Krispy Kreme donuts can fulfill sugar cravings any time of the day, and this great franchise always offers coffee and other drinks to go with these sweet treats.
Many business people have achieved their dreams by getting a Krispy Kreme franchise. Have you thought about how much it would cost to own a Krispy Kreme franchise?
In this piece, we will guide you through the history of the Krispy Kreme franchise. We will also discuss the cost of the franchise and other important details.
About the company
Krispy Kreme, famous for its glazed doughnuts, started in Winston-Salem, North Carolina, in 1937 by Vernon Rudolph, USA. He began selling his items to local supermarkets and convenience stores.
The company has faced many challenges, including the Great Depression and bankruptcy during its first expansion in the 2000s.
Vernon Rudolph made significant contributions to the company until May 2016.
JAB Holding Company bought Krispy Kreme for over a billion dollars. It’s an international organization, so you won’t work with the main office during the franchising process. You’ll be dealing with Max’s Group, which owns the master franchise license for the brand.
Krispy Kreme is looking for candidates in the Chicago, Buffalo/Rochester, Harrisburg/Lancaster/York, and Houston markets in the United States. The company has also been focusing on expanding outside the United States and highlighting the availability of hot, caffeinated drinks.
Krispy Kreme has returned to profitability for the first time in years, and its foreign market is gradually growing.
Krispy Kreme Products
- Doughnuts – including the basic glazed doughnut and various specialty doughnuts Lattes, flavored lattes, cappuccinos, iced coffees, and frozen coffee drinks
- Freshly made trademark coffee and special coffee drinks
- Bagels in both plain and tasty varieties
- Doughnut sundaes and ice cream cones at Kool Kreme
- Hot chocolate and blended frozen drinks.
Krispy Kreme Franchise Model
| Investment | $200,000 |
| Franchise-Fee | $12,500-$25,000 |
| Royalty Fee | 4.5% of Net Sales of the Store |
| Area | 20 – 30 (sqm) |
| Industry | Food & Beverage |
| Total Outlets | 1,515 |
The Pros & Cons Of Krispy Kreme Franchise
Pros
- The brand is famous both locally and around the world. If you choose a good location, a high return on investment (ROI) is likely.
- Regional managers from Max’s Group will personally check your store’s quality. This helps you keep control over the quality of what you make.
Cons
- The franchise fees for Krispy Kreme are a bit high compared to other franchises. This is why your financial ability is carefully looked at during the interview.
- The franchise contracts for Krispy Kreme are short. If not handled right, the franchise fee and the 3-year term could become a financial problem.
Krispy Kreme Comparison
| Company | Krispy Kreme | Whataburger |
|---|---|---|
| Founded In | 1960 | 1950 |
| Initial Investment | $200,000 | $1,200,000 |
| Franchise-Fee | $12,500-$25,000 | $40,000 |
| Total Outlet | 1,515 | 830 |
| Annual Revenue | $1.46 Billion | $2.5 Billion |
Frequently Asked Questions
Is it wise to invest in a Krispy Kreme franchise?
Investing in a Krispy Kreme franchise is a great idea. This is because the brand has many loyal customers and is easily recognized.
How many Krispy Kreme Locations are there?
As of August, 2023, there are 356 Krispy Kreme stores in the United States.
Is Krispy Kreme a Franchise?
Yes, Krispy Kreme is a franchise. People can buy the rights to open and operate their own Krispy Kreme store in different locations.
How much does a Krispy Kreme Franchise Cost?
To become an owner of a Krispy Kreme franchise, investors should expect to spend around $200,000 and an additional amount of $12,500-$25,000 as a franchise fee. You must also access the information regarding Krispy Kreme franchise owner’s salary.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.