant to perfect his claim with an explanation of why such material or information is necessary, and (iv) an explanation of the procedures for further reviewing the denial of the claim under the Plan, including the time limits applicable to such procedures, and accompanied by a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

(c)The Committee shall establish a procedure for review of claim denials, such review to be undertaken by the Committee. The review given after denial of any claim shall be a

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full and fair review with the claimant (or his duly authorized representative) having 60 days after receipt of denial of his claim or after the date of the deemed denial, to request in writing to the Committee a review of the denial notice. Upon such request for review, the claim shall be reviewed by the Committee (or its designated representative). In connection with such review, the claimant has the right to review all pertinent documents and the right to submit documents, records, issues, comments and other information in writing, all of which shall be taken into account regardless of whether it was submitted in the initial benefit determination. The claimant shall be provided upon request, and at no charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.

(d)The Committee shall establish a procedure for issuance of a decision by the Committee not later than 60 days after receipt of a request for review from a claimant unless special circumstances, such as the need to hold a hearing, require a longer period of time, in which case the Committee shall furnish a notice of extension to the claimant prior to the termination of the 60 day period; provided, however, that in no case will the extension exceed a period of 60 days from the end of the initial period of review. The decision on review shall be in writing and shall include specific reasons for the decision written in a manner calculated to be understood by the claimant with specific reference to any provisions of the Plan on which the decision is based. The decision on review shall include a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits and a statement of the claimant’s right to bring an action under Section 502(a) of ERISA. The written decision on review shall be given to the claimant within the applicable time limit discussed above. If the decision on review is not communicated within the time periods described in the preceding sentences, the claim shall be deemed to have been denied upon review. All discussions on review shall be final and binding with respect to all concerned parties.

3.4.Indemnification. The Company agrees to indemnify and to defend to the fullest possible extent permitted by law any member of the Committee and any Company employee delegatee (including any persons who formerly served as a member of the Committee) against any and all liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Company) occasioned by any act or omission to act in connection with the Plan, if such act or omission was made in good faith.

3.5.Benefit Funding. Except as herein provided, the Company shall not be required to set aside or segregate any assets of any kind to meet its obligations hereunder.

To assist in meeting its obligations under the Plan, the Company has caused the Trust to be established, of which the Company is treated as the owner under Subpart E of Subchapter J, Chapter I of the Code and may deposit funds with the Trustee of the Trust. The Trust is a rabbi trust which allows its assets to be subject to the Company’s creditors in the event of dissolution or insolvency.

Upon a Change of Control, the Company shall promptly appoint an independent discretionary Trustee (which may not be the Company or any subsidiary or affiliate) for the Trust, and, if at the time of a Change of Control, the Trust has not been fully funded, the

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Company shall, within the time and manner specified under such Trust, deposit in such Trust amounts sufficient to satisfy all obligations under the Plan as of the date of deposit.

In all events, the Company shall remain ultimately liable for the benefits payable under this Plan, and to the extent the assets at the disposal of the Trustee are insufficient to enable the Trustee to satisfy all benefits, the Company shall pay all such benefits necessary to meet its obligations under this Plan.

The obligations of the Company hereunder shall be binding upon its successors and assigns, whether by merger, consolidation or acquisition of all or substantially all of its business or assets.

ARTICLE 4. SELECTION OF PARTICIPANTS

The Committee shall select, or shall establish the applicable criteria for determining, the executive or other senior management-level employees of the Company (or its subsidiaries) who are, or will remain, eligible to participate in the Plan. When an employee has been selected to participate in the Plan, he will be notified by the Committee in writing and given the opportunity to elect to defer Eligible Deferral Compensation under the Plan. In addition, all Non-Employee Directors are automatically eligible to participate in the Plan and will be given the opportunity to elect to defer Eligible Deferral Compensation under the Plan. An eligible employee or Non-Employee Director who elects to participate in the Plan is hereinafter referred to as a “Participant.”

ARTICLE 5. DEFERRAL OF COMPENSATION

5.1.Deferral Elections. Prior to December 31^st of a calendar year, a Participant may irrevocably elect, in accordance with this Article and Article 8, to defer receipt of all or part of his/her Eligible Deferral Compensation to be earned in the succeeding calendar year; provided, however, that unless the Committee consents, such deferred amount for the year may not be less than $5,000. In order to participate in the Plan, an eligible employee or Non-Employee Director must complete and execute (to the satisfaction of the Committee) and return to the Committee a deferral election (in a form prescribed by the Committee) in the time period prescribed by the Committee. Notwithstanding the foregoing, a Participant’s election to defer Performance-Based Compensation may be made no later than six months before the end of the performance period to which the Performance-Based Compensation relates but in no event after such compensation has become readily ascertainable. In addition, if and to the extent permitted by the Committee, a Participant may elect, within 30 days of obtaining a legally binding right to any Eligible Deferral Compensation that is subject to a requirement that the Participant continue to provide services for a period of at least 12 months from the date the Participant obtains the legally binding right to avoid forfeiture of such Eligible Deferral Compensation, to defer receipt of such Eligible Deferral Compensation; provided, however, that such election must be made at least 12 months in advance of the earliest date at which the forfeiture condition could lapse. Notwithstanding anything to the contrary herein, to the extent permitted by Section 409A of the Code, a Participant may also make an election to defer his/her Eligible Deferral Compensation under the Plan within the first 30 days of him or her first becoming eligible to participate in the Plan;

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provided, however, that such election will only apply to Eligible Deferral Compensation earned after the date of such election.

5.2.Annual Company Matching Amount. For each Plan Year, the Company, in its sole discretion, may, but is not required to, credit Annual Company Matching Amounts to the account of any Participant. A Participant’s Annual Company Matching Amount for a Plan Year shall be equal to a contribution of 5% of the amount of his/her Deferrals for the Plan Year that, if not made, would have been taken into account as eligible compensation under the 401(k) Savings Plan or such other amount as is determined by the Committee. If a Participant is not employed by the Company or one of its subsidiaries as of the last day of a Plan Year other than by reason of his or her retirement, disability or death, the Annual Company Matching Amount for such Plan Year shall be zero. In the event that a Participant is not employed by the Company or one of its subsidiaries on the last day of the Plan Year by reason of retirement, disability or death, a Participant shall be credited with the Annual Company Matching Amount for the Plan Year in which he/she retires, becomes disabled, or dies. For the avoidance of doubt, a Participant who is a Non-Employee Director during a Plan Year shall not be entitled to an Annual Company Matching Amount for such Plan Year.

ARTICLE 6. INTEREST EQUIVALENT FACTOR & MEASUREMENT FUNDS

6.1.Measurement Funds. The Participant may elect one or more of the Measurement Funds selected by the Committee from time to time; provided, however, that unless otherwise permitted or required by the Committee (but only to the extent permitted or required, as applicable), all Deferrals by Non-Employee Directors will be allocated to the Stock Unit Fund; and provided, further, that, except to the extent permitted by the Committee, no Participant other than a Non-Employee Director may allocate any portion of his or her Deferrals to the Stock Unit Fund. The Committee may, in its sole discretion discontinue, substitute, add or delete a Measurement Fund. Each such action will take effect as of the first day of the calendar quarter that follows by thirty (30) days the day on which the Committee gives Participants advance written notice of such change. Notwithstanding the above, the Committee may substitute measurement funds at any time as it deems necessary and appropriate for growth or performance reasons.

6.2.Upon Change of Control. For the first 12 months after a Change of Control, the annual interest equivalent factor applied to a Fixed Rate Fund, if a Fixed Rate Fund is selected by the Committee prior to a Change of Control, shall not be less than the highest annual interest equivalent factors applicable during the 24 months prior to the Change of Control. Further, for the first 12 months after a Change of Control, any Measurement Funds in existence prior to a Change in Control shall continue to be made available; provided, however, that following a Change in Control there shall be no obligation to make available the Stock Unit Fund.

6.3.Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its sole discretion, amounts shall be credited or debited to a Participant’s Account in accordance with the following rules:

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(a)Election of Measurement Funds. Subject to Section 6.1, a Participant, in connection with his or her initial deferral election in accordance with Section 5.1 above, shall designate, on an Investment Designation Form, one or more Measurement Fund(s) to be used to determine the additional amounts to be credited or debited to his or her Account starting with the first day on which the Participant commences participation in the Plan and continuing thereafter for each subsequent day that the Participant participates in the Plan, unless changed in accordance with the next sentence. On each day that the Participant participates in the Plan, subject to Section 6.1 and except as provided in Section 6.3(d) below as it relates to the Stock Unit Fund, the Participant may (but is not required to) elect, by submitting an Investment Designation Form to the Committee that is accepted by the Committee, to add or delete one or more Measurement Fund(s) to be used to determine the additional amounts to be credited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. If an election is made in accordance with the previous sentence, it shall apply to the next day and continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence.

(b)Proportionate Allocation. In making any investment designation described in Section 6.3(a) above, the Participant shall specify on the Investment Designation Form, in increments of 1 percentage points (i.e., 1%), the percentage of his Account Balance to be allocated to a Measurement Fund (as if the Participant was making an investment in that Measurement Fund with that portion of his or her Account Balance)

(c)Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) will be determined, by the Committee, in its sole discretion, based on the performance of the Measurement Funds themselves. Subject to Section 6.3(d), a Participant’s Account balance shall be credited or debited on a daily basis based on the performance of each Measurement Fund designated by the Participant, as determined by the Committee in its sole discretion, as though (a) his Account balance were invested in the Measurement Fund(s) designated by the Participant, in the percentages applicable to such calendar quarter, as of the close of business on the first business day of such calendar quarter, at the closing price on such date; (b) the portion of the Annual Deferral Amount that was actually deferred during any calendar quarter were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such calendar quarter, no later than the close of business on the third business day after the day on which such amounts are actually deferred from the Participant’s base annual salary or other Eligible Deferral Compensation through reductions in his or her payroll or reductions in the amounts that otherwise would be paid, at the closing price on such date; (c) the Participant’s Annual Company Matching Amount were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to such calendar quarter, as of the close of business on the first business day of the Plan Year following the Plan Year to which it relates; and (d) any distribution made to a Participant that decreases such Participant’s Account Balance ceased being invested in the Measurement Fund(s), in the percentages applicable to such calendar quarter, on the seventh business day prior to the requested distribution date, at the closing price on such date.

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(d)Investment in Stock Unit Fund.

(i)Subject to Section 6.1, a Participant may elect at the time of deferral to have a portion or all of his or her Eligible Deferral Compensation credited to the Stock Unit Fund on the date such Eligible Deferral Compensation would otherwise have been paid; it being understood that any Eligible Deferral Compensation that, absent deferral, would be settled in Stock shall automatically be allocated to the Stock Unit Fund and may not be allocated to any other Measurement Fund, except as determined by the Committee and, subject to Section 6.1, all Non-Employee Director Deferrals shall be allocated to the Stock Unit Fund. The amount credited to the Stock Unit Fund on an applicable date will be a number of Stock Units equal to the number of shares of Stock that could have been purchased on such date with the amount so deferred had such amount been applied to such purchase using the closing price for the Stock reported on the Nasdaq Global Market (or, if the Stock is not then traded on the Nasdaq Global Market, the fair market value of such Stock as determined by the Committee), rounded down to the nearest whole share. Except to the extent permitted by the Committee, amounts credited to the Stock Unit Fund shall not be permitted to be subsequently reallocated to any other Measurement Fund. Subject to Section 6(d)(iv) below, except as otherwise determined by the Committee, amounts allocated to the Stock Unit Fund shall be distributable in the form of Stock.

(ii)Notional earnings credited to the Stock Unit Fund, including dividends declared with respect to Stock, shall remain allocated to such Stock Unit Fund and deemed to be reinvested in additional Stock Units until such amounts are distributed to the Participant or reallocated in accordance with Section 6.3(d)(i) above, except as otherwise determined by the Committee. In the case of a stock dividend, the number of additional Stock Units credited to the Stock Unit Fund shall be equal to the number of Stock Units multiplied the by per share Stock dividend (including fractional shares) declared by the Company, rounded down to the nearest whole share. In the case of a cash dividend, the number of additional Stock Units credited to the Stock Unit Fund shall be equal to the cash dividend times the number of Stock Units allocated to the Participant’s Account, divided by the fair market value of a share of Stock as determined by the Committee in its sole discretion, rounded down to the nearest whole share.

(iii)The number of Stock Units credited to the Participant’s Stock Unit Fund shall be adjusted by the Committee, in its sole discretion, to prevent dilution or enlargement of Participants’ rights with respect to the portion of his or her Account balance allocated to the Stock Unit Fund in the event of any reorganization, reclassification, stock split, or other corporate transaction or event which, in the Committee’s determination, affects the value of the Stock.

(iv)Notwithstanding anything to the contrary herein, to the extent required under applicable law, including applicable listing standards, any Stock Units settled in shares of Stock shall reduce the number of shares available for grant under the Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan, as amended from time to time. To the extent required under applicable law, including applicable listing standards, if the Committee determines that settlement of Stock Units in shares of Stock could reasonably be expected to result in an issuance of shares of Stock in excess of the limit set forth under such plan (as the same may from time to

9

time be increased by amendment, subject to shareholder approval to the extent required), the Committee may require that a portion or all of the Stock Units in affected Participants’ Accounts be settled in cash.

(e)Incomplete Investment Designation Forms. If the Committee receives a Participant’s Investment Designation Form which it finds to be incomplete, unclear or improper, the Participant’s investment designation then in effect shall remain in effect until the next calendar quarter unless the Committee provides for or permits the application of corrective action before that date.

(f)Default Investment. Subject to Section 6.1 and 6.3(d), if the Committee does not receive an Investment Designation Form from the Participant at the time the initial deferral amounts are credited into the Participant’s Account or if the Committee possesses at any time designations as to the investment of less than all of a Participant’s Account balance, the Participant shall be considered to have designated that the undesignated portion of the Account be deemed to be invested in the investment option selected by the Committee from time to time, and the Committee shall not be liable for the investment option(s) it selects.

(g)No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s designation of any such Measurement Fund, the allocation to his or her Account balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account shall not be considered or construed in any manner as an actual investment of his or her Account in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its own discretion, decides to invest funds in any or all of the Measurement Funds, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s Account Balance shall at all times be a recordkeeping entry only and shall not represent any investment made on his or her behalf by the Company or the Trust. The Participant shall at all times remain an unsecured creditor of the Company. No provision in the Plan shall be interpreted so as to give any Participant or Beneficiary any right in any of assets of the Company or the Trust which right it greater than the rights of any general unsecured creditor of the Company.

ARTICLE 7. PARTICIPANT ACCOUNTS

7.1.Establishment of Accounts. The Committee shall establish a separate Account for each Participant reflecting the amounts due the Participant under the Plan and shall cause the Company to establish on its books Accounts reflecting the Company’s obligation to pay Participants the amounts due under the Plan.

7.2.Adjustments to Accounts. From time to time, the Committee shall adjust each Participant’s Account to credit amounts (i) the Participant has elected to defer under Article 5; (ii) the Annual Company Matching Amounts the Company has contributed under Article 5 (if any); and (iii) amounts based on the annual interest equivalent factors for a Fixed Rate Fund, if a Fixed Rate Fund is selected by the Committee and elected by the Participant in accordance with the terms of the Plan, and/or gains or losses based on the applicable allocations in the other

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Measurement Funds (including the Stock Unit Fund), determined under Article 6. A Participant’s Account shall also be adjusted to reflect benefit payments and withdrawals under Article 8. A Participant’s Account shall continue to be adjusted under this Article 7 until the entire amount credited to the Account has been paid to the Participant or his/her Beneficiary.

ARTICLE 8. DISTRIBUTION OF ACCOUNT BENEFITS

The Participant’s Account benefits may not be distributed earlier than: (i) a separation from service; (ii) disability (as defined in Section 8.4 below); (iii) unforeseeable emergency (as defined in Section 8.3 below); (iv) a Change in Control; or (v) a specified date as elected by the Participant under the terms of the Plan. The manner and form of payment of the Account benefits with respect to each event is described below.

8.1.Following Separation from Service

(h)Forms of Distribution. Subject to Sections 8.1(b), (c), (d) and (e) and Section 8.5, a Participant may elect in writing the manner in which his/her entire Account (other than amounts distributed prior to separation from service in accordance with the provisions of Sections 8.2, 8.3, 8.4 and 8.7) is to be distributed, from among the following options:

(i) A lump sum within 90 days after the Participant’s separation from service;

(ii) A lump sum within 90 days after the later of (1) the Participant’s separation from service or (2) a specified date which date is not later than the Participant’s 65^th birthday;

(iii) In up to 15 annual installments, commencing within 90 days after the Participant’s separation from service; or

(iv) In up to 15 annual installments, commencing within 90 days after the later of (1) the Participant’s separation from service or (2) a specified date which date is not later than the Participant’s 65^th birthday.

(i)Timing of Distribution Election. A distribution election under Section 8.1(a) must be submitted to the Committee at the time a Participant makes an initial or annual election to defer. Notwithstanding the foregoing, a Participant who has elected to receive payment at a time and in a form described in Section 8.1(a) may file a changed election with the Committee; provided, however, that: (i) the election is filed with the Committee at least 12 months before the initial distribution date (i.e. , the date the lump sum or the first installment is supposed to be paid); (ii) the changed election does not take effect for 12 months after the date on which the changed election was filed and (iii) the changed election provides that the initial distribution date (i.e., the date the lump sum or the first installment is supposed to be paid) is deferred at least five years from the date it was otherwise scheduled.

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(j)Termination Before Age 50. Notwithstanding Sections 8.1(a) and (b), if a Participant separates from service before age 50, the Participant’s Account will be paid in a lump sum within 90 days after the Participant’s separation from service.

(k)Automatic Lump Sums. In the event a Participant’s Account is equal to or less than $10,000 as of the date of separation from service, the Participant’s Account shall be fully paid within 90 days after the Participant’s separation from service.

(l)Delay of Distribution to Specified Employees. Notwithstanding any provision of the Plan to the contrary, if a Participant is a “specified employee,” as defined in Section 409A of the Code and IRS regulations issued thereunder, as of the Participant’s separation from service, then the payment of any amounts payable under the Plan shall be postponed in compliance with Section 409A and IRS regulations issued thereunder (without any reduction in such payments ultimately paid or provided to the Participant) until the first payroll date that occurs after the date that is six months following the Participant’s separation from service. Any such postponed payments will be paid in a lump sum to the Participant on the first payroll date that occurs after the date that is six months following the Participant’s separation from service. If the Participant dies during the postponement period prior to the payment of the postponed amount, the amounts withheld under this Section 8.1(e) shall be paid pursuant to Article 9.

8.2.In-Service Distribution at Specified Date as Elected by the Participant. At the time of the initial or annual deferral election in accordance with Article 5, a Participant may elect to receive payment in a lump sum of a selected amount or percentage of the total amounts deferred pursuant to such election and interest earnings credited thereto in accordance with Article 6 at a specified date (“Deferral Date”). Such election shall be effective only if the Participant is providing services to the Company or one of its subsidiaries or affiliates on the Deferral Date. Thus, if the Participant separates from service prior to the Deferral Date, any amount subject to an election made pursuant to this Section 8.2 shall be paid in accordance with the election made by the Participant under Sections 8.1(a) or 8.1(b), if any. If the Participant has not made any election under Section 8.1(a) or 8.1(b), or if the Participant’s separation from service occurs prior to his 50^th birthday, any amount subject to an election made pursuant to this Section 8.2 shall be paid to the Participant in a lump sum within 90 days following his separation from service.

Each In-Service Distribution elected shall be paid in the month and Plan Year designated by the Participant that is at least three (3) Plan Years after the Plan Year in which the Annual Deferral Amount is actually deferred. By way of example, if a three year In-Service Distribution is elected for Annual Deferral Amounts that are deferred in the Plan Year commencing January 1, 2013, the three year In-Service Distribution would become payable during the designated month commencing in 2017.

Participants may file a changed election with the Committee to further defer their In-Service Distributions, provided that: (i) the election is filed with Committee at least 12 months before the initial distribution date; (ii) the changed distribution date is at least 5 years from the date the payment was to be made under the initial election; and (iii) the changed election shall not take effect for 12 months after the date on which the changed election was filed.

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8.3.Unforeseeable Emergency. If prior to separation from service a Participant suffers an unforeseeable emergency due to circumstances beyond his control, the Participant may receive a distribution of all or any part of his Account if he has no other assets available to meet his financial hardship or the financial hardship cannot be relieved through reimbursement or compensation from insurance or otherwise. An unforeseeable emergency is defined as a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. In no event shall the aggregate amount of the distribution exceed the amount determined by the Committee to be reasonably necessary to alleviate the Participant’s financial hardship and the anticipated taxes thereon.

8.4.Disability. Notwithstanding Section 8.1. and 8.2, if prior to separation from service, a Participant becomes totally disabled, the Participant shall within 90 days thereafter receive a lump sum distribution of his Account. For purposes of the Plan, a Participant is totally disabled when the employee is unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

8.5.Distributions to Non-Employee Directors. Notwithstanding anything to the contrary herein, except as otherwise determined by the Committee and subject to Section 8.6 and Article 14 of the Plan, all distributions made to Participants who are Non-Employee Directors shall be made in a single lump sum within 90 days after the date of the Participant’s separation from service, regardless of the reason for such separation.

8.6.Change of Control. If upon a Change of Control, the Committee or Company determines to terminate and liquidate the Plan as permitted in Article 14, §14.2, distributions may be made in accordance with that section.

8.7.Death of Participant. Unless otherwise provided in Article IX, in the event of the Participant’s death, the entire balance of the Participant’s account will be distributed to the Participant’s Beneficiary or the Participant’s estate, as applicable, in a single lump sum within 90 days after the date of the Participant’s death.

8.8.Tax Withholding. To the extent required by applicable law, federal, state, and other taxes shall be withheld from a distribution. In addition, the Committee may require that a Participant’s cash or other compensation be reduced to satisfy any such taxes with respect to any deferral, or vesting of any amount deferred, under the Plan or may require that a Participant make other arrangements for the payment of such taxes (which other arrangements may include, if the Committee so determines, but shall not be limited to, a reduction in the Participant’s Account balance to the extent permitted by Section 409A of the Code).

8.9.Default Election. If a Participant has an Account hereunder but the Committee, for any reason whatsoever, does not have an election made by the Participant under Section 8.1 or 8.2 after reasonable due diligence to locate same, such Participant’s Account shall be paid to him in a lump sum within 90 days following his separation from service.

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8.10.Compliance with Section 409A.

(a)For purposes of this Plan, references to termination of employment, retirement, separation from service and similar or correlative terms mean a “separation from service” (as defined at Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in writing, subject to the applicable limitations under Section 409A, any of the special elective rules prescribed in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether a “separation from service” has occurred. Any such written election will be deemed a part of the Plan.

(b)The Plan is intended to, and shall, be construed in a manner consistent with the requirements of Section 409A of the Code. If the implementation of any of the foregoing provisions of the Plan would subject the Participants to taxes or penalties under Section 409A of the Code, the implementation of such provision shall be modified to avoid such taxes and penalties to the maximum extent possible while preserving to the maximum extent possible the benefits intended to be provided to Participants under the Plan. Notwithstanding anything to the contrary in the Plan, neither the Company nor any subsidiary, nor the Committee, nor any person acting on behalf of the Company, any subsidiary, or the Committee, will be liable to any Participant or to the estate or beneficiary of any Participant by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of the Plan to satisfy the requirements Section 409A of the Code.

ARTICLE 9. BENEFICIARY BENEFITS

A Participant, on a form approved by the Committee, may designate a Beneficiary, or change any prior designation, to receive the remaining balance of his Account upon his death. A distribution election for payment of death benefits under Article 9 must be submitted to the Committee at the time the Participant makes the initial election to defer.

With respect to Deferrals made prior to the Restatement Date, payments to a Beneficiary under this Article 9 shall be made in the same manner as designated by a Participant upon his death. Notwithstanding the preceding sentence, if a Participant dies after annual installments have commenced, the Beneficiary shall receive any remaining installments in accordance with the Participant’s installment election. Notwithstanding the preceding two sentences, if a Beneficiary survives the Participant but dies before the Participant’s entire Account has been distributed, the remaining balance of, the Participant’s Account balance shall be distributed in a lump sum to the Beneficiary’s estate as soon as practicable following receipt of notice of the Beneficiary’s death. If no Beneficiary is designated (or if a designated Beneficiary does not survive the Participant), the Participant’s Account balance shall be paid to the Participant’s estate in a lump sum as soon as practicable following receipt of notice of the Participant’s death.

With respect to Deferrals made on and after the Restatement Date, upon the death of the Participant, the entire balance of the Participant’s Account shall be distributed to the Beneficiary

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(or if no Beneficiary is designated or the Beneficiary does not survive the Participant, the Participant’s estate) in a single lump sum within 90 days of the date of the Participant’s death.

ARTICLE 10. NATURE OF CLAIM FOR PAYMENTS

A Participant shall have no right on account of the Plan in or to any specific assets of the Company or the Trust. Any right to any payment the Participant may have on account of the Plan shall be solely that of a general, unsecured creditor of the Company.

ARTICLE 11. ASSIGNMENT OR ALIENATION

11.1.Prohibition on Assignment. Except as provided in Section 11.2 or as otherwise required by law, the interest hereunder of any Participant or Beneficiary shall not be alienable by the Participant or Beneficiary by assignment or any other method and will not be subject to be taken by his creditors by any process whatsoever, and any attempt to cause such interest to be so subjected shall not be recognized.

In the event that a Participant’s Account is garnished or attached by order of any Court, the Company may bring an action for a declaratory judgment in a court of competent jurisdiction to determine the proper recipient of the benefits to be paid under the Plan. During the pendency of said action, any benefits that become payable shall be held as credits to the Participant’s Account or, if the Company prefers, paid into the court to be distributable to the proper recipient.

11.2.Domestic Relations Orders.

(a)Notwithstanding anything to the contrary in Article 9, if the Committee receives a Qualified Domestic Relations Order as described in Section 11.2(b) prior to the Participant’s Account balance being distributed, all or portion of the Participant’s Account balance under the Plan may be paid to the person as specified in such order.

(b)A “Qualified Domestic Relations Order” means a judgment, decree, or order (including the approval of a settlement agreement) which:

(i) is issued pursuant to a State’s domestic relations law;

(ii) relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of the Participant;

(iii) creates or recognizes the right of a spouse, former spouse, child or other dependent of the Participant to receive all or a portion of the Participant’s benefits under the Plan;

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(iv) clearly specifies the name of the Plan to which such order applies and the name and the last known mailing address of the Participant and each alternate payee covered by the order;

(v) clearly specifies the amount or percentage of the Participant’s benefits to be paid by the Plan to each such alternate payee, or the manner in which such amount or percentage is to be determined;

(vi) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a Qualified Domestic Relations order; and

(vii) meets such other requirements as established by the Committee.

(c)The Committee shall determine whether any order received by it is a Qualified Domestic Relations Order within the meaning of Article 11, §11.2. In making this determination, the Committee may consider (but is not required to):

(i) the rules applicable to “domestic relations orders” under section 414(p) of the Internal Revenue Code of 1986 and section 206(d) of ERISA;

(ii) the procedures used under the 401(k) Savings Plan to determine the qualified status of domestic relations orders; and

(iii) such other rules and procedures as it deems relevant.

ARTICLE 12. NO CONTRACT OF EMPLOYMENT

The Plan shall not be deemed to constitute a contract of employment or other service between the Company and any Participant, or to be consideration for the employment or other service of any Participant. Nothing contained herein shall give any Participant the right to be retained in the employment or other service of the Company or affect the right of the Company to terminate any Participant’s employment or other service.

ARTICLE 13. AMENDMENT OR TERMINATION OF PLAN

13.1.Right to Amend. The Plan may be altered or amended in writing by the Committee or the Company, in any manner and at any time and all parties hereto or claiming any interest hereunder shall be bound by such amendment. However, no such alteration or amendment shall reduce the amount of a Participant’s Account or his or her rights to such

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Account as determined under the provisions of the Plan in effect immediately prior to such alteration or amendment.

13.2.Amendment Required By Law. Notwithstanding the provisions of Section 13.1, the Committee or the Company may amend the Plan any time, retroactively if required, if found necessary in the opinion of legal counsel to the Committee or the Company to ensure that: (i) the Plan is characterized as a non-tax-qualified plan of deferred compensation under Section 409A; (ii) the Participants do not incur tax penalties under Section 409A; (iii) the Trust is characterized as a grantor trust as described in Sections 671-679 of the Code and a rabbi trust as described in Rev. Proc. 92- 64; and (iv) the Plan and the Trust conform to the provisions and requirements of any other applicable law, including Sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA.

ARTICLE 14. TERMINATION

14.1.Right to Terminate Future Accruals. The Committee and Company reserve the right, at any time, to terminate future accruals under the Plan; provided, however, that no such termination shall deprive any Participant or Beneficiary of a right accrued hereunder prior to the date of termination.

14.2.Termination and Liquidation of the Plan. The Committee and Company reserve the right to terminate and liquidate the Plan through the payment of all benefits hereunder in the circumstances permitted under IRS regulations issued under Section 409A and any such other circumstances specified in guidance of general applicability issued by the Internal Revenue Commissioner.

ARTICLE 15. MISCELLANEOUS

15.1.Entire Agreement. This plan document for the Plan contains the entire agreement between the Company and the Participants regarding the Plan and there are no promises or understandings of any kind regarding the Plan other than those stated herein.

15.2.Payment for the Benefit of an Incapacitated Individual. If the Committee of the 401(k) Savings Plan determines that payments due to a Participant under the 401(k) Savings Plan must be paid to another individual because of a Participant’s incapacitation, benefits under the Plan will be paid to that same individual designated for that purpose under the applicable provisions of the 401(k) Savings Plan.

15.3.Governing Law. The Plan will be construed, administered, and governed under the laws of the Commonwealth of Massachusetts, to the extent not preempted by federal law.

15.4.Severability. If any provision of this Plan is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue to be fully effective.

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15.5.Headings and Subheadings. Headings and subheadings are inserted for convenience only and are not to be considered in the construction of the provisions of the Plan.

[Signature page follows]

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IN WITNESS WHEREOF, this Plan, as amended and restated hereunder, is adopted by the Committee or the Company on March 27, 2013, and is executed by a duly authorized officer of Dunkin’ Brands, Inc. as of the date indicated below.

DUNKIN’ BRANDS, INC. 130 Royall Street Canton, MA 02021
/s/ Ted Manley
By:	Ted Manley
Title:	Vice President, Total Rewards and H.R. Operations
Date:	4/29/2013

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EX-10.16

October 29, 2013, as revised November 15, 2013

Via Hand Delivery

Giorgio Minardi

73 Pheasant Landing Road

Needham, MA 02492

Dear Giorgio:

Per your conversation with Nigel Travis, the following constitutes our mutual agreement (the “Agreement”) regarding the terms and conditions of the separation of your employment with Dunkin’ Brands, Inc. (the “Company”) due to a reorganization of the Company’s management:

Separation Agreement and Release of All Claims

1. Separation from Employment. (a) You acknowledge and agree that your employment with the Company is hereby terminated, effective October 30, 2013 (the “Separation Date”) and that, effective as of the Separation Date, such termination has resulted in your “Separation from Service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

(b) Regardless of whether you sign this Agreement, at the time your employment terminates you will receive the following, less all appropriate taxes, withholdings and/or deductions: (i)    Payment at your current rate of salary for all work you performed for the Company during the last payroll period through the Separation Date; and (ii) A lump sum payment for all hours of vacation time that you accrued but had not used as of the Separation Date.

2. Severance Payment. As severance, the Company shall provide you with twelve (12) months’ salary, paid at your current base rate of pay, less appropriate taxes, withholdings, and/or deductions. Payment shall be made on the Company’s usual payroll schedule, beginning with the first payroll date after the Effective Date of this Agreement, and in no event later than 60 days from the Separation Date.

3. Outplacement. The Company will pay for twelve (12) months of outplacement services for you following the Separation Date through a firm selected by the Company.

4. Equity. To view a schedule of your holdings as of the Separation Date, you can log on to https://www.schwab.com/publis/eac/home. Options must be exercised in accordance with the timetable set forth in the Company’s post-termination exercise policy and applicable stock agreements. Pursuant to the terms of the applicable stock agreements, vesting on all stock and stock options shall cease as of the Separation Date, any unvested shares of restricted stock and unvested stock options shall be forfeited. You remain subject to the Company’s insider trading policy until the Separation Date, including those provisions applicable to officers or directors. You acknowledge the Company has provided you with a copy of the policy. In addition, please note that pursuant to SEC rules, any purchases (not sales) of Company stock made prior to January 30, 2014 are reportable to the SEC on Form 4.

5. Relocation. The Company will reimburse you for relocation costs, conditional upon return to Italy, or to a different country or another U.S. state in the event of your employment in that country or state, no later than September 15, 2014 as follows: (a) Business Class airfare for you and your family, in an amount not to exceed that incurred in conjunction with your move to the United States. The Company’s obligation to reimburse you is subject to your provision of appropriate receipts and other documentation as required under the Company’s travel and expense reimbursement policies.

6. Benefits. (a) You may be eligible to convert your Company-provided life insurance to an individual plan, at your own cost, in accordance with the terms and conditions of that plan.

(b)    If you are a current participant, your salary deferral and the Company match to the 401(k) Savings Plan will cease coincident with the paycheck representing pay through the Separation Date. You will be provided with information under separate cover on your future participation and certain elections you may make with regard to the 401(k) plan.

(c)    Your current participation and that of your eligible dependents in the Company’s group health and dental plans will continue through last day of the month in which your employment terminates. Thereafter, you may be eligible to continue your participation and that of your eligible dependents in the Company’s group health and dental plans under the federal law known as “COBRA.” Such participation is at your own cost, subject to paragraph 6(d) below. You will be provided with additional information regarding COBRA under separate cover.

(d)    If you are eligible and elect to continue your participation and that of your eligible dependents in the Company’s group health and dental plans under COBRA, for twelve (12) months from the last day of the month in which your employment terminates, i.e., the Separation Date, the Company will continue to pay that share of the premium cost that it pays for active employees and their covered dependents generally. You will still be responsible for the applicable employee portion of the premium on a monthly basis, in the manner specified in the COBRA notice. The Company may satisfy its obligation under this paragraph by either paying the Company’s portion of the monthly COBRA premiums directly to the applicable insurer or, in its discretion, by paying you a monthly cash amount equal to the Company’s portion of the monthly COBRA premiums, in each case, for each month within such 12 month period. At the end of such 12 month period, you will be required to pay on a monthly basis the entire COBRA premium for the remainder of the COBRA continuation coverage period, subject to the terms of this Agreement, if you are eligible for and elect to continue COBRA. The Company’s obligation hereunder shall immediately cease if you become eligible for comparable alternative coverage. You must notify the Company within one week of becoming eligible for such alternative coverage.

(e)    Pursuant to the terms of the Short Term Incentive (STI) Plan, you are not eligible to receive any short term incentive payment for 2013. However, as additional consideration for this Agreement, the Company shall pay you $100,000, less appropriate taxes, withholdings, and/or deductions, no later than March 15, 2014.

(f)    Except as expressly stated herein, your participation in all Company employee benefit plans will end as of the Separation Date.

(g)    You will be permitted to return to the Company’s office on a Saturday morning on a date to be agreed upon with the Company, accompanied by your former assistant or a representative from Human Resources, to retrieve your personal belongings.

(h)    No sooner than the expiration of the eighth (8^th) day after the delivery of a signed Agreement by you as specified in Paragraph 23, and upon the submission of reasonable documentation, the Company shall reimburse you for your reasonable attorneys’ fees relating to this Agreement not to exceed $7,500.

7. Release of Claims to the Company. (a) For and in consideration of the payments and benefits set forth herein, to which you acknowledge you are not otherwise entitled, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, you, on your own behalf and on behalf of your heirs, executors, administrators, beneficiaries, representatives and assigns, hereby release and forever discharge the Company, its parents, subsidiaries and affiliates, and all of their respective past and present officers, directors, shareholders, officers, employees, employee benefit plans, insurers, agents, representatives, successors and assigns (collectively hereafter the “Releasees”), both individually and in their official capacities, from any and all liability, claims, demands, actions and causes of action of any type which you have had in the past, now have, or might now have, from the beginning of the world up to the date that you execute this Agreement, in any way resulting from, arising out of or connected with your employment, its termination, or pursuant to any federal, state or local statute, common law, employment law, regulation or other requirement (including without limitation Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Pregnancy Discrimination Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Worker’s Adjustment and Retraining Notification Act, the Fair Credit Reporting Act, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Occupational Safety and Health Act, the Equal Pay Act, the Employee Retirement Income Security Act of 1974, Sections 1981 through 1988 of Title 42 of the United States Code, the Immigration Reform and Control Act, the Massachusetts Wage Act, G.L. c. 149 Sec. 148, the Massachusetts Fair Employment Practices Act, G.L. c. 151B, all state fair employment practices acts, each as amended, and any and all claims for wrongful discharge, discrimination, harassment, retaliation, common law claims, actions in tort, defamation, breach of contract, and claims of interest in unvested stock options, for wages or for attorneys’ fees) as well as any claims arising from your Offer Letter, dated January 31, 2012, any Company severance plan, policy or program, including the former Amended and Restated Executive Separation Pay Plan.

(b)    Notwithstanding the foregoing, this paragraph 7 shall not apply to any claim to enforce the terms of the Agreement, any rights that are vested under the terms of an applicable employee benefit plan, retirement or stock option plan, or that may arise after your execution of this Agreement or any right of indemnification for and by the Company for acts occurring during your employment as an officer of the Company (i.e., prior to October 30, 2013), including but not limited to the Director and Officer Indemnification Agreement between you and the Company dated on or about February, 2012, which shall survive this release and shall remain in full force and effect, and for any other applicable right of indemnification, if any, through the Separation Date.

(c)    Nothing in this Agreement is intended to, or shall be interpreted to, discourage or interfere with rights under the Older Workers Benefit Protection Act to test the knowing and voluntary nature of this Release of Claims under the Age Discrimination in Employment Act, or to prevent the exercise of such rights. Nothing in this Release prevents you from participating in or cooperating in any governmental, administrative, or regulatory investigation or proceeding regarding the Company, but you acknowledge that this Release does prevent you from obtaining any benefit, damages or remedy from such investigation or proceeding.

8. Transfer of Claims. You represent and warrant that you have not assigned, transferred, or purported to assign or transfer, to any person, firm, corporation, association, or entity whatsoever, any claim released pursuant to this Agreement. You further agree to indemnify and hold Company harmless against, without any limitation, any and all rights, claims, warranties, demands, debts, obligations, liabilities, costs, court costs, expenses (including attorney’s fees), causes of action or judgments based on or arising out of any such assignment or transfer.

9. Restrictive Covenants. You hereby acknowledge and agree that the Non-Compete/ Non-Solicitation/Confidentiality agreement between you and the Company dated February 1, 2012, attached hereto as Exhibit A and incorporated herein by reference, shall survive in its entirety and remain in full force and effect.

10. Confidentiality. (a) You and the Company (except as required in connection with its disclosure obligations as a public company) agree to keep the terms and conditions of this Agreement and the facts and circumstances leading up to it confidential and shall not disclose them to anyone except immediate family members, attorneys and financial advisers, and the Company employees only on a need to know basis as necessary to effectuate the terms of this Agreement (as the case may be), and only if they agree to keep this information confidential and not disclose it to others, or pursuant to court order, subpoena or as otherwise required by law. Notwithstanding the foregoing, you may disclose paragraphs 5-7 of Exhibit A to prospective employers. (b) You expressly acknowledge that, in accordance with Exhibit A, you may not use, for the benefit of yourself or any other person or entity, any confidential information, trade secrets or proprietary information of the Company and that you may not disclose such information to anyone outside the Company, except where required by law. (c) If you are requested or required to disclose any confidential or proprietary information of the Company, or the terms and conditions of this Agreement to a court or governmental agency, you shall notify the Company’s General Counsel in writing within 3 business days after you learn of such obligation or request, and permit the Company to take all lawful actions it deems necessary to prevent or limit such disclosure.

11. Non-Disparagement.(a) You agree that you will not directly or indirectly disparage, in any way cause disparagement, or encourage others to disparage, the Company, its affiliates, subsidiaries or any of its directors, officers or employees, its products, services, marketing or advertising programs, financial status or business.

(b)    The Company shall instruct its senior leadership team not to directly or indirectly disparage, or in any way cause disparagement, or encourage others to disparage you. In the event the Company receives any request for a reference for you, unless otherwise authorized by you in writing in advance, the Company shall respond only by confirming your dates of employment, compensation and benefits, level and rates, and title and that you left your position with the Company due to a reorganization of the Company’s management.

12. Return of Company Property. You represent and warrant that as of the Separation Date, and before the Company is obligated to provide you with any pay or benefits hereunder, you shall return all Confidential Information of the Company (as defined in Exhibit A), materials that incorporate or reference such Confidential Information, and all copies thereof, all Company assets, such as computer(s), PDA(s), telephone(s), vehicles, and credit cards, all documents, materials, records, files and information, in any media, related to the business of the Company, including all copies, and all keys or other property of the Company in your possession or control.

13. Cooperation. You agree to cooperate reasonably with the Company in its defense of any investigation, litigation or administrative proceeding, including any charges or claims filed against it by current or former employees, regarding all matters occurring during your employment. The Company shall fully reimburse you for reasonable out of pocket expenses incident to such cooperation provided they are properly documented pursuant to the same Company policies applicable to other executives and officers.

14. Transition. This Agreement represents your resignation as an Officer of the Company, from any board or committee memberships and other positions which you hold with the Company, and all of its subsidiaries and affiliates, effective October 30, 2013. You agree to execute and return to the Company any documents or to take any action it deems necessary to separately confirm your resignation from such positions. You agree to make yourself reasonably available to the Company and its officers as necessary to ensure a smooth transition.

15. Breach. Your breach of any of the terms set forth in this Agreement shall constitute a material breach of this Agreement subject to the terms of this paragraph and Agreement and shall relieve the Company of any further obligations hereunder. In addition to any other legal or equitable remedy available to the Company, it shall be entitled to recover any monies paid pursuant to you pursuant to this Agreement. In the event the Company claims a material breach of this Agreement, it shall provide you with written notice regarding the alleged claim or material breach and the opportunity to respond to the allegations within 14 days. If after good faith consideration of your response the Company intends to terminate this Agreement or otherwise ceases any payments or benefits to you under it, the matter shall be referred to arbitration pursuant to paragraph 22 of this Agreement.

16. Release of Known Claims as to You. (a) For the benefits and covenants set forth herein, to which the Company acknowledges it is not otherwise entitled, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Company, for itself and its parents, subsidiaries and affiliates, and all of their respective past and present officers, directors, shareholders, employees, insurers, agents, representatives, successors and assigns (collectively hereafter the “Releasors”), both individually and in their official capacities, hereby release and forever discharge you, on your own behalf and on behalf of your heirs, executors, administrators, beneficiaries, representatives and assigns (Releasees) from any and all liability, claims, demands, actions, and causes of action of any type of which the Company has actual knowledge and which the Releasors have had in the past, or nor have, from the beginning of the world up to the date that Company executes this Agreement, in any way resulting from, arising out of or in connection with your employment with the Company.

(b)    Notwithstanding the foregoing, this Paragraph 16 shall not apply to any claim to enforce the terms of the Agreement, any claim that the Company does not have actual knowledge of as of the date of this Agreement, or any claim that may arise after the Company’s execution of this Agreement.

17. No Liability or Wrongdoing. The parties hereto agree and acknowledge that this Agreement is intended only to settle all matters between the parties and nothing contained in this Agreement, nor any of its terms and provisions, nor any of the negotiations or proceedings connected with it, constitutes, will be construed to constitute, will be offered in evidence as or deemed to be evidence of an admission of liability or wrongdoing by any of the Releasees, and any such liability or wrongdoing is hereby expressly denied by each of the Releasees.

18. Method of Payment. All payments contemplated hereunder will be made by the Company using such payment method as it may determine in its discretion, including without limitation direct deposit into your bank account, unless you specifically advise the Company in writing otherwise. Unless you advise the Company of any changes to your banking information, any payments made by direct deposit will be made into such bank account as is currently on file with the Company’s payroll department.

19. Accord and Satisfaction. By executing this Agreement, you acknowledge and agree that you are not entitled to any further wages, compensation, stock, commissions, bonuses, severance, incentives or other monies or payments of any nature, or to any benefits from the Company except and unless as explicitly provided in this Agreement. You further acknowledge that no promises, inducements or other consideration not expressly stated in this Agreement have been made or otherwise exist with respect to the terms and conditions of this Agreement, and that this Agreement may only be modified in accordance with paragraph 24(a).

20. Re-employment. You agree that you will neither apply for nor accept employment with the Company, any of its parents, subsidiaries, affiliates, or any other entity controlled by, or under common control with, the Company (the “Company Entities”), that the Company Entities are not obligated to reinstate or re-employ you in the future in any capacity, and you hereby discharge the Company Entities from any liability or obligation to reinstate or re-employ you in any capacity. You acknowledge that your forbearance from doing so is contractual and is in no way discriminatory, retaliatory or involuntary.

21. Payment of Applicable Taxes and 409A. (a)While this Agreement and the payments and benefits provided hereunder are intended to be exempt from, or comply with, the requirements of Section 409A of the Code, and at all times should be interpreted so as to comply, the Company makes no representation or covenant to ensure that any payment or benefits provided under this Agreement are exempt from, or compliant with Section 409A. The Company shall have no liability to you or any other party if any payment or benefit under this Agreement is challenged by any taxing authority or is ultimately determined not to be exempt or compliant.You agree and acknowledge that to the extent some or all of the payments made in consideration of this Agreement may be taxable to you, you shall be responsible for all applicable federal, state and local taxes on said payments, and any costs, interest or penalties incurred as a result of your failure to pay such taxes. In the event that it is determined that you have failed to make proper payment of such taxes and Company is held liable for your non-payment, or for any fines or penalties connected therewith, Company will be entitled to full and complete indemnification from you for those amounts (including taxes, fines and/or penalties) for which Company is held liable.

(b) It is intended that each installment of the severance payment pursuant to paragraph 2, and any payment or benefit hereunder, be treated as a separate “payment” for purposes of Section 409A of the Code. The Company shall not have the right to accelerate or defer delivery of such payments or benefits except to the extent permitted or required pursuant to Section 409A of the Code. All reimbursements and in-kind benefits provided to you under this Agreement are intended to be made or provided in accordance with the requirements of Section 409A of the Code to the extent they are subject to Section 409A. Any expenses or other reimbursements paid pursuant hereto that are taxable income to you shall in no event be paid later than the end of the calendar year next following the calendar year in which you incur such expenses or pay such related tax.

22. Dispute Resolution. With respect to any claims or disputes arising under or in connection with this Agreement, you and the Company agree to attempt in good faith to resolve such claim or dispute informally through discussions with an authorized executive officer of the Company. If after completing the foregoing procedure the dispute is not resolved, the Company and you agree that the dispute or claim shall be resolved by final and binding arbitration before the American Arbitration Association (“AAA”). The arbitration shall be held in Boston, Massachusetts and shall be conducted in accordance with the AAA’s National Rules for the Resolution of Employment Disputes then in effect at the time of the arbitration, except that in the process of selecting an arbitrator, the parties may strike names from the AAA’s list of arbitrators for good cause, and with the additional condition that all steps reasonably necessary to ensure the confidentiality of the proceedings and the arbitrator’s determination will be added to the basic rules and requirements. Notwithstanding the foregoing, any arbitration pursuant to this paragraph shall not impair either party’s right to request injunctive or other equitable relief in connection with Exhibit A.

23. Acknowledgement, Acceptance and Revocation. (a) You acknowledge that you are signing this Agreement knowingly, voluntarily, with full understanding of its terms and effects and without duress, coercion, fraud or undue influence;

(b) YOU ARE ADVISED, PRIOR TO SIGNING THIS AGREEMENT, TO SEEK THE ADVICE OF AN ATTORNEY OF YOUR CHOOSING AND ALL OTHER ADVICE YOU MAY REQUIRE REGARDING THE PURPOSE AND EFFECT OF THIS AGREEMENT, ITS RELEASE OF ALL CLAIMS AND ALL MATTERS CONTAINED HEREIN, INCLUDING WITHOUT LIMITATION THOSE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND THE OLDER WORKERS BENEFIT PROTECTION ACT;

(c)    You have twenty-one (21) days from the date you receive this Agreement to consider its terms and the consequences of the Release of Claims contained herein and to accept the terms of this Agreement by signing below and returning it to Dunkin’ Brands, Inc., c/o Ginger Gregory, Chief Human Resources Officer, 130 Royall Street, Canton, MA 02021 (although you may choose to voluntarily execute this Agreement prior to the expiration of the twenty-one (21) day period);

(d)    If you thereafter desire to revoke acceptance of this Agreement, you must do so by notice in writing to the Chief Human Resources Officer within seven (7) days following the execution of this Agreement; and

(e)    This Agreement shall not be effective until the date upon which the revocation period has expired, which shall be the eighth day after this Agreement is executed by you, and you have not revoked it (the “Effective Date”). The parties agree that any changes to the offer in this Agreement, whether material or not, will not restart the running of the 21 day period.

24. Miscellaneous. (a) This Agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by a duly authorized representative of the parties hereto. This Agreement is binding upon and shall inure to the benefit of the parties and their respective agents, heirs, executors, administrators, successors and assigns.

(b)    This Agreement, including Exhibit A, contains the entire agreement between you and the Company and replaces all prior and contemporaneous agreements, communications and understandings, whether written or oral, with respect to your employment and its termination and all related matters, EXCEPT that notwithstanding anything to the contrary in this Agreement or Exhibit A, any of your rights to indemnification from and by the Company for acts occurring during your employment as an officer of the Company (i.e., prior to October 30, 2013), including, but not limited to, the Director and Officer Indemnification Agreement between you and the Company dated on or about February, 2012, and any other applicable rights of indemnification, if any, through the Separation Date, shall survive this Agreement and shall remain in full force and effect. You represent that you have carefully read this Agreement, that you are not relying on any promise or representation, whether oral or written, that is not expressly contained herein, that you have been afforded the opportunity to be advised of its meaning and consequences by your own attorney, and have signed the same of your own free will.

(c)    The provisions of this Agreement are severable, and if any provision of this Agreement is found to be unenforceable, the other provisions shall remain fully valid and enforceable.

(d)    This Agreement shall be interpreted and construed pursuant to the laws of the Commonwealth of Massachusetts, without regard to conflict of laws provisions.

(e)    This Agreement may be executed in counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument.

(f)    The section headings in this Agreement are for reference purposes only and shall not be deemed to be a part of this Agreement or to affect the meaning or interpretation of this Agreement.

(g)    The waiver by the Company of any action, right or condition in this Agreement, or of any breach of a provision of this Agreement, shall not constitute a waiver of any other provisions of this Agreement or any other occurrences of the same event.

If you fail to timely return this signed Agreement to the Company within 21 days, this severance offer shall expire and will no longer be available to you.

If you should have any questions, please feel free to contact me.

Regards,

/s/ Ginger Gregory

Ginger Gregory

Chief Human Resources Officer

Dunkin’ Brands, Inc.

ACCEPTED AND AGREED TO:

/s/ Giorgio Minardi                Dated: 11/15/2013            

Giorgio Minardi

EX-10.28

LEASE
between130 ROYALL, LLC

Landlord,
and
DUNKIN’ BRANDS, INC.,

a Delaware corporation

Tenant

TABLE OF CONTENTS

Article    Page

1. DEFINITIONS; USE AND RESTRICTIONS ON USE.    1

2. TERM.    2

3. RENT.    3

4. ADDITIONAL RENT.    4

5. OPTION TO EXPAND.    5

6. COMPLETION OF THE PREMISES.    5

7. REPAIR.    7

8. LIENS    7

9. ASSIGNMENT AND SUBLETTING.    8

10. INDEMNIFICATION    9

11. INSURANCE.    9

12. WAIVER OF SUBROGATION    10

13. ELECTRICITY    10

14. HOLDING OVER    10

15. SUBORDINATION; NONDISTURBANCE; ATTORNMENT.    11

16. LANDLORD SERVICES    12

17. REENTRY BY LANDLORD.    12

18. DEFAULT BY TENANT AND LANDLORD REMEDIES.    12

19. DEFAULT BY LANDLORD AND TENANT REMEDIES.    16

20. TENANT’S BANKRUPTCY OR INSOLVENCY.    17

21. QUIET ENJOYMENT    18

22. CASUALTY.    18

23. EMINENT DOMAIN    19

24. SALE BY LANDLORD    19

25. ESTOPPEL CERTIFICATES    20

26. SURRENDER OF PREMISES.    20

27. NOTICES    20

28. DEFINED TERMS AND HEADINGS    21

29. TENANT’S AUTHORITY    21

30. COMMISSIONS    21

31. TIME AND APPLICABLE LAW    21

32. SUCCESSORS AND ASSIGNS    21

33. ENTIRE AGREEMENT    22

34. EXAMINATION NOT OPTION    22

35. RECORDATION    22

36. LIMITATION OF LANDLORD’S LIABILITY    22

37. ACCESS    22

38. COMMUNICATIONS EQUIPMENT    22

39. COMPLIANCE WITH LAWS.    23

40. CONTEST OF LEGAL REQUIREMENTS    23

41. SIGNAGE    23

42. WORK ON THE BUILDING OR LAND.    23

43. ARBITRATION.    25

44. FINANCIALS    26

45. RIGHT OF FIRST REFUSAL    26

46.    SECURITY DEPOSIT………………………………………………………………… 35

EXHIBIT A: DESCRIPTION OF PREMISES

EXHIBIT A-1: DESCRIPTION OF LAND
EXHIBIT B: INTENTIONALLY DELETED

EXHIBIT C: INTENTIONALLY DELETED

EXHIBIT D: FORM OF SNDA -- MORTGAGE

EXHIBIT E: FORM OF GROUND LEASE ESTOPPEL CERTIFICATE

EXHIBIT F: FORM OF LEASEHOLD MORTGAGE

REFERENCE PAGES

BUILDING:	130 Royall Street, Canton, Massachusetts
LANDLORD:	130 ROYALL, LLC
LANDLORD’S ADDRESS:	130 ROYALL, LLC c/o HN Gorin 101 Huntington Avenue 5th Floor Boston, Massachusetts 02199 Attention: Kristian Gibson
LEASE REFERENCE DATE:	December___, 2013
TENANT:	Dunkin’ Brands, Inc.
TENANT’S ADDRESS:	Dunkin’ Brands, Inc. 130 Royall Street Canton, MA 02021 Attention: Jason Maceda, Vice President, US Financial Planning & Field Treasury With a copy to: Dunkin’ Brands, Inc. 130 Royall Street Canton, MA 02021 Attention: Christopher J. Egan, Director & Legal Counsel
PREMISES:	The land and building (the "Building") commonly known and numbered as 130 Royall Street, Canton, Massachusetts, including all improvements located thereon and all sidewalks and driveways and parking areas, as shown on the Plan attached hereto as Exhibit “A”. The land (the "Land") upon which the Building is located is described on Exhibit “A-1” attached hereto. The definition of the Premises may be modified pursuant to Article 5 of this Lease.
PERMITTED USE:	Office, kitchen and laboratory purposes and all activities normally incidental thereto or related to the conduct of Tenant’s business, including vending machines and food service for employees and guests and for all other lawful purposes normally associated with a first class office and/or research and development building.
COMMENCEMENT DATE:	January 1, 2014
RENT COMMENCEMENT DATE	January 1, 2014
TERM OF LEASE:	Commencement Date through December 31, 2029
EXPIRATION DATE:	December 31, 2029
OPTIONS TO EXTEND ANNUAL RENT (Article 3): Calendar Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029		Two (2) options to extend the Term for five (5) years each, as set forth in Section 2.2 Annual RentMonthly Installments $2,625,000.00 $218,750.00 $2,712,500.00 $226,041.67 $2,800,000.00 $233,333.33 $2,887,500.00 $240,625.00 $2,975,000.00 $247,916.67 $3,062,500.00 $255,208.33 $3,150,000.00 $262,500.00 $3,150,000.00 $262,500.00 $3,150,000.00 $262,500.00 $3,150,000.00 $262,500.00 $3,150,000.00 $262,500.00 $3,675,000.00 $306,250.00 $3,675,000.00 $306,250.00 $3,675,000.00 $306,250.00 $3,675,000.00 $306,250.00 $3,675,000.00 $306,250.00
BUILDING RENTABLE AREA:		175,000 rentable square feet
TENANT ALLOWANCES:		$2,000,000 which will be offset in equal monthly installments against monthly payments of Annual Rent over the first seven (7) years of the Term, as set forth in greater detail in Article 4 of this Lease. $3,000,000 payable in a lump sum between January 1, 2020 and December 31, 2021, as set forth in greater detail in Article 4 of this Lease. $12,000 per year which will be offset in equal monthly installments against monthly payments of Annual Rent over the first seven (7) years of the Term, as set forth in greater detail in Article 4 of this Lease. $670,000 which will be offset in monthly installments against monthly payments of Annual Rent over the second (2nd) and third (3rd) years of the Term, as set forth in greater detail in Article 4 of this Lease.
REAL ESTATE BROKER DUE COMMISSION:		Newmark Real Estate of Massachusetts, LLC c/o Newmark & Company Real Estate, Inc. 125 Park Avenue New York, NY 10017 Attention: Neal Golden With a copy to: Newmark Southern Region, LLC 3424 Peachtree Road, NE, Suite 800 Atlanta, GA 30326 Attention: Bert Sanders
Security Deposit		$10,000.00

The Reference Page information is incorporated into and made a part of the Lease. In the event of any conflict between any Reference Page information and the Lease, the Lease shall control. This Lease includes Exhibits “A” through “F”, all of which are made a part of this Lease.

LANDLORD: 130 ROYALL, LLC By:________________________________ Title:_______________________________ Dated: December ____, 2013 TENANT: DUNKIN’ BRANDS, INC. By: Title: Dated: December ____, 2013

LEASE

By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises described on the Reference Page, together with all of Landlord’s interest in and to the appurtenances to the Land and in all streets, alleys and other public ways adjacent thereto. In addition to the foregoing, Landlord assigns to Tenant during the Term of this Lease (i) all development rights with respect to the Land and any such rights held by Landlord with respect to any property adjacent to the Landand (ii) all warranties and all assignable service and maintenance contracts, relating to the improvements on the Land for which Tenant shall have maintenance and/or repair obligations hereunder. The Reference Page, including all terms defined thereon, is incorporated as part of this Lease.

1.DEFINITIONS; USE AND RESTRICTIONS ON USE.

1.1Definitions. The following capitalized terms are defined as follows:

1.1.1“Commencement Date” shall mean January 1, 2014.

1.1.2“Default Rate” shall mean the lesser of (i) the Prime Rate plus three percent (3%) per annum or (ii) the greatest per annum rate of interest permitted from time to time under applicable law.

1.1.3“Ground Lease” shall mean that certain Ground Lease dated September 28, 2000 by and between Boston Mutual Life Insurance Company ("Ground Lessor") and Royall Street LLC, as assigned to Landlord by that certain Assignment of Tenant’s Interest in Ground Lease dated December 8, 2000 by and between Royall Street LLC, as assignor, and LSF3 Royall Street, LLC, as assignee, recorded on January 10, 2001 as Instrument N. 2763.

1.1.4“Prime Rate” shall mean the per annum interest rate publicly announced by State Street Bank or any successor thereof from time to time (whether or not charged in each instance) as its prime or base rate in Boston, Massachusetts.

1.1.5“Rent Commencement Date” shall mean January 1, 2014.

1.1.6 “Treasuries” shall mean the ten-year U.S. Treasury note most recently issued prior to the Determination Date.

1.2Use. The Premises are to be used solely for the Permitted Use stated on the Reference Page. Tenant shall not do or permit anything to be done in or about the Premises in violation of any law. Tenant shall not do or permit anything to be done on or about the Premises or bring into or keep anything in the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons in or about the Building or any part thereof.

1.3Restrictions on Use. Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees to at any time handle, use, manufacture, store or dispose of in or about the Premises or the Building any (collectively “Hazardous Materials”) flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively “Environmental Laws”), nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow the environment to become contaminated with any Hazardous Materials in violation of Environmental Laws. Notwithstanding the foregoing, Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general office purposes and may use Hazardous Materials in connection with the Permitted Use; provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment in violation of Environmental Laws. Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 28 harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees actually incurred) incurred by reason of any failure of Tenant to keep, observe, or perform any provision of this Section 1.3.

1.4Landlord represents and warrants:

1.4.1That, to the best of Landlord’s knowledge, as of the Reference Date, neither the Land nor the Building contain asbestos or asbestos containing materials or any other Hazardous Materials in violation of Environmental Laws; and

1.4.2that the Land is zoned Limited Industrial which use permits the use of the property for general office and research and development uses; and

1.5    Landlord agrees to indemnify and hold harmless Tenant from and against any claims, liabilities, costs, fines, damages and expenses (including reasonable attorneys' fees and costs actually incurred) arising from the inaccuracy of the foregoing representations.

2.TERM.

2.1This Lease shall govern the relationship between Landlord and Tenant with respect to the Premises from the Reference Date through the last day of the Term. The Term of this Lease shall begin on the Commencement Date (January 1, 2014) and shall continue until and including the Expiration Date (December 31, 2029) unless sooner terminated as hereinafter provided (such term, taking into account any such sooner termination, is herein referred to as the “Term”).

2.2Options to Extend. Tenant shall have two (2) options (each a “Renewal Option”) to extend the Term for successive periods of five (5) years each following the end of the initial Term (each a “Renewal Period” and collectively the “Renewal Periods”), so long as this Lease is then in effect and no Event of Default by Tenant relating to any monetary obligation of this Lease exists at the time of the exercise of the applicable Renewal Option. In the event that Tenant desires to exercise its option to renew the Term for a Renewal Period, Tenant shall so notify Landlord in writing on or before the twelfth (12th) month prior to the last day of the Term. Upon the giving of such notice, this Lease and the Term hereof shall automatically be extended for five (5) years without the necessity for the execution of any other instrument in confirmation thereof except for a document memorializing the Annual Rent established as set forth in Section 3.3 below for the then extended Term. Notwithstanding the foregoing, Tenant's Renewal Options will not lapse because of Tenant's failure to exercise any Renewal Option unless Landlord gives Tenant notice that Tenant has failed to exercise such Renewal Option prior to the period provided above, and Tenant shall have failed to exercise such option within ten (10) days following Tenant's receipt of such notice. Annual Rent payable during the applicable Renewal Period, which shall be determined in the manner provided in Section 3.3 below, and the fact that there shall be no further option to extend beyond the second Renewal Period, each extension shall be upon all the same terms, conditions and provisions as contained in this Lease.

3.RENT.

3.1Commencing on the Rent Commencement Date, Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the monthly installment of Annual Rent then in effect on or before the first day of each full calendar month during the Term. The monthly installment of Annual Rent in effect at any time shall be one-twelfth of the Annual Rent in effect at such time. Rent for any period during the Term which is less than a full month shall be a prorated portion of the monthly installment of Annual Rent based upon a thirty (30) day month. Said monthly installments of Annual Rent shall be paid to Landlord, without deduction or offset and without notice or demand except as specifically set forth herein, at the Landlord’s address, as set forth on the Reference Page, or to such other person or at such other place as Landlord may from time to time designate in writing.

3.2Tenant recognizes that late payment of any monthly installment of Annual Rent or other sum due under this Lease will result in administrative expense to Landlord, the extent of which additional expense is extremely difficult and economically impractical to ascertain. Tenant therefore agrees that if any monthly installment of Annual Rent or any other sum is not paid within ten (10) days of the date when due and payable pursuant to this Lease, a late charge shall be imposed in an amount equal to the lesser of (i) four percent (4%) of the unpaid monthly installment of Annual Rent or other payment or (ii) the amount of the late charge paid by Landlord for such month pursuant to the Ground Lease and the then current Mortgage resulting from Tenant’s late payment. The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant’s obligation for each successive monthly period until paid. The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay any monthly installment of Annual Rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 18 in the event said monthly installment of Annual Rent or other payment is unpaid after the date due.

3.3If Tenant shall extend the Term by exercising a Renewal Option pursuant to Section 2.2 above, the Annual Rent during the applicable Renewal Period shall be Market Rent (as defined below).

"Market Rent" shall be computed for the applicable Renewal Period at the then effective current rentals being charged to new tenants for buildings of comparable type and quality to that of the Building, taking into account and giving effect to, in determining comparability, without limitation, such considerations as size, location of premises, lease term, then current market tenant allowances and real estate tax and operating expenses, but Market Rent shall not take into account any "specialized" improvements to the Premises paid for by Tenant.

Landlord shall initially, no later than ninety (90) days prior to the commencement of the applicable Renewal Period, designate the Market Rent ("Landlord's Designation") for five year option period and shall furnish comparable data in support of such designation. If Tenant disagrees with Landlord's Designation of the Market Rent, then Tenant shall have the right, by written notice given within thirty (30) days after Tenant's receipt of Landlord's Designation (“Tenant’s Arbitration Notice”), to submit the determination of Market Rent to arbitration as set forth in Article 43 below. If for any reason the dispute between the parties as to Market Rent has not been resolved before the commencement of Tenant's obligation to pay Annual Rent based upon such Market Rent, then Tenant shall pay Annual Rent under the Lease in respect of the Premises based upon the current Annual Rent until either the agreement of the parties as to the Market Rent or the decision of the appraisers, as the case may be, at which time Tenant shall pay any underpayment of Annual Rent to Landlord or receive a credit against Annual Rent next becoming due for any overpayment of Annual Rent.

3.4    For purposes of clarification only, and not limitation, Landlord and Tenant agree that, except as otherwise set forth in this Lease, Tenant shall be solely responsible for the timely payment of all costs and expenses associated with its use and occupancy of the Premises including, but not limited to real estate taxes applicable to the Premises.

3.5    For purposes of clarification and for documenting the parties agreement related to all taxes associated with the Premises accrued prior to the date of this Lease, the parties expressly acknowledge and agree that both have paid their obligations to the other in full and, as such, neither owes or shall owe the other for any taxes accrued prior to the date of this Lease.

4.TENANT ALLOWANCES.

4.1Landlord agrees, as a material inducement to Tenant to execute this Lease, to pay to Tenant or to allow Tenant to offset against monthly installments of Annual Rent, the following Tenant Allowances:

4.1.3a Two Million and 00/100 Dollar ($2,000,000.00) Tenant Allowance, which shall be credited in equal monthly increments against monthly installments of Annual Rent during the first seven (7) years of the Initial Term of this Lease.

4.1.4a Three Million and 00/100 Dollar ($3,000,000.00) Tenant Allowance, which Landlord agrees to pay to Tenant in a lump sum payment during the period beginning on January 1, 2020 and ending on December 31, 2021; provided, however, that if Landlord sells the Premises, such sum shall become immediately due and payable to Tenant.

4.1.5a Six Hundred Seventy Thousand and 00/100 Dollar ($670,000.00) Tenant Allowance, which shall be credited in equal monthly increments against monthly installments of Annual Rent during the second (2^nd) and third (3^rd) years of the Initial Term of this Lease as follows: Twenty-Six Thousand Six Hundred Sixty-Six and 66/100 Dollars ($26,666.66) per month during the second (2^nd) year of the Initial Term of this Lease, and Twenty-Nine Thousand One Hundred Sixty-Six and 66/100 Dollars ($29,166.66) per month during the third (3^rd) year of the Initial Term of this Lease.

4.1.4    a Twelve Thousand and 00/100 Dollar ($12,000.00) annual Insurance Allowance, which shall be credited in equal monthly increments against monthly installments of Annual Rent during the first seven (7) years of the Initial Term of this Lease (in addition to the credits set forth in Sections 4.1.1 and 4.1.3 above).

5.    OPTION TO EXPAND.Expansion of Premises. Tenant shall have the option (the “Expansion Option”) to construct an addition to the Building and/or expand the parking areas serving the Building (the “Expansion Space”), which expansion shall be constructed pursuant to the terms of this Article. Any Expansion Space added to the Building pursuant to this Article shall be subject to the terms and provisions of this Lease. In addition, Landlord expressly agrees that there will be no adjustment to the Annual Rent payable hereunder (during not only the Term, but also during and any and all extension(s) of the Term) should such Expansion Space be constructed by Tenant, it being agreed that, since Tenant will, if at all, be constructing the Expansion Space at its sole cost and expense, no Annual Rent will be charged for the Expansion Space. The Expansion Option may be exercised by Tenant’s notifying Landlord in writing of such exercise (the date of such notice is hereinafter referred to as the “Expansion Exercise Date”), which Expansion Notice shall be accompanied by conceptual and preliminary design plans showing the general layout and uses for the Expansion Space and general specifications. Tenant shall prepare and furnish to Landlord within sixty (60) days after the Expansion Exercise Date complete architectural drawings and specifications (hereinafter called the “Expansion Plans”). The Expansion Plans shall be prepared by a licensed architect retained by Tenant, which architect shall be subject to the reasonable approval of Landlord. Landlord agrees to review the Expansion Plans and in each case to approve same or state what changes, if any, Landlord requires therein within thirty (30) days after receipt thereof. If Landlord requires any changes, Tenant shall cause the Expansion Plans to be revised in accordance with any reasonable requirements of Landlord and to resubmit same to Landlord for Landlord’s review within fifteen (15) days after receipt of Landlord’s changes. In addition, Landlord may review said Expansion Plans and request changes therein during the course of preparation thereof by said architect and Tenant shall cause said architect to revise the Expansion Plans accordingly. The revisions and resubmissions shall continue until Landlord shall have approved the Expansion Plans (said approved Expansion Plans being hereinafter called the “Approved Plans”). Landlord’s approval of the Expansion Plans shall not constitute an opinion or agreement by Landlord that the proposed improvements are structurally sufficient or that the Approved Plans are in compliance with Legal Requirements (it being agreed that such compliance is solely Tenant’s responsibility). Tenant shall provide Landlord with two (2) sets of the Approved Plans and Landlord and Tenant shall execute counterparts thereof. The Approved Plans shall be final and shall not be changed by Tenant without the prior consent of Landlord. Tenant agrees to use diligent (commercially reasonable) efforts to obtain all necessary permits for development and construction of the Expansion Space, or so much thereof as the law and local rules and regulations shall allow, although the parties acknowledge that the laws and development environment at the time of the permitting for the Expansion Space may be more restrictive than at present. Landlord agrees to reasonably cooperate with Tenant regarding Tenant’s efforts to obtain permits, licenses and approvals pertaining to the Expansion Space. Tenant shall not be required to remove, alter, or demolish the Expansion Space at the expiration or earlier termination of this Lease except as to leave the Expansion Space in the same condition as is required for the Premises itself including, but not limited to, the requirements set forth in Section 6.3 and Article 26 of this Lease. Notwithstanding anything to the contrary contained in this Article 5, if Tenant expands the Premises as set forth herein and, as a direct result of the addition of such Expansion Space, Landlord’s rent under the Ground Lease increases, then Tenant shall be responsible for reimbursing Landlord for such increase (but solely to the extent the increase is directly attributable to the Expansion Space).

6.    ALTERATIONS TO THE PREMISES.

6.1    Alterations by Tenant. Tenant may, from time to time, at its own cost and expense, make such alterations, restorations, replacements or installations (hereinafter referred to as “Alterations”) in, or to the Premises as Tenant deems necessary or desirable. Notwithstanding the foregoing, Tenant shall not make any structural Alteration, the cost of which shall be in excess of Five Hundred Thousand and No/100 Dollars ($500,000.00) without first submitting plans and specifications for such Alteration to Landlord for Landlord’s approval. Landlord may only withhold its approval if the work described in such plans and specifications diminishes the structural integrity of the Building or if the value of the improvements in place after such Alteration by Tenant would be less than the value of the improvements in place prior to such Alteration. If Landlord does not either approve or state its reasonable objections to said plans and specifications (or any revisions thereof) within ten (10) business days after receipt thereof, then said plans and specifications (or revisions) shall be deemed approved by Landlord. All such Alterations shall remain the property of Tenant and in case of damage or destruction thereto by fire or other causes, Tenant shall have the right to recover the value thereof as its own loss from any insurance company with which it has insured the same, or to claim an award in the event of condemnation, notwithstanding that any of such things might be considered part of the Premises. Tenant may, at its option and expense, and at any time and from time to time, remove any such Alterations from the Premises provided that such removal is accomplished without material damage to the Premises or Tenant promptly repairs any such damage.

6.2    Compliance with Laws. All alterations, additions or improvements proposed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations and Tenant shall, prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord, including but not limited to, waivers of lien and surety company performance bonds (but only in the event the cost of the work exceeds One Million and No/100 Dollars ($1,000,000)) as Landlord shall reasonably require to assure payment of the costs thereof and to protect Landlord and the Building and appurtenant land against any loss from any mechanic’s, materialmen’s or other liens.

6.3    Tenant’s Property. All alterations, additions, and improvements in, on, or to the Premises made or installed by Tenant, including carpeting, shall be and remain the property of Tenant during the Term but, excepting furniture, equipment, machinery, furnishings, movable partitions and other trade fixtures and personal property (“Tenant’s Property”), shall become a part of the realty and belong to Landlord without compensation to Tenant upon the expiration or sooner termination of the Term, at which time title shall pass to Landlord under this Lease as by a bill of sale. Upon election by Landlord with respect to any Non-Standard Alteration (as hereinafter defined) and provided Landlord informs Tenant of such election at the time Tenant requests approval of any alterations, Tenant shall, at Tenant’s sole cost and expense, forthwith and with all due diligence remove any such Non-Standard Alteration which are designated by Landlord to be removed prior to such alterations being made, and Tenant shall forthwith and with all due diligence, at its sole cost and expense, repair and restore any damage caused to the Premises by such removal. As used herein, the term “Non-Standard Alteration” shall mean and refer to any Alteration which is not normal and customary for general business or office use, such as raised flooring, fountains, swimming pools, etc. Tenant agrees that, at the expiration or earlier termination of the Term of this Lease, it shall remove from the Premises any Non-Standard Alteration(s) made to the Premises by Tenant including, but not limited to, Tenant’s research and development kitchen and the unique “Dunkin’ Donuts” and “Baskin-Robbins” mock-up restaurants that are located in the Building.

7.    REPAIRS.

7.1    Landlord’s Obligations. Landlord shall promptly repair, replace and maintain the structural portions of the Premises except to the extent that the repair, replacement or maintenance is the result of Tenant’s negligence or willful misconduct or is otherwise covered by Tenant’s insurance. Such structural portions of the Premises shall be defined to mean the roof, load supporting walls, foundation, and utility and sewer lines/systems to the extent located outside of the Building (provided, however, that if Tenant increased during the term of its prior lease or increases during the Term of this Lease the capacity of the utilities and/or sewer lines/systems during the Term of this Lease, Tenant shall be solely responsible for all costs and expenses associated with such alterations and repairs). Notwithstanding the foregoing, Landlord shall not be responsible for repairs associated with defects in any alterations or improvements performed by Tenant and Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

7.2    Tenant’s Obligations. Tenant shall, at its sole cost and expense, repair, replace and maintain the exterior portions of the Premises (excluding the roof, load supporting walls, and foundations) including the parking lot, exterior paint, and exterior glass, and shall also repair, replace and maintain those interior portions of the Premises, including without limitation, the floors/carpeting, the Building Systems (i.e., plumbing, electrical, HVAC, utility and sewer lines and sprinkler systems) and, except for any obligations expressly imposed upon Landlord by the provisions hereof, Tenant, as part of its obligations hereunder shall keep the Premises in a clean and sanitary condition. Upon termination of this Lease in any way, Tenant will yield up the Premises to Landlord in good condition and repair, reasonable wear and tear, loss by fire or other casualty (subject to Tenant’s obligations under Article 11) and repairs that are the responsibility of Landlord excepted.

7.3    No Abatement. Except as provided herein, there shall be no abatement of Annual Rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business unless arising due to the gross negligence or willful misconduct of Landlord. Except to the extent, if any, prohibited by law or as otherwise provided herein, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.

8.    LIENS. Tenant shall keep the Premises, the Building and Tenant’s leasehold interest in the Premises free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant. In the event that Tenant shall not, within thirty (30) days following the imposition of any such lien, either cause the same to be released of record or provide Landlord with insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall reasonably accept, Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and all reasonable expenses incurred by it in connection therewith shall be considered additional rent and shall be payable to it by Tenant within twenty (20) days of demand.

9.    ASSIGNMENT AND SUBLETTING.

9.1    Tenant shall have the right to assign or pledge this Lease or to sublet the whole or any part of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant. In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least thirty (30) days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant or assignee and the relevant terms of any sublease or assignment.

9.2    Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease. Upon the occurrence of an Event of Default, if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant’s obligations under this Lease.

9.3    In the event that Tenant sells, sublets, assigns or transfers this Lease to any Non-Affiliate (as hereinafter defined), Tenant shall pay to Landlord as additional rent an amount equal to fifty percent (50%) of any Increased Rent (as defined below) when and as such Increased Rent is received by Tenant. As used in this Section, “Increased Rent” shall mean the excess of (i) all rent and other consideration which Tenant receives by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time after deducting all of Tenant's reasonable costs directly related to such sublease or assignment and the marketing thereof including, without limitation, brokerage commissions, reasonable legal fees, TI Work or allowances, free rent, and other such concessions, costs and expenses. For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith.

9.4    Notwithstanding the foregoing provisions of this Article 9, Tenant may, without Landlord’s consent, assign this Lease or sublet any portion or all of the Premises to any corporation, partnership, trust, association or other business organization directly or indirectly controlling or controlled by Tenant or to any successor by merger, consolidation or acquisition of all or substantially all of the assets of Tenant (collectively, an “Affiliate” and any entity which is not an Affiliate is herein referred to as a “Non-Affiliate”) or any Affiliate of Tenant.

10.    INDEMNIFICATION. Landlord hereby waives any and all right of recovery which it might otherwise have against Tenant, its agents and employees, for loss or damage occurring to the Premises, including the Building, to the extent that the loss or damage is covered by Landlord’s insurance, notwithstanding that such loss or damage may result from the negligence or fault of Tenant, its agents or employees. Tenant hereby waives any and all right of recovery which it might otherwise have against Landlord, its agents and employees, for loss or damage to Tenant’s furniture, furnishings, fixtures and other property removable by Tenant under the provisions hereof, to the extent that the loss or damage is covered by Tenant’s insurance, notwithstanding that such loss or damage may result from the negligence or fault of Landlord, its servants, agents or employees. If either party shall become partially or wholly a self-insurer by inclusion of a deductible provision in its insurance policy or policies or by not maintaining insurance in an amount sufficient to prevent such party from becoming a co-insurer under the usual co-insurance clause or by not maintaining insurance in such amounts required under the provisions of this Lease, then it shall be deemed for the purpose of the foregoing waivers that any loss or damage suffered by such party was covered by said party’s insurance to the extent that it would have been so covered had said party maintained standard all-risk fire and extended coverage insurance in an amount sufficient to prevent such party from becoming a co-insurer under the usual co-insurance clause pursuant to a policy or policies containing no deductible provision.

11.    INSURANCE.

11.1    Tenant’s Insurance. Tenant shall keep in force throughout the Term: (a) causes of loss-special form (formerly “all risk”) property insurance covering the Premises in amounts at least equal to the full replacement cost thereof; (b) commercial general liability insurance applicable to the Premises with a limit of not less than $2,000,000.00 per occurrence and not less than $5,000,000.00 in the annual aggregate, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate; (c) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (d) insurance protecting against liability under Worker’s Compensation Laws with limits at least as required by statute; (e) Employer’s Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease--each employee; (f) causes of loss-special form (formerly “all risk”) property insurance, protecting Tenant against loss of or damage to Tenant’s Property and other business personal property situated in or about the Premises to the full replacement value of the property so insured; (g) boiler and machinery insurance (to the extent currently held by Tenant as of the date of this Lease); and (h) flood and earthquake insurance (to the extent currently held by Tenant as of the date of this Lease) provided, however, that Tenant may elect to self-insure with respect to the insurance required with respect to such insurance. Additionally, coverage for liability in excess of the amounts required above up to a $5,000,000 aggregate shall be provided under a blanket excess insurance policy provided that a primary policy providing coverage for liability of at least $1,000,000 remains in effect.

11.2    Landlord’s Insurance. Landlord shall keep in force throughout the Term: commercial general liability insurance with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate or such larger amount as prudent landlords in the Boston metropolitan area carry in similar circumstances; (b) Employer’s Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease each employee, in an amount of not less than $5,000,000; and (c) insurance protecting against liability under Worker’s Compensation Laws with limits at least as required by statute.

11.3    Each of the aforesaid policies shall (a) name the Landlord and Tenant (and Ground Lessor where appropriate) as their interests may appear; (b) be issued by an insurance company with a minimum Best’s rating of “A-: VII” during the Term; and (c) provide that said insurance shall not be canceled unless thirty (30) days prior written notice (ten days for non-payment of premium) shall have been given to the other party; and said policy or policies, duplicate originals or certificates thereof shall be delivered to the other party upon the Rent Commencement Date and at least thirty (30) days prior to each renewal of said insurance. Any insurance required hereunder may be provided under such blanket policies as are then customary for comparable buildings, provided that the coverage allocated to the Premises is not less than the coverage contemplated by this Lease as separately stated in this Article. Additionally, coverage for liability in excess of the amounts required above up to a $5,000,000 aggregate shall be provided under a blanket excess insurance policy provided that a primary policy providing coverage for liability of at least $1,000,000 remains in effect.

11.4    Whenever either party shall undertake any alterations, additions or improvements in, to or about the Premises (“Work”), the aforesaid insurance protection must extend to and include injuries to persons and damage to property arising in connection with such Work, without limitation including liability under any applicable structural work act; and the policies of or certificates evidencing such insurance must be delivered to the other party prior to the commencement of any such Work. The aforesaid coverage may be maintained by the general contractor performing the work.

12.    WAIVER OF SUBROGATION. Tenant and Landlord hereby mutually waive any and all rights of recovery, claim, action or cause of action against each other, their respective agents, officers and employees, for any loss or damage that may occur to the Premises and to all property, whether real, personal or mixed, located on the Premises or in the Building, by reason of fire, the elements or any other cause normally insured against under the terms of standard all-risk fire and extended coverage insurance policies of the type prescribed from time to time for use in respect of the Building, regardless of the cause or origin, including negligence of the parties hereto, their respective agents and employees. Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver and shall provide the other with reasonable evidence of its insurance carrier’s consent to such waiver of subrogation.

13.    ELECTRICITY. Tenant shall pay for all electric service to the Premises directly to the utility company furnishing such electric service to the Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities. Tenant shall furnish all electric light bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers.

14.    HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate (“Holdover Rate”) which shall be, for the first thirty (30) days of any such holdover, 125% of the amount of the Annual Rent for the last period prior to the date of such termination plus 100% of all additional rent under Article 3, and for any period thereafter, 150% of the amount of the Annual Rent for the last period prior to the date of such termination plus 100% of all additional rent under Article 3, in either case prorated on a daily basis, and a tenancy at sufferance at the Holdover Rate shall be deemed to have been created. In any event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at law.

15.    SUBORDINATION; NONDISTURBANCE; ATTORNMENT.

15.1    Subordination. Landlord may, from time to time, grant deeds of trust, mortgages or other security interests covering its estate in the Premises (herein, collectively, a “Mortgage”). Subject to the provisions of the following Sections, Tenant agrees that this Lease shall be subject and subordinate at all times to each Mortgage; provided, however, that if the lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust elects to have Tenant’s interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.

15.2    Ground Lease. Tenant acknowledges that this Lease is subject and subordinate to the Ground Lease, provided, however, that within thirty (30) days after the execution hereof, Landlord shall deliver to Tenant a Ground Lease Estoppel Certificate (the “Ground Lease Estoppel”) from Ground Lessor substantially in the form of Exhibit “E” attached hereto and incorporated herein by this reference and simultaneously with the execution hereof Landlord shall deliver to Tenant a Leasehold Mortgage in the form of Exhibit F attached hereto (the "Qualifying Leasehold Mortgage") executed by Landlord which shall entitle Tenant to all of the rights (including, without limitation, notice and cure rights) of the holder of a Qualifying Leasehold Mortgage under Section 4.02 of the Ground Lease. In the event that Landlord fails to deliver the Ground Lease Estoppel within thirty (30) days after the Reference Date, Tenant may terminate this Lease upon written notice to Landlord within thirty (30) days thereafter. Upon execution of such Qualifying Leasehold Mortgage, Landlord shall cause such instrument to be recorded in the Norfolk County Registry of Deeds. Landlord expressly acknowledges and agrees that Landlord is solely responsible for any and all rents and other charges due under the Ground Lease and that Tenant has no responsibility for any charges due thereunder (directly or by way of pass-through) subject, however, to the terms of the final sentence contained in Article 5 (related to Expansion Space).

15.3    Nondisturbance. Within thirty (30) days after execution hereof, Landlord shall deliver to Tenant a Subordination, Nondisturbance and Attornment Agreement in a form reasonably satisfactory to Tenant (the “SNDA”) executed by Landlord and Existing Mortgagee. The subordination of this Lease to any subsequent Mortgage is conditioned upon the holder thereof expressly agreeing in such SNDA that (i) Tenant will not be named or joined in any proceeding to enforce the Mortgage unless such shall be required by law in order to perfect the proceeding; (ii) enforcement of any Mortgage shall not terminate or modify this Lease or any provision of this Lease or disturb Tenant in the possession and use of the Premises (except in the case where Tenant is in default beyond the period, if any, provided in this Lease to remedy such default), or where mortgagee or its successor will provide Tenant with a new lease on the same terms and conditions as are contained herein, (iii) provided that Landlord or Tenant does not terminate this Lease as a result of a casualty or the exercise of eminent domain, proceeds and awards shall first be applied to the repair, alteration and restoration of the Premises, as provided in this Lease, before being applied to the debt secured by the Mortgage; and (iv) any party succeeding to the interest of Landlord as a result of the enforcement of any Mortgage shall be bound to Tenant, under all the terms, covenants and conditions of this Lease for the balance of the Term, including any extended Term, with the same force and effect as if such party were the original Landlord under this Lease. In the event that Landlord fails to deliver such SNDA to Tenant within such thirty (30) day period, Tenant shall have the right to terminate this Lease by written notice to Landlord.

15.4    Attornment. Subject to the provisions of the preceding Section, Tenant agrees to recognize and attorn to any party succeeding to the interest of Landlord as a result of the enforcement of any Mortgage or any termination of the Ground Lease, and to be bound to such party under all the terms, covenants and conditions of this Lease, for the balance of the Term, including extended Terms, with the same force and effect as if such party were the original Landlord under this Lease.

15.5    Confirming Agreement. Upon the request of Landlord and at no expense to Tenant, Tenant agrees to execute and deliver a subordination, attornment and nondisturbance agreement incorporating the provisions of this Article and otherwise in form reasonably acceptable to Tenant.

15.6    Existing Mortgage. Landlord represents and warrants to Tenant that there is no Mortgage presently affecting the Premises which is superior or senior to this Lease which could result in the termination of this Lease if enforced other than that certain mortgage (the “Existing Mortgage”) by and between Landlord and Boston Federal Savings Bank (the “Existing Mortgagee”).

16.    INTENTIONALLY OMITTED..

17.    REENTRY BY LANDLORD.

17.1    Landlord reserves and shall at all times during normal business hours have the right to re-enter the Premises to inspect the same, to show said Premises to prospective purchasers, mortgagees or, during the last year of the Term, to tenants

17.2    Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises, provided, however, Landlord shall always make good faith reasonable attempts to have a Tenant representative present. As to any portion to which access cannot be had by means of a key or keys, Landlord is authorized to gain access by such means as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord as additional rent upon demand.

18.    DEFAULT BY TENANT AND LANDLORD REMEDIES.

18.1    Default by Tenant. Except as otherwise provided in Article 0, the following events shall be deemed to be “Events of Default” under this Lease:

18.1.1    Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any monthly installment of the Annual Rent reserved by this Lease, or any other payment or reimbursement to Landlord required by this Lease, and such failure shall continue for a period of seven (7) days after written notice that such payment was not made when due, but if within any twenty-four (24) month period commencing with the date of the first notice, Landlord shall give two (2) such notices, then thereafter for the remainder of such twenty-four (24) month period, the failure to pay within seven (7) days after due any additional sum of money becoming due to be paid to Landlord under this Lease shall be an Event of Default without notice.

18.1.2    Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within thirty (30) days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant; provided, however, that if such cure cannot be reasonably performed within such thirty (30)-day period, Tenant shall have a reasonable period of time to complete such cure so long as Tenant commences the cure within such 30-day period and thereafter diligently pursues such cure to completion. As used herein, the term “hazardous condition” shall mean and refer to a condition of the Premises which causes immediate threat of serious bodily injury or substantial property damage.

18.1.3    Tenant shall file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof.

18.1.4    A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof.

18.2    Landlord’s Remedies.

18.2.1    Except as otherwise provided in Article 20, upon the occurrence of any of the Events of Default described or referred to in Article 18.1, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, concurrently or consecutively and not alternatively:

18.2.2    Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease.

18.2.3    Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Premises in such event and to repossess the Premises as Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or be within the Premises and to remove Tenant’s signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinquishing Landlord’s right to Annual Rent or any other right given to Landlord under this Lease or by operation of law.

18.2.4    Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all Annual Rent, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of: (a) an amount equal to the then present value of the Annual Rent reserved in this Lease (discounted at 9.5%) for the residue of the stated Term of this Lease and all other sums provided in this Lease to be paid by Tenant, minus the fair rental value of the Premises for such residue and minus any remaining Tenant Allowances that are at that time outstanding; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants but without any duplication for any other items of recovery under this Article 18, and the estimated expenses described in Section 18.2.5 relating to recovery of the Premises, preparation for reletting and for reletting itself; and (c) the cost of performing any other covenants which would have otherwise been performed by Tenant.

18.2.5    Upon any termination of Tenant’s right to possession only without termination of the Lease:

(i)Neither such termination of Tenant’s right to possession nor Landlord’s taking and holding possession thereof as provided in Section 18.2.3 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay Annual Rent under this Lease for the full Term, and if Landlord so elects Tenant shall pay damages as set forth in Section 18.2.3 forthwith to Landlord.

(ii)Landlord shall use good faith efforts to relet the Premises or any part thereof for such rent and upon such terms as Landlord, in its sole but reasonable discretion, shall determine (including the right to relet the Premises for a greater or lesser term than that remaining under this Lease, the right to relet the Premises as a part of a larger area, and the right to change the character or use made of the Premises). In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Premises to return the same to the condition required as if this Lease had expired by its natural terms, and Tenant shall, upon demand, pay the cost thereof, together with Landlord’s expenses of reletting, including, without limitation, any commission incurred by Landlord (provided, however, that with respect to any lease which extends beyond the originally scheduled expiration date hereof, such costs and expenses shall be prorated and Tenant shall be responsible only for a reasonable allocation of such costs and expenses to the original Term hereof). Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a creditworthiness reasonably acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the current term or which Landlord would not be required to permit under the provisions of Article 0.

(iii)Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 0, Tenant shall pay to Landlord upon demand the full amount of all Annual Rent under this Lease and other sums reserved in this Lease for the remaining Term, together with the costs of repairs, alterations, additions, to return the same to the condition required as if this Lease had expired by its natural terms, and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including reasonable attorney’s fees and broker’s commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Premises; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article as they become due. Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant’s future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant’s benefit.

18.3    Landlord may, at Landlord’s option, enter into and upon the Premises during normal business hours if Landlord determines in its reasonable discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant’s business resulting therefrom except in the event of Landlord’s negligence or intentional misconduct.

18.4    If, on account of any breach or default by Tenant or Landlord under the terms and conditions of this Lease, it shall become necessary or appropriate for either party to employ with an attorney to enforce or defend any of its rights or remedies arising under this Lease, the losing party agrees to pay all of the prevailing party’s reasonable attorney’s fees so incurred. Tenant and Landlord expressly waive any right to trial by jury.

18.5    Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall pursuit of any remedy provided in this Lease constitute a forfeiture or waiver of any Annual Rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants contained in this Lease.

18.6    No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shall be valid, unless in writing signed by Landlord. No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and covenants contained in this Lease. Landlord’s acceptance of the payment of Annual Rent or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such Default, unless Landlord so notifies Tenant in writing. Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such Default or of Landlord’s right to enforce any such remedies with respect to such Default or any subsequent Default.

18.7    Any and all property which may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord’s possession or under Landlord’s control. Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises and notice to Tenant shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

18.8    Tenant agrees that, if due to an Event of Default, Landlord terminates this Lease as set forth abovesuch that all of Tenant’s obligations set forth in this Lease including, but not limited to, Tenant’s obligation to pay Rent and other charges due hereunder are terminated in full as of the date of such termination, Tenant shall not be entitled to (i) collect any “Tenant Allowances” (as described in the “Reference Pages” and Article 4 of this Lease) that at that time have not been credited to Tenant, (ii) any proceeds described in Section 24.2 of this Lease pertaining to Landlord’s subsequent sale of the Premises, (iii) exercise its Right of First Refusal as set forth in Article 45 of this Lease pertaining to Landlord’s subsequent receipt of an Offer (as defined below) for the purchase of the Premises; and (iv) Tenant will forthwith issue a discharge as it relates to the Leasehold Mortgage.

19.    DEFAULT BY LANDLORD AND TENANT REMEDIES.

19.1    Default by Landlord. If (i) Landlord shall fail to pay any sum of money to be paid by Landlord hereunder, and shall not cure such failure within thirty (30) days after Tenant gives Landlord written notice thereof; or (ii) Landlord shall violate or breach, or shall fail fully and completely to observe, keep, satisfy, perform and comply with, any agreement, term, covenant, condition, requirement, restriction or provision of this Lease (other than the payment of any sum of money to be paid by Landlord hereunder), and shall not cure such failure within thirty (30) days after Tenant gives Landlord written notice thereof (but forthwith if the failure involves a hazardous condition), or if such failure shall be incapable of cure within thirty (30) days, Landlord shall not commence to cure such failure within such thirty (30) day period, and continuously prosecute the performance of the same to completion with due diligence, then Landlord shall be in default under this Lease.

19.2    Tenant’s Remedies. If Landlord is in default under this Lease, Tenant may pursue any one or more of the following remedies, separately or concurrently or in any combination, without any notice (except as specifically provided herein) or demand whatsoever and without prejudice to any other remedy which it may have, (i) bring an action (either through judicial action or through Arbitration as set forth in Article 43) against Landlord to recover from Landlord all damages suffered, incurred or sustained by Tenant (including, without limitation, court costs and reasonable attorneys’ fees actually incurred) as a result of, by reason of or in connection with such default, and/or to obtain specific performance of Landlord’s obligations under this Lease, (ii) after reasonable notice take whatever action Landlord is obligated to do under the terms of this Lease in which event Landlord shall reimburse Tenant on demand for any expenses, including without limitation, reasonable attorneys’ fees actually incurred, which Tenant may incur in taking such action. In the event that Tenant obtains the entry of a judgment against Landlord either following Arbitration pursuant to Article 43 or judicial action, and in such event Landlord fails to pay such judgment within thirty (30) days following the date of entry of such judgment together with interest thereon from the date of the judgment at the Default Rate: (i) Tenant may within a period of thirty (30) days thereafter terminate this Lease by giving Landlord written notice of such termination, in which event this Lease shall be terminated at the time designated by Tenant in its notice of termination to Landlord; or (ii) Tenant may set off against and deduct from the Annual Rent or other amounts due under this Lease the amount of any damages suffered, incurred or sustained by Tenant as a result of, by reason of or in connection with such default. Tenant agrees that if it shall commence any action against Landlord described in this Section 19.2, it shall simultaneously provide a copy of its complaint in such action to any mortgagee holding a mortgage on the Premises of whom Tenant shall have received notice of such mortgage.

19.3    Landlord's Default (as tenant) Under Ground Lease. Landlord covenants with Tenant that it will pay all rent due and perform all of its obligations under the Ground Lease. In addition to its rights set forth in this Article 19 above, in the event of any default by Landlord in the payment of rent or otherwise under the Ground Lease for which Tenant shall receive notice as required under the Ground Lease, either as the holder of a Qualifying Mortgage or otherwise, Tenant shall have the right to make payment of Rent or other amounts due under the Ground Lease to the Ground Lessor or take such other action as shall be required to cure such default, and Tenant shall then have the right, immediately after notice of such payment or action to Landlord and without the need for any judicial action or arbitration, to offset any such payments or the cost of any such other action necessary to cure such default against the payment of Annual Rent (or other charges due hereunder).

20.    TENANT’S BANKRUPTCY OR INSOLVENCY.

20.1    If at any time and for so long as Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state thereof for the protection of debtors as in effect at such time (each a “Debtor’s Law”):

20.1.1    Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”) shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit such assumption, assignment or sublease by the provisions of such Debtor’s Law. Without limitation of the generality of the foregoing, any right of any Tenant’s Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to the conditions that:

(i)    Such Debtor’s Law shall provide to Tenant’s Representative a right of assumption of this Lease which Tenant’s Representative shall have timely exercised and Tenant’s Representative shall have fully cured any default of Tenant under this Lease.

(ii)    Tenant’s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for the timely payment of Annual Rent an amount equal to three (3) months’ Annual Rent and other monetary charges accruing under this Lease; and shall have provided Landlord with adequate other assurance of the future performance of the obligations of the Tenant under this Lease. Without limitation, such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant’s Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations of Tenant under this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenant’s obligations under this Lease.

(iii)    The assumption or any contemplated assignment of this Lease or subleasing any part of the Premises, as shall be the case, will not breach any provision in any other lease, mortgage, financing agreement or other agreement by which Landlord is bound.

(iv)    Landlord shall have, or would have had absent the Debtor’s Law, no right under Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.

21.    QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the Annual Rent and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation subject to the terms and provisions of this Lease.

22.    CASUALTY.

22.1    In the event the Building or the Premises are damaged by fire or other cause, to the extent Tenant receives insurance proceeds related thereto, Tenant shall forthwith repair the same to the condition existing prior to such casualty and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement in monthly installments of Annual Rent from the date of such damage. Such abatement of monthly installments of Annual Rent shall be made pro rata in accordance with the extent to which the damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Building and/or Premises from time to time.

22.2    If such repairs cannot, in Tenant’s reasonable estimation, be made within one hundred eighty (180) days, Tenant shall have the option of giving Landlord, at any time within sixty (60) days after such damage, notice terminating this Lease as of the date of such damage. In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises, all rights of the Tenant under this Lease (including Tenant’s right to collect future not yet accrued Tenant Allowances under Article 4 and Tenant’s right to exercise its Right of First Refusal under Article 45), and all obligations of the Tenant under this Lease (including, without limitation, the obligation to pay Rent and all other charges due hereunder) shall terminate as of the date of such damage as if such date had been originally fixed in this Lease for the expiration of the Term and Tenant shall turn over to (or assign to) Landlord the insurance proceeds which Tenant receives as a result of such damage. In the event that Tenant does not exercise its option to terminate this Lease, then Tenant shall promptly repair or restore such damage to the Building and/or Premises, this Lease continuing in full force and effect, and the Annual Rent hereunder shall be proportionately abated as provided in Section 22.1.

22.3    Except with respect to items insured by or required to be insured by Landlord pursuant to Article 11 of this Lease, Landlord shall not be required to repair or replace any damage or loss by or from fire or other cause to any of the Building and/or Premises and/or Tenant’s Property. Any insurance which may be carried by Landlord or Tenant against loss or damage to the Building and/or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.

22.4    Notwithstanding anything to the contrary contained in this Article, if material damage to the Building and/or Premises shall occur during the last twenty-four (24) months of the Term, Tenant may terminate this Lease by written notice to Landlord given within thirty (30) days after the date of such damage, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date originally fixed in this Lease for the expiration of the Term. As used in this Section 22.4, the term “material damage” shall mean and refer to damage to twenty percent (20%) or more of the Premises such that Tenant cannot reasonably conduct business in such portion of the Premises. If Tenant shall so elect to terminate this Lease, Tenant shall turn over to (or assign to) Landlord the insurance proceeds which Tenant receives as a result of such damage.

22.5    In the event of any damage or destruction to the Building or Premises by any peril covered by the provisions of this Article 22, it shall be Tenant’s responsibility to properly secure the Premises.

23.    EMINENT DOMAIN. If all or any substantial part of the Premises, or any means of access, shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, Tenant shall have the right, at its option, of giving Landlord, at any time within thirty (30) days after such taking, notice terminating this Lease effective as of the date of such taking. In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises, all rights of the Tenant under this Lease (including Tenant’s right to collect future not yet accrued Tenant Allowances under Article 4 and Tenant’s right to exercise its Right of First Refusal under Article 45), and all obligations of the Tenant under this Lease (including, without limitation, the obligation to pay Rent and all other charges due hereunder). If Tenant shall not so elect to terminate this Lease, the Annual Rent thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances. Tenant, at its election and if permitted by the condemning authority, may make a separate claim with the condemning authority for (i) any moving expenses incurred by Tenant as a result of such condemnation; (ii) the unamortized costs incurred and paid by Tenant in connection with any Alteration or improvement made by Tenant to the Premises (other than those paid for with the Tenant Improvement Allowance or Additional Costs); and (iii) the value of Tenant’s property taken. If Tenant shall not be permitted to make a separate claim in such proceeding, Landlord shall prosecute all claims in such proceeding on behalf of both Landlord and Tenant in which event Tenant may, if it so elects and at its expense, join with Landlord in such proceeding, retain counsel, attend hearings, present arguments and generally participate in the conduct of the proceedings and all compensation awarded for any taking, whether for the whole or any portion of the Premises shall be apportioned between Landlord and Tenant as set out in this Article.

24.    SALE BY LANDLORD.

24.1    Subject to Tenant’s Right of First Refusal as described in Article 45 of this Lease, in event of a sale or conveyance by Landlord of the Premises, provided that the Landlord is not in breach of any of its obligations on the date of such sale or conveyance, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease with respect to such future liability. Except as set forth in this Article 24, this Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee provided such purchaser or assignee recognizes Tenant’s rights under this Lease. If any security has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, Landlord may transfer or deliver said security, as such, to Landlord’s successor in interest and thereupon Landlord shall be discharged from any further liability with regard to said security.

24.2    In addition to the foregoing, in the event of a sale or conveyance by Landlord of the Premises at any point during the Term (including, but not limited to as sale or conveyance to Tenant or an affiliate of Tenant), Landlord agrees that Tenant shall receive fifteen percent (15%) of the gross sales price to the extent the gross sales price (i.e., no costs or expenses whatsoever to be deducted from such gross sales price) exceeds Thirty-Two Million Five Hundred Thousand and 00/100 Dollars ($32,500,000.00).

25.    ESTOPPEL CERTIFICATES. Within ten (10) days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying: (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the Annual Rent and other sums payable under this Lease have been paid; (d) Tenant has no knowledge of any current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; and (e) such other matters as may be reasonably requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant to this Article 0 may be relied upon by any mortgagee, beneficiary or purchaser. Landlord agrees to provide a similar statement to Tenant within ten (10) days following any written request by Tenant.

26.    SURRENDER OF PREMISES.

26.1    At the end of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises in good condition and repair, reasonable wear and tear, loss by fire or other casualty and repairs that are the responsibility of Landlord excepted. Tenant shall remove all of Tenant’s Property from the Premises at the expiration or termination of the Term and shall repair any damage to the Premises caused by the removal of such.

26.2    All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earlier termination of the Term. Any otherwise unused Security Deposit shall be credited against the amount payable by Tenant under this Lease.

27.    NOTICES. Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, shall be transmitted personally, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Page, or at such other address as it has then last specified by written notice delivered in accordance with this Article 0, or if to Tenant at either its aforesaid address or its last known registered office or home of a general partner or individual owner, whether or not actually accepted or received by the addressee.

28.    DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are for convenience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease. Any indemnification or insurance of Landlord shall apply to and inure to the benefit of all the following “Landlord Entities”, being Landlord and its managers, officers and employees. Any option granted to Landlord shall also include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may be. In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several. The terms “Tenant” and “Landlord” or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.

29.    LANDLORD’S AND TENANT’S AUTHORITY. If Tenant or Landlord signs as a corporation each of the persons executing this Lease on behalf of such party represents and warrants that such party has been and is qualified to do business in the state in which the Building is located, that the corporation has full right and authority to enter into this Lease, and that all persons signing on behalf of the corporation were authorized to do so by appropriate corporate actions. If Tenant or Landlord signs as a partnership, limited liability company, trust or other legal entity, each of the persons executing this Lease on behalf of Tenant represents and warrants that such party has complied with all applicable laws, rules and governmental regulations relative to its right to do business in the state and that such entity on behalf of such party was authorized to do so by any and all appropriate partnership, company, trust or other actions. Tenant and Landlord agree to furnish to the other promptly upon request a corporate resolution, proof of due authorization by partners, or other appropriate documentation evidencing its due authorization to enter into this Lease.

30.    COMMISSIONS. Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Reference Page, and each party agrees to indemnify and hold harmless the other party against any claims, loss, damages or expenses or liability for any commission or fees which may be claimed by any broker, finder or other similar party by reason of any actions of the indemnifying party. Notwithstanding anything to the contrary contained herein, Landlord is solely responsible for any and all commission(s) due to the Real Estate Broker set forth on the Reference Page. Landlord agrees herby to pay the Real Estate Broker Two Million One Hundred Sixty Thousand and 00/100 Dollars ($2,160,000.00) in lawful money of the United States (“Commission”). The Commission shall be earned upon the full execution of this Lease and the satisfaction of the SNDA requirement set forth in Section 15.3 of this Lease; and paid to Real Estate Broker as follows: One Million Eighty Thousand and 00/100 Dollars ($1,080,000.00) payable on January 1, 2014, and One Million Eighty Thousand and 00/100 Dollars ($1,080,000.00) payable on January 1, 2015.

31.    TIME AND APPLICABLE LAW. Time is of the essence of this Lease and all of its provisions. This Lease shall in all respects be governed by the laws of the state in which the Building is located.

32.    SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.

33.    ENTIRE AGREEMENT. This Lease, together with its exhibits, contains all agreements of the parties to this Lease and supersedes any previous negotiations. There have been no representations made by the Landlord or understandings made between the parties other than those set forth in this Lease and its exhibits. This Lease may not be modified except by a written instrument duly executed by the parties to this Lease.

34.    EXAMINATION NOT OPTION. Submission of this Lease shall not be deemed to be a reservation of the Premises. Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord.

35.    RECORDATION. Tenant shall not record or register this Lease, but Landlord agrees to enter into a notice of lease suitable for recording which Tenant may register or record and shall pay all charges incident to such recording or registration.

36.    LIMITATION OF LANDLORD’S LIABILITY. Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Premises, including any rents, insurance proceeds, sale or transfer proceeds, condemnation awards or other similar interests. The obligations of Landlord under this Lease are not intended to and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries, stockholders, employees, managers, members, or agents of Landlord or the investment manager.

37.    ACCESS. Access to the Premises shall be available to Tenant twenty-four (24) hours per day, seven (7) days per week, three hundred sixty-five (365) days per year.

38.    COMMUNICATIONS EQUIPMENT. Tenant shall have the right, at the Tenant's sole cost and expense (but without charge by Landlord), to install, maintain and remove on the roof of the Building in a location or locations approved by Landlord (which approval shall not be unreasonably withheld, delayed or conditioned) satellite dishes or other similar devices, such as antenna, for the purpose of receiving and sending radio, television, computer, telephone or other communication signals (and including the installation of all necessary cables, wires and transformers). Any such satellite dishes or other similar devices and the cables, wires and transformers related thereto are referred to "Communications Equipment." In such event, the Tenant shall advise the Landlord at least ten (10) business days in advance of the planned installation of such Communications Equipment and shall comply with all applicable laws, rules and regulations and any reasonable request of Landlord with respect to the installation thereof. Tenant shall be responsible for any damage to the Building or Land caused by installing or maintaining the Communications Equipment. At the expiration or earlier termination of the Lease, Tenant, at its expense, shall remove the Communications Equipment. The reasonable cost of any work required to restore the roof or any other part of the Building or Land from any damage occasioned by the installation, maintenance or removal of the Communications Equipment shall be borne by Tenant. The installation, maintenance and removal of the Communications Equipment shall be subject to the obligations imposed upon the Tenant in the Lease with respect to the Tenant's use and occupancy of the Premises; provided, however, that there shall be no additional consideration due from Tenant with respect to the rights granted to Tenant pursuant to this Article 38.

39.    COMPLIANCE WITH LAWS.

39.1    Tenant’s Compliance with Laws. Tenant, at its expense, shall comply with any valid and applicable laws, rules, orders, ordinances, regulations and other requirements, present or future, including without limitation all present and future fire and safety laws, environmental laws, regulations, and codes (collectively, “Legal Requirements”), affecting Tenant’s particular use of the Premises, that are promulgated by any governmental authority or agency having jurisdiction, to the extent Tenant shall be legally required to do so. Nothing herein contained, however, shall be deemed to impose any obligation upon Tenant to make any structural changes or repairs to the Premises (or any changes or repairs of any nature to the Building) unless necessitated by reason of a particular use by Tenant of the Premises. Tenant agrees to indemnify and hold harmless Landlord from and against any claims, liabilities, costs, fines, damages and expenses (including reasonable attorneys' fees and costs actually incurred at all tribunal levels) arising from Tenant’s failure to comply with the foregoing requirements and representations.

39.2    Landlord’s Compliance with Laws. Landlord shall be responsible for complying with all Legal Requirements affecting the Premises (to the extent that Tenant is not required to comply therewith as above provided) or relating to the Land or relating to the performance by Landlord of any duties or obligations to be performed by it hereunder. If Landlord receives a notice of violation (other than as a result of the acts or omissions of Tenant or its agents, employees, or contractors) of any Legal Requirement with respect to the Premises or any part thereof (except with respect to compliance with the Americans with Disabilities Act and the Massachusetts Architectural Access Board regulations), then the work required to bring the applicable item into compliance will be performed by Landlord, at its expense (and shall not be passed‑through as additional rent). Landlord agrees to indemnify and hold harmless Tenant from and against any claims, liabilities, costs, fines, damages and expenses (including reasonable attorneys' fees and costs actually incurred at all tribunal levels) arising from Landlord's failure to comply with the foregoing requirements and representations.

40.    CONTEST OF LEGAL REQUIREMENTS. Either party, at its expense and by appropriate proceedings diligently prosecuted, may contest the validity or applicability to such party of any Legal Requirement, and may postpone its compliance therewith until such contest shall be decided, provided that such postponement does not subject the other party or the Premises to loss or damage or require that the Premises be vacated.

41.    SIGNAGE. Tenant shall have the exclusive right to install such signs on the Land and attach such signs to the Building as Tenant may deem appropriate to identify the Building as Tenant’s headquarters, provided the same are in compliance with law, are purchased and installed at the sole cost and expense of Tenant and are removed from the Premises at the expiration or earlier termination of the Term, the location, size, material and design of such signs to be determined by Tenant in its sole discretion. Tenant shall maintain and keep such signage in good repair during the Term of this Lease.

42.    WORK ON THE BUILDING OR LAND.     

42.1    Standards for Performance. Whenever in this Lease Landlord or Tenant is permitted or required to maintain and repair, or make additions, alterations, substitutions or replacements, or reconstruct or restore the Premises, such party shall cause such work (the “Work”) to be done and completed in a good, substantial and workmanlike manner, free from faults and defects, and in compliance with all Legal Requirements, and shall utilize only new first-class materials and supplies. The party performing such work shall be solely responsible for construction means, methods, techniques, sequences and procedures, and for coordinating all activities related to the Work, and the other party shall have no duty or obligation to inspect the Work, but shall have the right to do so.

42.2    Completion of Work. Whenever Landlord or Tenant is required to perform any Work upon the Premises, such party shall promptly commence the Work and, once the Work is commenced, diligently and continually pursue the completion of the Work within a reasonable time. The party performing such Work shall supervise and direct the Work utilizing its best efforts and reasonable care, and shall assign such qualified personnel to the Work as may be necessary to cause the Work to be completed in an expeditious fashion.

42.3    Payment of Costs and Expenses. The party performing such Work shall (i) provide and pay for all labor, materials, goods, supplies, equipment, appliances, tools, construction equipment and machinery and other facilities and services necessary for the proper execution and completion of the Work; (ii) promptly pay when due all costs and expenses incurred in connection with the Work; (iii) pay all sales, consumer, use and similar taxes required by law in connection with the Work; (iv) secure and pay for all permits, fees and licenses necessary for the performance of the Work; and (v) at all times maintain the Premises free and clear from any and all liens, claims, security interests and encumbrances arising from or in connection with the Work, including, without limitation, liens for materials delivered, supplied or furnished, or for services or labor performed or rendered. All materials, supplies, goods, appliances and equipment incorporated in the Work shall be free from any liens, security interests or title retention agreements, other than the lien or security interest (if any) of the holder of any mortgage, deed of trust or other security instrument laced upon the Premises by Landlord. However, nothing contained in this Section 42.3 is intended to restrict or affect any right the party performing such Work may otherwise have under this Lease for reimbursement of any costs or expenses incurred in connection with such Work.

42.4    Indemnification. The party performing such Work shall (i) be responsible for the acts and omissions of all of its employees and all other persons performing any of the Work; (ii) be responsible for initiating, maintaining and supervising all necessary safety precautions and programs in connection with the Work; (iii) take all reasonable precautions for the safety of, and provide all reasonable protection to prevent damage, injury or loss to, the Work, all persons performing the Work, all other persons who may be involved or affected by the Work, all materials and equipment to be incorporated in the Work and all other property in the Building or on the Land; (iv) purchase and maintain in full force and effect, or cause its contractors and subcontractors to purchase and maintain in full force and effect, such insurance (if any) in addition to that otherwise required of such party under this Lease as may be necessary to protect such party from claims under worker’s compensation acts and other employee benefit acts, from claims for damages because of bodily injury, including death, and from claims for damage to property which arise out of performance of the Work. Such additional insurance policies, if any, shall meet the requirements set forth elsewhere herein with respect to the insurance policies otherwise required to be obtained and maintained by such party under this Lease. The party performing such Work shall pay and shall indemnify and save the other party and its officers, employees and agents harmless from all liabilities, damages, losses, costs, expenses, causes of action, suits, claims, demands and judgments of any nature arising out of, by reason of or in connection with the Work.

43.    ARBITRATION. All disputes, actions or proceedings brought by either Landlord or Tenant in connection with (i) a contractual claim under the terms of this Lease (including without limitation claims concerning alleged defaults or breaches and remedies with respect thereto and interpretation of the provisions hereof) and (ii) a specific dispute designated as an arbitrable matter in this Lease shall be determined by Arbitration. All other disputes, actions or proceedings, including without limitation (1) any request for emergency injunctive or equitable relief (including temporary restraining orders) or (2) claims concerning fraud or tort, or (3) any dispute regarding the Landlord's or Tenant's right to terminate the Lease, shall be brought in the appropriate judicial forum, unless otherwise agreed to by the parties hereto in their sole discretion. To the extent the provisions of this Article 43 vary from or are inconsistent with the rules of the American Arbitration Association or any other arbitration tribunal, the provisions of this Article 43 shall govern. All arbitrations shall occur at a location in Boston, Massachusetts, chosen by the arbitrators and except to the extent that a different procedure is set forth in this Article 43, shall be conducted pursuant to the rules of the American Arbitration Association (or the successor organization, or if no such organization exists, then from an organization composed of persons of similar professional qualifications). The party desiring such arbitration shall give notice to that effect to the other party and simultaneously therewith also shall give notice to the director of the Boston, Massachusetts regional office of the American Arbitration Association (or the successor organization, or if no such organization exists, then from an organization composed of persons of similar professional qualifications), requesting that such organization to select, as soon as possible but in any event within the next thirty (30) days, three arbitrators with, if reasonably possible, recognized expertise in the subject matter of the arbitration. The arbitrators shall be selected in accordance with the applicable rules of the American Arbitration Association. At the request of either party, the arbitrators shall authorize the service of subpoenas for the production of documents or attendance of witnesses. Within thirty (30) days after their appointment, the arbitrators so chosen shall hold a hearing at which each party may submit evidence, be heard, and cross-examine witnesses, with each party having at least ten (10) days advance notice of the hearing. The hearing shall be conducted such that each of Landlord and Tenant shall have reasonably adequate time to present oral evidence or argument, but either party may present whatever written evidence it deems appropriate prior to the hearing (with copies of any such written evidence being sent to the other party). In the event of the failure, refusal or inability of any arbitrator to act, a new arbitrator shall be made available in the same manner as hereinbefore provided. The decision of the arbitrators so chosen shall be given within a period of thirty (30) days after said hearing and shall include the arbitrator's conclusions of law and findings of fact. The decision in which any two arbitrators so appointed and acting hereunder concur shall in all cases be binding and conclusive upon the parties and shall be the basis for a judgment entered in any court of competent jurisdiction. The fees and expenses of arbitration under this Article shall be borne equally by Landlord and Tenant. Landlord and Tenant may at any time by mutual agreement discontinue arbitration proceedings and themselves agree upon any such matter submitted to arbitration.

Notwithstanding the foregoing, if the purpose of the arbitration is to determine the Market Rent, then the following provisions shall apply:

(i)    Each arbitrator shall be a member of the American Institute of Real Estate Appraisers (or the successor organization, or if no such organization exists, then from an organization composed of persons of similar professional qualifications), with the designation of M.A.I. and with not less than ten (10) years’ experience appraising commercial properties in downtown Boston, Massachusetts.

(ii)    Within thirty (30) days after the conclusion of the hearing, the arbitrators shall again meet and simultaneously disclose in writing their respective determinations of the Market Rent. If the determinations of at least two of the arbitrators shall be identical in amount, said amount shall be the Market Rent. If the determinations of at least two of the arbitrators shall not be identical in amount, then the Market Rent shall be the average of the two closest determinations of the Market Rent. Any such determination of the Market Rent shall be binding and conclusive upon Landlord and Tenant.

(iii)    If the decision of the arbitrators under this Article shall be held by a court of competent jurisdiction to be unenforceable for any reason (Landlord and Tenant hereby affirmatively stating it is their intent and agreement that the decision of the arbitrators will be legally enforceable as to them), then the matters submitted to arbitration shall be subject to litigation exclusively in the courts of the Commonwealth of Massachusetts, Landlord and Tenant each hereby expressly waiving its right to a trial by jury in any such court proceeding. To the extent that a court proceeding calls for a determination of the Market Rental Rate for the Premises, Landlord and Tenant hereby expressly agree that such determination shall be based on the factors set forth in Section 3.3 of this Lease.

44.    FINANCIALS. Upon Landlord’s request (but not more than once per calendar year), Tenant shall provide Landlord with copies of its most recent audited year-end financial statements, prepared by its independent accounting firm and, upon request by Landlord (but not more than once per calendar year), shall provide Landlord with its most recent interim unaudited financial statements, if any, certified as true and accurate, subject to normal year end adjustments, by Tenant's chief financial officer. Landlord covenants to keep such statements confidential except that such statements may be distributed to Landlord’s partners and lenders to the extent that such parties agree to keep such statements confidential.

45.    RIGHT OF FIRST REFUSAL TO PURCHASE THE PREMISES. Landlord, on behalf of itself, its successors, assigns, and any subsequent owner or holder of any interest in the Premises, hereby grants to Tenant the exclusive and irrevocable right and option (the “Right of First Refusal”) to purchase the Premises at the same price and upon the same terms, provisions and conditions as shall be contained in any written bona fide offer for the purchase thereof which Landlord shall at any time during the Term of this Lease, or any extension thereof, be ready and willing to accept (“Offer”), the parties agreeing that the term “Offer” includes, but is not limited to, the sale of a controlling interest in any entity that owns all or any part of or any interest in the Premises and/or any rights and interests appurtenant thereto. Landlord shall give Tenant written notice (to Tenant at Tenant’s address set forth in this Lease and by the method required by the terms of this Lease) and a complete copy of such bona fide offer, which includes all of the documentation, terms, provisions and conditions therein contained. Landlord agrees to notify Tenant in writing immediately upon placing the Premises on the market (with or without a broker) (“Notice of Intention to Sell”) and, provided Landlord has done so in a timely manner, Tenant shall have ten (10) business days from and after the receipt of notice from Landlord of the Offer, in which to exercise such right, which Tenant shall do, if at all, by giving written notice to Landlord (to Landlord at Landlord’s address set forth in this Lease and by the method required by the terms of this Lease). If Landlord fails to provide Tenant with the Notice of Intention to Sell as set forth above, Tenant shall have thirty (30) days from and after the receipt of the Offer in which to exercise its Right of First Refusal, which Tenant shall do, if at all, by giving written notice to Landlord (to Landlord at Landlord’s address set forth in this Lease and by the method required by the terms of this Lease). One or more waiver(s) of Tenant’s right to purchase the Premises under the terms of any such Offer shall not constitute a waiver of Tenant’s right to receive notice and an opportunity to purchase the Premises under this paragraph if the terms of such Offer should thereafter be altered in any manner whatsoever and/or with respect to any subsequent bona fide offer to Landlord, its successors and assigns, during the remaining Term of this Lease. In the event Tenant fails (or elects not) to exercise its Right of First Refusal, Landlord shall be free to consummate the proposed sale of the Premises to the original purchaser on terms no more favorable to such purchaser than those described in the Offer, and Landlord agrees to furnish to Tenant copies of all closing and other pertinent documents relating to the sale. The parties hereto expressly agree that any attempted sale of the Premises that is not in conformity with the provisions of this Article 45 shall be null and void as against Tenant, and Tenant also shall have all other remedies available to Tenant at law or in equity, including, without limitation, injunctive relief against such sale.

46.    SECURITY DEPOSIT. Landlord currently holds the Security Deposit. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s default. If an Event of Default by Tenant occurs with respect to any provision of this Lease, Landlord may utilize the Security Deposit for the payment of any Annual Rent or any other sum in default, or for the payment of any reasonable amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other reasonable loss or damage which Landlord may suffer by reason of Tenant’s default, except to such extent, if any, as shall be required by law. Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when Landlord shall have determined that all of Tenant’s obligations under this Lease have been fulfilled but no later than ninety (90) days after the Termination Date.

WITNESS the execution hereof under seal effective as of the 20th day of December, 2013.

LANDLORD:                        TENANT:

130 ROYALL, LLC                    DUNKIN’ BRANDS, INC.

/s/ Rosalind E. Gorin____________/s/ Jason Maceda_________________________

By: Rosalind Gorin, President, H.N Gorin, Inc.        Name: Jason Maceda

Its duly authorized: Managing Member            Title: Vice President

EXHIBIT “A”

attached to and made a part of Lease bearing the

Lease Reference Date of December __, 2013 between

130 ROYALL, LLC, as Landlord and

DUNKIN’ BRANDS, INC., as Tenant

PREMISES

Plan entitled “Plan of Land, Royall Street, Canton, Massachusetts” dated August 25, 1999, by R.E. Cameron & Associates, Inc., Land Surveyors, Civil Engineers.

EXHIBIT “A-1”

attached to and made a part of Lease bearing the

Lease Reference Date of December __, 2013 between

130 ROYALL, LLC, as Landlord and

DUNKIN’ BRANDS, INC., as Tenant

LAND

That certain land in Canton, Norfolk County, Massachusetts shown as “Parcel B Area = 486,576 S.F. + 11.2 Acres” on a plan entitled “Plan of Land Royall Street Canton, Massachusetts” dated August 25, 1999, drawn by R.E. Cameron & Associates, Inc. and recorded with the Norfolk County Registry of Deeds on March 31, 2000, as Plan 150 of 2000 in Plan Book 473.

EXHIBIT “B”

[INTENTIONALLY DELETED]

EXHIBIT “C”

[INTENTIONALLY DELETED]

EXHIBIT “D”

attached to and made a part of Lease bearing the

Lease Reference Date of December __, 2013 between

130 ROYALL, LLC, as Landlord and

DUNKIN’ BRANDS, INC., as Tenant

FORM OF NONDISTURBANCE AGREEMENT – MORTGAGE

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT ("Agreement") is made as of this ____ day ________________ 20__, by and between _______________________________________________, having an address of ___________________________________ ("Lender"), ________________________________, having an address of ______________________________________________ (“Landlord”), and _________________________________________ having an address of                 __________________________________ ("Tenant").

RECITALS

A.    Tenant is the holder of a leasehold estate in that premises located at _______________________________________ as is more particularly described on Schedule A, attached hereto and incorporated herein for all purposes (the "Premises") under and pursuant to the provisions of a certain lease dated         ____________, between Landlord and Tenant (as the same may have been amended, collectively the "Lease"); and

B.    The Premises is or is to be encumbered by one or more mortgages, deeds of trust, deeds to secure debt or similar security agreements (collectively, the "Security Instrument") from Landlord, or its successor in interest, in favor of Lender; and

C.    Tenant has agreed to subordinate the Lease to the Security Instrument and to the lien thereof and Lender has agreed to grant non‑disturbance to Tenant under the Lease on the terms and conditions hereinafter set forth.

AGREEMENT

NOW, THEREFORE, the parties hereto mutually agree as follows:

1.    Subordination. The Lease shall be subject and subordinate in all respects to the lien and terms of the Security Instrument, to any and all advances to be made thereunder and to all renewals, modifications, consolidations, replacements and extensions thereof.

2.    Nondisturbance. So long as Tenant pays all rents and other charges as specified in the Lease and is not otherwise in default beyond applicable notice and cure periods, Lender agrees for itself and its successors in interest and for any other person acquiring title to the Premises through a foreclosure or otherwise (an “Acquiring Party"), that neither Tenant’s rights under the Lease nor Tenant's possession of the Premises will be disturbed during the term of the Lease, as said term may be extended pursuant to the terms of the Lease or as the Premises may be expanded as specified in the Lease, by reason of a foreclosure or otherwise. For purposes of this Agreement, a "foreclosure" shall include (but not be limited to) a sheriff's or trustee's sale under the power of sale contained in the Security Instrument, the termination of any superior lease of the Premises and any other transfer of the Landlord's interest in the Premises under peril of foreclosure, including, without limitation to the generality of the foregoing, an assignment or sale in lieu of foreclosure.

3.    Attornment. Tenant agrees to attorn to, accept and recognize any Acquiring Party as the landlord under the Lease pursuant to the provisions expressly set forth therein for the then remaining balance of the term of the Lease, and any extensions thereof as made pursuant to the Lease. The foregoing provision shall be self-operative and shall not require the execution of any further instrument or agreement by Tenant as a condition to its effectiveness. Tenant agrees, however, to execute and deliver, at any time and from time to time, upon thirty (30) days prior written request by Lender or any Acquiring Party, any commercially reasonable instrument which may be necessary or appropriate to evidence such attornment and which instrument is reasonably acceptable to Lender, Landlord and Tenant.

4.    No Liability. Notwithstanding anything to the contrary contained herein or in the Lease, it is specifically understood and agreed that neither Lender, any receiver nor any Acquiring Party shall be:

(a) liable for any act, omission, negligence or default of any prior landlord, including Landlord (except with regard to defaults of a continuing nature); provided, however, that Lender and any Acquiring Party shall be liable and responsible for the performance of all covenants and obligations of any prior landlord, including Landlord, under the Lease occurring from and after the date that it takes title to the Premises; or

(b) subject to any offsets, credits, claims or defenses which Tenant might have against any prior landlord, including Landlord (except with regard to defaults of a continuing nature); or

(c) bound by any rent or additional rent which is payable on a monthly basis and which Tenant might have paid for more than one (1) month in advance to any prior landlord, including Landlord.

Notwithstanding the foregoing, Tenant reserves its rights to any and all claims or causes of action against such prior landlord, including Landlord, for prior losses or damages and against the successor landlord, including Lender and any Acquiring Party, for all losses or damages arising from and after the date that such successor landlord takes title to the Premises.

5.    Rent. Tenant has notice that the Lease and the rents and all other sums due thereunder have been assigned to Lender as security for the loan secured by the Security Instrument. In the event Lender notifies Tenant of the occurrence of a default under the Security Instrument and demands that Tenant pay its rents and all other sums due or to become due under the Lease directly to Lender, Tenant shall honor such demand and pay its rent and all other sums due under the Lease directly to Lender or as otherwise authorized in writing by Lender. Landlord hereby irrevocably authorizes Tenant to make the foregoing payments to Lender upon such notice and demand and, therefore, holds Tenant harmless therefrom.

6.    Notices. All notices or other written communications hereunder shall be delivered by a nationally recognized and reputable overnight delivery service (e.g., FedEx) and shall be deemed to have been delivered on the date the same are received by the recipient (or, if delivery is refused, on the date of such refusal), addressed to the receiving party at its address first set forth above. Any party hereto may change its notice address by written notice to the other parties.

7.    Successors. The obligations and rights of the parties pursuant to this Agreement shall bind and inure to the benefit of the successors, assigns, heirs and legal representatives of the respective parties.

8.    Duplicate Originals; Counterparts. This Agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed an original instrument and all of which together shall constitute a single Agreement.

IN WITNESS WHEREOF, Lender, Landlord and Tenant have duly executed this Agreement as of the date first above written.

Lender:

_______________________________

By:    _________________________

Its:    _________________________

Landlord:

_______________________________

By:    _________________________

Its:    _________________________

Tenant:

_______________________________

By:    _________________________

Its:    _________________________

ACKNOWLEDGMENTS

STATE OF            )

)    SS:

COUNTY OF            )

On ____________________, before me, the undersigned, a Notary Public in and for said State, personally appeared _____________________, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Signature:

______________________________

Name (Typed or Printed)

STATE OF            )

)    SS:

COUNTY OF            )

On ____________________, before me, the undersigned, a Notary Public in and for said State, personally appeared _____________________, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Signature:

______________________________

Name (Typed or Printed)

STATE OF            )

)    SS:

COUNTY OF            )

On ____________________, before me, the undersigned, a Notary Public in and for said State, personally appeared _____________________, personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Signature:

______________________________

Name (Typed or Printed)

EXHIBIT “E”

attached to and made a part of Lease bearing the

Lease Reference Date of December __, 2013 between

130 ROYALL, LLC, as Landlord and

DUNKIN’ BRANDS, INC., as Tenant

FORM OF– GROUND LEASE ESTOPPEL CERTIFICATE

GROUND LEASE ESTOPPEL CERTIFICATE

THIS GROUND LEASE ESTOPPEL CERTIFICATE (this “Certificate”) is executed as of the ____ day of November, 2013 by BOSTON MUTUAL LIFE INSURANCE COMPANY, a Massachusetts insurance corporation (“Ground Lessor”),;

W I T N E S S E T H: That;

WHEREAS, Ground Lessor is the owner of certain real property lying and being in Canton, Norfolk County, Massachusetts, such real property being more particularly described on Exhibit “A” attached hereto and incorporated herein by this reference (the “Land”);

WHEREAS, Ground Lessor has leased the Land to Royall Street LLC pursuant to that certain Ground Lease (the “Ground Lease”) dated September 28, 2000, notice of which has been recorded with Norfolk County Registry of Deeds in Book 14435, Page 285, as assigned by Royall Street LLC to LSF3 Royall Street, LLC (“Ground Lessee”) pursuant to that certain Assignment of Tenant's Interest in Ground Lease effective December 8, 2000, and recorded with Norfolk County Registry of Deeds in Book 14647, Page 226;

WHEREAS, Ground Lessee has constructed certain buildings and other improvements on the Land (all buildings and other improvements now or hereafter constructed on the Land, herein called the “Improvements”);

WHEREAS, Ground Lessee desires to lease the Land and all Improvements situated thereon to Dunkin’ Donuts Incorporated pursuant to a certain Lease to be executed between Ground Lessee and Tenant, and Dunkin’ Donuts Incorporated has requested this Certificate;

NOW, THEREFORE, in consideration of the above, Ground Lessor hereby certifies to Tenant and agrees as follows:

1.    The Ground Lease sets forth the entire agreement and understanding between Ground Lessor and Ground Lessee regarding the Land and any Improvements, is in full force and effect, and has not in any way been amended, modified or supplemented except as described in the above recitals.

2.    Neither Ground Lessor nor, to Ground Lessor’s knowledge, Ground Lessee is in default of any term, covenant or condition of the Ground Lease, and there exist no other grounds for cancellation or termination of the Ground Lease, nor any state of facts which, with the giving of notice or the passage of time, or both, would constitute a default under the Ground Lease or any such other grounds for cancellation or termination of the Ground Lease.

3.    All rents and other sums due and payable pursuant to the Ground Lease have been paid through _____________________, 2013.

IN WITNESS WHEREOF, this Certificate has been executed under seal of the Ground Lessor as of the date first above written.

BOSTON MUTUAL LIFE INSURANCE COMPANY,

By:    ______________________________________

Title:    ______________________________________

Date:    December ____, 2013

EXHIBIT “F”

attached to and made a part of Lease bearing the

Lease Reference Date of December __, 2013 between

130 ROYALL, LLC, as Landlord and

DUNKIN’ BRANDS, INC., as Tenant

FORM OF QUALIFYING LEASEHOLD MORTGAGE

LEASEHOLD MORTGAGE

130 ROYALL, LLC, a Delaware limited liability company having a principal place of business at c/o HN Gorin, 101 Huntington Avenue, 5^th Floor, Boston, Massachusetts 02199; Attention: Kristian Gibson (hereinafter referred to as the “Mortgagor”), for valuable consideration received, as an inducement to DUNKIN' BRANDS, INC., a Delaware corporation having a current address of 130 Royall Street, Canton, Massachusetts 02021 (hereinafter referred to as the “Mortgagee”), to enter into a certain Lease Agreement of even date between Mortgagor and Mortgagee (the “Lease ”), and to secure the obligation of Mortgagor to Mortgagee to repay the security deposit referred to in Article 46 of the Lease (the “Security Deposit”) (the “Obligation”), hereby grants to Mortgagee, with MORTGAGE COVENANTS, the following:

The leasehold estate described in a certain Ground Lease between Boston Mutual Life Insurance Company (“Ground Lessor”) and Royall Street LLC, dated September 28, 2000, notice of which is recorded with Norfolk County Registry of Deeds in Book 14435, Page 285, as assigned to Mortgagor by Assignment of Tenant’s Interest in Ground Lease, effective December 8, 2000, recorded with said Deeds in Book 14647, Page 226 (the “Ground Lease”), including without limitation all buildings, structures, improvements and appurtenances and all of the estate and rights of Mortgagor of, in and to the Premises described in Exhibit A which are the subject of the Ground Lease, and all and each of the tenements, hereditaments and appurtenances of the Mortgagor belonging or in any way appertaining to the Premises and the rents, issues and profits thereof.

Section 1.    Representations and Warranties. The Mortgagor hereby represents, covenants and warrants:

1.1 Validity; Etc., No Defaults. The Ground Lease is a valid and subsisting lease of the property therein described and purported to be demised thereby for the term therein set forth and is in full force and effect in accordance with the terms thereof and has not been modified except for the described assignment, and there are no existing defaults (or existing matters which, with the giving of notice or the passage of time or both, would result in a default) by the Lessor or by the Mortgagor, as Lessee thereunder; and the Mortgagor is the owner and holder of the Lease and of the leasehold estate created thereby.

1.2 No Subleases. That there are no subleases of the Premises or of space in any building presently erected or to be erected upon the Premises which are demised under the Lease.

Section 2. Covenants of Mortgagor. The Mortgagor further covenants with the Mortgagee as follows:

2.1 Payment and Performance of Obligation. The Mortgagor will pay and perform the Obligation in accordance with the terms of the Lease, and if default shall be made in the payment of the Obligation upon termination of the Lease, if and to the extent that any such payment shall then be due Mortgagee, as Lessee, the Mortgagee, after thirty (30) days’ notice to Mortgagor, within which Mortgagor shall have the right to cure any such default, shall have the power to sell the Mortgagor’s leasehold interest in the Premises according to law.

2.2    Additional Covenants. Mortgagor:

(a)     will diligently perform and observe all of the terms, covenants and conditions of the Ground Lease required to be performed and observed by the Mortgagor as such Lessee, unless such performance observance shall have been waived or not required by the Ground Lessor, to the end that all things shall be done which are necessary to keep unimpaired the Mortgagor's rights as Lessee under the Ground Lease;

(b) will promptly notify the Mortgagee in writing of any default by the Ground Lessor in the performance or observance of any of the terms, covenants or conditions on the part of Ground Lessor to be performed or observed, or of the occurrence of any event, regardless of lapse of time, of the character specified in subsection (a) of this Section;

(c) will promptly (i) advise the Mortgagee in writing of the giving of any notice by the Ground Lessor to the Mortgagor, as Lessee, of any default by the Mortgagor, as such Lessee, in the performance or observance of any of the terms, covenants or conditions of the Ground Lease on the part of the Mortgagor, as Lessee thereunder, to be performed or observed, and (ii) deliver to the Mortgagee a true copy of each such notice;

(d) will, promptly after the execution and delivery of this Mortgage or of any instrument or agreement supplemental thereto, notify the Lessor in writing of the execution and delivery thereof and deliver to the Ground Lessor a copy of each such instrument or agreement;

(e) will promptly notify the Mortgagee in writing in the event of the initiation of any litigation or arbitration proceeding under and pursuant to the provisions of the Ground Lease; and

(f) will, within thirty (30) days after written demand by the Mortgagee, seek to obtain from the Lessor and furnish to the Mortgagee an estoppel certificate of the Ground Lessor in the form provided for in the Ground Lease.

Section 3. Mortgagee's Statutory Rights. This Mortgage is upon the condition that the Mortgagor shall pay the Obligation, and if the Mortgagor shall fail to pay the Obligation, the holder hereof shall have the STATUTORY POWER OF SALE.

Section 4. Notices. All notices, demands and requests given or required to be given by either party hereto to the other party shall be in writing. Each such notice, demand or request shall be addressed as follows:

(a) if to the Mortgagor, at _________________ ; or

(b) if to the Mortgagee, (i) at 130 Royall Street, Canton, Massachusetts 02021, Attention: Jason Maceda and (ii) at 130 Royall Street, Canton, Massachusetts 02021, Attention: Christopher J. Egan, Director & Legal Counsel; or

(c) to such other address as the Mortgagor or the Mortgagee shall designate in a written notice to the other.

Any such notice, demand or request shall be deemed to have been duly given or made and to have become effective (i) if to the Mortgagee, when received by the Mortgagee, and (ii) if to the Mortgagor (A) if delivered by hand to Mortgagor in person, at the time of receipt thereof, (B) if sent by registered or certified mail, postage prepaid, return receipt requested, on the earlier of the third Business Day after the mailing thereof or the day of receipt, if a Business Day, or if not a Business Day, the next succeeding Business Day, and (C) if sent a nationally recognized overnight courier service, one day after delivery to the courier service.

Section 5. Subordination. Without the necessity of any additional document being executed by Mortgagee for the purpose of effecting a subordination, this Mortgage shall be, and hereby is, subject and subordinate at all times to the Ground Lease and to the lien (s) of any mortgage(s) now or hereafter placed on, against or affecting the Ground Lease or the Premises or Mortgagor’s interest therein. Notwithstanding the foregoing, Mortgagee covenants and agrees to execute and deliver upon demand such further instruments evidencing such subordination as may be required by Mortgagor or any mortgagee, in such form as Mortgagor or any such mortgagee may reasonably require.

Section 6. Captions. The marginal notes or captions herein are inserted only as a matter of convenience and for reference and are not and shall not be deemed to be any part of this Mortgage.

Section 7. Severability and Savings Clauses. If any provision of this Mortgage is held to be invalid or unenforceable by a court of competent jurisdiction the other provisions of this Mortgage shall remain in full force and effect and shall be liberally construed in favor or the Mortgagee in order to effect the provisions of this Mortgage.

Section 8. Discharge. In the event of a termination of the Lease in accordance with Section 18.8 of the Lease, Tenant will forthwith issue a discharge as it relates to this Leasehold Mortgage.

Executed as a sealed instrument this __ day of December, 2013.

MORTGAGOR:

By: _____________________________________

Its duly authorized Manager

COMMONWEALTH OF MASSACHUSETTS

Norfolk, ss    December __, 2013

Then personally appeared before me ________________ known to me to be the Manager of _____________________________________, and acknowledged the foregoing to be his free act and deed and the free act and deed of said company.

________________________________________

Notary Public

My commission expires: __________

Exhibit A

________________________________, as Mortgagor

And

DUNKIN’ BRANDS, INC., as Mortgagee

LAND

That certain land in Canton, Norfolk County, Massachusetts shown as “Parcel B Area = 486,576 S.F. + 11.2 Acres” on a plan entitled “Plan of Land Royall Street Canton, Massachusetts” dated August 25, 1999, drawn by R.E. Cameron & Associates, Inc. and recorded with the Norfolk County Registry of Deeds on March 31, 2000, as Plan 150 of 2000 in Plan Book 473.

EX-21.1

Exhibit 21.1

Dunkin’ Brands Group, Inc. Subsidiaries

Entity	Jurisdiction of Organization
Dunkin’ Brands Group, Inc.	Delaware
Dunkin’ Brands Holdings, Inc.	Delaware
Dunkin’ Brands, Inc.	Delaware
Dunkin’ Brands Canada, Ltd.	Ontario, Canada
SVC Service LLC	Colorado
SVC Service II Inc.	Colorado
Dunkin Brands International Holdings Ltd.	United Kingdom
Dunkin Brands International DMCC	Dubai
Dunkin’ Brands (UK) Limited	United Kingdom
Baskin-Robbins Australia Pty. Ltd.	Australia
Dunkin’ Brands Australia Pty. Ltd.	Australia
DBI Australia Holdings Pty. Ltd.	Australia
Palm Oasis Ventures Pty. Ltd.5	Australia
B-R 31 Ice Cream Co. Ltd. 4	Japan
Dunkin’ (Shanghai) Enterprise Management Consulting Co., Ltd.	China
DBCI Corp.	Florida
Dunkin’ Donuts LLC	Delaware
Dunkin Espanola S.A.	Spain
Coffee Alliance, S.L.3	Spain
Dunkin’ Ventures LLC	Delaware
Massachusetts Refreshment Corp. 1	Massachusetts
Third Dunkin’ Donuts Realty LLC	Delaware
Dunkin’ Donuts Realty Investment LLC	Delaware
Dunkin’ Donuts USA LLC	Delaware
Mister Donut of America, LLC	Delaware
Baskin-Robbins LLC	Delaware
Baskin-Robbins USA LLC	California
DBI Stores LLC	Delaware
Star Dunkin’, LP2	Delaware
Star Dunkin’ Real Estate, LP2	Delaware
DBI Stores Texas LLC	Delaware
Baskin-Robbins Flavors LLC	Delaware
Baskin-Robbins International LLC	Delaware
B-R Korea Co. Ltd. 3	Korea
DB Master Finance LLC	Delaware
DB Canadian Supplier Inc.	Delaware
DB Canadian Holding Company Inc.	Delaware
DB Canadian Franchising ULC	Nova Scotia
BR Japan Holdings LLC	Delaware
DB Franchising Holding Company LLC	Delaware
Dunkin’ Donuts Franchising LLC	Delaware
Baskin-Robbins Franchising LLC	Delaware
DB Real Estate Assets I LLC	Delaware
DB Real Estate Assets II LLC	Delaware
DB Mexican Franchising LLC	Delaware
DB International Franchising LLC	Delaware

DD IP Holder LLC	Delaware
BR IP Holder LLC	Delaware
Baskin-Robbins Franchised Shops LLC	Delaware
Dunkin’ Donuts Franchised Restaurants LLC	Delaware
DB AdFund Administrator LLC	Delaware
DB UK Franchising LLC	Delaware

______________
1	Represents a joint venture company of which registrant indirectly owns 50% of the voting equity.
2	Represents a joint venture partnership of which registrant indirectly owns 51% of the partnership interest.
3	Represents a joint venture company of which registrant indirectly owns 33.3% of the voting equity.
4	Represents a joint venture company of which registrant indirectly owns 43.3% of the voting equity.
5	Represents a joint venture company of which registrant indirectly owns 20% of the voting equity.

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Dunkin’ Brands Group, Inc.:

We consent to the incorporation by reference in the registration statement No. 333-183190 on Form S-3 and No. 333-176246 on Form S-8 of Dunkin’ Brands Group, Inc. of our reports dated February 20, 2014, with respect to the consolidated balance sheets of Dunkin’ Brands Group, Inc. as of December 28, 2013 and December 29, 2012, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 28, 2013, and the effectiveness of internal control over financial reporting as of December 28, 2013, which reports appear in the December 28, 2013 annual report on Form 10-K of Dunkin’ Brands Group, Inc.

/s/ KPMG LLP

Boston, Massachusetts

February 20, 2014

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14 and 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nigel Travis, Chairman and Chief Executive Officer, certify that.

1. I have reviewed this annual report on Form 10-K of Dunkin’ Brands Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and the other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 20, 2014	/s/ Nigel Travis
Date	Nigel Travis Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14 and 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Carbone, Chief Financial Officer, certify that.

1. I have reviewed this annual report on Form 10-K of Dunkin’ Brands Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and the other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

February 20, 2014	/s/ Paul Carbone
Date	Paul Carbone Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Dunkin’ Brands Group, Inc. (the “Company”) on Form 10-K for the period ending December 28, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Nigel Travis, as the Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: February 20, 2014

/s/ Nigel Travis

Nigel Travis*

Chairman and Chief Executive Officer

* A signed original of this written statement required by Section 906 has been provided to Dunkin’ Brands Group, Inc. and will be retained by Dunkin’ Brands Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-K or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Dunkin’ Brands Group, Inc. (the “Company”) on Form 10-K for the period ending December 28, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul Carbone, as the Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: February 20, 2014

/s/ Paul Carbone

Paul Carbone*

Chief Financial Officer

* A signed original of this written statement required by Section 906 has been provided to Dunkin’ Brands Group, Inc. and will be retained by Dunkin’ Brands Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-K or as a separate disclosure document.

XML

Other Current Liabilities (Tables)

12 Months Ended

Dec. 28, 2013

Other Liabilities, Current [Abstract]

Other Current Liabilities

Other current liabilities at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Gift card/certificate liability	$	139,721	145,981
Gift card breakage liability	14,093		—
Accrued salary and benefits	26,713		31,136
Accrued legal liabilities (see note 17(d))	26,633		27,305
Accrued interest	9,999		13,564
Accrued professional costs	2,938		2,996
Other	28,821		18,949
Total other current liabilities	$	248,918	239,931

XML

Allowance for Doubtful Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts Receivable [Roll Forward]
Provision for doubtful accounts, net	$ 3,484	$ (542)	$ 2,019
Trade Accounts Receivable [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	2,483	2,713	5,518
Provision for doubtful accounts, net	1,015	513	745
Write-offs and other	(899)	(743)	(3,550)
Ending balance	2,599	2,483	2,713
Short-term Notes and Other Receivables [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	1,204	2,321	2,443
Provision for doubtful accounts, net	(339)	(1,055)	1,274
Write-offs and other	(206)	(62)	(1,396)
Ending balance	659	1,204	2,321
Long-term Notes and Other Receivables [Member]
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance	0
Provision for doubtful accounts, net	2,808
Write-offs and other	0
Ending balance	$ 2,808

XML

Franchise Fees and Royalty Income Narrative (Details)	Dec. 29, 2012	Dec. 31, 2011	Dec. 25, 2010
Disclosure Franchise Fees And Royalty Income [Abstract]
Reduction in franchised points of distribution in operation	91	198	57

XML

Allowance for Doubtful Accounts (Tables)

12 Months Ended

Dec. 28, 2013

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Allowance for Doubtful Accounts

The changes in the allowance for doubtful accounts were as follows (in thousands):

	Accounts receivable			Short-term notes and other receivables		Long-term notes and other receivables
Balance at December 25, 2010	$	5,518		2,443		—
Provision for doubtful accounts, net	745			1,274		—
Write-offs and other	(3,550		)	(1,396	)	—
Balance at December 31, 2011	2,713			2,321		—
Provision for (recovery of) doubtful accounts, net	513			(1,055	)	—
Write-offs and other	(743		)	(62	)	—
Balance at December 29, 2012	2,483			1,204		—
Provision for (recovery of) doubtful accounts, net	1,015			(339	)	2,808
Write-offs and other	(899		)	(206	)	—
Balance at December 28, 2013	$	2,599		659		2,808

XML

Derivative Insturments and Hedging Transactions (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Derivatives, Fair Value [Line Items]
Total fair values of derivative instruments - asset	$ 10,221	$ 0
Total fair values of derivative instruments - liability	0	2,809
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Interest rate swaps - asset	10,221	0
Other Long Term Liabilities [Member]
Derivatives, Fair Value [Line Items]
Interest rate swaps - liability	$ 0	$ 2,809

XML

Advertising Funds (Details) (USD $)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Advertising Funds [Abstract]
Percentage of franchisees gross retail sales, collected for advertising unds	5.00%
Accrued Advertising	$ 17,600,000	$ 13,700,000
Advertising management fee	5,500,000	5,600,000	5,700,000
Advertising expense, national and regional advertising	2,400,000	863,000	2,000,000
Advertising expense, based on retail Sales as owner and operator of company-owned restaurants	1,000,000	808,000	289,000
Advertising fund contribution	$ 5,900,000	$ 0	$ 0

XML

Leases - Impact of Amortization of Unfavorable Operating Leases (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Leases [Abstract]
Increase in rental income	$ 973	$ 1,065	$ 1,392
Decrease in rental expense	1,204	1,287	1,838
Total increase in operating income	$ 2,177	$ 2,352	$ 3,230

XML

Commitments and Contingencies - Additional Information (Detail)	12 Months Ended				12 Months Ended		12 Months Ended		1 Months Ended		12 Months Ended				12 Months Ended					3 Months Ended
	Dec. 28, 2013 USD ($)	Dec. 29, 2012 USD ($)	Dec. 28, 2013 Lease Agreements USD ($)	Dec. 29, 2012 Lease Agreements USD ($)	Dec. 28, 2013 Purchase Commitment Transaction 01 USD ($)	Dec. 29, 2012 Purchase Commitment Transaction 01 USD ($)	Dec. 29, 2012 Purchase Commitment Transaction 02	Jun. 29, 2013 Purchase Commitment Transaction 02 USD ($)	Jun. 22, 2012 Bertico litigation USD ($)	Jun. 22, 2012 Bertico litigation CAD	Dec. 28, 2013 Bertico litigation USD ($)	Dec. 29, 2012 Bertico litigation USD ($)	Dec. 28, 2013 Supply Commitment USD ($)	Dec. 29, 2012 Supply Commitment USD ($)	Dec. 28, 2013 Minimum [Member]	Dec. 28, 2013 Maximum [Member]	May 17, 2013 Commitments to Extend Credit [Member] USD ($)	Dec. 28, 2013 Performance Guarantee [Member] USD ($)	Dec. 29, 2012 Performance Guarantee [Member] USD ($)	Jun. 29, 2013 Bertico Litigation [Member] Bertico litigation USD ($)
Commitments and Contingencies Disclosure [Line Items]
Franchisees financing term															3 years	10 years
Guarantee obligation, maximum exposure	$ 3,000,000	$ 4,700,000	$ 6,400,000	$ 5,600,000	$ 5,700,000	$ 6,800,000							$ 52,600,000	$ 57,500,000
Fair value of the guarantee liability	277,000	601,000
Fair value of the guarantee assets	309,000	572,000
Reserve for guarantee liabilities		389,000						7,500,000
Accrued liabilities																		906,000	0
Guarantee to third party to ensure franchisees will purchase or sell certain volume of product, term					10 years		4 years
Standby letters of credit	3,000,000	11,500,000
Amounts drawn on letters of credit	0	0
Litigation judgment									15,900,000	16,400,000
Legal fees																				20,700,000
Increase in estimated liability related to litigation	12,000,000										952,000	493,000
Contingent liabilities related to legal matters		1,500,000									25,100,000
Age of Events Upon Which Claims are Based															10 years	15 years
Other Commitment																	8,000,000
Line of Credit Facility, Amount Outstanding	$ 0

XML

Retirement Plans (Tables)

12 Months Ended

Dec. 28, 2013

Compensation and Retirement Disclosure [Abstract]

Components of Net Pension Expense

The components of net pension expense were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Service cost	$	—		262		222
Interest cost	216			333		340
Expected return on plan assets	(263		)	(317	)	(306	)
Amortization of net actuarial loss	74			76		54
Net pension expense	$	27		354		310

Summary of Other Balances

The table below summarizes other balances for fiscal years 2013, 2012, and 2011 (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	8,349		6,050		6,042
Service cost	—			262		222
Interest cost	216			333		340
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Curtailment gain	—			(1,084	)	—
Actuarial loss (gain)	395			2,854		(95	)
Foreign currency loss (gain), net	(530		)	121		(61	)
Benefit obligation, end of year	$	8,200		8,349		6,050
Change in plan assets:
Fair value of plan assets, beginning of year	$	5,809		4,945		4,797
Expected return on plan assets	263			317		306
Employer contributions	626			662		798
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Actuarial loss	(371		)	(27	)	(505	)
Foreign currency gain (loss), net	(307		)	99		(53	)
Fair value of plan assets, end of year	$	5,790		5,809		4,945
Reconciliation of funded status:
Funded status	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)
Amounts recognized in the balance sheet consist of:
Accrued benefit cost	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)

Allocation of Assets Within the Pooled Fund

The allocation of the assets within the plan consisted of the following:

	December 28, 2013		December 29, 2012
Cash and short-term investments	35	%	—	%
Equity securities	—		60
Debt securities	65		39
Other	—		1

Schedule of Assumptions Used

The actuarial assumptions used in determining the present value of accrued pension benefits at December 28, 2013 and December 29, 2012 were as follows:

	December 28, 2013		December 29, 2012
Discount rate	2.65	%	2.70	%
Average salary increase for pensionable earnings	—		—

The actuarial assumptions used in determining the present value of our net periodic benefit cost were as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Discount rate	2.70	%	5.25	%	5.50	%
Average salary increase for pensionable earnings	—		3.25		3.25
Expected return on plan assets	4.50		6.00		6.00

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Franchise Fees and Royalty Income (Tables)

12 Months Ended

Dec. 28, 2013

Disclosure Franchise Fees And Royalty Income [Abstract]

Schedule Of Franchise Revenue Table

Franchise fees and royalty income consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Royalty income	$	411,428	385,713	363,458
Initial franchise fees and renewal income	42,548		33,227	35,016
Total franchise fees and royalty income	$	453,976	418,940	398,474

Points of Distribution by Ownership Type

The changes in franchised and company-owned points of distribution were as follows:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Systemwide points of distribution:
Franchised points of distribution in operation—beginning of year	17,333		16,565		16,105
Franchises opened	1,388		1,470		1,403
Franchises closed	(600	)	(701	)	(944	)
Net transfers from (to) company-owned points of distribution	1		(1	)	1
Franchised points of distribution in operation—end of year	18,122		17,333		16,565
Company-owned points of distribution—end of year	36		35		31
Total systemwide points of distribution—end of year	18,158		17,368		16,596

XML

Leases - Estimated Impact of the Amortization of Unfavorable Operating Leases Acquired (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Leases [Abstract]
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2014	$ 1,051
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2014	847
Estimated Impact Of Unfavorable Operating Leases Acquired, 2014	1,898
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2015	949
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2015	789
Estimated Impact Of Unfavorable Operating Leases Acquired, 2015	1,738
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2016	893
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2016	719
Estimated Impact Of Unfavorable Operating Leases Acquired, 2016	1,612
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2017	893
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2017	681
Estimated Impact Of Unfavorable Operating Leases Acquired, 2017	1,574
Estimated Impact Of Unfavorable Operating Leases Acquired, Decrease in Rental Expense, 2018	859
Estimated Impact Of Unfavorable Operating Leases Acquired, Inrease in Rental Income, 2018	632
Estimated Impact Of Unfavorable Operating Leases Acquired, 2018	$ 1,491

XML

Leases - Capital Leases Included in Company's Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Leases [Abstract]
Leased property under capital leases (included in property and equipment)	$ 7,888	$ 7,902
Accumulated depreciation	(2,326)	(2,003)
Net leased property under capital leases	5,562	5,899
Current	432	371
Long-term	6,996	7,251
Total capital lease obligations	7,428	7,622
Income expense related to capital leases	$ 618	$ 600	$ 481

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Stockholders' Equity Dividends (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Equity [Abstract]
Dividend per share of common stock paid (in dollars per share)	$ 0.19	$ 0.19	$ 0.19	$ 0.19	$ 0.15	$ 0.15	$ 0.15	$ 0.15
Dividends paid on common stock	$ 20,301	$ 20,257	$ 20,259	$ 20,191	$ 15,880	$ 18,075	$ 18,068	$ 18,046	$ 81,008	$ 70,069	$ 0
Dividend declared, payment date	Nov. 26, 2013	Sep. 04, 2013	Jun. 06, 2013	Feb. 20, 2013	Nov. 14, 2012	Aug. 24, 2012	May 16, 2012	Mar. 28, 2012

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Equity method investments Ownership Percentage (Details)	Dec. 28, 2013	Dec. 29, 2012
BR Japan [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	43.30%	43.30%
BR Korea [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	33.30%	33.30%
Coffee Alliance, S.L. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	33.30%	33.30%
Palm Oasis Ventures Pty. Ltd. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest	20.00%

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Retirement Plans - Assumptions Used in Calculations (Details)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	2.65%	2.70%
Average salary increase for pensionable earnings	0.00%	0.00%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	2.70%	5.25%	5.50%
Average salary increase for pensionable earnings	0.00%	3.25%	3.25%
Expected return on plan assets	4.50%	6.00%	6.00%

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Leases - Rent Expense, Operating (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Leases [Abstract]
Base rentals	$ 53,462	$ 52,821	$ 52,214
Contingent rentals	5,869	5,227	4,510
Total rental expense	$ 59,331	$ 58,048	$ 56,724

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Stockholders' Equity Class L Common Stock Rollforward (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Dec. 29, 2012 Common Class L [Member]	Jul. 31, 2011 Common Class L [Member]	Dec. 25, 2010 Common Class L [Member]
Common Class L Stock [Roll Forward]
Balance, shares	106,146,984			0	22,866,379	22,995,000
Common stock, Class L, beginning of year				$ 840,582
Issuance of Class L common stock (shares)				65,000
Issuance of Class L common stock			942	2,270
Repurchases of Class L common stock (shares)				0
Repurchases of Class L common stock				(113)
Retirement of treasury stock (shares)				(194,000)
Retirement of treasury stock	0	0	0	0
Cash dividends paid (shares)				0
Accretion of Class L preferred return			(45,102)	45,102
Conversion of Class L shares to common shares (shares)				(22,866,000)
Conversion of Class L shares into common stock				(887,841)
Balance, shares	106,646,219	106,146,984		0	22,866,379	22,995,000
Common stock, Class L, end of year				$ 0

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Segment Information Revenues by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012	Sep. 29, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Segment Reporting, Revenue Reconciling Item [Line Items]
Other									$ 11,860	$ 13,248	$ 13,111
Total revenues	183,177	186,317	182,488	161,858	161,703	171,719	172,387	152,372	713,840	658,181	628,198
Reportable Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable segment revenues									701,980	644,933	615,087
Reportable Segment | Dunkin' Donuts | United States
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable segment revenues									521,179	485,399	449,492
Reportable Segment | Dunkin' Donuts | International
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable segment revenues									18,316	15,485	15,253
Reportable Segment | Baskin-Robbins | United States
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable segment revenues									42,152	42,074	43,455
Reportable Segment | Baskin-Robbins | International
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable segment revenues									$ 120,333	$ 101,975	$ 106,887

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Stockholders' Equity Share Repurchase (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended		12 Months Ended
	Oct. 31, 2013	Aug. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Equity, Class of Treasury Stock [Line Items]
Repurchased stock			648,000
Average cost per share			$ 43.14
Increase in treasury stock			$ 27,963	$ 450,369	$ 173
Stock Repurchased During Period, Third Party Fees		341
Stock Repurchased and Retired During Period, Shares	417,300	15,000,000
Stock Repurchased and Retired During Period, Price Per Share		$ 30.00
Stock Repurchased and Retired During Period, Value				450,400
Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Stock Repurchased and Retired During Period, Value	17,200			15
Additional paid-in capital
Equity, Class of Treasury Stock [Line Items]
Stock Repurchased and Retired During Period, Value	4,700			180,000	2,000
Accumulated deficit
Equity, Class of Treasury Stock [Line Items]
Stock Repurchased and Retired During Period, Value	$ 12,500			$ 270,300
Common Class L [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchased stock					3,266
Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Repurchased stock					23,624

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Leases - Rent Income (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Leases [Abstract]
Base rentals	$ 66,540	$ 67,988	$ 66,061
Contingent rentals	29,542	28,828	26,084
Total rental income	$ 96,082	$ 96,816	$ 92,145

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Derivative Instruments and Hedging Transactions - Derivative Effects (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest rate swaps, Amount of gain (loss) recognized in other comprehensive income (loss)	$ 9,648	$ (3,673)
Interest rate swaps, Amount of net gain (loss) reclassified into earnings	(3,382)	(864)
Interest rate swaps, Total effect on other comprehensive income (loss)	13,030	(2,809)
Income Tax Effect, Amount of gain (loss) recognized in other comprehensive income (loss)	(3,909)	1,509
Income tax effect, Amount of net gain (loss) reclassified into earnings	1,381	355
Income tax effect, Total effect on other comprehensive income (loss)	(5,290)	1,154	0
Net of income taxes, Amount of gain (loss) recognized in other comprehensive income (loss)	5,739	(2,164)
Net of income taxes, Amount of net gain (loss) reclassified into earnings	(2,001)	(509)
Net of income taxes, Total effect on other comprehensive income (loss)	$ 7,740	$ (1,655)	$ 0

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Commitments and Contingencies

12 Months Ended

Dec. 28, 2013

Text Block [Abstract]

Commitments and Contingencies

Commitments and contingencies

(a) Lease commitments

The Company is party to various leases for property, including land and buildings, leased automobiles, and office equipment under noncancelable operating and capital lease arrangements (see note 11).

(b) Guarantees

Financial Guarantees

The Company has established agreements with certain financial institutions whereby the Company’s franchisees can obtain financing with terms of approximately 3 to 10 years for various business purposes. Substantially all loan proceeds are used by the franchisees to finance store improvements, new store development, new central production locations, equipment purchases, related business acquisition costs, working capital, and other costs. In limited instances, the Company guarantees a portion of the payments and commitments of the franchisees, which is collateralized by the store equipment owned by the franchisee. Under the terms of the agreements, in the event that all outstanding borrowings come due simultaneously, the Company would be contingently liable for $3.0 million and $4.7 million at December 28, 2013 and December 29, 2012, respectively. At December 28, 2013 and December 29, 2012, there were no amounts under such guarantees that were due. The fair value of the guarantee liability and corresponding asset recorded on the consolidated balance sheets was $277 thousand and $309 thousand, respectively, at December 28, 2013 and $601 thousand and $572 thousand, respectively, at December 29, 2012. The Company assesses the risk of performing under these guarantees for each franchisee relationship on a quarterly basis. As of December 29, 2012, the Company had recorded reserves for such guarantees of $389 thousand. No reserves were recorded as of December 28, 2013.

Supply Chain Guarantees

In 2012, the Company entered into a third-party guarantee with a distribution facility of franchisee products that guarantees franchisees would sell a certain volume of cooler beverages each year over a 4-year period. During the second quarter of fiscal year 2013, the Company determined that the franchisees will not achieve the required sales volume, and therefore, the Company accrued the maximum guarantee under the agreement of $7.5 million, which is included in other current liabilities in the consolidated balance sheets and general and administrative expenses, net in the consolidated statements of operations. The Company expects to make the required guarantee payment during the first quarter of 2014. No additional guarantee payments will be required under the agreement.

The Company has also entered into a third-party guarantee with this distribution facility of franchisee products that ensures franchisees will purchase a certain volume of product over a 10-year period. As product is purchased by the Company’s franchisees over the term of the agreement, the amount of the guarantee is reduced. As of December 28, 2013 and December 29, 2012, the Company was contingently liable for $5.7 million and $6.8 million, respectively, under this guarantee. Additionally, the Company has various supply chain contracts that provide for purchase commitments or exclusivity, the majority of which result in the Company being contingently liable upon early termination of the agreement or engaging with another supplier. As of December 28, 2013 and December 29, 2012, we were contingently liable under such supply chain agreements for approximately $52.6 million and $57.5 million, respectively. The Company assesses the risk of performing under each of these guarantees on a quarterly basis, and, considering various factors including internal forecasts, prior history, and ability to extend contract terms, we have accrued $906 thousand related to these commitments as of December 28, 2013, which is included in other current liabilities in the consolidated balance sheets. There were no amounts accrued as of December 29, 2012.

Lease Guarantees

As a result of assigning our interest in obligations under property leases as a condition of the refranchising of certain restaurants and the guarantee of certain other leases, we are contingently liable on certain lease agreements. These leases have varying terms, the latest of which expires in 2024. As of December 28, 2013 and December 29, 2012, the potential amount of undiscounted payments the Company could be required to make in the event of nonpayment by the primary lessee was $6.4 million and $5.6 million, respectively. Our franchisees are the primary lessees under the majority of these leases. The Company generally has cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of nonpayment under the lease. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases. Accordingly, we do not believe it is probable that the Company will be required to make payments under such leases, and we have not recorded a liability for such contingent liabilities.

(c) Letters of credit

At December 28, 2013 and December 29, 2012, the Company had standby letters of credit outstanding for a total of $3.0 million and $11.5 million, respectively. There were no amounts drawn down on these letters of credit.

(d) Legal matters

In May 2003, a group of Dunkin’ Donuts franchisees from Quebec, Canada filed a lawsuit against the Company on a variety of claims, based on events which primarily occurred 10 to 15 years ago, including but not limited to, alleging that the Company breached its franchise agreements and provided inadequate management and support to Dunkin’ Donuts franchisees in Quebec (“Bertico litigation”). On June 22, 2012, the Quebec Superior Court found for the plaintiffs and issued a judgment against the Company in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest, representing loss in value of the franchises and lost profits. During the second quarter of 2012, the Company increased its estimated liability related to the Bertico litigation by $20.7 million to reflect the judgment amount and estimated plaintiff legal costs and interest. During fiscal years 2013 and 2012, the Company accrued additional interest on the judgment amount of $952 thousand and $493 thousand, respectively, resulting in an estimated liability of $25.1 million, including the impact of foreign exchange, as of December 28, 2013. The Company strongly disagrees with the decision reached by the Court and believes the damages awarded were unwarranted. As such, the Company is vigorously appealing the decision.

The Company is engaged in several matters of litigation arising in the ordinary course of its business as a franchisor. Such matters include disputes related to compliance with the terms of franchise and development agreements, including claims or threats of claims of breach of contract, negligence, and other alleged violations by the Company. At December 28, 2013 and December 29, 2012, contingent liabilities, excluding the Bertico litigation, totaling $1.5 million were included in other current liabilities in the consolidated balance sheets to reflect the Company’s estimate of the potential loss which may be incurred in connection with these matters. While the Company intends to vigorously defend its positions against all claims in these lawsuits and disputes, it is reasonably possible that the losses in connection with all matters could increase by up to an additional $12.0 million based on the outcome of ongoing litigation or negotiations.

(e) Line of Credit to Distribution Facility

In May 2013, the Company provided a secured revolving line of credit to a distribution facility of franchisee products for an aggregate maximum principal amount of up to $8.0 million plus interest. The entire principal balance and accrued and unpaid interest is due June 1, 2014. The purpose of this line of credit is to provide funding for the purchase and storage of certain inventory, which was pledged as collateral under a security agreement entered into in connection with the line of credit agreement. Through December 28, 2013, no amounts have been drawn on this line of credit.

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 28, 2013 customer	Dec. 29, 2012 customer	Dec. 31, 2011 customer	Dec. 25, 2010
Significant Accounting Policies Additional Disclosures [Line Items]
Financial reporting and operating period, year	364 days	364 days
Financial reporting and operating period, quarter	91 days
Percentage of ownership	51.00%
Cash Held, Related to Advertising Funds and Girft Card/Certificate Programs	$ 134,500,000	$ 125,400,000
Carrying value of long term receivables	5,300,000	5,800,000
Carrying value of long term debt	1,823,609,000	1,849,958,000
Fair value of long term debt	1,836,212,000	1,878,980,000
Amortization period of unfavorable operating leases	17 years
Deferred financing costs	19,200,000	25,000,000
Income recognized on gift cards and gift ceritificate breakage	10,200,000	7,900,000	2,500,000
Number of customer that accounted for more than 10% of accounts and notes receivable	1	0
Concentration risk, percentage	17.00%
Number of customer that accounted for more than 10% of revenue	0	0	0
Cash and cash equivalents	256,933,000	252,618,000	246,715,000	134,100,000
Property and equipment, net	182,858,000	181,172,000
Maximum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Financial reporting and operating period, year			371 days
Baskin Robbins [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Income recognized on gift cards and gift ceritificate breakage	5,400,000	3,500,000
Building [Member] | Minimum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	20 years
Building [Member] | Maximum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	35 years
Leaseholds and Leasehold Improvements [Member] | Minimum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	5 years
Leaseholds and Leasehold Improvements [Member] | Maximum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	20 years
Equipment [Member] | Minimum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	3 years
Equipment [Member] | Maximum [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Useful life of property plant and equipment	10 years
Equity Method Investments [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Finite-lived intangible asset, useful life	14 years
Partnership [Member]
Significant Accounting Policies Additional Disclosures [Line Items]
Cash and cash equivalents	3,000,000
Property and equipment, net	$ 6,400,000

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 28, 2013

Equity [Abstract]

Changes in Class L Common Stock

The changes in Class L common stock were as follows (in thousands):

	Fiscal year ended
	December 31, 2011
	Shares		Amount
Common stock, Class L, beginning of year	22,995		$	840,582
Issuance of Class L common stock	65		2,270
Repurchases of Class L common stock	—		(113		)
Retirement of treasury stock	(194	)	—
Accretion of Class L preferred return	—		45,102
Conversion of Class L shares to common shares	(22,866	)	(887,841		)
Common stock, Class L, end of year	—		$	—

Changes in Components of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income were as follows (in thousands):

	Effect of foreign currency translation			Unrealized gains (losses) on interest rate swaps		Unrealized loss on pension adjustment		Other		Accumulated other comprehensive income
Balances at December 29, 2012	$	14,914		(1,655	)	(2,486	)	(1,632	)	9,141
Other comprehensive income (loss)	(14,909		)	7,740		(612	)	(21	)	(7,802	)
Balances at December 28, 2013	$	5		6,085		(3,098	)	(1,653	)	1,339

Schedule of Dividends Paid

During fiscal year 2013, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2013:
First quarter	$	0.19	$	20,191	February 20, 2013
Second quarter	0.19		20,259		June 6, 2013
Third quarter	0.19		20,257		September 4, 2013
Fourth quarter	0.19		20,301		November 26, 2013

During fiscal year 2012, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2012:
First quarter	$	0.15	$	18,046	March 28, 2012
Second quarter	0.15		18,068		May 16, 2012
Third quarter	0.15		18,075		August 24, 2012
Fourth quarter	0.15		15,880		November 14, 2012

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Leases - Future Minimum Rental Commitments to be Paid and Received (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Capital Leases, Future Minimum Payments Due, 2014	$ 1,031
Capital Leases, Future Minimum Payments Due, 2015	1,064
Capital Leases, Future Minimum Payments Due, 2016	1,068
Capital Leases, Future Minimum Payments Due, 2017	1,090
Capital Leases, Future Minimum Payments Due, 2018	1,106
Capital Leases, Future Minimum Payments Due Thereafter	6,655
Capital Leases, Future Minimum Payments Due	12,014
Capital Leases, Future Minimum Payments, Interest Included in Payments	4,586
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments	7,428
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating Leases, Future Minimum Payments Due, 2014	52,930
Operating Leases, Future Minimum Payments Due, 2015	51,710
Operating Leases, Future Minimum Payments Due, 2016	50,563
Operating Leases, Future Minimum Payments Due, 2017	50,467
Operating Leases, Future Minimum Payments Due, 2018	49,811
Operating Leases, Future Minimum Payments Due Thereafter	384,354
Operating Leases, Future Minimum Payments Due	639,835
Subleases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract]
Subleases, Future Minimum Payments Receivable, 2014	(61,929)
Subleases, Future Minimum Payments Receivable, 2015	(61,043)
Subleases, Future Minimum Payments Receivable, 2016	(61,026)
Subleases, Future Minimum Payments Receivable, 2017	(60,525)
Subleases, Future Minimum Payments Receivable Due, 2018	(59,305)
Subleases, Future Minimum Payments Receivable, Thereafter	(347,138)
Subleases, Future Minimum Payments Receivable	(650,966)
Net Leases, Future Minimum Payments Due (Receivable), Fiscal Year Maturity [Abstract]
Leases, Future Minimum Payments Due, Net of Subleases, 2014	(7,968)
Leases, Future Minimum Payments Due, Net of Subleases, 2015	(8,269)
Leases, Future Minimum Payments Due, Net of Subleases, 2016	(9,395)
Leases, Future Minimum Payments Due, Net of Subleases, 2017	(8,968)
Leases, Future Minimum Payments Due, Net of Subleases, 2018	(8,388)
Leases, Future Minimum Payments Due, Net of Subleases, Thereafter	43,871
Leases, Future Minimum Payments Due, Net of Subleases	$ 883

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Earnings Per Shares - Additional Information (Detail) (USD $)	1 Months Ended		12 Months Ended			0 Months Ended	7 Months Ended	12 Months Ended					0 Months Ended	12 Months Ended
	Aug. 31, 2012	Apr. 04, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Aug. 01, 2011 Common Class L [Member]	Aug. 01, 2011 Common Class L [Member]	Dec. 31, 2011 Common Class L [Member]		Dec. 29, 2012 Common Class L [Member]	Jul. 31, 2011 Common Class L [Member]	Dec. 25, 2010 Common Class L [Member]	Aug. 01, 2011 IPO [Member]	Dec. 31, 2011 Restricted Stock [Member]	Dec. 31, 2011 Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class L preference amount per annum							9.00%
Preferential distribution amounts accrued										$ 45,100,000
Stock split conversion ratio						$ 0.2189
Fair Value of Stock											95,110,000
Common stock, shares outstanding (in shares)			106,646,219	106,146,984				0		0	22,866,379	22,995,000
Stock Issued During Period Shares Conversion Of Common Stock, Excluding Preferential Distribution											5,005,775
Common stock price (in dollars per share)	$ 30.00	$ 29.50											$ 19.00
Undistributed Earnings Allocated To Participating Securities Basic			0	132,000	0
Undistributed Earnings Allocated To Participating Securities Diluted			$ 0	$ 111,000	$ 0
Weighted average number of shares outstanding, basic and diluted								22,845,378	[1]
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units			1,715,278	1,989,281
Anti-dilutive security excluded from calculation, restricted stock awards (in shares)			0	0										636,752	2,422,628
Out-of-the-money-stock-options excluded from calculation, common diluted earnings per share (in shares)			1,100,275	805,015

[1] The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal year 2011 represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares into common shares. There were no Class L common stock equivalents outstanding during fiscal year 2011.

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Debt (Tables)

12 Months Ended

Dec. 28, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Debt at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Term loans	$	1,823,609	1,849,958
Less current portion of long-term debt	5,000		26,680
Total long-term debt	$	1,818,609	1,823,278

Schedule of Maturities of Long-term Debt

However, considering the February 2014 amendment to the senior credit facility and voluntary prepayments made, the aggregate contractual maturities of long-term debt for 2014 through 2018 are as follows (in thousands):

	2017 Term Loans		2021 Term Loans	Total
2014	$	3,375	—	3,375
2015	4,500		10,342	14,842
2016	4,500		13,789	18,289
2017	437,625		13,789	451,414
2018	—		13,789	13,789

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Franchise Fees and Royalty Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Disclosure Franchise Fees And Royalty Income [Abstract]
Royalty income	$ 411,428	$ 385,713	$ 363,458
Initial franchise fees and renewal income	42,548	33,227	35,016
Total franchise fees and royalty income	$ 453,976	$ 418,940	$ 398,474

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Debt - Senior Notes (Details) (USD $)	3 Months Ended	12 Months Ended		12 Months Ended
	Mar. 30, 2013	Dec. 29, 2012	Dec. 28, 2013	Dec. 29, 2012 Senior Notes [Member] Senior Notes 9.625% Due December 2018 [Member]	Nov. 30, 2010 Senior Notes [Member] Senior Notes 9.625% Due December 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount					$ 625,000,000
Debt Instrument, Interest Rate, Stated Percentage					9.625%
Debt issuance discount			4,600,000		9,400,000
Debt issuance costs					15,600,000
Amortization of Financing Costs				1,000,000
Early Repayment of Senior Debt				250,000,000
Gains (Losses) on Extinguishment of Debt				(26,000,000)
Write off of Deferred Debt Issuance Cost	3,900,000	477,000		22,800,000
Other debt extinguishment and refinancing expense	$ 1,100,000	$ 7,700,000		$ 3,200,000

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Closure of Manufacturing Plant - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012
Restructuring Cost and Reserve [Line Items]
Cost related to plant closure	$ 12,600,000
Other costs related to closing of plant		1,900,000
Costs incurred and charged to expense	654,000	11,900,000
Accelerated depreciation on property, plant and equipment related to closing of plant		4,200,000
Incremental ice cream production costs related to plant closing		2,700,000
Ongoing Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Termination benefits cost related to closing of plant		2,000,000
Restructuring reserve		636,000
One-time Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Termination benefits cost related to closing of plant		1,100,000
Restructuring reserve		55,000
Pension Plan Settlements [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Expected reduction in operating income related to plant closing and transition	3,000,000
Pension Plan Settlements [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Expected reduction in operating income related to plant closing and transition	$ 4,000,000

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Equity method investments Textuals (Details) (USD $)	12 Months Ended			1 Months Ended				3 Months Ended	12 Months Ended			3 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Jun. 29, 2013 Australia Joint Venture [Member]	Sep. 28, 2013 Australia Joint Venture [Member]	Dec. 28, 2013 BR Japan [Member]	Dec. 29, 2012 BR Japan [Member]	Dec. 31, 2011 BR Korea [Member]	Dec. 28, 2013 BR Korea [Member]	Dec. 29, 2012 BR Korea [Member]	Dec. 31, 2011 BR Korea [Member]	Sep. 28, 2013 Coffee Alliance, S.L. [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of ownership sold				80.00%
Gain from sale of franchising business				$ 6,300,000
Proceeds from sale of franchising business				6,500,000
Carrying value of franchise business sold				216,000
Unpaid transaction-related costs					146,000
Ownership percentage					20.00%	43.30%	43.30%		33.30%	33.30%
Aggregate value of investment						163,900,000
Expense from equity method investments	505,000	689,000	868,000
Allowance for doubtful notes and accounts receivable, related party												2,800,000
Impairment charge related to equity method investments	873,000	0	19,752,000					19,800,000				873,000
Reduction of depreciation and amortization									$ 2,000,000	$ 3,600,000	$ 1,000,000

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Related-Party Transactions (Tables)

12 Months Ended

Dec. 28, 2013

Disclosure Related Party Transactions [Abstract]

Related Party Transactions

The Company recognized royalty income from its equity method investments as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
BR Japan	$	2,097	2,549	2,473
BR Korea	4,156		3,662	3,371
Spain JV	130		—	—
	$	6,383	6,211	5,844

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Description of Business and Organization

12 Months Ended

Dec. 28, 2013

Text Block [Abstract]

Description of Business and Organization

Description of business and organization

Dunkin’ Brands Group, Inc. (“DBGI”), together with its consolidated subsidiaries, is one of the world’s largest franchisors of restaurants serving coffee and baked goods, as well as ice cream, within the quick service restaurant segment of the restaurant industry. We develop, franchise, and license a system of both traditional and nontraditional quick service restaurants and, in limited circumstances, own and operate individual locations. Through our Dunkin’ Donuts brand, we develop and franchise restaurants featuring coffee, donuts, bagels, breakfast sandwiches, and related products. Through our Baskin-Robbins brand, we develop and franchise restaurants featuring ice cream, frozen beverages, and related products. Additionally, we distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international markets.

Throughout these consolidated financial statements, “Dunkin’ Brands,” “the Company,” “we,” “us,” “our,” and “management” refer to DBGI and its consolidated subsidiaries taken as a whole.

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Goodwill and Other Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Goodwill [Roll Forward]
Goodwill	$ 1,186,076	$ 1,186,378	$ 1,185,470
Accumulated impairment charges	(294,478)	(294,478)	(294,478)
Goodwill acquired	(260)	895
Effects of foreign currency adjustments	(42)	13
Net Balance	891,598	891,900	890,992
Dunkin' Donuts U.S. [Member]
Goodwill [Roll Forward]
Goodwill	1,151,775	1,152,035	1,151,140
Accumulated impairment charges	(270,441)	(270,441)	(270,441)
Goodwill acquired	(260)	895
Effects of foreign currency adjustments	0	0
Net Balance	881,334	881,594	880,699
Dunkin Donuts International [Member]
Goodwill [Roll Forward]
Goodwill	10,264	10,306	10,293
Accumulated impairment charges	0	0	0
Goodwill acquired	0	0
Effects of foreign currency adjustments	(42)	13
Net Balance	10,264	10,306	10,293
Baskin-Robbins International [Member]
Goodwill [Roll Forward]
Goodwill	24,037	24,037	24,037
Accumulated impairment charges	(24,037)	(24,037)	(24,037)
Goodwill acquired	0	0
Effects of foreign currency adjustments	0	0
Net Balance	$ 0	$ 0	$ 0

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Equity Incentive Plans (Tables)

12 Months Ended

Dec. 28, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share based compensation expense

Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Restricted shares	$	3	132	2,739
2006 Plan stock options—executive	977		4,245	1,626
2006 Plan stock options—nonexecutive	162		181	202
2011 Plan stock options	4,668		2,026	32
Restricted stock units	1,513		336	33
Total share-based compensation	$	7,323	6,920	4,632
Total related tax benefit	$	2,958	2,768	1,852

Summary of valuation assumptions

The following weighted average assumptions were utilized in determining the fair value of executive options granted during fiscal years 2011:

	Fiscal year ended(1)
	December 31, 2011
Weighted average grant-date fair value of share options granted	$6.27
Significant assumptions:
Tranche 4 options:
Risk-free interest rate	2.1%–2.7%
Expected volatility	47.0%–72.0%
Dividend yield	—
Expected term (years)	6.5
Tranche 5 options:
Risk-free interest rate	2.3%–3.2%
Expected volatility	47.0%–72.0%
Dividend yield	—

(1) The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2012 and 2013.

The following weighted average assumptions were utilized in determining the fair value of nonexecutive and 2011 Plan options granted during fiscal years 2013, 2012, and 2011:

	Fiscal year ended
	December 28, 2013	December 29, 2012	December 31, 2011
Weighted average grant-date fair value of share options granted	9.92	10.65	10.27
Weighted average assumptions:
Risk-free interest rate	1.2%	0.8%-1.4%	1.2%-2.7%
Expected volatility	33.0%	43.0%	43.0%-72.0%
Dividend yield	2.0%	1.8%-2.1%	—
Expected term (years)	6.25	6.25	6.25-6.5

Summary of status of nonexecutive and 2011 Plan options

A summary of the status of the Company’s executive stock options as of December 28, 2013 and changes during fiscal year 2013 are presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	3,331,993		$	3.85	7.3
Exercised	(932,519	)	3.68
Forfeited or expired	(193,527	)	7.15
Share options outstanding at December 28, 2013	2,205,947		3.64		6.3	$	97.3
Share options exercisable at December 28, 2013	1,067,692		3.29		6.2	47.5

A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 28, 2013 and changes during fiscal year 2013 is presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	1,295,356		$	24.34	8.8
Granted	1,177,999		37.26
Exercised	(207,679	)	21.93
Forfeited or expired	(246,526	)	29.92
Share options outstanding at December 28, 2013	2,019,150		31.45		8.5	$	32.9
Share options exercisable at December 28, 2013	279,932		20.08		7.3	7.7

Summary of changes in resticted shares

A summary of the changes in the Company’s restricted shares during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted shares at December 29, 2012	1,049		$	5.44
Granted	—		—
Vested	(1,049	)	5.44
Forfeited	—		—
Nonvested restricted shares at December 28, 2013	—		—

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of changes in resticted shares

A summary of the changes in the Company’s restricted stock units during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted stock units at December 29, 2012	22,204		$	31.21
Granted	94,495		37.87
Vested	(12,655	)	35.44
Forfeited	(1,073	)	37.27
Nonvested restricted stock units at December 28, 2013	102,971		37.20

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Allowance for Doubtful Accounts

12 Months Ended

Dec. 28, 2013

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Allowance for Doubtful Accounts

Allowance for doubtful accounts

The changes in the allowance for doubtful accounts were as follows (in thousands):

	Accounts receivable			Short-term notes and other receivables		Long-term notes and other receivables
Balance at December 25, 2010	$	5,518		2,443		—
Provision for doubtful accounts, net	745			1,274		—
Write-offs and other	(3,550		)	(1,396	)	—
Balance at December 31, 2011	2,713			2,321		—
Provision for (recovery of) doubtful accounts, net	513			(1,055	)	—
Write-offs and other	(743		)	(62	)	—
Balance at December 29, 2012	2,483			1,204		—
Provision for (recovery of) doubtful accounts, net	1,015			(339	)	2,808
Write-offs and other	(899		)	(206	)	—
Balance at December 28, 2013	$	2,599		659		2,808

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Closure of Manufacturing Plant

12 Months Ended

Dec. 28, 2013

Disclosure Closure Of Manufacturing Plant Additional Information [Abstract]

Closure of Manufacturing Plant

Closure of manufacturing plant

During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, which supplied ice cream to certain of Baskin-Robbins' international markets. Manufacturing of ice cream products that had been produced in Peterborough began transitioning to existing third-party partner suppliers during the third quarter of 2012, and production ceased at the plant at the end of September 2012. The majority of the costs and activities related to the closure of the plant and transition to third-party suppliers occurred in fiscal year 2012, with the exception of the settlement of our Canadian pension plan, which is subject to government approval that may not be obtained until 2014.

The Company recorded cumulative costs related to the plant closure of $12.6 million, of which, $654 thousand and $11.9 million were recorded in fiscal years 2013 and 2012, respectively. Costs recorded in fiscal year 2012 included $4.2 million of accelerated depreciation on property, plant, and equipment, $2.7 million of incremental ice cream production costs, $2.0 million of ongoing termination benefits, $1.1 million of one-time termination benefits, and $1.9 million of other costs related to the closing and transition. The accelerated depreciation and the incremental ice cream production costs are included in depreciation and cost of ice cream products, respectively, in the consolidated statements of operations, while all other costs are included in general and administrative expenses, net in the consolidated statements of operations. The Company also expects to incur additional costs of approximately $3.0 million to $4.0 million primarily related to the settlement of our Canadian pension plan upon final government approval.

As of December 29, 2012, the Company had recorded reserves for ongoing termination benefits and one-time termination benefits of $636 thousand and $55 thousand, respectively, substantially all of which were paid during fiscal year 2013.

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Income Taxes - Components of Provision (Benefit) For Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Current:
Federal	$ 70,696	$ 52,657	$ 34,282
State	11,758	6,065	5,733
Foreign	2,521	2,601	3,719
Current tax provision	84,975	61,323	43,734
Deferred:
Federal	(11,915)	(5,071)	(11,567)
State	(984)	4,373	892
Foreign	(292)	(6,248)	(688)
Deferred tax benefit	(13,191)	(6,946)	(11,363)
Provision for income taxes	$ 71,784	$ 54,377	$ 32,371

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Property and Equipment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 288,692	$ 290,919
Accumulated depreciation and amortization	(105,834)	(109,747)
Property and equipment, net	182,858	181,172
Impairment charges on leasehold improvements	119	319	1,400
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	34,052	31,080
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	47,946	45,447
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	154,491	158,797
Store, production, and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	43,124	50,046
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,079	$ 5,549

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Earnings per Share (Tables)

12 Months Ended

Dec. 28, 2013

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share

The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Net income attributable to Dunkin' Brands—basic and diluted	$	146,903	108,308	34,442
Allocation of net income (loss) to common stockholders(1):
Class L—basic and diluted	n/a		n/a	140,212
Common—basic(2)	$	146,903	108,176	(105,770		)
Common—diluted(2)	146,903		108,197	(105,770		)
Weighted average number of common shares—basic and diluted:
Class L—basic and diluted(3)	n/a		n/a	22,845,378
Common—basic	106,501,733		114,584,063	74,835,697
Common—diluted(4)	108,217,011		116,573,344	74,835,697
Earnings (loss) per common share:
Class L—basic	n/a		n/a	$	6.14
Common—basic	$	1.38	0.94	(1.41		)
Common—diluted	1.36		0.93	(1.41		)

(1) As the Company had both Class L and common stock outstanding during fiscal year 2011, and Class L had preference with respect to all distributions, earnings per share was calculated using the two-class method, which requires the allocation of earnings to each class of common stock. The numerator in calculating Class L basic and diluted earnings per share is the Class L preference amount accrued at 9% per annum during fiscal year 2011 plus, if positive, a pro rata share of an amount equal to consolidated net income less the Class L preference amount. The Class L preferential distribution amount accrued was $45.1 million during fiscal year 2011. The Class L shares converted into common stock immediately prior to the Company’s initial public offering that was completed on August 1, 2011. The numerator in calculating the Class L basic and diluted earnings per share for fiscal year 2011 includes an amount representing the excess of the fair value of the consideration transferred to the Class L shareholders upon conversion to common stock over the carrying amount of the Class L shares at the date of conversion, which occurred immediately prior to the Company’s initial public offering. As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as follows:

Class L shares outstanding immediately prior to the initial public offering	22,866,379
Number of common shares received for each Class L share	0.2189
Common stock received by Class L shareholders, excluding preferential distribution	5,005,775
Common stock fair value per share (initial public offering price per share)	$	19.00
Fair value of Class L base shares (in thousands)	$	95,110

(2) Net income allocated to common shareholders for the fiscal year 2012 excludes $132 thousand and $111 thousand for basic and diluted earnings per share, respectively, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for fiscal year 2013 as all restricted shares were fully vested as of December 28, 2013, and no net loss was allocated to participating securities for fiscal year 2011 as the participating securities do not participate in losses.

(3) The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal year 2011 represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares into common shares. There were no Class L common stock equivalents outstanding during fiscal year 2011.

(4) The weighted average number of common shares in the common diluted earnings per share calculation for fiscal years 2013 and 2012 includes the dilutive effect of 1,715,278 and 1,989,281, respectively, restricted shares and stock options, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all performance-based restricted stock awards and stock options outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no common restricted stock awards that were performance-based and for which the performance criteria were not yet met. As of December 31, 2011, there were approximately 636,752 common restricted stock awards and 2,422,628 options to purchase common stock that were performance-based and for which the performance criteria was not yet met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes stock options of 1,100,275 and 805,015 for fiscal years 2013 and 2012, respectively, as they would be antidilutive. The weighted average number of common shares in the common diluted earnings per share calculation for fiscal year 2011 excludes all restricted stock and stock options outstanding, as they would be antidilutive.

Calculation fo Fair Value of Shares

As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as follows:

Class L shares outstanding immediately prior to the initial public offering	22,866,379
Number of common shares received for each Class L share	0.2189
Common stock received by Class L shareholders, excluding preferential distribution	5,005,775
Common stock fair value per share (initial public offering price per share)	$	19.00
Fair value of Class L base shares (in thousands)	$	95,110

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Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 28, 2013

Income Statement [Abstract]

Quarterly Financial Data (unaudited)

Quarterly financial data (unaudited)

	Three months ended
	March 30, 2013		June 29, 2013	September 28, 2013	December 28, 2013
	(In thousands, except per share data)
Total revenues	$	161,858	182,488	186,317	183,177
Operating income	63,459		76,805	82,237	82,235
Net income attributable to Dunkin' Brands	23,798		40,812	40,221	42,072
Earnings per share:
Common – basic	0.22		0.38	0.38	0.39
Common – diluted	0.22		0.38	0.37	0.39

	Three months ended
	March 31, 2012		June 30, 2012	September 29, 2012	December 29, 2012
	(In thousands, except per share data)
Total revenues	$	152,372	172,387	171,719	161,703
Operating income(1)	55,195		46,138	70,345	67,751
Net income attributable to Dunkin' Brands(1)	25,950		18,497	29,526	34,335
Earnings per share(1):
Common – basic	0.22		0.15	0.26	0.32
Common – diluted	0.21		0.15	0.26	0.32

(1) The second quarter of fiscal year 2012 includes a $20.7 million incremental legal reserve related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest (see note 17(d)).

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 28, 2013

Accounting Policies [Abstract]

Fiscal Year

Fiscal year

The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2013 and 2012 reflect the results of operations for the 52-week periods ended December 28, 2013 and December 29, 2012, respectively, and fiscal year 2011 reflects the results of operations for the 53-week period ended December 31, 2011.

Basis of Presentation and Consolidation

Basis of presentation and consolidation

The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries have been eliminated in consolidation.

We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities, the advertising funds (see note 4), and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method or are otherwise consolidated. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchise entities. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees (see note 17(b)), and future lease payments due from franchisees (see note 11).

The Company holds a 51% interest in a limited partnership that owns and operates Dunkin' Donuts restaurants in the Dallas, Texas area. The Company possesses control of this entity and, therefore, consolidates the results of the limited partnership. During fiscal year 2013, the Company amended the partnership agreement with the noncontrolling owners to provide the noncontrolling owners the option in early 2017 to sell their entire interest to the Company. As a result of the amendment, the partnership agreement now contains a redemption feature that is not currently redeemable, but it is probable to become redeemable in the future. As such, the Company reclassified the noncontrolling interests in fiscal year 2013 to temporary equity (between liabilities and stockholders’ equity) in the consolidated balance sheets. The net loss and comprehensive loss attributable to the noncontrolling interest are presented separately in the consolidated statements of operations and comprehensive income, respectively. As of December 28, 2013, the consolidated balance sheets included $3.0 million of cash and cash equivalents and $6.4 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership.

Accounting Estimates

Accounting estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) income taxes, (d) real estate reserves, (e) lease accounting estimates, (f) gift certificate breakage, and (g) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. Illiquid credit markets and volatile equity and foreign currency markets have combined to increase the uncertainty inherent in such estimates and assumptions.

Cash and Cash Equivalents and Restricted Cash

Cash and cash equivalents and restricted cash

The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2013 and December 29, 2012, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents.

Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 28, 2013 and December 29, 2012 were $134.5 million and $125.4 million, respectively.

Fair Value of Financial Instruments

Fair value of financial instruments

The carrying amounts of accounts receivable, notes and other receivables, assets and liabilities related to the advertising funds, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $5.3 million and $5.8 million as of December 28, 2013 and December 29, 2012, respectively, approximates fair value.

Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Financial assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 and December 29, 2012 are summarized as follows (in thousands):

	December 28, 2013				December 29, 2012
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)	Total	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Total
Assets:
Mutual funds	$	1,012	—	1,012	2,505	—	2,505
Interest rate swaps	—		10,221	10,221	—	—	—
Total assets	$	1,012	10,221	11,233	2,505	—	2,505
Liabilities:
Deferred compensation liabilities	$	—	7,181	7,181	—	7,379	7,379
Interest rate swaps	—		—	—	—	2,809	2,809
Total liabilities	$	—	7,181	7,181	—	10,188	10,188

The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees (see note 18). Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds mutual funds, as well as money market funds, to partially offset the Company’s liabilities under the NQDC Plan as well as other benefit plans. The changes in the fair value of the mutual funds are derived using quoted prices in active markets for the specific funds. As such, the mutual funds are classified within Level 1, as defined under U.S. GAAP.

The Company uses readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives includes consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input, as defined under U.S. GAAP. As the magnitude of the CVA is not a significant component of the fair value of the interest rate swaps as of December 28, 2013, it is not considered a significant input and the derivatives are classified as Level 2.

The carrying value and estimated fair value of long-term debt at December 28, 2013 and December 29, 2012 were as follows (in thousands):

	December 28, 2013			December 29, 2012
Financial liabilities	Carrying value		Estimated fair value	Carrying value	Estimated fair value
Term loans	$	1,823,609	1,836,212	1,849,958	1,878,980

The estimated fair value of our term loans is based on current bid prices for our term loans. Judgment is required to develop these estimates. As such, our term loans are classified within Level 2, as defined under U.S. GAAP.

Inventories

Inventories

Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. Inventories are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets.

Assets Held for Sale

Assets held for sale

Assets held for sale primarily represent costs incurred by the Company for store equipment and leasehold improvements constructed for sale to franchisees, as well as restaurants formerly operated by franchisees waiting to be resold. The value of such restaurants and related assets is reduced to reflect net recoverable values, with such reductions recorded to general and administrative expenses, net in the consolidated statements of operations. Generally, internal specialists estimate the amount to be recovered from the sale of such assets based on their knowledge of the (a) market in which the store is located, (b) results of the Company’s previous efforts to dispose of similar assets, and (c) current economic conditions. The actual cost of such assets held for sale is affected by specific factors such as the nature, age, location, and condition of the assets, as well as the economic environment and inflation.

We classify restaurants and their related assets as held for sale and suspend depreciation and amortization when (a) we make a decision to refranchise or sell the property, (b) the stores are available for immediate sale, (c) we have begun an active program to locate a buyer, (d) significant changes to the plan of sale are not likely, and (e) the sale is probable within one year.

Property and Equipment

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows:

	Years
Buildings	20 – 35
Leasehold improvements	5 – 20
Store, production, and other equipment	3 – 10

Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated.

Leases

Leases

When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term.

We record rent expense and rent income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rent income and rent expense as they are earned or accrued, respectively.

We occasionally provide to our sublessees, or receive from our landlords, tenant improvement dollars. Tenant improvement dollars paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement dollars from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively.

Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and charged to operations at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(j)).

Impairment of Long-Lived Assets

Impairment of long-lived assets

Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, by independent third-party valuation specialists, depending on the nature of the assets or asset group.

Equity method investments

Equity method investments

The Company's equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“BR Japan”), BR-Korea Co., Ltd. (“BR Korea”), Coffee Alliance, S.L. (“Spain JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. As a result of the acquisition of the Company by BCT (see note 19(a)) on March 1, 2006 (“BCT Acquisition”), the Company has recorded a step-up in the basis of our investment in BR Japan. The basis difference is comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill. The franchise rights and related tax liabilities are amortized in a manner that reflects the estimated benefits from the use of the intangible asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets

Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them.

We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired.

Other intangible assets consist primarily of franchise and international license rights (“franchise rights”), ice cream distribution and territorial franchise agreement license rights (“license rights”), and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights, license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method.

Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 17 years.

Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(j)), or when such license or lease agreements are reduced or terminated.

Contingencies

Contingencies

The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred.

Foreign Currency Translation

Foreign currency translation

We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of comprehensive income and stockholders’ equity, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, and Spain. Business transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations.

Revenue Recognition

Revenue recognition

Franchise fees and royalty income

Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. Our franchise agreements and SDAs typically require the franchisee to pay an initial nonrefundable fee and continuing fees, or royalty income, based upon a percentage of sales. The franchisee will typically pay us a renewal fee if we approve a renewal of the franchise agreement. Such fees are paid by franchisees to obtain the rights associated with these franchise agreements or SDAs. Initial franchise fee revenue is recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned, with deferred amounts expected to be recognized as revenue within one year classified as current deferred income in the consolidated balance sheets. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise agreement, SDA, or renewal agreement and, when appropriate, records the costs of such programs as reductions of revenue.

For our international business, we sell master territory and/or license agreements that typically allow the master licensee to either act as the franchisee or to sub-franchise to other operators. Master license and territory fees are generally recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the first restaurant or as stores are opened, depending on the specific terms of the agreement. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which generally occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee or licensee becomes effective.

Rental income

Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid (see note 2(i)). The difference between the straight-line rent amounts and amounts receivable under the leases is recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Deferred contingent rentals are recorded as deferred income in current liabilities in the consolidated balance sheets.

Sales of ice cream products

We distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international locations. Revenue from the sale of ice cream products is recognized when title and risk of loss transfers to the buyer, which was generally upon shipment through November 2012. Beginning in December 2012, title and risk of loss generally transfers to the buyer upon delivery.

Sales at company-owned restaurants

Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes.

Other revenues

Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of our restaurants to new or existing franchisees. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity, and we are satisfied that the buyer can meet its financial obligations to us. If the criteria for gain recognition are not met, we defer the gain to the extent we have any remaining financial exposure in connection with the sale transaction. Deferred gains are recognized when the gain recognition criteria are met.

Allowance for doubtful accounts

Allowance for doubtful accounts

We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, lease, and licensing fee receivables.

Share-Based Payment

Share-based payment

We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award.

Income Taxes

Income taxes

Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets.

A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes.

Comprehensive Income

Comprehensive income

Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, unrealized gains and losses on interest rate swaps, and unrealized pension gains and losses, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented.

Deferred Financing Costs

Deferred financing costs

Deferred financing costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8). As of December 28, 2013 and December 29, 2012, deferred financing costs of $19.2 million and $25.0 million, respectively, are included in other assets in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt using the effective interest rate method

Derivative Instruments and Hedging Activities

Derivative instruments and hedging activities

The Company uses derivative instruments to hedge interest rate risks. These derivative contracts are entered into with financial institutions. The Company does not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the consolidated statements of operations immediately. See note 9 for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information.

Gift Card/Certificate Breakage

Gift card/certificate breakage

The Company and our franchisees sell gift cards that are redeemable for product in our Dunkin' Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets.

There are no expiration dates on our gift cards, and we do not charge any service fees. While our franchisees continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, we may recognize income from unredeemed gift cards (“breakage income”) if they are not subject to unclaimed property laws. Based on redemption data available, breakage income for gift cards was generally recognized five years from the last date of activity on the card through the first quarter of fiscal year 2013. During the second quarter of fiscal year 2013, the Company determined that sufficient historical redemption patterns existed to revise breakage estimates related to unredeemed Dunkin’ Donuts gift cards. Based on historical redemption rates, breakage on Dunkin' Donuts gift cards is now estimated and recognized over time in proportion to actual gift card redemptions. The Company recognizes breakage as income only up to the amount of gift card program costs incurred. Any incremental breakage that exceeds gift card program costs has been committed to franchisees to fund future initiatives that will benefit the gift card program, and is recorded as gift card breakage liability within other current liabilities in the consolidated balance sheets (see note 10).

For fiscal years 2013, 2012, and 2011, total breakage income recognized on gift cards, as well as historical gift certificate programs, was $10.2 million, $7.9 million, and $2.5 million, respectively, and is recorded as a reduction to general and administrative expenses, net. Breakage income for fiscal year 2013 includes a $5.4 million recovery of historical Dunkin' Donuts gift card program costs incurred prior to fiscal year 2013. Breakage income for fiscal year 2012 includes $3.5 million related to historical Baskin-Robbins gift certificates as a result of shifting to gift cards, and represents the balance of gift certificates for which the Company believes the likelihood of redemption by the customer is remote based on historical redemption patterns.

Concentration of Credit Risk

Concentration of credit risk

The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. At December 28, 2013, one master licensee and majority owned subsidiaries of the master licensee accounted for approximately 17% of total accounts and notes receivable, which was due primarily to the timing of orders and shipments of ice cream to the master licensee. At December 29, 2012, no individual franchisee or master licensee accounted for more than 10% of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for the fiscal years ended 2013, 2012, or 2011.

Recent Accounting Pronouncements

Recent accounting pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires presentation of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This guidance is effective for the Company in fiscal year 2014 with early adoption permitted. The Company has not adopted this guidance as of December 28, 2013, and does not expect the adoption of this guidance to have any impact on the Company's consolidated financial statements.

In February 2013, the FASB issued new guidance which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2011, the FASB issued guidance which enhanced existing disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. In January 2013, the FASB issued new guidance to clarify that the guidance issued in December 2011 on offsetting financial assets and financial liabilities was limited to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria or subject to a master netting arrangement or similar agreement. It further clarifies that ordinary trade receivables and other receivables are not in the scope of the existing guidance. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

Reclassifications

Reclassifications

The Company has revised the presentation of certain captions for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The revisions had no impact on net cash provided by (used in) operating, investing, or financing activities.

Subsequent Events

Subsequent events

Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income including noncontrolling interests	$ 146,304	$ 107,624	$ 34,442
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	49,366	56,027	52,522
Amortization of deferred financing costs and original issue discount	4,706	5,727	6,278
Loss on debt extinguishment and refinancing transactions	5,018	3,963	34,222
Impact of unfavorable operating leases acquired	(2,177)	(2,352)	(3,230)
Deferred income taxes	(13,191)	(6,946)	(11,363)
Long-lived asset impairment charges	563	1,278	2,060
Provision for (recovery of) bad debt	3,484	(542)	2,019
Share-based compensation expense	7,323	6,920	4,632
Net loss (income) of equity method investments	(18,370)	(22,351)	3,475
Dividends received from equity method investments	7,226	6,497	7,362
Gain on sale of joint venture	(6,320)	0	0
Other, net	(2,268)	(845)	(2,633)
Change in operating assets and liabilities:
Accounts, notes, and other receivables, net	(27,444)	6,321	19,123
Other current assets	1,879	(1,480)	4,406
Accounts payable	46	2,804	85
Other current liabilities	8,163	38,767	17,904
Liabilities of advertising funds, net	4,795	(5,688)	(3,572)
Income taxes payable, net	(27,847)	(38,928)	473
Deferred income	(842)	(1,491)	(5,658)
Other, net	1,385	(885)	156
Net cash provided by operating activities	141,799	154,420	162,703
Cash flows from investing activities:
Additions to property and equipment	(31,099)	(22,398)	(18,596)
Proceeds from sale of joint venture	6,682	0	0
Other, net	1,511	(549)	(1,211)
Net cash used in investing activities	(22,906)	(22,947)	(19,807)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		396,000	250,000
Repayment of long-term debt	(24,157)	(15,441)	(654,608)
Payment of deferred financing and other debt-related costs	(6,157)	(5,978)	(20,087)
Proceeds from initial public offering, net of offering costs	0	0	389,961
Repurchases of common stock	(27,963)	(450,369)	(286)
Dividends paid on common stock	(81,008)	(70,069)	0
Exercise of stock options	7,963	4,418	266
Excess tax benefits from share-based compensation	15,366	11,978	1,494
Other, net	1,782	3,859	3,186
Net cash used in financing activities	(114,174)	(125,602)	(30,074)
Effect of exchange rate changes on cash and cash equivalents	(404)	32	(207)
Increase in cash and cash equivalents	4,315	5,903	112,615
Cash and cash equivalents, beginning of year	252,618	246,715	134,100
Cash and cash equivalents, end of year	256,933	252,618	246,715
Supplemental cash flow information:
Cash paid for income taxes	98,483	90,225	43,143
Cash paid for interest	78,127	54,115	103,147
Noncash investing activities:
Property and equipment included in accounts payable and other current liabilities	1,366	5,244	1,641
Purchase of leaseholds in exchange for capital lease obligations	$ 173	$ 2,818	$ 0

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2013

Accounting Policies [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 and December 29, 2012 are summarized as follows (in thousands):

	December 28, 2013				December 29, 2012
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)	Total	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Total
Assets:
Mutual funds	$	1,012	—	1,012	2,505	—	2,505
Interest rate swaps	—		10,221	10,221	—	—	—
Total assets	$	1,012	10,221	11,233	2,505	—	2,505
Liabilities:
Deferred compensation liabilities	$	—	7,181	7,181	—	7,379	7,379
Interest rate swaps	—		—	—	—	2,809	2,809
Total liabilities	$	—	7,181	7,181	—	10,188	10,188

Schedule of Carrying Values and Fair Values of Debt

The carrying value and estimated fair value of long-term debt at December 28, 2013 and December 29, 2012 were as follows (in thousands):

	December 28, 2013			December 29, 2012
Financial liabilities	Carrying value		Estimated fair value	Carrying value	Estimated fair value
Term loans	$	1,823,609	1,836,212	1,849,958	1,878,980

Property and Equipment

Estimated useful lives are as follows:

	Years
Buildings	20 – 35
Leasehold improvements	5 – 20
Store, production, and other equipment	3 – 10

Property and equipment at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013			December 29, 2012
Land	$	34,052		31,080
Buildings	47,946			45,447
Leasehold improvements	154,491			158,797
Store, production, and other equipment	43,124			50,046
Construction in progress	9,079			5,549
Property and equipment, gross	288,692			290,919
Accumulated depreciation and amortization	(105,834		)	(109,747	)
Property and equipment, net	$	182,858		181,172

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Segment Information Equity in Net Income of Joint Ventures Reportable Segment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Segment Reporting Disclosure [Line Items]
Net income (loss) of equity method investments	$ 18,370	$ 22,351	$ (3,475)
Other	1,977	3,562	(18,776)
Reportable Segment
Segment Reporting Disclosure [Line Items]
Net income (loss) of equity method investments	16,393	18,789	15,301
Reportable Segment | Dunkin' Donuts | International
Segment Reporting Disclosure [Line Items]
Net income (loss) of equity method investments	480	2,211	840
Reportable Segment | Baskin-Robbins | International
Segment Reporting Disclosure [Line Items]
Net income (loss) of equity method investments	$ 15,913	$ 16,578	$ 14,461

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Quarterly Financial Data - Textuals (Details) (Legal Claim One [Member]) In Millions, unless otherwise specified	1 Months Ended		3 Months Ended
	Jun. 22, 2012 USD ($)	Jun. 22, 2012 CAD	Jun. 29, 2013 Bertico Litigation [Member] USD ($)
Quarty Financial Data [Line Items]
Increase in estimated liability related to litigation			$ 20.7
Litigation judgment	$ 15.9	16.4

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Leases (Tables)

12 Months Ended

Dec. 28, 2013

Leases [Abstract]

Schedule of Capital Leased Assets

Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands):

	December 28, 2013			December 29, 2012
Leased property under capital leases (included in property and equipment)	$	7,888		7,902
Accumulated depreciation	(2,326		)	(2,003	)
Net leased property under capital leases	$	5,562		5,899
Capital lease obligations:
Current	$	432		371
Long-term	6,996			7,251
Total capital lease obligations	$	7,428		7,622

Leases of Lessor in Balance Sheet

Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands):

	December 28, 2013			December 29, 2012
Land	$	29,701		27,210
Buildings	41,721			39,242
Leasehold improvements	135,177			141,264
Store, production, and other equipment	146			149
Construction in progress	1,363			1,384
Assets leased to others, gross	208,108			209,249
Accumulated depreciation	(71,535		)	(71,100	)
Assets leased to others, net	$	136,573		138,149

Schedule of Future Minimum Retal Payments and Receipts for Capital and Operating Leases

Future minimum rental commitments to be paid and received by the Company at December 28, 2013 for all noncancelable leases and subleases are as follows (in thousands):

	Payments				Receipts Subleases		Net leases
	Capital leases		Operating leases
Fiscal year:
2014	$	1,031	52,930		(61,929	)	(7,968	)
2015	1,064		51,710		(61,043	)	(8,269	)
2016	1,068		50,563		(61,026	)	(9,395	)
2017	1,090		50,467		(60,525	)	(8,968	)
2018	1,106		49,811		(59,305	)	(8,388	)
Thereafter	6,655		384,354		(347,138	)	43,871
Total minimum rental commitments	12,014		$	639,835	(650,966	)	883
Less amount representing interest	4,586
Present value of minimum capital lease obligations	$	7,428

Schedule of Rent Expense

Total rental expense for all operating leases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	53,462	52,821	52,214
Contingent rentals	5,869		5,227	4,510
Total rental expense	$	59,331	58,048	56,724

Schedule of Rental Income

Total rental income for all leases and subleases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	66,540	67,988	66,061
Contingent rentals	29,542		28,828	26,084
Total rental income	$	96,082	96,816	92,145

Schedule of Unfavorable Operating Leases

The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Increase in rental income	$	973	1,065	1,392
Decrease in rental expense	1,204		1,287	1,838
Total increase in operating income	$	2,177	2,352	3,230

Impact of Amortization of Unfavorable Operating Leases

Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next five years (in thousands):

	Decrease in rental expense		Increase in rental income	Total increase in operating income
Fiscal year:
2014	$	1,051	847	1,898
2015	949		789	1,738
2016	893		719	1,612
2017	893		681	1,574
2018	859		632	1,491

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Changes in Franchised and Company-Owned Points of Distribution (Detail)	12 Months Ended
	Dec. 28, 2013 distributor	Dec. 29, 2012 distributor	Dec. 31, 2011 distributor
Number of Franchises [Roll Forward]
Franchised points of distribution-beginning of period	17,333	16,565	16,105
Franchises opened	1,388	1,470	1,403
Franchises closed	(600)	(701)	(944)
Net transfers (to) from company-owned points of distribution	1	(1)	1
Franchised points of distribution in operation-end of period	18,122	17,333	16,565
Company-owned points of distribution-end of period	36	35	31
Total systemwide points of distribution-end of period	18,158	17,368	16,596

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Other Current Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Other Liabilities, Current [Abstract]
Gift card/certificate liability	$ 139,721	$ 145,981
Gift card breakage liability	14,093	0
Accrued salary and benefits	26,713	31,136
Accrued legal liabilities (see note 17(d))	26,633	27,305
Accrued Interest	9,999	13,564
Accrued professional costs	2,938	2,996
Other	28,821	18,949
Total other current liabilities	$ 248,918	$ 239,931

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Current assets:
Cash and cash equivalents	$ 256,933	$ 252,618
Accounts receivable, net	47,162	32,407
Notes and other receivables, net	32,603	20,649
Assets held for sale	1,663	2,400
Deferred income taxes, net	46,461	47,263
Restricted assets of advertising funds	31,493	31,849
Prepaid income taxes	25,699	10,825
Prepaid expenses and other current assets	19,746	21,769
Total current assets	461,760	419,780
Property and equipment, net	182,858	181,172
Equity method investments	170,644	174,823
Goodwill	891,598	891,900
Other intangible assets, net	1,452,205	1,479,784
Restricted cash	305	367
Other assets	75,320	69,687
Total assets	3,234,690	3,217,513
Current liabilities:
Current portion of long-term debt	5,000	26,680
Capital lease obligations	432	371
Accounts payable	12,445	16,256
Liabilities of advertising funds	49,077	45,594
Deferred income	28,426	24,683
Other current liabilities	248,918	239,931
Total current liabilities	344,298	353,515
Long-term debt, net	1,818,609	1,823,278
Capital lease obligations	6,996	7,251
Unfavorable operating leases acquired	16,834	19,061
Deferred income	11,135	15,720
Deferred income taxes, net	561,714	569,126
Other long-term liabilities	62,816	79,587
Total long-term liabilities	2,478,104	2,514,023
Commitments and contingencies (note 17)
Redeemable noncontrolling interests	4,930	0
Stockholders’ equity:
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding at December 28, 2013 and December 29, 2012, respectively	0	0
Common stock, $0.001 par value; 475,000,000 shares authorized; 106,876,919 shares issued and 106,646,219 shares outstanding at December 28, 2013; 106,146,984 shares issued and outstanding at December 29, 2012	107	106
Additional paid-in capital	1,196,426	1,251,498
Treasury stock, at cost	(10,773)	0
Accumulated deficit	(779,741)	(914,094)
Accumulated other comprehensive income	1,339	9,141
Total stockholders’ equity of Dunkin' Brands	407,358	346,651
Noncontrolling interests	0	3,324
Total stockholders' equity	407,358	349,975
Total liabilities, redeemable noncontrolling interests, and stockholders' equity	$ 3,234,690	$ 3,217,513

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Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Domestic operations	$	195,277	172,576		70,034
Foreign operations	22,811		(10,575	)	(3,221	)
Income before income taxes	$	218,088	162,001		66,813

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Current:
Federal	$	70,696		52,657		34,282
State	11,758			6,065		5,733
Foreign	2,521			2,601		3,719
Current tax provision	$	84,975		61,323		43,734
Deferred:
Federal	$	(11,915	)	(5,071	)	(11,567	)
State	(984		)	4,373		892
Foreign	(292		)	(6,248	)	(688	)
Deferred tax benefit	(13,191		)	(6,946	)	(11,363	)
Provision for income taxes	$	71,784		54,377		32,371

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes from continuing operations differed from the expense computed using the statutory federal income tax rate of 35% due to the following:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Computed federal income tax expense, at statutory rate	35.0	%	35.0	%	35.0	%
Permanent differences:
Impairment of investment in BR Korea	—		—		9.8
Other permanent differences	0.2		0.7		0.9
State income taxes	4.7		5.2		6.9
Benefits and taxes related to foreign operations	(4.3	)	(2.9	)	(6.8	)
Changes in enacted tax rates and apportionment	0.8		2.8		3.0
Uncertain tax positions	(3.2	)	(6.3	)	1.9
Other	(0.3	)	(0.9	)	(2.2	)
Effective tax rate	32.9	%	33.6	%	48.5	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows (in thousands):

	December 28, 2013				December 29, 2012
	Deferred tax assets			Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Current:
Allowance for doubtful accounts	$	1,055		—	969	—
Deferred gift cards and certificates	20,371			—	22,561	—
Rent	5,307			—	4,990	—
Deferred income	4,672			—	3,926	—
Other current liabilities	13,983			—	11,422	—
Other	1,073			—	3,395	—
Total current	46,461			—	47,263	—
Noncurrent:
Capital leases	2,830			—	2,924	—
Rent	2,243			—	2,032	—
Property and equipment	—			6,315	—	10,229
Deferred compensation liabilities	7,747			—	6,478	—
Deferred income	4,234			—	4,905	—
Real estate reserves	1,287			—	1,398	—
Franchise rights and other intangibles	—			576,567	—	584,642
Unused foreign tax credits	6,756			—	8,034	—
Other	1,103			4,322	—	26
	26,200			587,204	25,771	594,897
Valuation allowance	(710		)	—	—	—
Total noncurrent	25,490			587,204	25,771	594,897
	$	71,951		587,204	73,034	594,897

Schedule of Unrecognized Tax Benefits Roll Forward

A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Balance at beginning of year	$	15,428		41,379		17,549
Increases related to prior year tax positions	855			2,063		23,922
Increases related to current year tax positions	219			1,389		—
Decreases related to prior year tax positions	(3,091		)	(19,675	)	—
Decreases related to settlements	(4,797		)	(9,792	)	—
Lapses of statutes of limitations	—			(27	)	(43	)
Effect of foreign currency adjustments	(401		)	91		(49	)
Balance at end of year	$	8,213		15,428		41,379

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Earnings per Share Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012		Sep. 29, 2012		Jun. 30, 2012		Mar. 31, 2012		Dec. 28, 2013		Dec. 29, 2012		Dec. 31, 2011
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Net income attributable to Dunkin' Brands-basic and diluted	$ 42,072	$ 40,221	$ 40,812	$ 23,798	$ 34,335	[1]	$ 29,526	[1]	$ 18,497	[1]	$ 25,950	[1]	$ 146,903		$ 108,308		$ 34,442
Allocation of net income (loss) to common stockholders:
Common-basic													146,903	[2],[3]	108,176	[2],[3]	(105,770)	[2],[3]
Common-diluted													146,903	[2],[3]	108,197	[2],[3]	(105,770)	[2],[3]
Weighted average number of common shares - basic and diluted:
Common-basic (in shares)													106,501,733		114,584,063		74,835,697
Common-diluted (in shares)													108,217,011	[4]	116,573,344	[4]	74,835,697	[4]
Earnings Per Share, Basic and Diluted [Abstract]
Common-basic (in dollars per share)	$ 0.39	$ 0.38	$ 0.38	$ 0.22	$ 0.32	[1]	$ 0.26	[1]	$ 0.15	[1]	$ 0.22	[1]	$ 1.38		$ 0.94		$ (1.41)
Common-diluted (in dollars per share)	$ 0.39	$ 0.37	$ 0.38	$ 0.22	$ 0.32	[1]	$ 0.26	[1]	$ 0.15	[1]	$ 0.21	[1]	$ 1.36		$ 0.93		$ (1.41)
Common Class L [Member]
Allocation of net income (loss) to common stockholders:
Class L-basic and diluted																	$ 140,212	[2]
Weighted average number of common shares - basic and diluted:
Class L-basic and diluted (in shares)																	22,845,378	[5]
Earnings Per Share, Basic and Diluted [Abstract]
Class L-basic and diluted (in dollars per share)																	$ 6.14

[1] The second quarter of fiscal year 2012 includes a $20.7 million incremental legal reserve related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest (see note 17(d)).

[2] As the Company had both Class L and common stock outstanding during fiscal year 2011, and Class L had preference with respect to all distributions, earnings per share was calculated using the two-class method, which requires the allocation of earnings to each class of common stock. The numerator in calculating Class L basic and diluted earnings per share is the Class L preference amount accrued at 9% per annum during fiscal year 2011 plus, if positive, a pro rata share of an amount equal to consolidated net income less the Class L preference amount. The Class L preferential distribution amount accrued was $45.1 million during fiscal year 2011. The Class L shares converted into common stock immediately prior to the Company’s initial public offering that was completed on August 1, 2011. The numerator in calculating the Class L basic and diluted earnings per share for fiscal year 2011 includes an amount representing the excess of the fair value of the consideration transferred to the Class L shareholders upon conversion to common stock over the carrying amount of the Class L shares at the date of conversion, which occurred immediately prior to the Company’s initial public offering. As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as follows:Class L shares outstanding immediately prior to the initial public offering22,866,379Number of common shares received for each Class L share0.2189Common stock received by Class L shareholders, excluding preferential distribution5,005,775Common stock fair value per share (initial public offering price per share)$19.00Fair value of Class L base shares (in thousands)$95,110

[3] Net income allocated to common shareholders for the fiscal year 2012 excludes $132 thousand and $111 thousand for basic and diluted earnings per share, respectively, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for fiscal year 2013 as all restricted shares were fully vested as of December 28, 2013, and no net loss was allocated to participating securities for fiscal year 2011 as the participating securities do not participate in losses.

[4] The weighted average number of common shares in the common diluted earnings per share calculation for fiscal years 2013 and 2012 includes the dilutive effect of 1,715,278 and 1,989,281, respectively, restricted shares and stock options, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all performance-based restricted stock awards and stock options outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no common restricted stock awards that were performance-based and for which the performance criteria were not yet met. As of December 31, 2011, there were approximately 636,752 common restricted stock awards and 2,422,628 options to purchase common stock that were performance-based and for which the performance criteria was not yet met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes stock options of 1,100,275 and 805,015 for fiscal years 2013 and 2012, respectively, as they would be antidilutive. The weighted average number of common shares in the common diluted earnings per share calculation for fiscal year 2011 excludes all restricted stock and stock options outstanding, as they would be antidilutive.

[5] The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal year 2011 represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares into common shares. There were no Class L common stock equivalents outstanding during fiscal year 2011.

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Quarterly Financial Data (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 28, 2013	Sep. 28, 2013	Jun. 29, 2013	Mar. 30, 2013	Dec. 29, 2012		Sep. 29, 2012		Jun. 30, 2012		Mar. 31, 2012		Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Statement [Abstract]
Total revenues	$ 183,177	$ 186,317	$ 182,488	$ 161,858	$ 161,703		$ 171,719		$ 172,387		$ 152,372		$ 713,840	$ 658,181	$ 628,198
Operating income	82,235	82,237	76,805	63,459	67,751	[1]	70,345	[1]	46,138	[1]	55,195	[1]	304,736	239,429	205,309
Net income	$ 42,072	$ 40,221	$ 40,812	$ 23,798	$ 34,335	[1]	$ 29,526	[1]	$ 18,497	[1]	$ 25,950	[1]	$ 146,903	$ 108,308	$ 34,442
Common-basic (in dollars per share)	$ 0.39	$ 0.38	$ 0.38	$ 0.22	$ 0.32	[1]	$ 0.26	[1]	$ 0.15	[1]	$ 0.22	[1]	$ 1.38	$ 0.94	$ (1.41)
Common-diluted (in dollars per share)	$ 0.39	$ 0.37	$ 0.38	$ 0.22	$ 0.32	[1]	$ 0.26	[1]	$ 0.15	[1]	$ 0.21	[1]	$ 1.36	$ 0.93	$ (1.41)

[1] The second quarter of fiscal year 2012 includes a $20.7 million incremental legal reserve related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest (see note 17(d)).

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Statement of Other Comprehensive Income [Abstract]
Foreign currency translation, deferred tax effect	$ (205)	$ 260	$ (295)
Unrealized gains (losses) on interest rate swaps, deferred tax effect	(5,290)	1,154	0
Unrealized loss on pension plan, deferred tax effect	$ 200	$ 415	$ 85

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Equity Incentive Plans - Assumptions In Determining Fair Value of Stock Options (Details) (USD $)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012		Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of share options granted	$ 9.92	$ 10.65		$ 10.27
Weighted average assumptions: Risk-free interest rate	1.20%
Weighted average assumptions: Expected Volatility	33.00%	43.00%
Weighted average assumptions: Dividend yield	2.00%			0.00%
Weighted average assumptions: Expected term (years)	6 years 3 months	6 years 3 months
Executive [Member] | Tranche Four and Tranche Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value of share options granted				$ 6.27	[1]
Employee Stock Option [Member] | Nonexecutive [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average assumptions: Risk-free interest rate, minimum		0.80%	[1]	1.20%	[1]
Weighted average assumptions: Risk-free interest rate, maximum		1.40%	[1]	2.70%	[1]
Weighted average assumptions: Expected Volatility, minimum				43.00%	[1]
Weighted average assumptions: Expected Volatility, maximum				72.00%	[1]
Weighted average assumptions: Expected term (years)		6 years 3 months	[1]
Employee Stock Option [Member] | Nonexecutive [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average assumptions: Dividend yield		1.80%	[1]
Weighted average assumptions: Expected term (years)				6 years 3 months	[1]
Employee Stock Option [Member] | Nonexecutive [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average assumptions: Dividend yield		2.10%	[1]
Weighted average assumptions: Expected term (years)				6 years 6 months	[1]
Employee Stock Option [Member] | Executive [Member] | Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average assumptions: Risk-free interest rate, minimum				2.10%	[1]
Weighted average assumptions: Risk-free interest rate, maximum				2.70%	[1]
Weighted average assumptions: Expected Volatility, minimum				47.00%	[1]
Weighted average assumptions: Expected Volatility, maximum				72.00%	[1]
Weighted average assumptions: Dividend yield				0.00%	[1]
Weighted average assumptions: Expected term (years)				6 years 6 months	[1]
Employee Stock Option [Member] | Executive [Member] | Tranche Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average assumptions: Risk-free interest rate, minimum				2.30%	[1]
Weighted average assumptions: Risk-free interest rate, maximum				3.20%	[1]
Weighted average assumptions: Expected Volatility, minimum				47.00%	[1]
Weighted average assumptions: Expected Volatility, maximum				72.00%	[1]
Weighted average assumptions: Dividend yield				0.00%	[1]

[1] The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2012 and 201

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Equity method investments Comparison of Carrying Value of Investmetn and Underlying Equity in Net Assets of Investment (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013		Dec. 29, 2012
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 170,644		$ 174,823
BR Japan [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	79,472		95,776
Equity Method Investment, Underlying Equity in Net Assets	45,682		54,410
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	33,790	[1]	41,366	[1]
BR Korea [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	91,121		77,749
Equity Method Investment, Underlying Equity in Net Assets	100,766		88,514
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity	$ (9,645)	[1]	$ (10,765)	[1]

[1] The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011.

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Income Taxes - Income Before Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Domestic operations	$ 195,277	$ 172,576	$ 70,034
Foreign operations	22,811	(10,575)	(3,221)
Income before income taxes	$ 218,088	$ 162,001	$ 66,813

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Equity method investments (Tables)

12 Months Ended

Dec. 28, 2013

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

The comparison between the carrying value of our investments in BR Japan and BR Korea and the underlying equity in net assets of those investments is presented in the table below (in thousands):

	BR Japan			BR Korea
	December 28, 2013		December 29, 2012	December 28, 2013		December 29, 2012
Carrying value of investment	$	79,472	95,776	91,121		77,749
Underlying equity in net assets of investment	45,682		54,410	100,766		88,514
Carrying value in excess of (less than) the underlying equity in net assets(a)	$	33,790	41,366	(9,645	)	(10,765	)

(a) The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011.

The Company’s ownership interests in its equity method investments as of December 28, 2013 and December 29, 2012 were as follows:

	Ownership
Entity	December 28, 2013		December 29, 2012
BR Japan	43.3	%	43.3	%
BR Korea	33.3	%	33.3	%
Spain JV	33.3	%	33.3	%
Australia JV	20.0	%	n/a

Summary Financial Information For Joint Venture Operations

Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands):

	December 28, 2013		December 29, 2012
Current assets	$	261,546	248,371
Current liabilities	106,280		102,787
Working capital	155,266		145,584
Property, plant, and equipment, net	139,378		144,570
Other assets	173,491		163,511
Long-term liabilities	52,389		62,351
Equity of equity method investments	$	415,746	391,314

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Revenues	$	673,537	687,676	659,319
Net income	51,407		51,046	44,156

Estimated Amortization Expense Net of Deferred Tax Benefits, Equity Method Investments

Total estimated amortization expense, net of deferred tax benefits, to be included in net income of equity method investments for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	408
2015	345
2016	277
2017	205
2018	128

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Debt Disclosure (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Debt Disclosure [Abstract]
Term loans	$ 1,823,609	$ 1,849,958
Less current portion of long-term debt	5,000	26,680
Total long-term debt	$ 1,818,609	$ 1,823,278

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Equity Incentive Plans

12 Months Ended

Dec. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Incentive Plans

Equity incentive plans

The Company’s 2006 Executive Incentive Plan, as amended, (the “2006 Plan”) provides for the grant of stock-based and other incentive awards. A maximum of 12,191,145 shares of common stock may be delivered in satisfaction of awards under the 2006 Plan, of which a maximum of 5,012,966 shares may be awarded as nonvested (restricted) shares and a maximum of 7,178,179 may be delivered in satisfaction of stock options.

The Dunkin’ Brands Group, Inc. 2011 Omnibus Long-Term Incentive Plan (the “2011 Plan”) was adopted in July 2011, and is the only plan under which the Company currently grants awards. A maximum of 7,000,000 shares of common stock may be delivered in satisfaction of awards under the 2011 Plan.

Total share-based compensation expense, which is included in general and administrative expenses, net, consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Restricted shares	$	3	132	2,739
2006 Plan stock options—executive	977		4,245	1,626
2006 Plan stock options—nonexecutive	162		181	202
2011 Plan stock options	4,668		2,026	32
Restricted stock units	1,513		336	33
Total share-based compensation	$	7,323	6,920	4,632
Total related tax benefit	$	2,958	2,768	1,852

The actual tax benefit realized from stock options exercised during fiscal years 2013, 2012, and 2011 was $15.9 million, $14.1 million, and $438 thousand respectively.

Nonvested (restricted) shares

The Company historically issued restricted shares of common stock to certain executive officers of the Company. The restricted shares generally vested in three separate tranches with different vesting conditions. In addition to the vesting conditions described below, all three tranches of the restricted shares provided for partial or full accelerated vesting upon change in control. Restricted shares that did not vest were forfeited to the Company.

Tranche 1 shares generally vested in four or five equal annual installments based on a service condition. The weighted average requisite service period for the Tranche 1 shares was approximately 4.4 years, and compensation cost was recognized ratably over this requisite service period.

The Tranche 2 shares generally vested in five annual installments beginning on the last day of the fiscal year of grant based on a service condition and performance conditions linked to annual earnings before interest, taxes, depreciation, and amortization targets ("EBITDA targets"), which were not achieved for fiscal years 2012 and 2011. Total compensation cost for the Tranche 2 shares was determined based on the most likely outcome of the performance conditions and the number of awards expected to vest based on those outcomes, and as such, no compensation cost was recognized in fiscal years 2012 or 2011 related to Tranche 2 shares. All remaining Tranche 2 shares outstanding were forfeited on the last day of fiscal year 2012 as the EBITDA targets were not achieved.

Tranche 3 shares generally vested in four annual installments based on a service condition, a performance condition, and market conditions. The Tranche 3 shares did not become eligible to vest until achievement of the performance condition, which was defined as an initial public offering or change in control. These events were not considered probable of occurring until such events actually occurred. The market condition related to the achievement of a minimum investor rate of return on the Sponsor’s (see note 19(a)) shares ranging from 20% to 24% as of specified measurement dates, which occurred on the six month anniversary of an initial public offering and every three months thereafter, or on the date of a change in control. As the Tranche 3 shares required the satisfaction of multiple vesting conditions, the requisite service period was the longest of the explicit, implicit, and derived service periods of the service, performance, and market conditions. As the performance condition could not be deemed probable of occurring until an initial public offering or change of control event was completed, no compensation cost was recognized related to the Tranche 3 shares prior to fiscal year 2011. Upon completion of the initial public offering in fiscal year 2011, $2.6 million of expense was recorded related to approximately 0.8 million Tranche 3 restricted shares that were outstanding at the date of the initial public offering. The entire value of the outstanding Tranche 3 shares was recorded upon completion of the initial public offering as the requisite service period, which was equivalent to the implicit service period of the performance condition, had been delivered. With the sale of the Sponsors' remaining shares in August 2012, no further Tranche 3 vesting could occur, and all unvested Tranche 3 shares were accordingly forfeited.

A summary of the changes in the Company’s restricted shares during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted shares at December 29, 2012	1,049		$	5.44
Granted	—		—
Vested	(1,049	)	5.44
Forfeited	—		—
Nonvested restricted shares at December 28, 2013	—		—

As of December 28, 2013, no unrecognized compensation cost remains related to restricted shares. The total grant-date fair value of shares vested during fiscal years 2013, 2012, and 2011, was $6 thousand, $1.2 million, and $484 thousand, respectively.

2006 Plan stock options—executive

During fiscal year 2011, the Company granted options to executives to purchase 828,040 shares of common stock under the 2006 Plan. The executive options vest in two separate tranches, 30% allocated as Tranche 4 and 70% allocated as Tranche 5, each with different vesting conditions. In addition to the vesting conditions described below, both tranches provide for partial accelerated vesting upon change in control. The maximum contractual term of the executive options is ten years.

The Tranche 4 executive options generally vest in equal annual amounts over a 5-year period subsequent to the grant date, and as such are subject to a service condition. Certain options provide for accelerated vesting at the date of grant, with 20% of the Tranche 4 options vesting on each subsequent anniversary of the grant date over a 3- or 4-year period. The requisite service periods over which compensation cost is being recognized ranges from 3 to 5 years.

The Tranche 5 executive options become eligible to vest based on continued service periods of 3 to 5 years that are aligned with the Tranche 4 executive options (“Eligibility Percentage”). Vesting does not actually occur until the achievement of a performance condition, which is the sale of shares by the Sponsors. Additionally, the options are subject to a market condition related to the achievement of specified investor returns to the Sponsors upon a sale of shares. Upon a sale of shares by the Sponsors and assuming the requisite service has been provided, Tranche 5 options vest in proportion to the percentage of the Sponsors’ shares sold by them (“Performance Percentage”), but only if the aggregate return on those shares sold is two times the Sponsors’ original purchase price. Actual vesting is determined by multiplying the Eligibility Percentage by the Performance Percentage. Additionally, 100% of the Tranche 5 options vest, assuming the requisite service has been provided, if the aggregate amount of cash received by the Sponsors through sales, distributions, or dividends is two times the original purchase price of all shares purchased by the Sponsors. As the Tranche 5 options require the satisfaction of multiple vesting conditions, the requisite service period is the longest of the explicit, implicit, and derived service periods of the service, performance, and market conditions. Based on dividends received in 2012 and 2011, and the sale of shares by the Sponsors in connection with public offerings completed in 2012 and 2011, the cumulative Performance Percentage as of December 28, 2013, December 29, 2012, and December 31, 2011 was 100.0%, 100.0%, and 28.5%, respectively, resulting in compensation expense of $478 thousand, $3.6 million, and $1.1 million being recorded in fiscal years 2013, 2012, and 2011, respectively.

The fair value of the Tranche 4 options was estimated on the date of grant using the Black-Scholes option pricing model. The fair value of the Tranche 5 options was estimated on the date of grant using a combination of lattice models and Monte Carlo simulations. These models are impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. Additionally, the value of the Tranche 5 options is impacted by the probability of achievement of the market condition. The following weighted average assumptions were utilized in determining the fair value of executive options granted during fiscal years 2011:

	Fiscal year ended(1)
	December 31, 2011
Weighted average grant-date fair value of share options granted	$6.27
Significant assumptions:
Tranche 4 options:
Risk-free interest rate	2.1%–2.7%
Expected volatility	47.0%–72.0%
Dividend yield	—
Expected term (years)	6.5
Tranche 5 options:
Risk-free interest rate	2.3%–3.2%
Expected volatility	47.0%–72.0%
Dividend yield	—

(1) The Company did not grant any Tranche 4 or Tranche 5 options during fiscal years 2012 and 2013.

The expected term of the Tranche 4 options was estimated utilizing the simplified method. We utilized the simplified method because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The simplified method was used for all Tranche 4 stock options, as they required only a service vesting condition. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on historical volatility of peer companies over a period equivalent to the expected term. Additionally, the Company did not anticipate paying dividends on the underlying common stock at the date of grant.

As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures of generally 10% per year. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense.

A summary of the status of the Company’s executive stock options as of December 28, 2013 and changes during fiscal year 2013 are presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	3,331,993		$	3.85	7.3
Exercised	(932,519	)	3.68
Forfeited or expired	(193,527	)	7.15
Share options outstanding at December 28, 2013	2,205,947		3.64		6.3	$	97.3
Share options exercisable at December 28, 2013	1,067,692		3.29		6.2	47.5

The total grant-date fair value of executive stock options vested during fiscal years 2013, 2012, and 2011 was $1.8 million, $2.8 million, and $862 thousand, respectively. The total intrinsic value of executive stock options exercised was $35.3 million, $33.8 million, and $489 thousand for fiscal years 2013, 2012, and 2011, respectively. As of December 28, 2013, there was $682 thousand of total unrecognized compensation cost related to Tranche 4 and Tranche 5 options, which is expected to be recognized over a weighted average period of approximately 1.6 years.

2006 Plan stock options—nonexecutive and 2011 Plan stock options

During fiscal year 2011, the Company granted options to nonexecutives to purchase 50,491 shares of common stock under the 2006 Plan. Additionally, during fiscal years 2013, 2012, and 2011, the Company granted options to certain employees to purchase 1,177,999, 746,100, and 292,700 shares, respectively, of common stock under the 2011 Plan. The nonexecutive options and 2011 Plan options vest in equal annual amounts over either a 4- or 5-year period subsequent to the grant date, and as such are subject to a service condition, and also fully vest upon a change of control. The requisite service period over which compensation cost is being recognized is either four or five years. The maximum contractual term of the nonexecutive and 2011 Plan options is ten years.

The fair value of nonexecutive and 2011 Plan options was estimated on the date of grant using the Black-Scholes option pricing model. This model is impacted by the Company’s stock price and certain assumptions related to the Company’s stock and employees’ exercise behavior. The following weighted average assumptions were utilized in determining the fair value of nonexecutive and 2011 Plan options granted during fiscal years 2013, 2012, and 2011:

	Fiscal year ended
	December 28, 2013	December 29, 2012	December 31, 2011
Weighted average grant-date fair value of share options granted	9.92	10.65	10.27
Weighted average assumptions:
Risk-free interest rate	1.2%	0.8%-1.4%	1.2%-2.7%
Expected volatility	33.0%	43.0%	43.0%-72.0%
Dividend yield	2.0%	1.8%-2.1%	—
Expected term (years)	6.25	6.25	6.25-6.5

The expected term was estimated utilizing the simplified method. We utilized the simplified method because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate assumption was based on yields of U.S. Treasury securities in effect at the date of grant with terms similar to the expected term. Expected volatility was estimated based on historical volatility of peer companies over a period equivalent to the expected term. Additionally, the dividend yield was estimated based on dividends currently being paid on the underlying common stock at the date of grant, if any.

As share-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for annualized estimated forfeitures of generally 10-13%. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical and forecasted turnover, and actual forfeitures have not had a material impact on share-based compensation expense.

A summary of the status of the Company’s nonexecutive and 2011 Plan options as of December 28, 2013 and changes during fiscal year 2013 is presented below:

	Number of shares		Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (in millions)
Share options outstanding at December 29, 2012	1,295,356		$	24.34	8.8
Granted	1,177,999		37.26
Exercised	(207,679	)	21.93
Forfeited or expired	(246,526	)	29.92
Share options outstanding at December 28, 2013	2,019,150		31.45		8.5	$	32.9
Share options exercisable at December 28, 2013	279,932		20.08		7.3	7.7

The total grant-date fair value of nonexecutive and 2011 Plan stock options vested during fiscal years 2013, 2012, and 2011 was $2.9 million, $1.0 million, and $176 thousand, respectively. The total intrinsic value of nonexecutive and 2011 Plan stock options exercised was $4.1 million, $1.5 million, and $605 thousand for fiscal years 2013, 2012, and 2011, respectively. As of December 28, 2013, there was $13.9 million of total unrecognized compensation cost related to nonexecutive and 2011 Plan options. Unrecognized compensation cost is expected to be recognized over a weighted average period of approximately 2.8 years.

Restricted stock units

During fiscal years 2013, 2012, and 2011, the Company granted restricted stock units of 94,495, 22,204, and 5,618, respectively, to certain employees and members of our board of directors. Restricted stock units granted to employees generally vest in three equal installments on each of the first three anniversaries of the grant date. Restricted stock units granted to our board of directors generally vest in one installment on the first anniversary of the grant date.

A summary of the changes in the Company’s restricted stock units during fiscal year 2013 is presented below:

	Number of shares		Weighted average grant-date fair value
Nonvested restricted stock units at December 29, 2012	22,204		$	31.21
Granted	94,495		37.87
Vested	(12,655	)	35.44
Forfeited	(1,073	)	37.27
Nonvested restricted stock units at December 28, 2013	102,971		37.20

The fair value of each restricted stock unit is determined on the date of grant based on our closing stock price. As of December 28, 2013, there was $2.4 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted average period of approximately 1.9 years. The total grant-date fair value of restricted stock units vested during fiscal years 2013 and 2012 was $448 thousand and $118 thousand, respectively. No restricted stock units vested during fiscal year 2011.

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 28, 2013

Text Block [Abstract]

Schedule of Goodwill

The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands):

	Dunkin’ Donuts U.S.							Dunkin’ Donuts International					Baskin-Robbins International				Total
	Goodwill			Accumulated impairment charges		Net Balance		Goodwill		Accumulated impairment charges	Net Balance		Goodwill	Accumulated impairment charges		Net Balance	Goodwill		Accumulated impairment charges		Net Balance
Balances at December 31, 2011	$	1,151,140		(270,441	)	880,699		10,293		—	10,293		24,037	(24,037	)	—	1,185,470		(294,478	)	890,992
Goodwill acquired	895			—		895		—		—	—		—	—		—	895		—		895
Effects of foreign currency adjustments	—			—		—		13		—	13		—	—		—	13		—		13
Balances at December 29, 2012	1,152,035			(270,441	)	881,594		10,306		—	10,306		24,037	(24,037	)	—	1,186,378		(294,478	)	891,900
Goodwill disposed	(260		)	—		(260	)	—		—	—		—	—		—	(260	)	—		(260	)
Effects of foreign currency adjustments	—			—		—		(42	)	—	(42	)	—	—		—	(42	)	—		(42	)
Balances at December 28, 2013	$	1,151,775		(270,441	)	881,334		10,264		—	10,264		24,037	(24,037	)	—	1,186,076		(294,478	)	891,598

Other Intangible Assets

Other intangible assets at December 28, 2013 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	383,465	(159,719	)	223,746
Favorable operating leases acquired	16	71,788		(35,653	)	36,135
License rights	10	6,230		(4,876	)	1,354
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,652,453	(200,248	)	1,452,205

Other intangible assets at December 29, 2012 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	384,065	(139,677	)	244,388
Favorable operating leases acquired	15	77,653		(35,207	)	42,446
License rights	10	6,230		(4,250	)	1,980
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,658,918	(179,134	)	1,479,784

Total Estimated Amortization Expense

Total estimated amortization expense for other intangible assets for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	25,357
2015	25,069
2016	22,180
2017	21,673
2018	21,258

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Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Dec. 25, 2010
Income Taxes [Line Items]
Recorded net tax benefit	$ 8,400,000	$ 10,200,000
Deferred tax expense (benefit)	1,700,000	4,600,000	1,900,000
Valuation allowance for deferred tax assets	700,000
Deferred tax liability, undistributed earnings of foreign operations, net of foreign tax credits	7,100,000
Undistributed earnings of joint ventures	129,700,000	123,300,000
Deferred Tax Liabilities, Undistributed Foreign Earnings	3,100,000
Cash Associated with Indefinitely Reinvested Foreign Earnings	7,500,000
Unrecognized Tax Benefits	8,213,000	15,428,000	41,379,000	17,549,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	4,200,000	14,900,000
Income Tax Examination, Penalties and Interest Expense	(5,800,000)	(200,000)	3,100,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	6,300,000	9,400,000
Income Taxes Paid	98,483,000	90,225,000	43,143,000
Potential Federal Tax State Tax Interest Owed	1,500,000
Related to Additional Examination Amount [Member]
Income Taxes [Line Items]
Income Taxes Paid	800,000
Federal Tax [Member]
Income Taxes [Line Items]
Income Taxes Paid	$ 3,000,000

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Income Taxes

12 Months Ended

Dec. 28, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes

Income (loss) before income taxes was attributed to domestic and foreign taxing jurisdictions as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Domestic operations	$	195,277	172,576		70,034
Foreign operations	22,811		(10,575	)	(3,221	)
Income before income taxes	$	218,088	162,001		66,813

The components of the provision for income taxes were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Current:
Federal	$	70,696		52,657		34,282
State	11,758			6,065		5,733
Foreign	2,521			2,601		3,719
Current tax provision	$	84,975		61,323		43,734
Deferred:
Federal	$	(11,915	)	(5,071	)	(11,567	)
State	(984		)	4,373		892
Foreign	(292		)	(6,248	)	(688	)
Deferred tax benefit	(13,191		)	(6,946	)	(11,363	)
Provision for income taxes	$	71,784		54,377		32,371

The provision for income taxes from continuing operations differed from the expense computed using the statutory federal income tax rate of 35% due to the following:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Computed federal income tax expense, at statutory rate	35.0	%	35.0	%	35.0	%
Permanent differences:
Impairment of investment in BR Korea	—		—		9.8
Other permanent differences	0.2		0.7		0.9
State income taxes	4.7		5.2		6.9
Benefits and taxes related to foreign operations	(4.3	)	(2.9	)	(6.8	)
Changes in enacted tax rates and apportionment	0.8		2.8		3.0
Uncertain tax positions	(3.2	)	(6.3	)	1.9
Other	(0.3	)	(0.9	)	(2.2	)
Effective tax rate	32.9	%	33.6	%	48.5	%

During fiscal year 2013, the Company recorded a net tax benefit of $8.4 million related to the reversal of reserves for uncertain tax positions for which settlement with the taxing authorities was reached, including interest and penalty, net of federal and state tax benefit as applicable, and recognized a deferred tax expense of $1.7 million due to estimated changes in apportionment and enacted changes in future state income tax rates. During fiscal year 2012, the Company recorded a net tax benefit of $10.2 million primarily related to the reversal of reserves for uncertain tax positions, including interest and penalty, net of federal and state tax benefit as applicable, for which settlement with the taxing authorities was reached, and recognized a deferred tax expense of $4.6 million due to estimated changes in apportionment and enacted changes in future state income tax rates. In addition, the Company recognized deferred tax expense of $1.9 million in fiscal year 2011 due to enacted changes in future state income tax rates. These changes in estimates and enacted tax rates affect the tax rate expected to be in effect in future periods when the deferred tax assets and liabilities reverse.

The components of deferred tax assets and liabilities were as follows (in thousands):

	December 28, 2013				December 29, 2012
	Deferred tax assets			Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Current:
Allowance for doubtful accounts	$	1,055		—	969	—
Deferred gift cards and certificates	20,371			—	22,561	—
Rent	5,307			—	4,990	—
Deferred income	4,672			—	3,926	—
Other current liabilities	13,983			—	11,422	—
Other	1,073			—	3,395	—
Total current	46,461			—	47,263	—
Noncurrent:
Capital leases	2,830			—	2,924	—
Rent	2,243			—	2,032	—
Property and equipment	—			6,315	—	10,229
Deferred compensation liabilities	7,747			—	6,478	—
Deferred income	4,234			—	4,905	—
Real estate reserves	1,287			—	1,398	—
Franchise rights and other intangibles	—			576,567	—	584,642
Unused foreign tax credits	6,756			—	8,034	—
Other	1,103			4,322	—	26
	26,200			587,204	25,771	594,897
Valuation allowance	(710		)	—	—	—
Total noncurrent	25,490			587,204	25,771	594,897
	$	71,951		587,204	73,034	594,897

At December 28, 2013, the valuation allowance for deferred tax assets was $0.7 million. This valuation allowance related to deferred tax assets for net operating loss carryforwards attributable to our wholly-owned subsidiary in Spain. At December 28, 2013, the Company had $6.8 million of unused foreign tax credits, which expire in fiscal years 2020 and 2021.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income, and projections for future taxable income over the periods for which the deferred tax assets are deductible, management believes, as of December 28, 2013, with the exception of net operating loss carryforwards attributable to our Spain subsidiary, it is more likely than not that the Company will realize the benefits of the deferred tax assets.

The Company has not recognized a deferred tax liability of $7.1 million for the undistributed earnings of foreign operations, net of foreign tax credits, relating to our foreign joint ventures that arose in fiscal year 2013 and prior years because the Company currently does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future. A deferred tax liability will be recognized when the Company is no longer able to demonstrate that it plans to permanently reinvest undistributed earnings. As of December 28, 2013 and December 29, 2012, the undistributed earnings of these joint ventures were approximately $129.7 million and $123.3 million, respectively.

The Company has not recognized a deferred tax liability of $3.1 million for the undistributed earnings of our foreign subsidiaries since such earnings are considered indefinitely reinvested outside the United States. As of December 28, 2013, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $7.5 million. If in the future we decide to repatriate such foreign earnings, we would incur incremental U.S. federal and state income tax. However, our intent is to keep these funds indefinitely reinvested outside of the United States and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

At December 28, 2013 and December 29, 2012, the total amount of unrecognized tax benefits related to uncertain tax positions was $8.2 million and $15.4 million, respectively. At December 28, 2013 and December 29, 2012, the Company had approximately $4.2 million and $14.9 million, respectively, of accrued interest and penalties related to uncertain tax positions. The Company recorded net income tax benefits of $5.8 million and $0.2 million during fiscal years 2013 and 2012, respectively, and net income tax expense of $3.1 million during fiscal year 2011 for potential interest and penalties related to uncertain tax positions. At December 28, 2013 and December 29, 2012, there were $6.3 million and $9.4 million, respectively, of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate.

The Company’s major tax jurisdictions subject to income tax are the United States and Canada. For Canada, the Company has open tax years dating back to tax years ended August 2003 and is currently under audit for the tax periods 2009 through 2012. In the United States, the Company is currently under audits in certain state jurisdictions for tax periods after December 2006. The audits are in various stages as of December 28, 2013.

For U.S. federal taxes, the Internal Revenue Service (“IRS”) concluded its examination of fiscal year 2010 during fiscal year 2013 and agreed to a settlement regarding the recognition of revenue for gift cards and other matters. The Company made a cash payment for the additional federal tax due totaling $3.0 million. Based on this and previous settlements, additional state taxes and federal and state interest owed, net of federal and state benefits, are approximately $1.5 million, of which approximately $0.8 million was paid during fiscal year 2013. As the additional federal and state taxes owed for all periods represent temporary differences that will be deductible in future years, the potential tax expense is limited to federal and state interest, net of federal and state benefits, which we do not expect to be material.

A summary of the changes in the Company’s unrecognized tax benefits is as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Balance at beginning of year	$	15,428		41,379		17,549
Increases related to prior year tax positions	855			2,063		23,922
Increases related to current year tax positions	219			1,389		—
Decreases related to prior year tax positions	(3,091		)	(19,675	)	—
Decreases related to settlements	(4,797		)	(9,792	)	—
Lapses of statutes of limitations	—			(27	)	(43	)
Effect of foreign currency adjustments	(401		)	91		(49	)
Balance at end of year	$	8,213		15,428		41,379

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Debt - Future Maturities (Details) (USD $)	Dec. 28, 2013
Debt Instrument [Line Items]
Intended principal payments on quarterly basis	$ 5,000,000
2014	3,375,000
2015	14,842,000
2016	18,289,000
2017	451,414,000
2018	13,789,000
Twenty Seventeen Term Loans [Member]
Debt Instrument [Line Items]
2014	3,375,000
2015	4,500,000
2016	4,500,000
2017	437,625,000
2018	0
Twenty Twenty One Term Loans [Member]
Debt Instrument [Line Items]
2014	0
2015	10,342,000
2016	13,789,000
2017	13,789,000
2018	$ 13,789,000

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Retirement Plans - Allocation of Pooled Plan (Details)	Dec. 28, 2013	Dec. 29, 2012
Cash and Short-term Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation of assets within pooled fund	35.00%	0.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation of assets within pooled fund	0.00%	60.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation of assets within pooled fund	65.00%	39.00%
Other Investments [Member]
Defined Benefit Plan Disclosure [Line Items]
Allocation of assets within pooled fund	0.00%	1.00%

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common stock	Additional paid-in capital	Treasury stock, at cost	Accumulated deficit	Accumulated other comprehensive income	Noncontrolling interests	IPO [Member] Common stock	IPO [Member] Additional paid-in capital
Balance at Dec. 25, 2010	$ (534,341)	$ 42	$ 195,212	$ (1,807)	$ (741,415)	$ 13,627	$ 0
Balance, shares at Dec. 25, 2010		41,853,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	34,442				34,442
Other comprehensive income (loss)	5,974					5,974
Accretion of Class L preferred return	(45,102)				(45,102)
Conversion of Class L shares into common stock, shares		55,653,000
Conversion of Class L shares into common stock	887,841	55	887,786
Issuance of common stock in connection with initial public offering, shares								22,250,000
Issuance of common stock in connection with initial public offering	389,961							22	389,939
Issuance of common stock, shares		129,000
Issuance of common stock	942	0	942
Exercise of stock options, shares		62,000
Exercise of stock options	266		266
Share-based compensation expense, shares)		105,000
Share-based compensation expense	4,632		4,632
Repurchases of common stock	(173)			(173)
Retirement of treasury stock (shares)		(558,000)
Retirement of treasury stock	0		(1,980)	1,980
Excess tax benefits from share-based compensation	1,494		1,494
Balance at Dec. 31, 2011	745,936	119	1,478,291	0	(752,075)	19,601	0
Balance, shares at Dec. 31, 2011		119,494,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	107,624				108,308		(684)
Other comprehensive income (loss)	(10,460)					(10,460)
Sale of subsidiary shares to noncontrolling interests	4,008						4,008
Dividends paid on common stock	(70,069)		(70,069)
Exercise of stock options, shares		1,277,000
Exercise of stock options	4,418	2	4,416
Share-based compensation expense, shares)		372,000
Share-based compensation expense	6,920		6,920
Repurchases of common stock	(450,369)			(450,369)
Retirement of treasury stock (shares)		(15,001,000)
Retirement of treasury stock	0	(15)	(180,027)	450,369	(270,327)
Excess tax benefits from share-based compensation	11,978		11,978
Other	(11)		(11)
Balance at Dec. 29, 2012	0
Balance at Dec. 29, 2012	349,975	106	1,251,498	0	(914,094)	9,141	3,324
Balance, shares at Dec. 29, 2012	106,146,984	106,142,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	146,664				146,903		(239)
Other comprehensive income (loss)	(7,802)					(7,802)
Sale of subsidiary shares to noncontrolling interests	0						0
Dividends paid on common stock	(81,008)		(81,008)
Exercise of stock options, shares		1,140,000
Exercise of stock options	7,963	1	7,962
Share-based compensation expense, shares)		12,000
Share-based compensation expense	7,323		7,323
Repurchases of common stock	(27,963)			(27,963)
Retirement of treasury stock (shares)		(417,000)
Retirement of treasury stock	0	0	(4,688)	17,190	(12,502)
Reclassification to noncontrolling interests	(3,085)					0	(3,085)
Excess tax benefits from share-based compensation	15,366		15,366
Other	(75)		(27)
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income	(360)
Reclassification to noncontrolling interests	3,085
Contributions from noncontrolling interests	2,205
Balance at Dec. 28, 2013	4,930
Balance at Dec. 28, 2013	$ 407,358	$ 107	$ 1,196,426	$ (10,773)	$ (779,741)	$ 1,339	$ 0
Balance, shares at Dec. 28, 2013	106,646,219	106,877,000

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 28, 2013	Dec. 29, 2012
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)
Preferred stock, shares outstanding (in shares)
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	475,000,000	475,000,000
Common stock, shares issued (in shares)	106,876,919	106,146,984
Common stock, shares outstanding (in shares)	106,646,219	106,146,984

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Derivative Instruments and Hedging Transactions

12 Months Ended

Dec. 28, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Transactions

Derivative instruments and hedging transactions

The Company is exposed to global market risks, including the effect of changes in interest rates, and may use derivative instruments to mitigate the impact of these changes. The Company does not use derivatives with a level of complexity or with a risk higher than the exposures to be hedged and does not hold or issue derivatives for trading purposes. The Company's hedging instruments consist solely of interest rate swaps at December 28, 2013. The Company's risk management objective and strategy with respect to the interest rate swaps is to limit the Company's exposure to increased interest rates on its variable rate debt by reducing the potential variability in cash flow requirements relating to interest payments on a portion of its outstanding debt. The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items.

In September 2012, the Company entered into variable-to-fixed interest rate swap agreements with three counterparties to hedge the risk of increases in cash flows (interest payments) attributable to increases in three-month LIBOR above 1.0%, the designated benchmark interest rate being hedged, through November 2017. The notional value of the swaps totals $900.0 million, and the Company is required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.37%, resulting in a total interest rate of approximately 4.12% on the hedged amount when considering the applicable margin in effect at December 28, 2013. In exchange, the Company receives interest on the notional amount at a variable rate based on a three-month LIBOR spot rate, subject to a 1.0% floor. Interest is settled quarterly on a net basis with each counterparty. The swaps have been designated as hedging instruments and are classified as cash flow hedges. They are recognized on the Company's consolidated balance sheets at fair value and classified based on the instruments' maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to other comprehensive income (loss) and/or current earnings.

The fair values of derivatives instruments consisted of the following (in thousands):

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - asset	$	10,221	—	Other assets
Total fair values of derivative instruments - asset	$	10,221	—

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - liability	$	—	2,809	Other long-term liabilities
Total fair values of derivative instruments - liability	$	—	2,809

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2013:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	9,648		(3,382	)	Interest expense	13,030
Income tax effect	(3,909		)	1,381		Provision for income taxes	(5,290	)
Net of income taxes	$	5,739		(2,001	)		7,740

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2012:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	(3,673	)	(864	)	Interest expense	(2,809	)
Income tax effect	1,509			355		Provision for income taxes	1,154
Net of income taxes	$	(2,164	)	(509	)		(1,655	)

There was no ineffectiveness of the interest rate swaps since inception, and therefore, ineffectiveness had no impact on the consolidated statements of operations for fiscal years 2012 and 2013. As of December 28, 2013 and December 29, 2012, $836 thousand and $864 thousand, respectively, of interest expense related to interest rate swaps is accrued in other current liabilities in the consolidated balance sheets. As of December 28, 2013, the Company estimates that $3.4 million will be reclassified from accumulated other comprehensive income as an increase to interest expense during the next twelve months, based on current projections of LIBOR.

The Company is exposed to credit-related losses in the event of non-performance by the counterparties to its hedging instruments. To mitigate counterparty credit risk, the Company only enters into contracts with major financial institutions based upon their credit ratings and other factors, and continually assesses the creditworthiness of its counterparties. At December 28, 2013, all of the counterparties to the interest rate swaps had investment grade ratings. To date, all counterparties have performed in accordance with their contractual obligations.

The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. As of December 28, 2013, the Company has not posted any collateral related to these agreements. The Company holds one derivative instrument with each of its derivative counterparties, each of which is settled net with the respective counterparties in accordance with the swap agreements. There is no offsetting of these financial instruments on the consolidated balance sheets. As of December 28, 2013, the termination value of derivatives is a net asset position of $9.6 million, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements.

As a result of the February 2014 amendment to the senior credit facility, the Company amended the interest rate swap agreements to align the embedded floors with the amended term loans. As a result of the amendments to the interest rate swap agreements, the Company will be required to make quarterly payments on the notional amount at a fixed average interest rate of approximately 1.22%. In exchange, the Company will receive interest on the notional amount at a variable rate based on three-month LIBOR spot rate, subject to a 0.75% floor. There was no change to the notional amount of the term loan borrowings being hedged.

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Income Taxes - Change in Unrecognized Tax Benefits (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 15,428	$ 41,379	$ 17,549
Increases related to prior year tax positions	855	2,063	23,922
Increases related to current year tax positions	219	1,389	0
Decreases related to prior year tax positions	(3,091)	(19,675)	0
Decreases related to settlements	(4,797)	(9,792)	0
Lapses of statutes of limitations	0	(27)	(43)
Effect of foreign currency adjustments	(401)	91	(49)
Balance at end of year	$ 8,213	$ 15,428	$ 41,379

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Equity Incentive Plans - Resticted Shares Rollforward (Details) (USD $)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Restricted Stock [Member]
Number of Shares [Roll Forward]
Number of shares at December 29, 2012	1,049.000
Granted	0
Vested	(1,049)
Forfeited	0
umber of shares at December 28, 2013	0
Weighted Average Grant Date Fair Value [Roll Forward]
Number of shares at December 29, 2012 (usd per share)	$ 5.44
Granted (usd per share)	$ 0.00
Vested (usd per share)	$ 5.44
Forfeited (usd per share)	$ 0.00
Number of shares at December 28, 2013 (usd per share)	$ 0.00
Restricted Stock Units (RSUs) [Member]
Number of Shares [Roll Forward]
Number of shares at December 29, 2012	22,204
Granted	94,495	22,204	5,618
Vested	(12,655)
Forfeited	(1,073)
umber of shares at December 28, 2013	102,971	22,204
Weighted Average Grant Date Fair Value [Roll Forward]
Number of shares at December 29, 2012 (usd per share)	$ 31.21
Granted (usd per share)	$ 37.87
Vested (usd per share)	$ 35.44
Forfeited (usd per share)	$ 37.27
Number of shares at December 28, 2013 (usd per share)	$ 37.20	$ 31.21

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Equity Incentive Plans - Textuals (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended														12 Months Ended		12 Months Ended																		12 Months Ended								12 Months Ended																	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Dec. 28, 2013 Minimum [Member]	Dec. 28, 2013 Maximum [Member]	Dec. 28, 2013 Restricted Shares [Member]	Dec. 29, 2012 Restricted Shares [Member]	Dec. 31, 2011 Restricted Shares [Member]	Dec. 28, 2013 Restricted Stock Units (RSUs) [Member]	Dec. 29, 2012 Restricted Stock Units (RSUs) [Member]	Dec. 31, 2011 Restricted Stock Units (RSUs) [Member]	Dec. 28, 2013 Stock Incentive Plan 2006 [Member] Maximum [Member]	Dec. 28, 2013 Stock Incentive Plan 2006 [Member] Restricted Shares [Member] Maximum [Member]	Dec. 28, 2013 Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Maximum [Member]	Dec. 28, 2013 Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 28, 2013 Equity Incentive Plan 2011 [Member] Maximum [Member]	Dec. 28, 2013 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member]	Dec. 29, 2012 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member]	Dec. 31, 2011 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 29, 2012 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 31, 2011 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 28, 2013 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member] Common Stock [Member] Minimum [Member]	Dec. 28, 2013 Equity Incentive Plan 2011 [Member] Employee Stock Option [Member] Common Stock [Member] Maximum [Member]	Dec. 28, 2013 Tranche One [Member]	Dec. 28, 2013 Tranche One [Member] Minimum [Member] installment	Dec. 28, 2013 Tranche One [Member] Maximum [Member] installment	Dec. 28, 2013 Tranche Two [Member] installment	Dec. 28, 2013 Tranche Three [Member] installment	Dec. 29, 2012 Tranche Three [Member]	Aug. 01, 2011 Tranche Three [Member]	Dec. 28, 2013 Tranche Three [Member] Minimum [Member]	Dec. 28, 2013 Tranche Three [Member] Maximum [Member]	Dec. 28, 2013 Tranche Four and Tranche Five [Member]	Dec. 28, 2013 Tranche Four and Tranche Five [Member] Employee Stock Option [Member]	Dec. 28, 2013 Tranche Four and Tranche Five [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Minimum [Member]	Dec. 28, 2013 Tranche Five [Member] Employee Stock Option [Member]	Dec. 29, 2012 Tranche Five [Member] Employee Stock Option [Member]	Dec. 31, 2011 Tranche Five [Member] Employee Stock Option [Member]	Dec. 28, 2013 Executive [Member] Employee Stock Option [Member]	Dec. 29, 2012 Executive [Member] Employee Stock Option [Member]	Dec. 28, 2013 Executive [Member] Stock Incentive Plan 2006 [Member]	Dec. 28, 2013 Executive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 29, 2012 Executive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 31, 2011 Executive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Executive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 29, 2012 Executive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Common Stock [Member]	Dec. 28, 2013 Executive [Member] Tranche Four and Tranche Five [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Minimum [Member]	Dec. 28, 2013 Executive [Member] Tranche Four and Tranche Five [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Maximum [Member]	Dec. 28, 2013 Executive [Member] Tranche Four [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Executive [Member] Tranche Four Accelerated Vesting [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Executive [Member] Tranche Four Accelerated Vesting [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Minimum [Member]	Dec. 28, 2013 Executive [Member] Tranche Four Accelerated Vesting [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member] Maximum [Member]	Dec. 28, 2013 Executive [Member] Tranche Five [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Nonexecutive [Member]	Dec. 29, 2012 Nonexecutive [Member]	Dec. 31, 2011 Nonexecutive [Member]	Dec. 28, 2013 Nonexecutive [Member] Minimum [Member]	Dec. 28, 2013 Nonexecutive [Member] Maximum [Member]	Dec. 28, 2013 Nonexecutive [Member] Employee Stock Option [Member]	Dec. 28, 2013 Nonexecutive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 29, 2012 Nonexecutive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 31, 2011 Nonexecutive [Member] Stock Incentive Plan 2006 [Member] Employee Stock Option [Member]	Dec. 28, 2013 Nonexecutive [Member] Equity Incentive Plan 2011 [Member] Employee Stock Option [Member]	Dec. 29, 2012 Nonexecutive [Member] Equity Incentive Plan 2011 [Member] Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 15,900	$ 14,100	$ 438
Share-based Compensation Arrangement by Share-based Payment Award, Options, Annualized Estimated Forfeitures																																										10.00%																10.00%	13.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	1,800	2,800	862			6	1,200	484	448	118	0																																												2,900	1,000	176
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	35,300	33,800	489																																																				4,100	1,500	605
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options									2,400																									682																					13,900
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition									1 year 10 months 24 days																										1 year 7 months 6 days																									2 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term																				10 years																										10 years
Number of shares, Granted															50,491					1,177,999	746,100	292,700																									828,040																	1,177,999
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross, Allocation Of Options Between Tranches																																																		30.00%				70.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Vesting Annual Installments																										4	5	5	4
Minumum Investor Rate of Return																																20.00%	24.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period																							4 years	5 years	4 years 4 months 24 days
Allocated Share-based Compensation Expense	$ 7,323	$ 6,920	$ 4,632			$ 3	$ 132	$ 2,739	$ 1,513	$ 336	$ 33						$ 4,668	$ 2,026	$ 32											$ 2,600							$ 478	$ 3,600	$ 1,100				$ 977	$ 4,245	$ 1,626																$ 162	$ 181	$ 202
Maximum shares of common stock that may be delivered in satisfaction of awards (in shares)												12,191,145	5,012,966	7,178,179		7,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number																															800,000									2,205,947	3,331,993																							2,019,150	1,295,356
Share-based compensation, vesting period				4 years	5 years																															3 years												3 years	5 years			3 years	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Cumulative Performance Targets Achieved																																					100.00%	100.00%	28.50%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting, Annual Vesting Percentage																																																			20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						0			94,495	22,204	5,618

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Document and Entity Information (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Feb. 18, 2014	Jun. 29, 2013
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 28, 2013
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013
Entity Registrant Name	DUNKIN' BRANDS GROUP, INC.
Entity Central Index Key	0001357204
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		106,423,121
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 4.55
Entity Well-known Seasoned Issuer	Yes
Trading Symbol	DNKN

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Other Current Liabilities

12 Months Ended

Dec. 28, 2013

Other Liabilities, Current [Abstract]

Other Current Liabilities

Other current liabilities

Other current liabilities at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Gift card/certificate liability	$	139,721	145,981
Gift card breakage liability	14,093		—
Accrued salary and benefits	26,713		31,136
Accrued legal liabilities (see note 17(d))	26,633		27,305
Accrued interest	9,999		13,564
Accrued professional costs	2,938		2,996
Other	28,821		18,949
Total other current liabilities	$	248,918	239,931

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Segment Information - Additional Information (Detail)	12 Months Ended
	Dec. 28, 2013 customer segment
Segment Reporting [Abstract]
Number of reportable segments	4
Number of Customers Accounted for More than 10% of Total Revenues	0

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Stockholders' Equity - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended	1 Months Ended		5 Months Ended	12 Months Ended			0 Months Ended		3 Months Ended	0 Months Ended	7 Months Ended	12 Months Ended				0 Months Ended
	Aug. 02, 2012	Aug. 31, 2012	Apr. 04, 2012	Aug. 31, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Feb. 06, 2014 Dividend Declared	Aug. 01, 2011 IPO [Member]	Dec. 31, 2011 Secondary Offering [Member]	Aug. 01, 2011 Common Class L [Member]	Aug. 01, 2011 Common Class L [Member]	Dec. 29, 2012 Common Class L [Member]	Dec. 31, 2011 Common Class L [Member]	Jul. 31, 2011 Common Class L [Member]	Dec. 25, 2010 Common Class L [Member]	Aug. 01, 2011 Common Stock [Member]
Class of Stock [Line Items]
Issuance of Class L common stock (shares)									22,250,000	23,937,986			65,000
Number of shares of common stock sold by existing shareholders (in shares)		21,754,659	30,360,000
Common stock price (in dollars per share)		$ 30.00	$ 29.50						$ 19.00	$ 25.62
Issuance of common stock, IPO							$ 942		$ 390,000				$ 2,270
Common Stock, Distribution Preference Per Share												$ 41.75
Common Stock, Distribution Preference Per Share, Additional Internal Rate of Return Requirement												9.00%
Stock split conversion ratio											$ 0.2189
Conversion of Class L shares into common stock, shares																	55,652,782
Class L preference amount															$ 38.8274
Common stock, shares outstanding (in shares)					106,646,219	106,146,984							0	0	22,866,379	22,995,000
Common stock conversion per share											2.2149
Dividend per share of common stock declared (in dollars per share)					$ 0.76	$ 0.60	$ 0	$ 0.23
Shares Sold By Existing Stockholders During Initial Public Offering	3,337,500
Repayment of long-term debt	(375,000)				(24,157)	(15,441)	(654,608)
Expenses in Connection with stock offering				$ 1,700						$ 984

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Revenues:
Franchise fees and royalty income	$ 453,976	$ 418,940	$ 398,474
Rental income	96,082	96,816	92,145
Sales of ice cream products	112,276	94,659	100,068
Sales at company-owned restaurants	24,976	22,922	12,154
Other revenues	26,530	24,844	25,357
Total revenues	713,840	658,181	628,198
Operating costs and expenses:
Occupancy expenses—franchised restaurants	52,097	52,072	51,878
Cost of ice cream products	79,278	69,019	72,329
Company-owned restaurant expenses	24,480	23,133	12,854
General and administrative expenses, net	228,010	239,574	227,771
Depreciation	22,423	29,084	24,497
Amortization of other intangible assets	26,943	26,943	28,025
Long-lived asset impairment charges	563	1,278	2,060
Total operating costs and expenses	433,794	441,103	419,414
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
Net income, excluding impairment	19,243	22,351	16,277
Impairment charge, net of tax	(873)	0	(19,752)
Total net income (loss) of equity method investments	18,370	22,351	(3,475)
Other operating income, net	6,320	0	0
Operating income	304,736	239,429	205,309
Other income (expense):
Interest income	404	543	623
Interest expense	(80,235)	(74,031)	(105,072)
Loss on debt extinguishment and refinancing transactions	(5,018)	(3,963)	(34,222)
Other gains (losses), net	(1,799)	23	175
Total other expense	(86,648)	(77,428)	(138,496)
Income before income taxes	218,088	162,001	66,813
Provision for income taxes	71,784	54,377	32,371
Net income including noncontrolling interests	146,304	107,624	34,442
Net loss attributable to noncontrolling interests	(599)	(684)	0
Net income attributable to Dunkin' Brands	$ 146,903	$ 108,308	$ 34,442
Earnings (loss) per share:
Common-basic (in dollars per share)	$ 1.38	$ 0.94	$ (1.41)
Common-diluted (in dollars per share)	$ 1.36	$ 0.93	$ (1.41)
Cash dividends declared per common share (in dollars per share)	$ 0.76	$ 0.60	$ 0
Common Class L [Member]
Earnings (loss) per share:
Class L-basic and diluted (in dollars per share)			$ 6.14

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Advertising Funds

12 Months Ended

Dec. 28, 2013

Advertising Funds [Abstract]

Advertising Funds

Advertising funds

On behalf of certain Dunkin’ Donuts and Baskin-Robbins advertising funds, the Company collects a percentage, which is generally 5%, of gross retail sales from Dunkin’ Donuts and Baskin-Robbins franchisees to be used for various forms of advertising for each brand. In most of our international markets, franchisees manage their own advertising expenditures, which are not included in the advertising fund results.

The Company administers and directs the development of all advertising and promotion programs in the advertising funds for which it collects advertising fees, in accordance with the provisions of our franchise agreements. The Company acts as, in substance, an agent with regard to these advertising contributions. We consolidate and report all assets and liabilities held by these advertising funds as restricted assets of advertising funds and liabilities of advertising funds within current assets and current liabilities, respectively, in the consolidated balance sheets. The assets and liabilities held by these advertising funds consist primarily of receivables, accrued expenses, other liabilities, and any cumulative surplus or deficit related specifically to the advertising funds. The revenues, expenses, and cash flows of the advertising funds are not included in the Company’s consolidated statements of operations or consolidated statements of cash flows because the Company does not have complete discretion over the usage of the funds. Contributions to these advertising funds are restricted to advertising, product development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of each of the brands.

At December 28, 2013 and December 29, 2012, the Company had a net payable of $17.6 million and $13.7 million, respectively, to the various advertising funds.

To cover administrative expenses of the advertising funds, the Company charges each advertising fund a management fee for items such as rent, accounting services, information technology, data processing, product development, legal, administrative support services, and other operating expenses, which amounted to $5.5 million, $5.6 million, and $5.7 million for fiscal years 2013, 2012, and 2011, respectively. Such management fees are included in the consolidated statements of operations as a reduction in general and administrative expenses, net.

The Company made discretionary contributions to certain advertising funds for the purpose of supplementing national and regional advertising in certain markets of $2.4 million, $863 thousand, and $2.0 million for fiscal years 2013, 2012, and 2011, respectively, which are included in general and administrative expenses, net in the consolidated statements of operations. Additionally, the Company made net contributions to the advertising funds based on retail sales as owner and operator of company-owned restaurants of $1.0 million, $808 thousand, and $289 thousand for fiscal years 2013, 2012, and 2011, respectively, which are included in company-owned restaurant expenses in the consolidated statements of operations. During fiscal year 2013, the Company also made $5.9 million of contributions to fund future initiatives that will benefit the gift card program, which was contributed from the gift card breakage liability included within other current liabilities in the consolidated balance sheets (see note 2(v) and note 10); no such contributions were made in fiscal years 2012 or 2011.

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Franchise Fees and Royalty Income

12 Months Ended

Dec. 28, 2013

Disclosure Franchise Fees And Royalty Income [Abstract]

Franchise Fees and Royalty Income

Franchise fees and royalty income

Franchise fees and royalty income consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Royalty income	$	411,428	385,713	363,458
Initial franchise fees and renewal income	42,548		33,227	35,016
Total franchise fees and royalty income	$	453,976	418,940	398,474

The changes in franchised and company-owned points of distribution were as follows:

	Fiscal year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Systemwide points of distribution:
Franchised points of distribution in operation—beginning of year	17,333		16,565		16,105
Franchises opened	1,388		1,470		1,403
Franchises closed	(600	)	(701	)	(944	)
Net transfers from (to) company-owned points of distribution	1		(1	)	1
Franchised points of distribution in operation—end of year	18,122		17,333		16,565
Company-owned points of distribution—end of year	36		35		31
Total systemwide points of distribution—end of year	18,158		17,368		16,596

During fiscal year 2013, the Company performed an internal review of international franchised points of distribution, and determined that certain franchises opened and closed had not been accurately reported in prior years. As such, the points of distribution information for fiscal years 2012 and 2011 above have been adjusted to reflect the results of this internal review. The adjustments to the prior years were not material, and had no impact on the Company's financial position or results of operations. Franchised points of distribution in operation—beginning of year were reduced by 198 and 57 for fiscal years 2012 and 2011, respectively. Franchised points of distribution in operation—end of year were reduced by 91 and 198 for fiscal years 2012 and 2011, respectively.

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Earnings per Share

12 Months Ended

Dec. 28, 2013

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Net income attributable to Dunkin' Brands—basic and diluted	$	146,903	108,308	34,442
Allocation of net income (loss) to common stockholders(1):
Class L—basic and diluted	n/a		n/a	140,212
Common—basic(2)	$	146,903	108,176	(105,770		)
Common—diluted(2)	146,903		108,197	(105,770		)
Weighted average number of common shares—basic and diluted:
Class L—basic and diluted(3)	n/a		n/a	22,845,378
Common—basic	106,501,733		114,584,063	74,835,697
Common—diluted(4)	108,217,011		116,573,344	74,835,697
Earnings (loss) per common share:
Class L—basic	n/a		n/a	$	6.14
Common—basic	$	1.38	0.94	(1.41		)
Common—diluted	1.36		0.93	(1.41		)

(1) As the Company had both Class L and common stock outstanding during fiscal year 2011, and Class L had preference with respect to all distributions, earnings per share was calculated using the two-class method, which requires the allocation of earnings to each class of common stock. The numerator in calculating Class L basic and diluted earnings per share is the Class L preference amount accrued at 9% per annum during fiscal year 2011 plus, if positive, a pro rata share of an amount equal to consolidated net income less the Class L preference amount. The Class L preferential distribution amount accrued was $45.1 million during fiscal year 2011. The Class L shares converted into common stock immediately prior to the Company’s initial public offering that was completed on August 1, 2011. The numerator in calculating the Class L basic and diluted earnings per share for fiscal year 2011 includes an amount representing the excess of the fair value of the consideration transferred to the Class L shareholders upon conversion to common stock over the carrying amount of the Class L shares at the date of conversion, which occurred immediately prior to the Company’s initial public offering. As the carrying amount of the Class L shares was equal to the Class L preference amount, the excess fair value of the consideration transferred to the Class L shareholders was equal to the fair value of the additional 0.2189 of a share of common stock into which each Class L share converted (“Class L base share”), which totaled $95.1 million, calculated as follows:

Class L shares outstanding immediately prior to the initial public offering	22,866,379
Number of common shares received for each Class L share	0.2189
Common stock received by Class L shareholders, excluding preferential distribution	5,005,775
Common stock fair value per share (initial public offering price per share)	$	19.00
Fair value of Class L base shares (in thousands)	$	95,110

(2) Net income allocated to common shareholders for the fiscal year 2012 excludes $132 thousand and $111 thousand for basic and diluted earnings per share, respectively, that is allocated to participating securities. Participating securities consist of unvested (restricted) shares that contain a nonforfeitable right to participate in dividends. No net income was allocated to participating securities for fiscal year 2013 as all restricted shares were fully vested as of December 28, 2013, and no net loss was allocated to participating securities for fiscal year 2011 as the participating securities do not participate in losses.

(3) The weighted average number of Class L shares in the Class L earnings per share calculation in fiscal year 2011 represents the weighted average from the beginning of the period up through the date of conversion of the Class L shares into common shares. There were no Class L common stock equivalents outstanding during fiscal year 2011.

(4) The weighted average number of common shares in the common diluted earnings per share calculation for fiscal years 2013 and 2012 includes the dilutive effect of 1,715,278 and 1,989,281, respectively, restricted shares and stock options, using the treasury stock method. The weighted average number of common shares in the common diluted earnings per share calculation for all periods excludes all performance-based restricted stock awards and stock options outstanding for which the performance criteria were not yet met as of the fiscal period end. As of December 28, 2013 and December 29, 2012, there were no common restricted stock awards that were performance-based and for which the performance criteria were not yet met. As of December 31, 2011, there were approximately 636,752 common restricted stock awards and 2,422,628 options to purchase common stock that were performance-based and for which the performance criteria was not yet met. Additionally, the weighted average number of common shares in the common diluted earnings per share calculation excludes stock options of 1,100,275 and 805,015 for fiscal years 2013 and 2012, respectively, as they would be antidilutive. The weighted average number of common shares in the common diluted earnings per share calculation for fiscal year 2011 excludes all restricted stock and stock options outstanding, as they would be antidilutive.

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Leases

12 Months Ended

Dec. 28, 2013

Leases [Abstract]

Leases

Leases

The Company is the lessee on certain land leases (the Company leases the land and erects a building) or improved leases (lessor owns the land and building) covering restaurants and other properties. In addition, the Company has leased and subleased land and buildings to others. Many of these leases and subleases provide for future rent escalation and renewal options. In addition, contingent rentals, determined as a percentage of annual sales by our franchisees, are stipulated in certain prime lease and sublease agreements. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to these leases. Such costs are typically charged to the sublessee based on the terms of the sublease agreements. The Company also leases certain office equipment and a fleet of automobiles under noncancelable operating leases. Included in the Company’s consolidated balance sheets are the following amounts related to capital leases (in thousands):

	December 28, 2013			December 29, 2012
Leased property under capital leases (included in property and equipment)	$	7,888		7,902
Accumulated depreciation	(2,326		)	(2,003	)
Net leased property under capital leases	$	5,562		5,899
Capital lease obligations:
Current	$	432		371
Long-term	6,996			7,251
Total capital lease obligations	$	7,428		7,622

Capital lease obligations exclude that portion of the minimum lease payments attributable to land, which are classified separately as operating leases. Interest expense associated with the capital lease obligations is computed using the incremental borrowing rate at the time the lease is entered into and is based on the amount of the outstanding lease obligation. Depreciation on capital lease assets is included in depreciation expense in the consolidated statements of operations. Interest expense related to capital leases for fiscal years 2013, 2012, and 2011 was $618 thousand, $600 thousand, and $481 thousand, respectively.

Included in the Company’s consolidated balance sheets are the following amounts related to assets leased to others under operating leases, where the Company is the lessor (in thousands):

	December 28, 2013			December 29, 2012
Land	$	29,701		27,210
Buildings	41,721			39,242
Leasehold improvements	135,177			141,264
Store, production, and other equipment	146			149
Construction in progress	1,363			1,384
Assets leased to others, gross	208,108			209,249
Accumulated depreciation	(71,535		)	(71,100	)
Assets leased to others, net	$	136,573		138,149

Future minimum rental commitments to be paid and received by the Company at December 28, 2013 for all noncancelable leases and subleases are as follows (in thousands):

	Payments				Receipts Subleases		Net leases
	Capital leases		Operating leases
Fiscal year:
2014	$	1,031	52,930		(61,929	)	(7,968	)
2015	1,064		51,710		(61,043	)	(8,269	)
2016	1,068		50,563		(61,026	)	(9,395	)
2017	1,090		50,467		(60,525	)	(8,968	)
2018	1,106		49,811		(59,305	)	(8,388	)
Thereafter	6,655		384,354		(347,138	)	43,871
Total minimum rental commitments	12,014		$	639,835	(650,966	)	883
Less amount representing interest	4,586
Present value of minimum capital lease obligations	$	7,428

Rental expense under operating leases associated with franchised locations and company-owned locations is included in occupancy expenses—franchised restaurants and company-owned restaurant expenses, respectively, in the consolidated statements of operations. Rental expense under operating leases for all other locations, including corporate facilities, is included in general and administrative expenses, net, in the consolidated statements of operations. Total rental expense for all operating leases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	53,462	52,821	52,214
Contingent rentals	5,869		5,227	4,510
Total rental expense	$	59,331	58,048	56,724

Total rental income for all leases and subleases consisted of the following (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Base rentals	$	66,540	67,988	66,061
Contingent rentals	29,542		28,828	26,084
Total rental income	$	96,082	96,816	92,145

The impact of the amortization of our unfavorable operating leases acquired resulted in an increase in rental income and a decrease in rental expense as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Increase in rental income	$	973	1,065	1,392
Decrease in rental expense	1,204		1,287	1,838
Total increase in operating income	$	2,177	2,352	3,230

Following is the estimated impact of the amortization of our unfavorable operating leases acquired for each of the next five years (in thousands):

	Decrease in rental expense		Increase in rental income	Total increase in operating income
Fiscal year:
2014	$	1,051	847	1,898
2015	949		789	1,738
2016	893		719	1,612
2017	893		681	1,574
2018	859		632	1,491

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Segment Information Depreciation and Amortization by Segment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 49,366	$ 56,027	$ 52,522
Reportable Segment
Segment Reporting Information [Line Items]
Total depreciation and amortization	19,221	20,808	21,586
Reportable Segment | Dunkin Donuts [Member] | United States
Segment Reporting Information [Line Items]
Total depreciation and amortization	18,506	19,021	20,068
Reportable Segment | Dunkin Donuts [Member] | International
Segment Reporting Information [Line Items]
Total depreciation and amortization	50	92	130
Reportable Segment | Baskin Robbins [Member] | United States
Segment Reporting Information [Line Items]
Total depreciation and amortization	530	1,052	522
Reportable Segment | Baskin Robbins [Member] | International
Segment Reporting Information [Line Items]
Total depreciation and amortization	135	643	866
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 30,145	$ 35,219	$ 30,936

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 28, 2013

Text Block [Abstract]

Goodwill and Other Intangible Assets

Goodwill and other intangible assets

The changes and carrying amounts of goodwill by reporting unit were as follows (in thousands):

	Dunkin’ Donuts U.S.							Dunkin’ Donuts International					Baskin-Robbins International				Total
	Goodwill			Accumulated impairment charges		Net Balance		Goodwill		Accumulated impairment charges	Net Balance		Goodwill	Accumulated impairment charges		Net Balance	Goodwill		Accumulated impairment charges		Net Balance
Balances at December 31, 2011	$	1,151,140		(270,441	)	880,699		10,293		—	10,293		24,037	(24,037	)	—	1,185,470		(294,478	)	890,992
Goodwill acquired	895			—		895		—		—	—		—	—		—	895		—		895
Effects of foreign currency adjustments	—			—		—		13		—	13		—	—		—	13		—		13
Balances at December 29, 2012	1,152,035			(270,441	)	881,594		10,306		—	10,306		24,037	(24,037	)	—	1,186,378		(294,478	)	891,900
Goodwill disposed	(260		)	—		(260	)	—		—	—		—	—		—	(260	)	—		(260	)
Effects of foreign currency adjustments	—			—		—		(42	)	—	(42	)	—	—		—	(42	)	—		(42	)
Balances at December 28, 2013	$	1,151,775		(270,441	)	881,334		10,264		—	10,264		24,037	(24,037	)	—	1,186,076		(294,478	)	891,598

The goodwill acquired and disposed during fiscal years 2013 and 2012 is related to the acquisition and sale of certain company-owned points of distribution.

Other intangible assets at December 28, 2013 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	383,465	(159,719	)	223,746
Favorable operating leases acquired	16	71,788		(35,653	)	36,135
License rights	10	6,230		(4,876	)	1,354
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,652,453	(200,248	)	1,452,205

Other intangible assets at December 29, 2012 consisted of the following (in thousands):

	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-lived intangibles:
Franchise rights	20	$	384,065	(139,677	)	244,388
Favorable operating leases acquired	15	77,653		(35,207	)	42,446
License rights	10	6,230		(4,250	)	1,980
Indefinite-lived intangible:
Trade names	N/A	1,190,970		—		1,190,970
		$	1,658,918	(179,134	)	1,479,784

The changes in the gross carrying amount of other intangible assets and weighted average amortization period from December 29, 2012 to December 28, 2013 are primarily due to the impairment of favorable operating leases acquired resulting from lease terminations and the impact of foreign currency fluctuations. Impairment of favorable operating leases acquired, net of accumulated amortization, totaled $444 thousand, $959 thousand, and $624 thousand, for fiscal years 2013, 2012, and 2011, respectively, and is included within long-lived asset impairment charges in the consolidated statements of operations.

Total estimated amortization expense for other intangible assets for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	25,357
2015	25,069
2016	22,180
2017	21,673
2018	21,258

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Equity method investments Expected Amortization Expense (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Equity Method Investments and Joint Ventures [Abstract]
2014	$ 408
2015	345
2016	277
2017	205
2018	$ 128

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Related-Party Transactions - Additional Information (Detail) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended
	Aug. 01, 2011	Apr. 30, 2012	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Number of common shares sold by existing shareholders (in shares)		30,360,000
Annual management fee	$ 1,000,000
Annual management fee payable to sponsors	14,700,000
Expense related to sponsor management fees					16,400,000
Long term loans held by certain affiliates of sponsors			0	52,400,000
Payments to sponsors and joint ventures			2,100,000	1,600,000	979,000
Amount payable to sponsors			0	150,000
Royalties receivable from joint ventures			1,400,000	1,200,000
B-R 31 Ice Cream Co., Ltd. (BR Japan)
Related Party Transaction [Line Items]
Royalty received from joint venture			2,097,000	2,549,000	2,473,000
BR Korea Co., Ltd. (BR Korea)
Related Party Transaction [Line Items]
Royalty received from joint venture			4,156,000	3,662,000	3,371,000
Coffee Alliance, S.L. [Member]
Related Party Transaction [Line Items]
Royalty received from joint venture			130,000	0	0
Loans and leases receivable, related parties, additions			2,100,000	666,000
Loans and leases receivable, related parties			2,700,000	666,000
Related Party
Related Party Transaction [Line Items]
Royalty received from joint venture			6,383,000	6,211,000	5,844,000
Joint Ventures
Related Party Transaction [Line Items]
Payments to sponsors and joint ventures			3,800,000	1,600,000	2,800,000
Board of Directors
Related Party Transaction [Line Items]
Royalty, rental and other payments received			343,000	961,000	713,000
Income related to a store development agreement			6,000
Australia Joint Venture [Member]
Related Party Transaction [Line Items]
Revenue from related parties			4,800,000
Due from joint ventures			$ 733,000

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Property and Equipment

12 Months Ended

Dec. 28, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment

Property and equipment at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013			December 29, 2012
Land	$	34,052		31,080
Buildings	47,946			45,447
Leasehold improvements	154,491			158,797
Store, production, and other equipment	43,124			50,046
Construction in progress	9,079			5,549
Property and equipment, gross	288,692			290,919
Accumulated depreciation and amortization	(105,834		)	(109,747	)
Property and equipment, net	$	182,858		181,172

The Company recognized impairment charges on leasehold improvements, typically due to termination of the underlying lease agreement, and other corporately-held assets of $119 thousand, $319 thousand, and $1.4 million during fiscal years 2013, 2012, and 2011, respectively, which are included in long-lived asset impairment charges in the consolidated statements of operations.

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Equity method investments

12 Months Ended

Dec. 28, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity method investments

The Company’s ownership interests in its equity method investments as of December 28, 2013 and December 29, 2012 were as follows:

	Ownership
Entity	December 28, 2013		December 29, 2012
BR Japan	43.3	%	43.3	%
BR Korea	33.3	%	33.3	%
Spain JV	33.3	%	33.3	%
Australia JV	20.0	%	n/a

In June 2013, the Company sold 80% of the Baskin-Robbins Australia franchising business, resulting in a gain of $6.3 million, net of transaction costs, which is included in other operating income in the consolidated statements of operations for the fiscal year 2013. The gain consisted of net proceeds of $6.5 million, offset by the carrying value of the business included in the sale, which totaled $216 thousand. As of December 28, 2013, unpaid transaction-related costs totaling $146 thousand are included in other current liabilities in the consolidated balance sheets. The Company retained the remaining 20% ownership of the Australia JV, and therefore accounts for the Australia JV in accordance with the equity method.

Summary financial information for the equity method investments on an aggregated basis was as follows (in thousands):

	December 28, 2013		December 29, 2012
Current assets	$	261,546	248,371
Current liabilities	106,280		102,787
Working capital	155,266		145,584
Property, plant, and equipment, net	139,378		144,570
Other assets	173,491		163,511
Long-term liabilities	52,389		62,351
Equity of equity method investments	$	415,746	391,314

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Revenues	$	673,537	687,676	659,319
Net income	51,407		51,046	44,156

The comparison between the carrying value of our investments in BR Japan and BR Korea and the underlying equity in net assets of those investments is presented in the table below (in thousands):

	BR Japan			BR Korea
	December 28, 2013		December 29, 2012	December 28, 2013		December 29, 2012
Carrying value of investment	$	79,472	95,776	91,121		77,749
Underlying equity in net assets of investment	45,682		54,410	100,766		88,514
Carrying value in excess of (less than) the underlying equity in net assets(a)	$	33,790	41,366	(9,645	)	(10,765	)

(a) The excess carrying values over the underlying equity in net assets of BR Japan is primarily comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill, all of which were established in the BCT Acquisition. The deficit of cost relative to the underlying equity in net assets of BR Korea is primarily comprised of an impairment of long-lived assets, net of tax, recorded in fiscal year 2011.

The carrying value of our investments in the Spain JV and the Australia JV was not material for any period presented.

The aggregate fair value of the Company's investment in BR Japan, based on its quoted market price on the last business day of the year, is approximately $163.9 million. No quoted market prices are available for the Company's other equity method investments.

Net income (loss) of equity method investments in the consolidated statements of operations for fiscal years 2013, 2012, and 2011 includes $505 thousand, $689 thousand, and $868 thousand, respectively, of net expense related to the amortization of intangible franchise rights and related deferred tax liabilities noted above. As required under the equity method of accounting, such net expense is recorded in the consolidated statements of operations directly to net income (loss) of equity method investments and not shown as a component of amortization expense.

Total estimated amortization expense, net of deferred tax benefits, to be included in net income of equity method investments for fiscal years 2014 through 2018 is as follows (in thousands):

Fiscal year:
2014	$	408
2015	345
2016	277
2017	205
2018	128

During the third quarter of 2013, the Company fully reserved all outstanding notes and accounts receivable totaling $2.8 million, and fully impaired its equity investment in the Spain JV of $873 thousand. The reserves on accounts and notes receivable are included in general and administrative expenses, net, and the impairment of the equity investment is included in net income (loss) of equity method investments in the consolidated statements of operations.

During the fourth quarter of 2011, management concluded that indicators of potential impairment were present related to our investment in BR Korea based on continued declines in the operating performance and future projections of the Korea Dunkin’ Donuts business. Accordingly, the Company engaged an independent third-party valuation specialist to assist the Company in determining the fair value of our investment in BR Korea. The valuation was completed using a combination of discounted cash flow and income approaches to valuation. Based in part on the fair value determined by the independent third-party valuation specialist, the Company determined that the carrying value of the investment in BR Korea exceeded fair value by $19.8 million, and as such the Company recorded an impairment charge for that amount in the fourth quarter of 2011. The impairment charge was allocated to the underlying goodwill, intangible assets, and long-lived assets of BR Korea, and therefore resulted in a reduction in depreciation and amortization, net of tax, of $2.0 million, $3.6 million, and $1.0 million, in fiscal years 2013, 2012, and 2011, respectively, which is recorded within net income (loss) of equity method investments in the consolidated statements of operations.

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Debt

12 Months Ended

Dec. 28, 2013

Debt Disclosure [Abstract]

Debt

Debt

Debt at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013		December 29, 2012
Term loans	$	1,823,609	1,849,958
Less current portion of long-term debt	5,000		26,680
Total long-term debt	$	1,818,609	1,823,278

Senior credit facility

The Company’s senior credit facility consists of $1.90 billion aggregate principal amount term loans and a $100.0 million revolving credit facility, which were entered into by DBGI’s subsidiary, Dunkin’ Brands, Inc. (“DBI”) in November 2010. The term loans and revolving credit facility mature in February 2020 and February 2018, respectively. As of December 28, 2013 and December 29, 2012, $1.83 billion and $1.86 billion, respectively, of principal was outstanding on the term loans. As of December 28, 2013 and December 29, 2012, $3.0 million and $11.5 million, respectively, of letters of credit were outstanding against the revolving credit facility. There were no amounts drawn down on these letters of credit.

Borrowings under the term loans bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, (c) the LIBOR rate plus 1.0%, and (d) 2.0% or (2) a LIBOR rate provided that LIBOR shall not be lower than 1.0% (the “LIBOR floor”). The applicable margin under the term loan facility is 1.75% for loans based upon the base rate and 2.75% for loans based upon the LIBOR rate. The effective interest rate for term loans, including the amortization of original issue discount and deferred financing costs, was 4.0% at December 28, 2013.

Borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at our option, either (1) a base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.5%, (b) the prime rate, and (c) the LIBOR rate plus 1.0%, or (2) a LIBOR rate. The applicable margin under the revolving credit facility is 1.5% for loans based upon the base rate and 2.5% for loans based upon the LIBOR rate. In addition, we are required to pay a 0.5% commitment fee per annum on the unused portion of the revolver and a fee for letter of credit amounts outstanding of 2.5%.

Repayments are required to be made under the term loans equal to $19.0 million per calendar year, payable in quarterly installments through December 2019, with the remaining principal balance due in February 2020. Additionally, following the end of each fiscal year, the Company is required to prepay an amount equal to 25% of excess cash flow (as defined in the senior credit facility) for such fiscal year. If DBI’s leverage ratio, which is a measure of DBI’s outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as specified in the senior credit facility), is less than 4.75x, no excess cash flow payments are required. If DBI’s leverage ratio is greater than 5.50x, the Company is required to prepay an amount equal to 50% of excess cash flow. The excess cash flow payments may be applied to required principal payments. During fiscal year 2013, the Company made total principal payments of $24.2 million, including an excess cash flow payment in the first quarter of 2013 of $4.2 million based on 2012 excess cash flow and leverage ratio requirements. Based on all payments made, including the required excess cash flow payment in the first quarter of 2013, no additional principal payments would be required in the next twelve months as of December 28, 2013, though the Company may elect to make voluntary payments. The Company has reflected a $5.0 million voluntary payment, which was paid during the first week of fiscal year 2014, within the current portion of long-term debt as of December 28, 2013. Other events and transactions, such as certain asset sales and incurrence of debt, may trigger additional mandatory prepayments.

The senior credit facility contains certain financial and nonfinancial covenants, which include restrictions on liens, investments, additional indebtedness, asset sales, certain dividend payments, and certain transactions with affiliates. At December 28, 2013 and December 29, 2012, the Company was in compliance with all of its covenants under the senior credit facility.

Certain of the Company’s wholly owned domestic subsidiaries guarantee the senior credit facility. All obligations under the senior credit facility, and the guarantees of those obligations, are secured, subject to certain exceptions, by substantially all assets of DBI and the subsidiary guarantors.

During 2011, the Company increased the size of the term loans from $1.25 billion to $1.50 billion. The incremental proceeds of the term loans were used to repay $250.0 million of the Company’s senior notes. Additionally, the Company completed two separate re-pricing transactions to reduce the stated interest rate on the senior credit facility. As a result of the additional term loan borrowings and the re-pricings of the term loans, the Company recorded a loss on debt extinguishment and refinancing transactions of $8.2 million in fiscal year 2011, which includes debt extinguishment of $477 thousand related to the write-off of original issuance discount and deferred financing costs, and $7.7 million of costs paid to creditors and third parties.

In August 2012, DBI amended its senior credit facility to provide for additional term loan borrowings of $400.0 million. The additional borrowings were issued with an original issue discount of $4.0 million, resulting in net cash proceeds of $396.0 million. The proceeds were used to fund a repurchase of common stock from certain shareholders (see note 13(c)). In addition, the amendment provides certain changes to the negative covenants contained in the senior credit facility and permits increases in future incremental facilities subject to the Company and DBI remaining in compliance with certain specified leverage ratios. In connection with the amendment, the Company recorded costs of $4.0 million, which consisted primarily of fees paid to third parties, within loss on debt extinguishment and refinancing transactions in the consolidated statements of operations.

In February 2013, the Company amended its senior credit facility, resulting in a reduction of the interest rates and an extension of the maturity dates for both the term loans and the revolving credit facility. In connection with the amendment, certain lenders, holding $214.3 million of term loans, exited the term loan lending syndicate. The principal of the exiting lenders was replaced with additional loans from both existing and new lenders. As a result, during the first quarter of 2013, the Company recorded a loss on debt extinguishment and refinancing transactions of $5.0 million, including $3.9 million related to the write-off of original issuance discount and deferred financing costs and $1.1 million of fees paid to third parties. The amended term loans were issued with an original issue discount of 0.25%, or $4.6 million, which was recorded as a reduction to long-term debt.

Cumulative debt issuance costs incurred and capitalized in relation to the senior credit facility were $35.0 million, including costs incurred and capitalized in connection with all refinancing transactions. The term loans, including additional term loan borrowings, were issued with an original issue discount of $14.9 million. Total amortization of original issue discount and debt issuance costs related to the senior credit facility was $4.7 million, $5.7 million, and $5.3 million for fiscal years 2013, 2012, and 2011, respectively, which is included in interest expense in the consolidated statements of operations.

In February 2014, the Company amended its senior credit facility, which now consists of$1.38 billion in term loans due February 2021 (“2021 Term Loans”), $450 million in term loans due September 2017 (“2017 Term Loans”), and a $100 million revolving credit facility due February 2019. The interest rate on the 2021 Term Loans is LIBOR plus 2.50% with a LIBOR floor of 0.75%, while the interest rate on the 2017 Term Loans is LIBOR plus 2.50% with no LIBOR floor. The new interest rate for the revolving credit facility is LIBOR plus 2.25% with no LIBOR floor. The total principal as of the date of the amendment and all other material provisions, including covenants under the existing senior credit facility, remain unchanged.

Senior notes

DBI issued $625.0 million face amount senior notes in November 2010 with a maturity of December 2018 and interest payable semi-annually at a rate of 9.625% per annum.

The senior notes were issued with an original issue discount of $9.4 million. Total debt issuance costs incurred and capitalized in relation to the senior notes were $15.6 million. Total amortization of original issue discount and debt issuance costs related to the senior notes was $1.0 million for fiscal year 2011, which is included in interest expense in the consolidated statements of operations.

In conjunction with the additional term loan borrowings during 2011, the Company repaid $250.0 million of senior notes. Using funds raised by the Company’s initial public offering (see note 13(a)) in August 2011, the Company repaid the full remaining principal balance on the senior notes. In conjunction with the repayment of senior notes, the Company recorded a loss on debt extinguishment of $26.0 million, which includes the write-off of original issuance discount and deferred financing costs totaling $22.8 million, as well as prepayment premiums and third-party costs of $3.2 million.

Maturities of long-term debt

The Company intends to make quarterly principal payments of $5.0 million. However, considering the February 2014 amendment to the senior credit facility and voluntary prepayments made, the aggregate contractual maturities of long-term debt for 2014 through 2018 are as follows (in thousands):

	2017 Term Loans		2021 Term Loans	Total
2014	$	3,375	—	3,375
2015	4,500		10,342	14,842
2016	4,500		13,789	18,289
2017	437,625		13,789	451,414
2018	—		13,789	13,789

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Total Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2013	$ 25,357
2014	25,069
2015	22,180
2016	21,673
2017	$ 21,258

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Segment Information Property and Equipment, Net (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Segment Reporting [Abstract]
Property and equipment, net, United States	$ 182,544	$ 180,525
Property and equipment, net, International	314	647
Property and equipment, net	$ 182,858	$ 181,172

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Debt Senior Credit Facility (Detail) (USD $)	3 Months Ended	12 Months Ended				0 Months Ended		1 Months Ended	12 Months Ended							12 Months Ended		1 Months Ended	5 Months Ended	12 Months Ended								1 Months Ended				12 Months Ended
	Mar. 30, 2013	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011	Dec. 28, 2013 Q1 2013 [Member]	Jan. 03, 2014 Subsequent Event [Member]	Dec. 28, 2013 Base Rate Loans	Dec. 31, 2011 Line of Credit [Member]	Dec. 28, 2013 Line of Credit [Member]	Dec. 29, 2012 Line of Credit [Member]	Dec. 31, 2011 Term Loan [Member]	Dec. 28, 2013 Term Loan [Member]	Dec. 29, 2012 Term Loan [Member]	Dec. 28, 2013 Term Loan [Member] Base Rate [Member]	Dec. 28, 2013 Term Loan [Member] LIBOR Rate Loans	Dec. 29, 2012 Senior Notes [Member] Senior Notes 9.625% Due December 2018 [Member]	Nov. 30, 2010 Senior Notes [Member] Senior Notes 9.625% Due December 2018 [Member]	Feb. 22, 2013 Revolving Credit Facility [Member]	Aug. 31, 2012 Revolving Credit Facility [Member]	Dec. 29, 2012 Revolving Credit Facility [Member]	Feb. 01, 2013 Revolving Credit Facility [Member] Base Rate [Member]	Nov. 30, 2010 Revolving Credit Facility [Member] Line of Credit [Member]	Dec. 28, 2013 Revolving Credit Facility [Member] Term Loan [Member]	Nov. 30, 2010 Revolving Credit Facility [Member] Term Loan [Member]	Dec. 28, 2013 Revolving Credit Facility [Member] Term Loan [Member] Federal Fund Rate [Member]	Feb. 01, 2013 Revolving Credit Facility [Member] Term Loan [Member] LIBOR Rate Loans	Dec. 28, 2013 Revolving Credit Facility [Member] Term Loan [Member] LIBOR Rate Loans Minimum [Member]	Feb. 22, 2013 Letter of Credit [Member]	Feb. 28, 2014 Amended Revolving Credit Facility [Member] Subsequent Event [Member]	Feb. 28, 2014 Amended Revolving Credit Facility [Member] Subsequent Event [Member] London Interbank Offered Rate (LIBOR) [Member]	Feb. 28, 2014 Amended Revolving Credit Facility [Member] Line of Credit [Member] Subsequent Event [Member] London Interbank Offered Rate (LIBOR) [Member]	Dec. 28, 2013 Lenders Exiting Term Loan Lending Syndicate [Member]	Dec. 28, 2013 If DBI’s leverage ratio is greater than 5.50x [Member]	Feb. 28, 2014 Due February 2021 [Member] Amended Revolving Credit Facility [Member] Subsequent Event [Member] London Interbank Offered Rate (LIBOR) [Member]	Feb. 28, 2014 Due February 2021 [Member] Amended Revolving Credit Facility [Member] Line of Credit [Member] Subsequent Event [Member]	Feb. 28, 2014 Due September 2017 [Member] Amended Revolving Credit Facility [Member] Subsequent Event [Member] London Interbank Offered Rate (LIBOR) [Member]	Feb. 28, 2014 Due September 2017 [Member] Amended Revolving Credit Facility [Member] Line of Credit [Member] Subsequent Event [Member]
Debt Instrument [Line Items]
Maximum Borrowing Capacity											$ 1,250,000,000.00		$ 1,500,000,000.00									$ 100,000,000		$ 1,900,000,000.0					$ 100,000,000						$ 1,380,000,000.00		$ 450,000,000
Debt Instrument, Interest Rate, Stated Percentage																	9.625%														2.25%			2.50%		2.50%
Line of Credit Facility, Amount Outstanding		0										1,830,000,000	1,860,000,000
Standby letters of credit		3,000,000	11,500,000
Letters Of Credit Drawn		0	0
Applicable margin under term loan facility							2.50%					2.00%		1.75%	2.75%						1.50%				0.50%	1.00%
Effective interest rate																							4.00%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage																		0.50%
Line of Credit Facility, Commitment Fee Percentage																												2.50%
Notes Reduction																																214,300,000
Repayment of credit facility per calendar year		19,000,000
Percent of excess cash flow required to be used to prepay term loan		25.00%																															50.00%
Maximum leverage ratio for company not to make excess cash flow payments		4.75
Leverage Ratio Minimum Triggering Event, Fifty Percent Excess Cash Flow Payment Requirement		5.50
Additional principal payment		24,200,000
Excess cash flow payment required					4,200,000
Intended payment of debt per quarter		0
Debt Instrument, Voluntary Payment						5,000,000
Early Repayment of Senior Debt																250,000,000
Loss on debt extinguishment and refinancing transactions	5,000,000	5,018,000	3,963,000	34,222,000							8,200,000
Write off of Deferred Debt Issuance Cost	3,900,000		477,000													22,800,000
Other debt extinguishment and refinancing expense	1,100,000		7,700,000													3,200,000
Debt Instrument, Unamortized Discount Percentage		0.25%
Addidtional borrowing, senior notes																			400,000,000
Debt issuance discount		4,600,000							14,900,000								9,400,000		4,000,000
Proceeds from issuance of long-term debt			396,000,000	250,000,000																396,000,000
Debt issuance costs									35,000,000								15,600,000
Amortization of Debt Discount (Premium)								$ 5,300,000	$ 4,700,000	$ 5,700,000
Debt Instrument, Floor Interest Rate																											1.00%			0.75%

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Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Income Tax Disclosure [Abstract]
Deferred tax assets, Allowance for doubtful accounts, Current	$ 1,055	$ 969
Deferred tax assets, Deferred gift cards and certificates	20,371	22,561
Deferred tax assets, Rent, Current	5,307	4,990
Deferred tax assets, Deferred revenue, Current	4,672	3,926
Deferred tax assets, Other current liabilities	13,983	11,422
Deferred tax assets, Other, Current	1,073	3,395
Deferred tax liabilities, current	0	0
Deferred tax assets, Capital leases	2,830	2,924
Deferred tax assets, Rent, Noncurrent	2,243	2,032
Deferred tax liabilities, Property and equipment	6,315	10,229
Deferred tax assets, Deferred compensation and long-term incentive accrual	7,747	6,478
Deferred tax assets, Deferred revenue, Noncurrent	4,234	4,905
Deferred tax assets, Real estate rserves, Noncurrent	1,287	1,398
Deferred tax liabilities, Franchise rights and other intangibles	576,567	584,642
Deferred tax assets, Unused foreign tax credits	6,756	8,034
Deferred tax liabilities, Other, Noncurrent	4,322	26
Deferred tax assets, Other, Noncurrent	1,103	0
Deferred tax assets, Gross, Noncurrent	26,200	25,771
Deferred tax assets, Valuation allowance, Noncurrent	(710)	0
Deferred tax assets, Total noncurrent	25,490	25,771
Deferred tax liabilities, Net, Noncurrent	587,204	594,897
Deferred tax assets, Net of valuation allowance total	71,951	73,034
Deferred tax liabilities, Total	$ 587,204	$ 594,897

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Goodwill and Other Intangible Assets Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Intangible Assets And Goodwill [Line Items]
Gross carrying amount	$ 1,652,453	$ 1,658,918
Accumulated amortization	(200,248)	(179,134)
Net carrying amount	1,452,205	1,479,784
Impairment of favorable operating leases acquired	444	959	624
Franchise Rights [Member] | Definite-lived intangibles:
Intangible Assets And Goodwill [Line Items]
Weighted average amortization period (years)	20 years	20 years
Gross carrying amount	383,465	384,065
Accumulated amortization	(159,719)	(139,677)
Net carrying amount	223,746	244,388
Off-Market Favorable Lease [Member] | Definite-lived intangibles:
Intangible Assets And Goodwill [Line Items]
Weighted average amortization period (years)	16 years	15 years
Gross carrying amount	71,788	77,653
Accumulated amortization	(35,653)	(35,207)
Net carrying amount	36,135	42,446
Licensing Agreements [Member] | Definite-lived intangibles:
Intangible Assets And Goodwill [Line Items]
Weighted average amortization period (years)	10 years	10 years
Gross carrying amount	6,230	6,230
Accumulated amortization	(4,876)	(4,250)
Net carrying amount	1,354	1,980
Trade Names [Member] | Indefinite-lived intangible:
Intangible Assets And Goodwill [Line Items]
Gross carrying amount	1,190,970	1,190,970
Net carrying amount	$ 1,190,970	$ 1,190,970

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Equity Incentive Plans - Compensation Expense Schedule (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 7,323	$ 6,920	$ 4,632
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,958	2,768	1,852
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	3	132	2,739
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	1,513	336	33
Equity Incentive Plan 2011 [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	4,668	2,026	32
Executive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	977	4,245	1,626
Nonexecutive [Member] | Stock Incentive Plan 2006 [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 162	$ 181	$ 202

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Property and Equipment (Tables)

12 Months Ended

Dec. 28, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

Estimated useful lives are as follows:

	Years
Buildings	20 – 35
Leasehold improvements	5 – 20
Store, production, and other equipment	3 – 10

Property and equipment at December 28, 2013 and December 29, 2012 consisted of the following (in thousands):

	December 28, 2013			December 29, 2012
Land	$	34,052		31,080
Buildings	47,946			45,447
Leasehold improvements	154,491			158,797
Store, production, and other equipment	43,124			50,046
Construction in progress	9,079			5,549
Property and equipment, gross	288,692			290,919
Accumulated depreciation and amortization	(105,834		)	(109,747	)
Property and equipment, net	$	182,858		181,172

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Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	$ 11,233	$ 2,505
Liabilities	7,181	10,188
Mutual funds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	1,012	2,505
Interest rate swaps
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	10,221	0
Liabilities	0	2,809
Deferred compensation liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Liabilities	7,181	7,379
Quoted prices in active markets for identical assets (Level 1)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	1,012	2,505
Liabilities	0	0
Quoted prices in active markets for identical assets (Level 1) | Mutual funds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	1,012	2,505
Quoted prices in active markets for identical assets (Level 1) | Interest rate swaps
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	0	0
Liabilities	0	0
Quoted prices in active markets for identical assets (Level 1) | Deferred compensation liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Liabilities	0	0
Significant other observable inputs (Level 2)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	10,221	0
Liabilities	7,181	10,188
Significant other observable inputs (Level 2) | Mutual funds
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	0	0
Significant other observable inputs (Level 2) | Interest rate swaps
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Assets	10,221	0
Liabilities	0	2,809
Significant other observable inputs (Level 2) | Deferred compensation liabilities
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Liabilities	$ 7,181	$ 7,379

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Stockholders' Equity

12 Months Ended

Dec. 28, 2013

Equity [Abstract]

Stockholders' Equity

Stockholders’ equity

(a) Public offerings

On August 1, 2011, the Company completed an initial public offering in which the Company sold 22,250,000 shares of common stock at an initial public offering price of $19.00 per share, less underwriter discounts and commissions, resulting in net proceeds to the Company of approximately $390.0 million after deducting underwriter discounts and commissions and expenses paid or payable by the Company. Additionally, the underwriters exercised, in full, their option to purchase 3,337,500 additional shares, which were sold by certain existing stockholders. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company used a portion of the net proceeds from the initial public offering to repay the remaining $375.0 million outstanding under the senior notes, with the remaining net proceeds being used for working capital and general corporate purposes.

In the fourth quarter of 2011, certain existing stockholders sold a total of 23,937,986 shares of our common stock at a price of $25.62 per share, less underwriting discounts and commissions, in a secondary public offering. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company incurred approximately $984 thousand of expenses in connection with the offering, which were paid by the Company in accordance with a registration rights and coordination agreement with our Sponsors (see note 19(a)).

In April 2012 and August 2012, certain existing stockholders sold 30,360,000 and 21,754,659 shares, respectively, of our common stock at prices of $29.50 and $30.00 per share, respectively, less underwriting discounts and commissions, in secondary public offerings. The Company did not receive any proceeds from the sales of shares by the existing stockholders. The Company incurred approximately $1.7 million of expenses in connection with the offerings.

(b) Common stock

Prior to the initial public offering, our charter authorized the Company to issue two classes of common stock, Class L and common. The rights of the holders of Class L and common shares were identical, except with respect to priority in the event of a distribution, as defined. The Class L common stock was entitled to a preference with respect to all distributions by the Company until the holders of Class L common stock had received an amount equal to the Class L base amount of approximately $41.75 per share, plus an amount sufficient to generate an internal rate of return of 9% per annum on the Class L base amount, compounded quarterly. Thereafter, the Class L and common stock shared ratably in all distributions by the Company. Class L common stock was classified outside of permanent equity in the consolidated balance sheets at its preferential distribution amount, as the Class L stockholders controlled the timing and amount of distributions. The Class L preferred return of 9% per annum, compounded quarterly, was added to the Class L preferential distribution amount each period and recorded as an increase to accumulated deficit. Dividends paid on the Class L common stock reduced the Class L preferential distribution amount.

Immediately prior to the initial public offering, each outstanding share of Class L common stock converted into approximately 0.2189 of a share of common stock plus 2.2149 shares of common stock, which was determined by dividing the Class L preference amount, $38.8274, by the initial public offering price net of the estimated underwriting discount and a pro rata portion, based upon the number of shares sold in the offering, of the estimated offering-related expenses. As such, the 22,866,379 shares of Class L common stock that were outstanding at the time of the offering converted into 55,652,782 shares of common stock.

The changes in Class L common stock were as follows (in thousands):

	Fiscal year ended
	December 31, 2011
	Shares		Amount
Common stock, Class L, beginning of year	22,995		$	840,582
Issuance of Class L common stock	65		2,270
Repurchases of Class L common stock	—		(113		)
Retirement of treasury stock	(194	)	—
Accretion of Class L preferred return	—		45,102
Conversion of Class L shares to common shares	(22,866	)	(887,841		)
Common stock, Class L, end of year	—		$	—

Common shares issued and outstanding included in the consolidated balance sheets include vested and unvested restricted shares. Common stock in the consolidated statement of stockholders’ equity excludes unvested restricted shares.

(c) Treasury stock

During fiscal year 2011, the Company repurchased a total of 23,624 shares of common stock and 3,266 shares of Class L shares that were originally sold and granted to former employees of the Company. The Company accounts for treasury stock under the cost method, and as such recorded increases in common treasury stock of $173 thousand during fiscal year 2011, based on the fair market value of the shares on the respective dates of repurchase. During fiscal year 2011, the Company retired all of its treasury stock, resulting in a $2.0 million reduction in common treasury stock and additional paid-in-capital.

In August 2012, the Company repurchased a total of 15,000,000 shares of common stock at a price of $30.00 per share from certain existing stockholders, and incurred approximately $341 thousand of third-party costs in connection with the repurchase. The Company recorded an increase in common treasury stock of $450.4 million during fiscal year 2012, based on the fair market value of the shares on the date of repurchase and the direct costs incurred. During fiscal year 2012, the Company retired all outstanding treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $15 thousand and $180.0 million, respectively, and an increase in accumulated deficit of $270.3 million.

During the fiscal year 2013, the Company repurchased a total of 648,000 shares of common stock at a weighted average price per share of $43.14 from existing stockholders. The Company recorded an increase in common treasury stock of $28.0 million during fiscal year 2013, based on the fair market value of the shares on the date of repurchase and direct costs incurred. In October 2013, the Company retired 417,300 shares of treasury stock, resulting in decreases in common treasury stock and additional paid-in capital of $17.2 million and $4.7 million, respectively, and an increase in accumulated deficit of $12.5 million.

(d) Accumulated other comprehensive income

The components of accumulated other comprehensive income were as follows (in thousands):

	Effect of foreign currency translation			Unrealized gains (losses) on interest rate swaps		Unrealized loss on pension adjustment		Other		Accumulated other comprehensive income
Balances at December 29, 2012	$	14,914		(1,655	)	(2,486	)	(1,632	)	9,141
Other comprehensive income (loss)	(14,909		)	7,740		(612	)	(21	)	(7,802	)
Balances at December 28, 2013	$	5		6,085		(3,098	)	(1,653	)	1,339

(e) Dividends

During fiscal year 2013, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2013:
First quarter	$	0.19	$	20,191	February 20, 2013
Second quarter	0.19		20,259		June 6, 2013
Third quarter	0.19		20,257		September 4, 2013
Fourth quarter	0.19		20,301		November 26, 2013

During fiscal year 2012, the Company paid dividends on common stock as follows:

	Dividend per share		Total amount (in thousands)		Payment date
Fiscal year 2012:
First quarter	$	0.15	$	18,046	March 28, 2012
Second quarter	0.15		18,068		May 16, 2012
Third quarter	0.15		18,075		August 24, 2012
Fourth quarter	0.15		15,880		November 14, 2012

On February 6, 2014, we announced that our board of directors approved an increase to the next quarterly dividend to $0.23 per share of common stock, payable March 19, 2014 to shareholders of record as of the close of business on March 10, 2014.

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Retirement Plans

12 Months Ended

Dec. 28, 2013

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

Retirement plans

401(k) Plan

Employees of the Company, excluding employees of certain international subsidiaries, participate in a defined contribution retirement plan, the Dunkin’ Brands, Inc. 401(k) Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute up to 80% of their pre-tax eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined in the sole discretion of the Company. The Company matched participants’ contributions during fiscal years 2013, 2012, and 2011, up to a maximum of 4% of the employee’s salary. Employer contributions for fiscal years 2013, 2012, and 2011, amounted to $3.1 million, $2.9 million, and $2.7 million, respectively. The 401(k) Plan also provides for an additional discretionary contribution of up to 2% of eligible wages for eligible participants based on the achievement of specified performance targets. No such discretionary contributions were made during fiscal years 2013, 2012, and 2011.

NQDC Plan

The Company, excluding employees of certain international subsidiaries, also offers to a limited group of management and highly compensated employees, as defined by the Employee Retirement Income Security Act (“ERISA”), the ability to participate in the NQDC Plan. The NQDC Plan allows for pre-tax contributions of up to 50% of a participant’s base annual salary and other forms of compensation, as defined. The Company credits the amounts deferred with earnings based on the investment options selected by the participants and holds investments to partially offset the Company’s liabilities under the NQDC Plan. The NQDC Plan liability, included in other long-term liabilities in the consolidated balance sheets, was $7.0 million and $7.4 million at December 28, 2013 and December 29, 2012, respectively. As of December 28, 2013 and December 29, 2012, total investments held for the NQDC Plan were $338 thousand and $3.1 million, respectively, and have been recorded in other assets in the consolidated balance sheets.

Canadian Pension Plan

The Company sponsors a contributory defined benefit pension plan in Canada, The Baskin-Robbins Employees’ Pension Plan (“Canadian Pension Plan”), which provides retirement benefits for the majority of its Canadian employees.

During the second quarter of 2012, the Company’s board of directors approved a plan to close our Peterborough, Ontario, Canada manufacturing plant, where the majority of the Canadian Pension Plan participants were employed (see note 20). As a result of the closure, the Company terminated the Canadian Pension Plan as of December 29, 2012, and expects the Financial Services Commission of Ontario ("FSCO") to approve the termination of the plan in 2014. Upon approval of the termination, the Company will fund any deficit and the plan assets will be used to fund transfers to other retirement plans or for the purchase of annuities to fund future retirement payments to participants. Also upon approval, the Company will recognize any unrealized losses in accumulated other comprehensive income.

The components of net pension expense were as follows (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Service cost	$	—		262		222
Interest cost	216			333		340
Expected return on plan assets	(263		)	(317	)	(306	)
Amortization of net actuarial loss	74			76		54
Net pension expense	$	27		354		310

The amortization of net actuarial loss included in net pension expense above represents the amount reclassified from accumulated other comprehensive income during the respective fiscal year. The table below summarizes other balances for fiscal years 2013, 2012, and 2011 (in thousands):

	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	8,349		6,050		6,042
Service cost	—			262		222
Interest cost	216			333		340
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Curtailment gain	—			(1,084	)	—
Actuarial loss (gain)	395			2,854		(95	)
Foreign currency loss (gain), net	(530		)	121		(61	)
Benefit obligation, end of year	$	8,200		8,349		6,050
Change in plan assets:
Fair value of plan assets, beginning of year	$	5,809		4,945		4,797
Expected return on plan assets	263			317		306
Employer contributions	626			662		798
Employee contributions	—			88		81
Benefits paid	(230		)	(275	)	(479	)
Actuarial loss	(371		)	(27	)	(505	)
Foreign currency gain (loss), net	(307		)	99		(53	)
Fair value of plan assets, end of year	$	5,790		5,809		4,945
Reconciliation of funded status:
Funded status	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)
Amounts recognized in the balance sheet consist of:
Accrued benefit cost	$	(2,410	)	(2,540	)	(1,105	)
Net amount recognized at end of period	$	(2,410	)	(2,540	)	(1,105	)

The investments of the Canadian Pension Plan consisted of a long-term bond fund and a short-term investment fund at December 28, 2013, and a pooled investment fund at December 29, 2012. These funds are comprised of numerous underlying investments and are valued at the unit fair value supplied by the funds' administrators, which represent the funds' proportionate share of underlying net assets at market value determined using closing market prices. The funds are considered Level 2, as defined by U.S. GAAP, because the inputs used to calculate the fair value are derived principally from observable market data. The Canadian Pension Plan's investment strategy is to mitigate fluctuations in the wind-up deficit of the plan by holding assets whose fluctuation in fair value will approximate that of the benefit obligation. The Canadian Pension Plan assumes a concentration of risk as it is invested in a limited number of investments. The risk is mitigated as the funds consists of a diverse range of underlying investments. The allocation of the assets within the plan consisted of the following:

	December 28, 2013		December 29, 2012
Cash and short-term investments	35	%	—	%
Equity securities	—		60
Debt securities	65		39
Other	—		1

The actuarial assumptions used in determining the present value of accrued pension benefits at December 28, 2013 and December 29, 2012 were as follows:

	December 28, 2013		December 29, 2012
Discount rate	2.65	%	2.70	%
Average salary increase for pensionable earnings	—		—

The discount rate used in determining the present value of accrued pension benefits at December 28, 2013 reflects the estimate of the rate at which pension benefits could be effectively settled. No future salary increases are assumed as of December 28, 2013 or December 29, 2012 as a result of the termination of the plan.

The actuarial assumptions used in determining the present value of our net periodic benefit cost were as follows:

	December 28, 2013		December 29, 2012		December 31, 2011
Discount rate	2.70	%	5.25	%	5.50	%
Average salary increase for pensionable earnings	—		3.25		3.25
Expected return on plan assets	4.50		6.00		6.00

The expected return on plan assets was determined based on the Canadian Pension Plan’s target asset mix, expected long-term asset class returns based on a mean return over a 30-year period using a Monte Carlo simulation, the underlying long-term inflation rate, and expected investment expenses.

The accumulated benefit obligation was $8.2 million and $8.3 million at December 28, 2013 and December 29, 2012, respectively. We recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income to report the funded status of the Canadian Pension Plan. At December 28, 2013, the net liability for the funded status of the Canadian Pension Plan was included in other current liabilities in consolidated balance sheets. Upon approval of the plan termination by the FSCO, the Company intends on funding the plan deficit and purchasing annuities to provide accrued benefits to participants.

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Equity Incentive Plans - Status of Company Stock Options (Details) (Employee Stock Option [Member], USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012
Nonexecutive [Member] | Equity Incentive Plan 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of shares, Share options outstanding at December 31, 2012	1,295,356
Number of shares, Granted	1,177,999
Number of Shares, Exercised	(207,679)
Number of shares, Forfeited or expired	(246,526)
Number of shares, Share options outstanding at December 28, 2013	2,019,150	1,295,356
Number of shares, Share options exercisable at December 28, 2013	279,932
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, Share options outstanding at December 31, 2012	$ 24.34
Weighted average exercise price, Granted	$ 37.26
Weighted average exercise price, Exercised	$ 21.93
Weighted average exercise price, Forfeited or expired	$ 29.92
Weighted average exercise price, Share options outstanding at December 28, 2013	$ 31.45	$ 24.34
Weighted average exercise price, Share options exercisable at December 28, 2013	$ 20.08
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years), Share options outstanding	8 years 6 months	8 years 9 months 18 days
Weighted average remaining contractual term (years), Share options exercisable at December 29, 2012	7 years 3 months 18 days
Aggregate intrinsic value (in millions), Share options outstanding at December 28, 2013	$ 32.9
Aggregate intrinsic value (in millions), Share options exercisable at December 28, 2013	7.7
Executive [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of shares, Share options outstanding at December 31, 2012	3,331,993
Number of Shares, Exercised	(932,519)
Number of shares, Forfeited or expired	(193,527)
Number of shares, Share options outstanding at December 28, 2013	2,205,947	3,331,993
Number of shares, Share options exercisable at December 28, 2013	1,067,692
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, Share options outstanding at December 31, 2012	$ 3.85
Weighted average exercise price, Exercised	$ 3.68
Weighted average exercise price, Forfeited or expired	$ 7.15
Weighted average exercise price, Share options outstanding at December 28, 2013	$ 3.64	$ 3.85
Weighted average exercise price, Share options exercisable at December 28, 2013	$ 3.29
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years), Share options outstanding	6 years 3 months 18 days	7 years 3 months 18 days
Weighted average remaining contractual term (years), Share options exercisable at December 29, 2012	6 years 2 months 12 days
Aggregate intrinsic value (in millions), Share options outstanding at December 28, 2013	97.3
Aggregate intrinsic value (in millions), Share options exercisable at December 28, 2013	$ 47.5

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Quarterly Financial Data (Tables)

12 Months Ended

Dec. 28, 2013

Income Statement [Abstract]

Schedule of Quarterly Financial Data

	Three months ended
	March 30, 2013		June 29, 2013	September 28, 2013	December 28, 2013
	(In thousands, except per share data)
Total revenues	$	161,858	182,488	186,317	183,177
Operating income	63,459		76,805	82,237	82,235
Net income attributable to Dunkin' Brands	23,798		40,812	40,221	42,072
Earnings per share:
Common – basic	0.22		0.38	0.38	0.39
Common – diluted	0.22		0.38	0.37	0.39

	Three months ended
	March 31, 2012		June 30, 2012	September 29, 2012	December 29, 2012
	(In thousands, except per share data)
Total revenues	$	152,372	172,387	171,719	161,703
Operating income(1)	55,195		46,138	70,345	67,751
Net income attributable to Dunkin' Brands(1)	25,950		18,497	29,526	34,335
Earnings per share(1):
Common – basic	0.22		0.15	0.26	0.32
Common – diluted	0.21		0.15	0.26	0.32

(1) The second quarter of fiscal year 2012 includes a $20.7 million incremental legal reserve related to the Quebec Superior Court’s ruling in the Bertico litigation, in which the Court found for the Plaintiffs and issued a judgment against Dunkin’ Brands in the amount of approximately C$16.4 million (approximately $15.9 million), plus costs and interest (see note 17(d)).

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Retirement Plans - Textual (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 30, 2013	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum annual contribution percentage, 401(k)		80.00%
Employer contributions 401(k)		$ 3,100,000	$ 2,900,000	$ 2,700,000
Employer discretionary contribution amount	0		0	0
NQDC maximum pretax contribution percentage		50.00%
NQDC plan liability		7,000,000	7,400,000
NQDC investments held		338,000	3,100,000
Fair value assumption, Monte Carlo, time period		30 years
Accumulated benefit obligation		$ 8,200,000	$ 8,300,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employer match percentage 401(k)		4.00%	4.00%	4.00%
Additional discrectionary conribution 401(k)		2.00%

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Segment Information (Tables)

12 Months Ended

Dec. 28, 2013

Segment Reporting [Abstract]

Information by Segment and Geographical Area

Revenues by segment were as follows (in thousands):

	Revenues
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	521,179	485,399	449,492
Dunkin’ Donuts International	18,316		15,485	15,253
Baskin-Robbins U.S.	42,152		42,074	43,455
Baskin-Robbins International	120,333		101,975	106,887
Total reportable segments	701,980		644,933	615,087
Other	11,860		13,248	13,111
Total revenues	$	713,840	658,181	628,198

Revenues for foreign countries are represented by the Dunkin’ Donuts International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented.

Expenses included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, as well as the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea (see note 6). Segment profit by segment was as follows (in thousands):

	Segment profit
	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Dunkin’ Donuts U.S.	$	379,751		355,274		334,308
Dunkin’ Donuts International	7,479			9,670		11,528
Baskin-Robbins U.S.	27,081			26,274		21,593
Baskin-Robbins International	54,321			42,004		42,844
Total reportable segments	468,632			433,222		410,273
Corporate and other	(113,967		)	(136,488	)	(150,382	)
Interest expense, net	(79,831		)	(73,488	)	(104,449	)
Depreciation and amortization	(49,366		)	(56,027	)	(52,522	)
Long-lived asset impairment charges	(563		)	(1,278	)	(2,060	)
Loss on debt extinguishment and refinancing transactions	(5,018		)	(3,963	)	(34,222	)
Other gains (losses), net	(1,799		)	23		175
Income before income taxes	$	218,088		162,001		66,813

Net income (loss) of equity method investments, including amortization on intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Expenses included in “Other” in the segment profit table below represent the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea, and the related ongoing reduction in depreciation and amortization, net of tax (see note 6). Net income (loss) of equity method investments by reportable segment was as follows (in thousands):

	Net income (loss) of equity method investments
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts International	$	480	2,211	840
Baskin-Robbins International	15,913		16,578	14,461
Total reportable segments	16,393		18,789	15,301
Other	1,977		3,562	(18,776	)
Total net income (loss) of equity method investments	$	18,370	22,351	(3,475	)

Depreciation and amortization is not included in segment profit for each reportable segment. However, depreciation and amortization is included in the financial results regularly provided to the Company’s senior management. Depreciation and amortization by reportable segments was as follows (in thousands):

	Depreciation and amortization
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	18,506	19,021	20,068
Dunkin’ Donuts International	50		92	130
Baskin-Robbins U.S.	530		1,052	522
Baskin-Robbins International	135		643	866
Total reportable segments	19,221		20,808	21,586
Corporate and other	30,145		35,219	30,936
Total depreciation and amortization	$	49,366	56,027	52,522

Property and equipment, net by geographic region as of December 28, 2013 and December 29, 2012 is based on the physical locations within the indicated geographic regions and are as follows (in thousands):

	December 28, 2013		December 29, 2012
United States	$	182,544	180,525
International	314		647
Total property and equipment, net	$	182,858	181,172

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Retirement Plans - Change in Benefit Obligation and Change in Fair Value of Plan Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation, beginning of year	$ 8,349	$ 6,050	$ 6,042
Service cost	0	262	222
Interest cost	216	333	340
Employee contributions	0	88	81
Benefits paid	(230)	(275)	(479)
Curtailment gain	0	1,084	0
Actuarial loss (gain)	395	2,854	(95)
Foreign currency loss (gain), net	(530)	121	(61)
Benefit obligation, end of year	8,200	8,349	6,050
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets, beginning of year	5,809	4,945	4,797
Expected return on plan assets	263	317	306
Employer contributions	626	662	798
Employee contributions	0	88	81
Benefits paid	(230)	(275)	(479)
Expected return on plan assets	(371)	(27)	(505)
Actuarial loss	395	2,854	(95)
Foreign currency gain (loss), net	(307)	99	(53)
Fair value of plan assets, end of year	5,790	5,809	4,945
Funded status	(2,410)	(2,540)	(1,105)
Accrued benefit cost	$ (2,410)	$ (2,540)	$ (1,105)

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Statement of Other Comprehensive Income [Abstract]
Net income including noncontrolling interests	$ 146,304	$ 107,624	$ 34,442
Other comprehensive income (loss), net:
Effect of foreign currency translation, net of deferred tax expense (benefit) of $205, $(260), and $295 for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively	(14,909)	(5,996)	6,560
Unrealized gains (losses) on interest rate swaps, net of deferred tax expense (benefit) of $5,290 and $(1,154) for the fiscal years ended December 28, 2013 and December 29, 2012, respectively	7,740	(1,655)	0
Unrealized loss on pension plan, net of deferred tax benefit of $200, $415, and $85 for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively	(612)	(1,180)	(233)
Other	(21)	(1,629)	(353)
Total other comprehensive income (loss)	(7,802)	(10,460)	5,974
Comprehensive income including noncontrolling interests	138,502	97,164	40,416
Comprehensive loss attributable to noncontrolling interests	(599)	(684)	0
Comprehensive income attributable to Dunkin' Brands	$ 139,101	$ 97,848	$ 40,416

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Stockholders' Equity Changes in Components of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 9,141
Current period changes	(7,802)
Balance at end of period	1,339
Effect of foreign currency translation
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	14,914
Current period changes	(14,909)
Balance at end of period	5
Unrealized Gain (Loss) on Interest Rate Swaps
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1,655)
Current period changes	7,740
Balance at end of period	6,085
Unrealized Gain (Loss) on Pension Adjustments
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(2,486)
Current period changes	(612)
Balance at end of period	(3,098)
Other
Movement in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1,632)
Current period changes	(21)
Balance at end of period	$ (1,653)

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of significant accounting policies

(a) Fiscal year

The Company operates and reports financial information on a 52- or 53-week year on a 13-week quarter basis with the fiscal year ending on the last Saturday in December and fiscal quarters ending on the 13th Saturday of each quarter (or 14th Saturday when applicable with respect to the fourth fiscal quarter). The data periods contained within fiscal years 2013 and 2012 reflect the results of operations for the 52-week periods ended December 28, 2013 and December 29, 2012, respectively, and fiscal year 2011 reflects the results of operations for the 53-week period ended December 31, 2011.

(b) Basis of presentation and consolidation

The accompanying consolidated financial statements include the accounts of DBGI and subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All significant transactions and balances between subsidiaries have been eliminated in consolidation.

We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. The principal entities in which we possess a variable interest include franchise entities, the advertising funds (see note 4), and our equity method investees. We do not possess any ownership interests in franchise entities, except for our investments in various entities that are accounted for under the equity method or are otherwise consolidated. Additionally, we generally do not provide financial support to franchise entities in a typical franchise relationship. As our franchise and license arrangements provide our franchisee and licensee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Based on the results of our analysis of potential VIEs, we have not consolidated any franchise entities. The Company’s maximum exposure to loss resulting from involvement with potential franchise VIEs is attributable to aged trade and notes receivable balances, outstanding loan guarantees (see note 17(b)), and future lease payments due from franchisees (see note 11).

The Company holds a 51% interest in a limited partnership that owns and operates Dunkin' Donuts restaurants in the Dallas, Texas area. The Company possesses control of this entity and, therefore, consolidates the results of the limited partnership. During fiscal year 2013, the Company amended the partnership agreement with the noncontrolling owners to provide the noncontrolling owners the option in early 2017 to sell their entire interest to the Company. As a result of the amendment, the partnership agreement now contains a redemption feature that is not currently redeemable, but it is probable to become redeemable in the future. As such, the Company reclassified the noncontrolling interests in fiscal year 2013 to temporary equity (between liabilities and stockholders’ equity) in the consolidated balance sheets. The net loss and comprehensive loss attributable to the noncontrolling interest are presented separately in the consolidated statements of operations and comprehensive income, respectively. As of December 28, 2013, the consolidated balance sheets included $3.0 million of cash and cash equivalents and $6.4 million of property and equipment, net for this partnership entity, which may be used only to settle obligations of the partnership.

(c) Accounting estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. Significant estimates are made in the calculations and assessments of the following: (a) allowance for doubtful accounts and notes receivables, (b) impairment of tangible and intangible assets, (c) income taxes, (d) real estate reserves, (e) lease accounting estimates, (f) gift certificate breakage, and (g) contingencies. Estimates are based on historical experience, current conditions, and various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when they are not readily apparent from other sources. We adjust such estimates and assumptions when facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. Illiquid credit markets and volatile equity and foreign currency markets have combined to increase the uncertainty inherent in such estimates and assumptions.

(d) Cash and cash equivalents and restricted cash

The Company continually monitors its positions with, and the credit quality of, the financial institutions in which it maintains its deposits and investments. As of December 28, 2013 and December 29, 2012, we maintained balances in various cash accounts in excess of federally insured limits. All highly liquid instruments purchased with an original maturity of three months or less are considered cash equivalents.

Cash held related to the advertising funds and the Company’s gift card/certificate programs are classified as unrestricted cash as there are no legal restrictions on the use of these funds; however, the Company intends to use these funds solely to support the advertising funds and gift card/certificate programs rather than to fund operations. Total cash balances related to the advertising funds and gift card/certificate programs as of December 28, 2013 and December 29, 2012 were $134.5 million and $125.4 million, respectively.

(e) Fair value of financial instruments

The carrying amounts of accounts receivable, notes and other receivables, assets and liabilities related to the advertising funds, accounts payable, and other current liabilities approximate fair value because of their short-term nature. For long-term receivables, we review the creditworthiness of the counterparty on a quarterly basis, and adjust the carrying value as necessary. We believe the carrying value of long-term receivables of $5.3 million and $5.8 million as of December 28, 2013 and December 29, 2012, respectively, approximates fair value.

Financial assets and liabilities are categorized, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. Observable market data, when available, is required to be used in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

Financial assets and liabilities measured at fair value on a recurring basis as of December 28, 2013 and December 29, 2012 are summarized as follows (in thousands):

	December 28, 2013				December 29, 2012
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)	Total	Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)	Total
Assets:
Mutual funds	$	1,012	—	1,012	2,505	—	2,505
Interest rate swaps	—		10,221	10,221	—	—	—
Total assets	$	1,012	10,221	11,233	2,505	—	2,505
Liabilities:
Deferred compensation liabilities	$	—	7,181	7,181	—	7,379	7,379
Interest rate swaps	—		—	—	—	2,809	2,809
Total liabilities	$	—	7,181	7,181	—	10,188	10,188

The deferred compensation liabilities relate primarily to the Dunkin’ Brands, Inc. Non-Qualified Deferred Compensation Plan (“NQDC Plan”), which allows for pre-tax salary deferrals for certain qualifying employees (see note 18). Changes in the fair value of the deferred compensation liabilities are derived using quoted prices in active markets of the asset selections made by the participants. The deferred compensation liabilities are classified within Level 2, as defined under U.S. GAAP, because their inputs are derived principally from observable market data by correlation to hypothetical investments. The Company holds mutual funds, as well as money market funds, to partially offset the Company’s liabilities under the NQDC Plan as well as other benefit plans. The changes in the fair value of the mutual funds are derived using quoted prices in active markets for the specific funds. As such, the mutual funds are classified within Level 1, as defined under U.S. GAAP.

The Company uses readily available market data to value its interest rate swaps, such as interest rate curves and discount factors. Additionally, the fair value of derivatives includes consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input, as defined under U.S. GAAP. As the magnitude of the CVA is not a significant component of the fair value of the interest rate swaps as of December 28, 2013, it is not considered a significant input and the derivatives are classified as Level 2.

The carrying value and estimated fair value of long-term debt at December 28, 2013 and December 29, 2012 were as follows (in thousands):

	December 28, 2013			December 29, 2012
Financial liabilities	Carrying value		Estimated fair value	Carrying value	Estimated fair value
Term loans	$	1,823,609	1,836,212	1,849,958	1,878,980

The estimated fair value of our term loans is based on current bid prices for our term loans. Judgment is required to develop these estimates. As such, our term loans are classified within Level 2, as defined under U.S. GAAP.

(f) Inventories

Inventories consist primarily of ice cream products sold to certain international markets that are in-transit from our third-party manufacturer to our international licensees, during which time we hold title to such products. Inventories are valued at the lower of cost or estimated net realizable value, and cost is generally determined based on the actual cost of the specific inventory sold. Inventories are included within prepaid expenses and other current assets in the accompanying consolidated balance sheets.

(g) Assets held for sale

Assets held for sale primarily represent costs incurred by the Company for store equipment and leasehold improvements constructed for sale to franchisees, as well as restaurants formerly operated by franchisees waiting to be resold. The value of such restaurants and related assets is reduced to reflect net recoverable values, with such reductions recorded to general and administrative expenses, net in the consolidated statements of operations. Generally, internal specialists estimate the amount to be recovered from the sale of such assets based on their knowledge of the (a) market in which the store is located, (b) results of the Company’s previous efforts to dispose of similar assets, and (c) current economic conditions. The actual cost of such assets held for sale is affected by specific factors such as the nature, age, location, and condition of the assets, as well as the economic environment and inflation.

We classify restaurants and their related assets as held for sale and suspend depreciation and amortization when (a) we make a decision to refranchise or sell the property, (b) the stores are available for immediate sale, (c) we have begun an active program to locate a buyer, (d) significant changes to the plan of sale are not likely, and (e) the sale is probable within one year.

(h) Property and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or the remaining lease term of the related asset. Estimated useful lives are as follows:

	Years
Buildings	20 – 35
Leasehold improvements	5 – 20
Store, production, and other equipment	3 – 10

Routine maintenance and repair costs are charged to expense as incurred. Major improvements, additions, or replacements that extend the life, increase capacity, or improve the safety or the efficiency of property are capitalized at cost and depreciated. Major improvements to leased property are capitalized as leasehold improvements and depreciated. Interest costs incurred during the acquisition period of capital assets are capitalized as part of the cost of the asset and depreciated.

(i) Leases

When determining lease terms, we begin with the point at which the Company obtains control and possession of the leased properties. We include option periods for which failure to renew the lease imposes a penalty on the Company in such an amount that the renewal appears, at the inception of the lease, to be reasonably assured, which generally includes option periods through the end of the related franchise agreement term. We also include any rent holidays in the determination of the lease term.

We record rent expense and rent income for leases and subleases, respectively, that contain scheduled rent increases on a straight-line basis over the lease term as defined above. In certain cases, contingent rentals are based on sales levels of our franchisees, in excess of stipulated amounts. Contingent rentals are included in rent income and rent expense as they are earned or accrued, respectively.

We occasionally provide to our sublessees, or receive from our landlords, tenant improvement dollars. Tenant improvement dollars paid to our sublessees are recorded as a deferred rent asset. For fixed asset and/or leasehold purchases for which we receive tenant improvement dollars from our landlords, we record the property and equipment and/or leasehold improvements gross and establish a deferred rent obligation. The deferred lease assets and obligations are amortized on a straight-line basis over the determined sublease and lease terms, respectively.

Management regularly reviews sublease arrangements, where we are the lessor, for losses on sublease arrangements. We recognize a loss, discounted using credit-adjusted risk-free rates, when costs expected to be incurred under an operating prime lease exceed the anticipated future revenue stream of the operating sublease. Furthermore, for properties where we do not currently have an operational franchise or other third-party sublessee and are under long-term lease agreements, the present value of any remaining liability under the lease, discounted using credit-adjusted risk-free rates and net of estimated sublease recovery, is recognized as a liability and charged to operations at the time we cease use of the property. The value of any equipment and leasehold improvements related to a closed store is assessed for potential impairment (see note 2(j)).

(j) Impairment of long-lived assets

Long-lived assets that are used in operations are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable through undiscounted future cash flows. Recognition and measurement of a potential impairment is performed on assets grouped with other assets and liabilities at the lowest level where identifiable cash flows are largely independent of the cash flows of other assets and liabilities. An impairment loss is the amount by which the carrying amount of a long-lived asset or asset group exceeds its estimated fair value. Fair value is generally estimated by internal specialists based on the present value of anticipated future cash flows or, if required, by independent third-party valuation specialists, depending on the nature of the assets or asset group.

(k) Equity method investments

The Company's equity method investments consist of interests in B-R 31 Ice Cream Co., Ltd. (“BR Japan”), BR-Korea Co., Ltd. (“BR Korea”), Coffee Alliance, S.L. (“Spain JV”), and Palm Oasis Pty. Ltd. (“Australia JV”), which are accounted for in accordance with the equity method. As a result of the acquisition of the Company by BCT (see note 19(a)) on March 1, 2006 (“BCT Acquisition”), the Company has recorded a step-up in the basis of our investment in BR Japan. The basis difference is comprised of amortizable franchise rights and related tax liabilities and nonamortizable goodwill. The franchise rights and related tax liabilities are amortized in a manner that reflects the estimated benefits from the use of the intangible asset over a period of 14 years. The franchise rights were valued based on an estimate of future cash flows to be generated from the ongoing management of the contracts over their remaining useful lives.

(l) Goodwill and other intangible assets

Goodwill and trade names (“indefinite-lived intangibles”) have been assigned to our reporting units, which are also our operating segments, for purposes of impairment testing. All of our reporting units have indefinite-lived intangibles associated with them.

We evaluate the remaining useful life of our trade names to determine whether current events and circumstances continue to support an indefinite useful life. In addition, all of our indefinite-lived intangible assets are tested for impairment annually. We first assess qualitative factors to determine whether it is more likely than not that a trade name is impaired. In the event we were to determine that the carrying value of a trade name would more likely than not exceed its fair value, quantitative testing would be performed. Quantitative testing consists of a comparison of the fair value of each trade name with its carrying value, with any excess of carrying value over fair value being recognized as an impairment loss. For goodwill, we first perform a qualitative assessment to determine if the fair value of the reporting unit is more likely than not greater than the carrying amount. In the event we were to determine that a reporting unit's carrying value would more likely than not exceed its fair value, quantitative testing would be performed which consists of a comparison of each reporting unit’s fair value to its carrying value. The fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties. If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value. We have selected the first day of our fiscal third quarter as the date on which to perform our annual impairment test for all indefinite-lived intangible assets. We also test for impairment whenever events or circumstances indicate that the fair value of such indefinite-lived intangibles has been impaired.

Other intangible assets consist primarily of franchise and international license rights (“franchise rights”), ice cream distribution and territorial franchise agreement license rights (“license rights”), and operating lease interests acquired related to our prime leases and subleases (“operating leases acquired”). Franchise rights, license rights, and operating leases acquired recorded in the consolidated balance sheets were valued using an appropriate valuation method during the period of acquisition. Amortization of franchise rights, license rights, and favorable operating leases acquired is recorded as amortization expense in the consolidated statements of operations and amortized over the respective franchise, license, and lease terms using the straight-line method.

Unfavorable operating leases acquired related to our prime and subleases are recorded in the liability section of the consolidated balance sheets and are amortized into rental expense and rental income, respectively, over the base lease term of the respective leases using the straight-line method. The weighted average amortization period for all unfavorable operating leases acquired is 17 years.

Management makes adjustments to the carrying amount of such intangible assets and unfavorable operating leases acquired if they are deemed to be impaired using the methodology for long-lived assets (see note 2(j)), or when such license or lease agreements are reduced or terminated.

(m) Contingencies

The Company records reserves for legal and other contingencies when information available to the Company indicates that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Predicting the outcomes of claims and litigation and estimating the related costs and exposures involve substantial uncertainties that could cause actual costs to vary materially from estimates. Legal costs incurred in connection with legal and other contingencies are expensed as the costs are incurred.

(n) Foreign currency translation

We translate assets and liabilities of non-U.S. operations into U.S. dollars at rates of exchange in effect at the balance sheet date, and revenues and expenses at the average exchange rates prevailing during the period. Resulting translation adjustments are recorded as a separate component of comprehensive income and stockholders’ equity, net of deferred taxes. Foreign currency translation adjustments primarily result from our equity method investments, as well as subsidiaries located in Canada, the UK, Australia, and Spain. Business transactions resulting in foreign exchange gains and losses are included in the consolidated statements of operations.

(o) Revenue recognition

Franchise fees and royalty income

Domestically, the Company sells individual franchises as well as territory agreements in the form of store development agreements (“SDAs”) that grant the right to develop restaurants in designated areas. Our franchise agreements and SDAs typically require the franchisee to pay an initial nonrefundable fee and continuing fees, or royalty income, based upon a percentage of sales. The franchisee will typically pay us a renewal fee if we approve a renewal of the franchise agreement. Such fees are paid by franchisees to obtain the rights associated with these franchise agreements or SDAs. Initial franchise fee revenue is recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the respective restaurant. Fees collected in advance are deferred until earned, with deferred amounts expected to be recognized as revenue within one year classified as current deferred income in the consolidated balance sheets. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee becomes effective. Occasionally, the Company offers incentive programs to franchisees in conjunction with a franchise agreement, SDA, or renewal agreement and, when appropriate, records the costs of such programs as reductions of revenue.

For our international business, we sell master territory and/or license agreements that typically allow the master licensee to either act as the franchisee or to sub-franchise to other operators. Master license and territory fees are generally recognized upon substantial completion of the services required of the Company as stated in the franchise agreement, which is generally upon opening of the first restaurant or as stores are opened, depending on the specific terms of the agreement. Royalty income is based on a percentage of franchisee gross sales and is recognized when earned, which generally occurs at the franchisees’ point of sale. Renewal fees are recognized when a renewal agreement with a franchisee or licensee becomes effective.

Rental income

Rental income for base rentals is recorded on a straight-line basis over the lease term, including the amortization of any tenant improvement dollars paid (see note 2(i)). The difference between the straight-line rent amounts and amounts receivable under the leases is recorded as deferred rent assets in current or long-term assets, as appropriate. Contingent rental income is recognized as earned, and any amounts received from lessees in advance of achieving stipulated thresholds are deferred until such threshold is actually achieved. Deferred contingent rentals are recorded as deferred income in current liabilities in the consolidated balance sheets.

Sales of ice cream products

We distribute Baskin-Robbins ice cream products to Baskin-Robbins franchisees and licensees in certain international locations. Revenue from the sale of ice cream products is recognized when title and risk of loss transfers to the buyer, which was generally upon shipment through November 2012. Beginning in December 2012, title and risk of loss generally transfers to the buyer upon delivery.

Sales at company-owned restaurants

Retail store revenues at company-owned restaurants are recognized when payment is tendered at the point of sale, net of sales tax and other sales-related taxes.

Other revenues

Other revenues include fees generated by licensing our brand names and other intellectual property, as well as gains, net of losses and transactions costs, from the sales of our restaurants to new or existing franchisees. Licensing fees are recognized when earned, which is generally upon sale of the underlying products by the licensees. Gains on the refranchise or sale of a restaurant are recognized when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity, and we are satisfied that the buyer can meet its financial obligations to us. If the criteria for gain recognition are not met, we defer the gain to the extent we have any remaining financial exposure in connection with the sale transaction. Deferred gains are recognized when the gain recognition criteria are met.

(p) Allowance for doubtful accounts

We monitor the financial condition of our franchisees and licensees and record provisions for estimated losses on receivables when we believe that our franchisees or licensees are unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Included in the allowance for doubtful notes and accounts receivables is a provision for uncollectible royalty, lease, and licensing fee receivables.

(q) Share-based payment

We measure compensation cost at fair value on the date of grant for all share-based awards and recognize compensation expense over the service period that the awards are expected to vest. The Company has elected to recognize compensation cost for graded-vesting awards subject only to a service condition over the requisite service period of the entire award.

(r) Income taxes

Deferred tax assets and liabilities are recorded for the expected future tax consequences of items that have been included in our consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of assets and liabilities and the respective tax bases of assets and liabilities using enacted tax rates that are expected to apply in years in which the temporary differences are expected to reverse. The effects of changes in tax rates and changes in apportionment of income between tax jurisdictions on deferred tax assets and liabilities are recognized in the consolidated statements of operations in the year in which the law is enacted or change in apportionment occurs. Valuation allowances are provided when the Company does not believe it is more likely than not that it will realize the benefit of identified tax assets.

A tax position taken or expected to be taken in a tax return is recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Estimates of interest and penalties on unrecognized tax benefits are recorded in the provision for income taxes.

(s) Comprehensive income

Comprehensive income is primarily comprised of net income, foreign currency translation adjustments, unrealized gains and losses on interest rate swaps, and unrealized pension gains and losses, and is reported in the consolidated statements of comprehensive income, net of taxes, for all periods presented.

(t) Deferred financing costs

Deferred financing costs primarily represent capitalizable costs incurred related to the issuance and refinancing of the Company’s long-term debt (see note 8). As of December 28, 2013 and December 29, 2012, deferred financing costs of $19.2 million and $25.0 million, respectively, are included in other assets in the consolidated balance sheets, and are being amortized over the remaining maturities of the debt using the effective interest rate method.

(u) Derivative instruments and hedging activities

The Company uses derivative instruments to hedge interest rate risks. These derivative contracts are entered into with financial institutions. The Company does not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our consolidated balance sheets at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instruments is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the consolidated statements of operations immediately. See note 9 for a discussion of our use of derivative instruments, management of credit risk inherent in derivative instruments, and fair value information.

(v) Gift card/certificate breakage

The Company and our franchisees sell gift cards that are redeemable for product in our Dunkin' Donuts and Baskin-Robbins restaurants. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their restaurants. A liability for unredeemed gift cards, as well as historical gift certificates sold, is included in other current liabilities in the consolidated balance sheets.

There are no expiration dates on our gift cards, and we do not charge any service fees. While our franchisees continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, we may recognize income from unredeemed gift cards (“breakage income”) if they are not subject to unclaimed property laws. Based on redemption data available, breakage income for gift cards was generally recognized five years from the last date of activity on the card through the first quarter of fiscal year 2013. During the second quarter of fiscal year 2013, the Company determined that sufficient historical redemption patterns existed to revise breakage estimates related to unredeemed Dunkin’ Donuts gift cards. Based on historical redemption rates, breakage on Dunkin' Donuts gift cards is now estimated and recognized over time in proportion to actual gift card redemptions. The Company recognizes breakage as income only up to the amount of gift card program costs incurred. Any incremental breakage that exceeds gift card program costs has been committed to franchisees to fund future initiatives that will benefit the gift card program, and is recorded as gift card breakage liability within other current liabilities in the consolidated balance sheets (see note 10).

For fiscal years 2013, 2012, and 2011, total breakage income recognized on gift cards, as well as historical gift certificate programs, was $10.2 million, $7.9 million, and $2.5 million, respectively, and is recorded as a reduction to general and administrative expenses, net. Breakage income for fiscal year 2013 includes a $5.4 million recovery of historical Dunkin' Donuts gift card program costs incurred prior to fiscal year 2013. Breakage income for fiscal year 2012 includes $3.5 million related to historical Baskin-Robbins gift certificates as a result of shifting to gift cards, and represents the balance of gift certificates for which the Company believes the likelihood of redemption by the customer is remote based on historical redemption patterns.

(w) Concentration of credit risk

The Company is subject to credit risk through its accounts receivable consisting primarily of amounts due from franchisees and licensees for franchise fees, royalty income, and sales of ice cream products. In addition, we have note and lease receivables from certain of our franchisees and licensees. The financial condition of these franchisees and licensees is largely dependent upon the underlying business trends of our brands and market conditions within the quick service restaurant industry. This concentration of credit risk is mitigated, in part, by the large number of franchisees and licensees of each brand and the short-term nature of the franchise and license fee and lease receivables. At December 28, 2013, one master licensee and majority owned subsidiaries of the master licensee accounted for approximately 17% of total accounts and notes receivable, which was due primarily to the timing of orders and shipments of ice cream to the master licensee. At December 29, 2012, no individual franchisee or master licensee accounted for more than 10% of total accounts and notes receivable. No individual franchisee or master licensee accounted for more than 10% of total revenues for the fiscal years ended 2013, 2012, or 2011.

(x) Recent accounting pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires presentation of an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This guidance is effective for the Company in fiscal year 2014 with early adoption permitted. The Company has not adopted this guidance as of December 28, 2013, and does not expect the adoption of this guidance to have any impact on the Company's consolidated financial statements.

In February 2013, the FASB issued new guidance which requires disclosure of significant amounts reclassified out of accumulated other comprehensive income by component and their corresponding effect on the respective line items of net income. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

In December 2011, the FASB issued guidance which enhanced existing disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. In January 2013, the FASB issued new guidance to clarify that the guidance issued in December 2011 on offsetting financial assets and financial liabilities was limited to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria or subject to a master netting arrangement or similar agreement. It further clarifies that ordinary trade receivables and other receivables are not in the scope of the existing guidance. This guidance was adopted by the Company in fiscal year 2013. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.

(y) Reclassifications

The Company has revised the presentation of certain captions for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The revisions had no impact on net cash provided by (used in) operating, investing, or financing activities.

(z) Subsequent events

Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.

XML

Equity method investments Summarized Financial Information (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Equity Method Investments and Joint Ventures [Abstract]
Current assets	$ 261,546	$ 248,371
Current liabilities	106,280	102,787
Working capital	155,266	145,584
Property, plant, and equipment, net	139,378	144,570
Other assets	173,491	163,511
Long-term liabilities	52,389	62,351
Equity of equity method investments	415,746	391,314
Equity Method Investment, Summarized Financial Information, Revenue	673,537	687,676	659,319
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 51,407	$ 51,046	$ 44,156

XML

Segment Information Segment Profit by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 30, 2013	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		$ 146,304	$ 107,624	$ 34,442
Corporate and other		(113,967)	(136,488)	(150,382)
Interest expense, net		(79,831)	(73,488)	(104,449)
Depreciation and amortization		(49,366)	(56,027)	(52,522)
Long-lived asset impairment charges		(563)	(1,278)	(2,060)
Loss on debt extinguishment and refinancing transactions	(5,000)	(5,018)	(3,963)	(34,222)
Other gains, net		(1,799)	23	175
Income before income taxes		218,088	162,001	66,813
Reportable Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		468,632	433,222	410,273
Reportable Segment | Dunkin' Donuts | United States
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		379,751	355,274	334,308
Reportable Segment | Dunkin' Donuts | International
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		7,479	9,670	11,528
Reportable Segment | Baskin-Robbins | United States
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		27,081	26,274	21,593
Reportable Segment | Baskin-Robbins | International
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total reportable segments		$ 54,321	$ 42,004	$ 42,844

XML

Retirement Plans - Pension Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 0	$ 262	$ 222
Interest cost	216	333	340
Expected return on plan assets	(263)	(317)	(306)
Amortization of net actuarial loss	74	76	54
Net pension expense	$ 27	$ 354	$ 310

XML

Derivative instruments and Hedging Transactions - Textuals (Details) (USD $)	1 Months Ended	12 Months Ended
	Sep. 29, 2012 counterparties	Dec. 28, 2013	Dec. 29, 2012	Dec. 28, 2013 Swap [Member]	Feb. 28, 2014 Swap [Member]	Dec. 28, 2013 Other Current liabilities [Member]	Dec. 29, 2012 Other Current liabilities [Member]
Derivative [Line Items]
Number of counterparties	3
Derivative variable interest rate spread, floor				1.00%	0.75%
Notional value of swaps				$ 900,000,000
Swap quarterly fixed interest rate				1.37%
Total swap interest rate				4.12%
Ineffectiveness of interest rate swap		0	0
Interest Payable						836,000	864,000
Estimated reclassification from Accumulated OCI to Income				3,400,000
Fixed interest rate					1.22%
Derivative termination value		$ 9,600,000

XML

Related-Party Transactions

12 Months Ended

Dec. 28, 2013

Disclosure Related Party Transactions [Abstract]

Related-Party Transactions

Related-party transactions

(a) Sponsors

Through the first quarter of fiscal year 2012, DBGI was majority-owned by investment funds affiliated with Bain Capital Partners, LLC, The Carlyle Group, and Thomas H. Lee Partners, L.P. (collectively, the “Sponsors” or "BCT").

In April 2012, certain existing stockholders, including the Sponsors, sold a total of 30,360,000 shares of our common stock (see note 13(a)). In August 2012, the Sponsors sold all of their remaining shares through a registered offering and related repurchase of shares by the Company (see notes 13(a) and 13(c)). One representative of each Sponsor continues to serve on the board of directors.

Prior to the closing of the Company’s initial public offering on August 1, 2011, the Company was charged an annual management fee by the Sponsors of $1.0 million per Sponsor, payable in quarterly installments. In connection with the completion of the initial public offering in August 2011, the Company incurred an expense of approximately $14.7 million related to the termination of the Sponsor management agreement. Including this termination fee, the Company recognized $16.4 million of expense during fiscal year 2011 related to Sponsor management fees, which is included in general and administrative expenses, net in the consolidated statements of operations.

At December 29, 2012, certain affiliates of the Sponsors held $52.4 million, respectively of term loans, issued under the Company’s senior credit facility. The terms of these loans were identical to all other term loans issued to unrelated lenders in the senior credit facility. As of December 28, 2013, there were no term loans held by affiliates of the Sponsors.

The Sponsors have historically held a substantial interest in our Company as well as several other entities. The existence of such common ownership and management control could result in differences within our operating results or financial position than if the entities were autonomous; however, we believe such transactions were negotiated at arm's length. The Company made payments to entities in which the Sponsors have ownership interests totaling approximately $2.1 million, $1.6 million, and $979 thousand during fiscal years 2013, 2012, and 2011, respectively, primarily for the purchase of consulting services, training services, and leasing of restaurant space. At December 29, 2012, the Company had a net payable of $150 thousand to these entities. At December 28, 2013, the Company had no net payable to these entities.

(b) Equity method investments

The Company recognized royalty income from its equity method investments as follows (in thousands):

	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
BR Japan	$	2,097	2,549	2,473
BR Korea	4,156		3,662	3,371
Spain JV	130		—	—
	$	6,383	6,211	5,844

At December 28, 2013 and December 29, 2012, the Company had $1.4 million and $1.2 million, respectively, of royalties receivable from its equity method investments which were recorded in accounts receivable, net, in the consolidated balance sheets.

The Company made net payments to its equity method investments totaling approximately $3.8 million, $1.6 million, and $2.8 million, in fiscal years 2013, 2012, and 2011, respectively, primarily for the purchase of ice cream products and incentive payments.

The Company made loans of $2.1 million and $666 thousand during fiscal years 2013 and 2012, respectively to the Spain JV. As of December 28, 2013 and December 29, 2012, the Company had $2.7 million and $666 thousand, respectively, of notes receivable from the Spain JV, which are included in other assets in the consolidated balance sheets. During the third quarter of fiscal year 2013, the Company fully reserved all outstanding notes and accounts receivable from the Spain JV, and fully impaired its equity investment in the Spain JV (see note 6).

During fiscal year 2013, the Company recognized sales of ice cream products of $4.8 million in the consolidated statements of operations from the sale of ice cream products to the Australia JV. As of December 28, 2013, the Company had $733 thousand of net receivables from the Australia JV, consisting of accounts receivable and notes and other receivables, net of other current liabilities.

(c) Board of directors

Certain family members of one of our directors, who retired in May 2013, hold an ownership interest in an entity that owns and operates Dunkin’ Donuts restaurants and holds the right to develop additional restaurants under store development agreements. During fiscal years 2013, 2012, and 2011, the Company received $343 thousand, $961 thousand, and $713 thousand, respectively, in royalty and rental payments from this entity. During fiscal year 2013, the Company recognized $6 thousand of income related to initial franchise fees from this entity. All material terms of the franchise and store development agreements with this entity are consistent with other unrelated franchisees in the market.

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Leases - Operating Leases Included in Company's Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Dec. 28, 2013	Dec. 29, 2012
Operating Leased Assets [Line Items]
Assets leased to others, gross	$ 208,108	$ 209,249
Accumulated depreciation	(71,535)	(71,100)
Assets leased to others, net	136,573	138,149
Land
Operating Leased Assets [Line Items]
Assets leased to others, gross	29,701	27,210
Buildings
Operating Leased Assets [Line Items]
Assets leased to others, gross	41,721	39,242
Leasehold improvements
Operating Leased Assets [Line Items]
Assets leased to others, gross	135,177	141,264
Store, production, and other equipment
Operating Leased Assets [Line Items]
Assets leased to others, gross	146	149
Construction in progress
Operating Leased Assets [Line Items]
Assets leased to others, gross	$ 1,363	$ 1,384

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Derivative Instruments and Hedging Transactions (Tables)

12 Months Ended

Dec. 28, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of derivatives instruments consisted of the following (in thousands):

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - asset	$	10,221	—	Other assets
Total fair values of derivative instruments - asset	$	10,221	—

	December 28, 2013		December 29, 2012	Consolidated balance sheet classification
Interest rate swaps - liability	$	—	2,809	Other long-term liabilities
Total fair values of derivative instruments - liability	$	—	2,809

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2013:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	9,648		(3,382	)	Interest expense	13,030
Income tax effect	(3,909		)	1,381		Provision for income taxes	(5,290	)
Net of income taxes	$	5,739		(2,001	)		7,740

The tables below summarizes the effects of derivative instruments on the consolidated statements of operations and comprehensive income for fiscal year 2012:

Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)			Amount of net gain (loss) reclassified into earnings		Consolidated statement of operations classification	Total effect on other comprehensive income (loss)
Interest rate swaps	$	(3,673	)	(864	)	Interest expense	(2,809	)
Income tax effect	1,509			355		Provision for income taxes	1,154
Net of income taxes	$	(2,164	)	(509	)		(1,655	)

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Segment Information

12 Months Ended

Dec. 28, 2013

Segment Reporting [Abstract]

Segment Information

Segment information

The Company is strategically aligned into two global brands, Dunkin’ Donuts and Baskin-Robbins, which are further segregated between U.S. operations and international operations. As such, the Company has determined that it has four operating segments, which are its reportable segments: Dunkin’ Donuts U.S., Dunkin’ Donuts International, Baskin-Robbins U.S., and Baskin-Robbins International. Dunkin’ Donuts U.S., Baskin-Robbins U.S., and Dunkin’ Donuts International primarily derive their revenues through royalty income, franchise fees, and rental income. Baskin-Robbins U.S. also derives revenue through license fees from a third-party license agreement. Baskin-Robbins International primarily derives its revenues from sales of ice cream products, as well as royalty income, franchise fees, and license fees. The operating results of each segment are regularly reviewed and evaluated separately by the Company’s senior management, which includes, but is not limited to, the chief executive officer. Senior management primarily evaluates the performance of its segments and allocates resources to them based on earnings before interest, taxes, depreciation, amortization, impairment charges, loss on debt extinguishment and refinancing transactions, other gains and losses, and unallocated corporate charges, referred to as segment profit. When senior management reviews a balance sheet, it is at a consolidated level. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. Revenues reported as “Other” include revenue earned through arrangements with third parties in which our brand names are used and revenue generated from online training programs for franchisees that are not allocated to a specific segment. Revenues by segment were as follows (in thousands):

	Revenues
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	521,179	485,399	449,492
Dunkin’ Donuts International	18,316		15,485	15,253
Baskin-Robbins U.S.	42,152		42,074	43,455
Baskin-Robbins International	120,333		101,975	106,887
Total reportable segments	701,980		644,933	615,087
Other	11,860		13,248	13,111
Total revenues	$	713,840	658,181	628,198

Revenues for foreign countries are represented by the Dunkin’ Donuts International and Baskin-Robbins International segments above. No individual foreign country accounted for more than 10% of total revenues for any fiscal year presented.

Expenses included in “Corporate and other” in the segment profit table below include corporate overhead costs, such as payroll and related benefit costs and professional services, as well as the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea (see note 6). Segment profit by segment was as follows (in thousands):

	Segment profit
	Fiscal year ended
	December 28, 2013			December 29, 2012		December 31, 2011
Dunkin’ Donuts U.S.	$	379,751		355,274		334,308
Dunkin’ Donuts International	7,479			9,670		11,528
Baskin-Robbins U.S.	27,081			26,274		21,593
Baskin-Robbins International	54,321			42,004		42,844
Total reportable segments	468,632			433,222		410,273
Corporate and other	(113,967		)	(136,488	)	(150,382	)
Interest expense, net	(79,831		)	(73,488	)	(104,449	)
Depreciation and amortization	(49,366		)	(56,027	)	(52,522	)
Long-lived asset impairment charges	(563		)	(1,278	)	(2,060	)
Loss on debt extinguishment and refinancing transactions	(5,018		)	(3,963	)	(34,222	)
Other gains (losses), net	(1,799		)	23		175
Income before income taxes	$	218,088		162,001		66,813

Net income (loss) of equity method investments, including amortization on intangibles resulting from the BCT Acquisition, is included in segment profit for the Dunkin’ Donuts International and Baskin-Robbins International reportable segments. Expenses included in “Other” in the segment profit table below represent the impairment charge recorded in fiscal year 2011 related to our investment in BR Korea, and the related ongoing reduction in depreciation and amortization, net of tax (see note 6). Net income (loss) of equity method investments by reportable segment was as follows (in thousands):

	Net income (loss) of equity method investments
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts International	$	480	2,211	840
Baskin-Robbins International	15,913		16,578	14,461
Total reportable segments	16,393		18,789	15,301
Other	1,977		3,562	(18,776	)
Total net income (loss) of equity method investments	$	18,370	22,351	(3,475	)

Depreciation and amortization is not included in segment profit for each reportable segment. However, depreciation and amortization is included in the financial results regularly provided to the Company’s senior management. Depreciation and amortization by reportable segments was as follows (in thousands):

	Depreciation and amortization
	Fiscal year ended
	December 28, 2013		December 29, 2012	December 31, 2011
Dunkin’ Donuts U.S.	$	18,506	19,021	20,068
Dunkin’ Donuts International	50		92	130
Baskin-Robbins U.S.	530		1,052	522
Baskin-Robbins International	135		643	866
Total reportable segments	19,221		20,808	21,586
Corporate and other	30,145		35,219	30,936
Total depreciation and amortization	$	49,366	56,027	52,522

Property and equipment, net by geographic region as of December 28, 2013 and December 29, 2012 is based on the physical locations within the indicated geographic regions and are as follows (in thousands):

	December 28, 2013		December 29, 2012
United States	$	182,544	180,525
International	314		647
Total property and equipment, net	$	182,858	181,172

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Income Taxes - Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 28, 2013	Dec. 29, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Computed federal income tax expense, at statutory rate	35.00%	35.00%	35.00%
Impairment of investment in BR Korea	0.00%	0.00%	9.80%
Other permanent differences	0.20%	0.70%	0.90%
State income taxes	4.70%	5.20%	6.90%
Benefits and taxes related to foreign operations	(4.30%)	(2.90%)	(6.80%)
Changes in enacted tax rates and apportionment	0.80%	2.80%	3.00%
Uncertain tax positions	(3.20%)	(6.30%)	1.90%
Other	(0.30%)	(0.90%)	(2.20%)
Effective tax rate	32.90%	33.60%	48.50%