# Honey Dew Donuts

Honey Dew Associates, Inc., doing business as Honey Dew Donuts, is a privately owned and operated Massachusetts-based coffeehouse chain selling donuts and other breakfast foods that operates in New England. The chain is mostly known for its donuts and coffee, but also offers sandwiches, bagels, muffins, and various types of pastries. Honey Dew Donuts opened its first restaurant in 1973 in Mansfield, Massachusetts, and is currently headquartered in Plainville, Massachusetts. As of August 20, 2021 the chain had 125 restaurants in 3 states.

## History

Honey Dew Donuts was founded in Mansfield, Massachusetts, by Richard J. "Dick" Bowen in 1973. In 1975, a customer suggested bringing a Honey Dew Donuts location to his community, who later became the first franchisee.
Dick Bowen was introduced to the aspect of donuts at the age of twelve by working with his father making donuts in a local donut shop in his community. He discovered his desire for a career in entrepreneurship while attending Stoughton High School, from which he graduated in 1965. After graduating from high school, Bowen enlisted in the army. He was relocated to Germany because of his deployment, where he worked as a donut baker and mechanic.
As of 2020 Honey Dew Donuts has 125 franchises in New England.

## Information

Honey Dew Donuts sells donuts, pastries, muffins and a variety of coffees. Their motto is "Always Fresh, Always Good!". The original Honey Dew Donuts location is in Mansfield, Massachusetts. The original Plainville, Massachusetts location was one of the first establishments in New England that constructed and utilized a drive-thru. In 2003, the franchise had 140 shops, 65 franchise families, and over 20 corporate employees. In 2012, Olivia Culpo, a Miss Rhode Island and Miss Universe winner, was featured in a Honey Dew Donuts commercial.

## Legal Issues

Honey Dew Donuts has faced multiple legal challenges in recent years, with allegations ranging from fraud and misrepresentation to breach of contract. These cases have raised concerns about the company's business practices and its treatment of franchisees.

### Related Parties and Financial Practices

Court filings in various lawsuits have alleged that Honey Dew Associates, Inc. has utilized related entities to obscure its financial performance and reduce its reported net income. The following related parties have been identified in court documents:
■ Bowen Investments, Inc. – A real estate holding company that owns properties leased to Honey Dew franchises and other businesses.
■ BRI, Inc. – Another real estate entity associated with Honey Dew's founder, Richard J. Bowen, which manages franchise property investments.
■ Honey Dew Operations, Inc. – An entity that operates a training store for franchisees. It has been alleged that this entity helps shift income and expenses away from Honey Dew Associates, Inc., reducing the company's reported net income.
Franchisees and other parties have claimed in court filings that this arrangement benefits the Bowen family while making Honey Dew Associates, Inc. appear less profitable than it truly is. These allegations suggest that this structure places additional financial burdens on franchisees while limiting transparency into the company's true financial health.

### Allegations Against Marc Cohen, CPA

Court filings have also accused Marc Cohen, CPA, of serving simultaneously as the company's auditor and Chief Financial Officer (CFO) for Honey Dew Associates, Inc. Plaintiffs in lawsuits have argued that this dual role constitutes a conflict of interest, undermining the independence of the company's audits. Specific allegations include:
Manipulation of Financial Statements – Claims that financial statements prepared under Cohen's oversight were designed to mislead franchisees and potential investors. Lack of Transparency – Accusations that Cohen concealed or failed to disclose transactions between Honey Dew Associates, Inc. and its related parties, such as Bowen Investments, Inc. and BRI, Inc. These allegations have been raised in lawsuits such as Leigh Holdings, LLC et al. v. Honey Dew Associates, Inc. and Goldman et al. v. Honey Dew Associates, Inc., where franchisees claimed to have suffered financial harm due to these practices.

### Ouroboros Group Lawsuit

One prominent lawsuit was filed by Leigh Holdings, LLC d/b/a Ouroboros Group and its affiliates against Honey Dew Donuts, founder Richard J. Bowen, and associated entities. The plaintiffs accused the company of:
■ Falsifying financial documents.
■ Misrepresenting income.
■ Violating federal franchise regulations (16 CFR 436.6(a) & 16 CFR 436.5(u)(1)).
The lawsuit further alleged that Honey Dew Donuts, through its legal and financial representatives, fabricated evidence, submitted perjured affidavits, and committed wire fraud (18 U.S.C. § 1343). Discovery revealed claims of unethical practices, including the manipulation of advertising funds, the presentation of false audited financials, and the fraudulent inducement of franchisees into agreements. This case ultimately settled out of court (Leigh Holdings, LLC et al. v. Honey Dew Associates, Inc., Civil Action No. 2284cv01901-BLS1, Suffolk Superior Court).

### Franchisee Lawsuits

In addition to the Ouroboros Group case, several other franchisees have filed lawsuits against Honey Dew Donuts. For example, in Goldman et al. v. Honey Dew Associates, Inc., filed in Norfolk Superior Court (Civil Action No. 2482CV00149), franchisees alleged that the company provided false financial statements to induce them into purchasing franchises. The plaintiffs claimed that Honey Dew Donuts knowingly misrepresented its financial condition, violating Massachusetts state laws and causing significant financial harm.

### Impact on Reputation

The growing number of lawsuits, combined with allegations of financial manipulation through related parties and conflicts of interest, has raised concerns about Honey Dew Donuts’ business practices. These controversies could potentially harm the company's reputation and its standing as a leading regional coffeehouse chain in New England.