Founded in 1937, Krispy Kreme began selling doughnuts to local grocery stores in Winston-Salem, N.C. Not long after, the smell of hot, fresh doughnuts began attracting passersby, so the company started selling doughnuts directly to the public. Now known for its recognizable "Hot Light," Krispy Kreme lets ambitious and financially solvent small business owners take part in its success. Opening a Krispy Kreme franchise can be a lucrative decision, but one that requires significant investment.
Franchise Model Research
As a Krispy Kreme franchisee, you'll be purchasing the right to use the company's established brand and profitable business model. You'll receive training at the corporate facility in North Carolina, as well as on-the-job training at one of Krispy Kreme's certified training stores. Because franchising is a contractual agreement, do your research beforehand.
According to the Federal Trade Commission, all companies are required to disclose to prospective franchisees exactly how their businesses operate via a uniform franchising offering circular or UFOC. Krispy Kreme's UFOC outlines important franchising requirements and fees, such as a nonrefundable $40,000 fee that gives you the rights to a specific regional location for 15 years. Potential franchisees start the process of opening a store by applying directly on the Krispy Kreme website.
Food and Customer Service Experience
Customer service and industry expertise are key components of the Krispy Kreme brand, so before you can open your own franchise, you'll have to prove your ability to run a successful restaurant business. Krispy Kreme's franchise application form requests details about your restaurant, retail and business experience.
CNN reports that Krispy Kreme wants potential franchisees with "ownership and operating experience of multi-unit food service operations." Because the company wants to ensure the success of each franchise, it only accepts what it calls "mega-franchisees" or franchisees who can commit to opening at least 10 facilities in a region.