Krispy Kreme Franchise (How to Apply, Initial Cost & Profit)

Krispy Kreme Franchise

Krispy Kreme Franchise is an American based restaurant that serves coffee and doughnuts. The company also serves espresso drinks along with its mouth-watering doughnuts. The motto of Krispy Kreme is to make everyone fall in love with its fresh and tasty doughnuts. From children to old age everyone is crazy for fresh fluffy doughnuts. And there cannot be an any better thing than having a good coffee along with doughnuts. People love to bring their families here.

Krispy Kreme doughnuts have an original glazed doughnut, which is known to be their best selling doughnut. They offer a wide variety of menu like filled doughnuts, different flavored glazed doughnuts, drinks, coffee, they also keep introducing new items to their menu like “scoop sandwiches.” Krispy Kreme franchise has one of the highest market shares in the doughnut sector.

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Brand History

Krispy Kreme was started in 1937 by Vernon Rudolph.  Vernon learned this secret yeast-raised doughnut recipe from a French chef. Vernon along with his uncle started selling doughnuts in a normal grocery store in Nashville. The doughnuts started selling so much that they started a company named, “The Krispy Kreme Doughnut Company.” The shop did so well that Vermont’s father joined them at Nashville.

Krispy Kreme started spreading in the whole southeast and gradually they started expanding their franchise. The expansion happened in the 1950s. Since then Krispy Kreme has been spreading internationally. In 2016, JAB holding brought Krispy Kreme for $1.5 billion. In fact, it has its outlet in countries like Australia, Canada, Indonesia, Malaysia, Thailand, India, Philippines, United Kingdom, South Africa, Japan, etc. Till August 2018 Krispy Kreme has a total number of 1,400 shops in 32 countries.

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Why Krispy Kreme Over Any Other Franchise?

Krispy Kreme has set its trademark of flavors and taste. There is a high chance that customers will be loyal to Krispy Kreme and will prefer its products over any other store’s products.

  • Krispy Kreme has even created an app, where its customers get free treats with a regular purchase.
  • Also, the Krispy Kreme franchise has got global recognition. It sells approximately 11,000 dozens of doughnuts per hour in America.
  • It is always better to go for a franchise that already has a brand name. Business is full of ups and downs. Krispy Kreme even faced some issues during the 2000s but it evolved more efficiently after that.
  • It shows that this franchise has a capacity of rising up and then setting high standards even after facing ups and downs.
  • Also, it will be an advantage to choose a Krispy Kreme Franchise, there is minimal risk of failure at business.
  • It has big plans for the future, so in no way, it is going to stop its franchise in a mid like others.

Krispy Kreme Franchise Types

Krispy Kreme gives franchise in three types of format:

  • Factory retail store– It manufactures fresh doughnuts and produces it on-site
  • Tunnel Oven store– They receive doughnuts from the factory and bake doughnuts in their oven. It has specific types of equipment in stores like the oven.
  • Fresh shop– This has limited manufacturing items or no manufacturing items. It receives doughnuts from the Tunnel Oven Shop. The doughnuts are sold here.

How to Start the Krispy Kreme Franchise?

How to get Krispy Kreme Franchise

There are some things to be noted for starting the Krispy Kreme Franchise like the amount of the investment, planning, profit margin. area selection and contact information.

#1 Net worth

A good amount of liquid cash is needed. Also, your net worth should be around $2 million

#2 Contact them

You can also contact the Krispy  Kreme franchise by going to their official website and choosing  “Contact us.” Give your details there than has been asked. There you have to express why you want to take up Krispy Kreme’s franchise.

#3 Prepare a Proposal

Before having a meeting with them you have to figure out properly that how you would keep the business plan and a proposal before them. The business plan should meet the location. Know the area properly and the crowd it attracts where you want to open a store. Take a detail of the types of equipment and experience that you would be telling them. However, it depends on your proposal and plans you will be getting the Krispy Kreme franchise. So be confident about your proposal.

#Develop the Franchise Plan

You should expect to spend an amount of money for starting a franchise. There is a nonrefundable fee. The contract will be of 15 years, once your 15 years get over you can renew your contract based on the recent terms and conditions.

Additionally, you can develop your own store according to Krispy Kreme’s specifications. Krispy Kreme Corporation will do a partnership with your franchise. As a franchisee, you will have have to offer 4.5 percent of your net sales revenue to the franchise as a royalty. And an additional 2 percent for public relations that is known as a brand fund.

Eligibility Criteria

There are some specific criteria for being a franchisee of Krispy Kreme. So, here are the eligibility criteria for getting a franchisee of Krispy Kreme.

It needs a franchisee to have a good location for the three stores and a net worth of $2 million or more than that, that would be needed to set up a factory store, tunnel oven factory, shop, and other requirements. The organization also checks your bank statements.

The applicants need to have “ownership and operating experience of multi-unit foodservice operations.”

The person should have good entrepreneurial skills to maintain a high standard of the brand. Good managerial experience is also important because it is not at all easy to manage 3 stores.

Krispy Kreme Franchise Cost

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, Displays for Authorised Off-Premises Sales(excluding truck cost) 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 prepaid $2,500 $20,000
Additional funds(3 months) $25,000 $100,000
Total $440,550 $2,750,000


Although Krispy Kreme Franchise looks costlier, an investment in this would be worth it.

It allows us to have a franchise in existing stores, the provided record of the location is good enough.

Profit Potential

Store owners can earn up to $3.4 million a year.

One shop near Denver brought a cool $8 million revenue in 2002.

This depicts that even though the initial investment is quite high, the profit potential of Krispy Kreme is quite good.

Contact Information

You can reach out to them through their official website, that is

Or write a letter to them in the given address,

Krispy Kreme Headquarters,

370 Knollwood St. Winston Salem,

North Carolina 27103

Phone number- 1-336-725-2981

This number will connect you to the main office.


The organization’s popular name is enough to attract customers. Besides that, the tasty, freshly glazed doughnuts will give you a good start for business.

It’s always better to choose a franchise with a brand name rather than any other. Krispy Kreme has set its high standard all over the globe. So, it is not easy for any other brand to give competition to Krispy Kreme.

So, if you really want to take risks in business and you have high financial stability, go for the Krispy Kreme franchise. You cannot have any other franchise other than this to satisfy people’s sweet tooth and see their satisfying smile after coming to your shop.

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