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General

Industry

Food and Beverage

Category

Snacks

Works with Franchise Brokers

No

Year of Founding

1937

Fees

Marketing Fee

2%

Royalty Fee

4.5%

Franchise Fee

$12,500-$12,500

Investment Range

$441K-$4.12M

Location units

Total U.S. Locations

360

U.S. Franchised Units

187

U.S. Corporate Units

173

Headquarters (City)

Winston-Salem

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

No

Started Offering Franchises

1950

Issuance of FDD Data

06/25/2020

Key Indicators

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Franchise Payback Period (Years)

Owner Salary / Compensation

Average Unit Volume (AUV)

Franchise Cost

$441K-$4.12M

Franchise Fee

$12,500-$12,500

What to know about Krispy Kreme franchise?

Krispy Kreme Stores offer and serve a variety of doughnuts, beverages, and other related products and services. Franchises for Krispy Kreme Stores are offered in 4 different Store formats: Factory Stores, Tunnel Oven Shops, Fresh Shops, and Box Shops. Franchises are also offered for Commissary Facilities that produce doughnut products for Tunnel Oven Shops and Fresh Shops. Krispy Kreme Stores are typically located in high-traffic areas such as shopping malls, airports, and highway rest stops. Krispy Kreme Stores are often open for extended hours, including evenings and weekends. Krispy Kreme Store products are also sold through grocery stores and other retail outlets, and some Krispy Kreme Store locations offer delivery service. Krispy Kreme Stores often cooperate with other business entities in a co-branding relationship whereby Krispy Kreme Store products and/or services are offered at or through another business entity's premises. Franchisees are not required to participate in any co-branding arrangements. Krispy Kreme is based in Winston-Salem, NC. Scroll down to learn more!

How much does a Krispy Kreme franchise cost?

Are you wondering how much is a Krispy Kreme franchise? Before starting a Krispy Kreme franchise, it is important to know the franchise fee, working capital and other costs required to start the business. The minimum investment amount required to open a Krispy Kreme franchise is $440,500 and can go all the way up to $4,115,000. Keep in mind, you should also allocate additional funds to live off of while the Krispy Kreme business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Krispy Kreme franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Krispy Kreme business 2) pass break even 3) hit significant income. After (and if) you pass the point of earning significant income from your Krispy Kreme franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Download our guide to compare Krispy Kreme. Hotels to the Snacks, Outdoor Food and Beverage industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 182 20 2 200
2017 200 20 0 218
2018 218 14 5 205
2019 205 7 3 187

Additional Details

How much does a Krispy Kreme franchise owner make?

Krispy Kreme franchise earnings and revenue can vary significantly from one franchisee to another. The Krispy Kreme franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors. Krispy Kreme unfortunately does not disclose financials on how much Krispy Kreme franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S. Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Krispy Kreme does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Krispy Kreme franchisees. Do note that Krispy Kreme is not alone as about 40% of franchises do not disclose franchisee financial performance. At Vetted Biz, we suggest you to speak with 5 to 10 Krispy Kreme franchisees to understand how much money they are making from their Krispy Kreme business. You should also speak to former Krispy Kreme franchisees to understand why they left the system. Did they sell their Krispy Kreme at a profit? Were they forced to close their Krispy Kreme franchise down because it kept losing money?

What is the Krispy Kreme franchise fee?

Owning a Krispy Kreme franchise requires 4.5% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Krispy Kreme Franchise Disclosure Document Keep in mind, there is also an initial Krispy Kreme franchise fee of $12,500 that is included in the initial investment amount of $440,500 to $4,115,000. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Krispy Kreme franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Krispy Kreme franchise fee of $12,500. Visit the Krispy Kreme metrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Krispy Kreme founded?

Krispy Kreme started offering franchises in 1950. Krispy Kreme was founded 85 years ago in 1937. At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Krispy Kreme locations are in the U.S.?

As of 2020, there were 187 locations across the U.S. There are also 173 corporate locations. Most Food and Beverage franchises like Krispy Kreme have more franchised locations than corporate locations.

How many Krispy Kreme franchises opened over the past few years?

Over the prior 3 years we have data for, Krispy Kreme has opened 41 outlets throughout the U.S. Visit the Krispy Kreme metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many Krispy Kreme franchises closed over the past few years?

Over the prior 3 years we have data for, Krispy Kreme has closed 8 outlets throughout the U.S Visit the Krispy Kreme metrics tab to explore how the openings compare to other Food and Beverage franchises.

Is Krispy Kreme growing? Are they opening more locations than they are closing?

The net unit growth rate for Krispy Kreme over the past 3 years is -7%. Over the last year we have data for, Krispy Kreme had a net unit growth rate of -9%. Without a comparison, this number doesn’t mean much. Compare how the Krispy Kreme growth rate compares to 2,000+ other franchises and Industry franchises like Krispy Kreme. More info in the Krispy Kreme metrics tab.

Is Krispy Kreme franchise eligible for an SBA Loan?

Krispy Kreme is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here. Krispy Kreme franchise was assigned the SBA Franchise ID of S0960 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Krispy Kreme that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Krispy Kreme a franchise in the United States?

According to the SBA, Krispy Kreme meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Krispy Kreme provides you with an FDD if you are in discussion to buy a Krispy Kreme.

What is the Krispy Kreme Franchise for Sale Rate?

The Krispy Kreme systemwide health and franchisee satisfaction can be measured by the Krispy Kremefranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor. Krispy Kreme franchise for sale rate over the past 3 years is 13%. Over the last year we have data for, Krispy Kreme had a franchise for sale rate of 12%. Without a comparison, this number doesn’t mean much. Compare how the Krispy Kreme franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Krispy Kreme. More info in the Krispy Kreme metrics tab.

What is the Krispy Kreme Franchise Failure Rate?

Krispy Kreme franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise! Krispy Kreme failure rate over the past 3 years is 4%. Over the last year we have data for, Krispy Kreme had a franchise failure rate of 2%. Without a comparison, this number doesn’t mean much. Compare how the Krispy Kreme franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Krispy Kreme. More info in the Krispy Kreme metrics tab.

How can I find out more details on Krispy Kreme franchise?

Visit the Krispy Kreme metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Krispy Kreme

$2,277,750

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Krispy Kreme

4.5%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Krispy Kreme

$12,500

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Food and Beverage

Category

Snacks

Works with Franchise Brokers

No

Year of Founding

1937

Fees

Marketing Fee

2%

Royalty Fee

4.5%

Franchise Fee

$12,500-$12,500

Investment Range

$441K-$4.12M

Location units

Total U.S. Locations

360

U.S. Franchised Units

187

U.S. Corporate Units

173

Headquarters (City)

Winston-Salem

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

No

Started Offering Franchises

1950

Issuance of FDD Data

06/25/2020
Detailed Franchise metrics for Krispy Kreme Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Krispy Kreme below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Krispy Kreme

0%

-7%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Krispy Kreme

12%

13%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Krispy Kreme

2%

4%

Industry median

All franchises median

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Business details

Website

https://www.krispykreme.com

Business email

**********@******.com

Mailing address

370 Knollwood Street

State headquarters

North Carolina

Contact Name

Krispy Kreme

Phone

+1 (000) 0********00

City

Winston-Salem

Zip code

27103
Name Email State City Zip Code

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