In 1937, Kristy Kreme was born. Krispy Kreme doughnuts are baked and glazed right in front of patrons and served up hot twice daily. A neon light in the window flips on to tell passersby that the doughnuts are ready NOW. Loyalists cannot get enough of the hot airy gems, but support groups are noticeably missing for addicts. Perhaps because no one wants the cure.
Background and Benefits
Using a yeast-raised doughnut recipe he bought from a New Orleans French Chef, Vernon Rudolph opened a small shop in Winston-Salem, North Carolina on July 13, 1937 and began selling fresh baked doughnuts to grocery stores. Excited patrons located the small distributor and asked if they could purchase the breakfast confection while it was still hot. In response, Rudolph cut a hole in the wall of his shop and began selling Krispy Kreme Doughnuts direct to the public. Rudolph died in 1973 and the company was sold to Beatrice foods in 1976. In 1986, “a small group of associates” bought the company back, and in April of 2000 made an initial offering of public stock.
Pros
- Fundraising - Krispy Kreme has been part of curbside fundraising efforts for years with over $30 million raised for schools last year alone
Cons
- Registration Prohibits Franchises in certain states - These jurisdictions include: Hawaii, Illinois, Maryland, Minnesota, New York, North Dakota, South Dakota, Virginia and Washington.
- Store Closings - The company 10-Q reports an expectation of franchise store closings for 2009 due to financial pressures. Franchisees opened 96 stores and closed 30 stores in 2008.
Note: Krispy Kreme is not accepting new franchisees at this time.
Krispy Kreme Franchise Information
Business Established: 1937Franchising Since: 1940's
Franchise Fee: $40,000
Total Investment: $720,000 and up
