Here is the actual Grant of Franchise section in the Krispy Kreme franchise agreement which has been reproduced in its whole.
Please note that Krispy Kreme has discontinued their franchising program in the United States and Canada. The sections in this agreement are for references purposes only.
Part 1, Section D: Grant of Franchise
You have applied for a franchise to own and operate a KRISPY KREME STORE at and from ****** (the "Site"). Subject to the terms of and upon the conditions contained in this Agreement, we hereby grant you a franchise (the "Franchise") to operate a Krispy Kreme store (the "STORE") at the Site, and to use the System in the operation thereof, for a term commencing on the date of this Agreement and expiring fifteen (15) years from such date, unless sooner terminated in accordance with Section 14 hereof.
You agree that you or your General Manager will at all times faithfully, honestly and diligently perform your obligations hereunder, operate the STORE in full compliance with this Agreement and not engage in any other business or activity that conflicts with your obligations to operate the STORE in compliance with this Agreement. You may not operate the STORE from any site other than the Site without our prior written consent. If we consent to the relocation of the STORE, we have the right to charge you for the expenses we incur in connection with the relocation.
You agree that the STORE will sell Products only as follows: at retail to consumers for their own consumption; Deli Bakery Sales to food wholesalers, grocery stores, other institutions or other chain stores; and to charitable, educational and other nonprofit organizations that will resell them to raise funds for such organizations. For purposes of this Agreement, Deli Bakery Sales shall mean sales of packaged or unpackaged products which may be delivered by you or sold on site to food wholesalers, convenience stores, grocery stores, other institutions and other chain stores for resale by them under our Marks or the marks of the purchasing entity.
You will use your best efforts actively to solicit food wholesalers, convenience stores, grocery stores, other institutions or other chain stores for Deli Bakery Sales. You will also be required to successfully complete our deli bakery training program. With the sole exceptions of charitable, educational and other nonprofit organizations and Deli Bakery Sales, you agree that neither you nor the STORE will sell Products to any other buyer for resale by such buyer.
As long as you are in full compliance with this Agreement, any Development Agreement and all other agreements with us, you may make Deli Bakery Sales to locations outside of the Territory as set forth in Exhibit B, provided that such locations are not outside of any Development Area previously granted to you or within the territory or development area of any current or future franchisee or developer. If at any time you are no longer in compliance with any agreement with us, you must, among other things, cease all Deli Bakery Sales outside of the Territory upon our written request.
