Krispy Kreme Franchise Opportunities
Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and wholesaler of doughnuts, coffee and other complementary beverages, and treats and packaged sweets. The company operates through four segments: Company Stores, Domestic Franchise, International Franchise, and KK Supply Chain. It owns and franchises Krispy Kreme stores. As of August 01, 2018, the company operated approximately 1,400 retail shops in 32 countries.
It also produces doughnut mixes and doughnut-making equipment. The company was founded in 1937 and is headquartered in Winston-Salem, North Carolina.
How to open a Krispy Kreme franchise?
- Ensure you have adequate capitalization.
In order to open a Krispy Kreme franchise, you must have a net worth of more than $275,000. - Appreciate the investment required for a franchise.
You will need to consider building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc. - Evaluate your prior experience and strengths.
You should thoroughly evaluate your prior business experience before applying to become a Krispy Kreme franchise owner. - Assess market availability.
You will want to look at the market availability for Krispy Kreme franchises and see if there are available markets in your location of interest before proceeding with the franchising application. - Submit your application.
Your application will be reviewed by the Krispy Kreme franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner. - Receive approval & opening your Krispy Kreme franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
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How much does Krispy Kreme franchise cost?
Krispy Kreme has the franchise fee of up to $25,000, with total initial investment range of $275,000 to $1,911,250.
Initial investments: $275,000 - $1,911,250
Liquid Cash Requirement: $300,000 - $3,000,000
Krispy Kreme Initial Investment
| Name of Fee | Low | High |
|---|---|---|
| Development Fee (per Fresh Shop) | $12,500 | $25,000 |
| Initial Franchise Fee (per Fresh Shop) | $12,500 | $25,000 |
| Real Estate and Improvements – 3 Months | $8,000 | $75,000 |
| Construction Costs | $250,000 | $1,600,000 |
| Equipment/Signage/Furniture/Fixtures | $90,000 | $230,000 |
| Truck (per truck) | N/A | $50,000 |
| Equipment and Displays for Authorized Off-Premises Sales (excluding truck costs) | N/A | $100,000 |
| Initial Inventory | $5,000 | $50,000 |
| Production Equipment | N/A | $380,000 |
| Grand Opening Marketing Program | $20,000 | $45,000 |
| Training Expenses | $15,000 | $50,000 |
| Security Deposits and Other Pre-Paids | $2,500 | $20,000 |
| Additional Funds (3 months) | $25,000 | $100,000 |
| Krispy Kreme TOTAL | $440,500 | $2,750,000 |
*The Krispy Kreme initial investment range covers from a Fresh Shop up to a Factory Store, including a Tunnel Oven Shop.
Ongoing Fees
Initial Franchise Fee: $12,500 - $25,000
Ongoing Royalty Fee: 4.5%
Ad Royalty Fee: 1.5%
Krispy Kreme Franchise Profits
Krispy Kreme is a rather popular and profitable business, specializing in doughnuts and coffee. The brand already has multiple units, over 1500, globally, and it continues its growth by selling franchise units to ambitious entrepreneurs. Financial prospects are promising and the price of an enterprise can be high. The whole net produces about $800 million annually. Krispy Kreme franchise average profit is estimated at $3-3.4 million in sales annually. After covering expenses, royalties, and other costs, a franchisee earns about $275,000 a year.
Krispy Kreme features various kinds of stores, and they have different financial potential. The location of a franchise also influences the sum of the owner's profit. The best territory has high passibility and little to none rivals in the same line of business.
Are you interested in starting Krispy Kreme Franchise in the USA, Canada, South Africa, Australia, the UK, India, the Philippines or another country?
We provide estimated franchise costs for some countries:
- In the United States, the total investment to start the Krispy Kreme Doughnuts And Coffee Store is around $275,000 to $1,911,250.
- In Canadian currency, the investment comes around Can$352,000 to Can$2,448,530.
- In currency of South Africa, the investment comes around ZAR 575,000 to ZAR 1,025,000.
- In currency of Australia, the investment comes around AUD 361,000 to AUD 2,513,500.
- In currency of Singapore, the investment comes around SGD 365,000 to SGD 2,537,000.
- In currency of the United Kingdom, the investment comes around £203,800 to £1,416,600.
- In Malaysian currency, the investment comes around RM 1,11 million to RM 7,74 million.
- In Saudi Arabia currency, the investment comes around SR 1,03 million to SR 7,17 million.
Support Options
On-The-Job Training: 65 days
Classroom Training: 15 days
Additional Training: At training stores
Krispy Kreme website: www.krispykreme.com
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