Krispy Kreme Franchise Cost, Support and Investments
About Krispy-Kreme Franchise
Krispy Kreme was started by Vernon Rudolph on July 13th, 1937, in company in Winston-Salem, North Carolina, to serve people delightful doughnut. It became part of the public stock in the year 2000 and a test doughnut-making store was also started in a Wal-Mart supercenter in 2003. The brand then expanded to Australia becoming a global food joint. Soon Krispy Kreme became a well recognised name across the world and has always been recognized for its amazing quality of doughnuts. Starting a franchise with Krispy Kreme would mean starting a business under the flagship of a global brand where marketing would never be an issue. Since the brand is well established the franchisee will also be provided with the required support to flourish the business.
Cost and Investment
Starting a Krispy-kreme store will require an initial investment of around $928,000 to $1,883,250. Since the financial requirements are quite high the aspiring franchisees must be resourceful and in possession of $1million in liquid assets and a minimum net worth of $2million in order to fund multi-unit store development plans.
The amount of investment mentioned above is subjective and may vary according to the cost of land where the store needs to be established, type of franchise, construction rates, labour and importation costs.
Krispy Kreme also requires all its franchisees pay the exclusivity fee, which depends upon the type of store that will be developed and the kind of market or consumers it covers. It is essential to pay the franchise fee before the store is opened. Franchise fee is different for each kind of store, where Flagship Factory Store will require $25,000, Fresh Shop will require $10,000 and Kiosk will require $10,000.
Krispy Kreme also charges a royalty fees of 6% of net sales as well as a brand fund contribution of 50%. In order to promote the business the franchisees must also spend 3% of sales on local store marketing.
Training and support
Krispy Kreme is a brand that provides detailed training and support along with the business plan to all its franchisees and staff in order to let the franchise bloom in the market. The initial training takes place at any of the Krispy Kreme training store either in the United States or the nearest store in the area. All franchisees have to go through a one-week training program before opening their first Krispy Kreme franchise. A special 12 week of training is also designed for the general manager and store manager before the starting the business in order to comply with the Krispy Kreme franchise requirements.
Krispy Kreme provides a combination of classroom learning and hands-on experience in a store to make the franchisee and their team accustomed with the business environment. This is very essential so that the trainees can learn the production and making doughnuts, coffee and other Krispy Kreme food products in order to maintain the quality benchmark that Krispy Kreme has maintained for so many years.