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Site Development

From Don Daszkowski,
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Here is the actual Site Development 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 2, Section C: Site Development

You are responsible for developing the STORE. We will furnish you with mandatory and suggested specifications and layouts for a KRISPY KREME STORE, including requirements for dimensions, design, image, interior layout, decor, equipment, fixtures, furnishings, buildings of modular construction and signs.

You are obligated to have prepared all required construction plans and specifications to suit the shape and dimensions of the Site and to insure that such plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease or sublease requirements and restrictions, if any.

You are obligated to submit construction plans and specifications to us for approval before construction of the STORE is commenced and, at our request, to submit all revised or "as built" plans and specifications during the course of such construction. We may be willing to assist you in developing the STORE by recommending engineers and architects and otherwise furnishing information to assist you in developing the STORE in accordance with our specifications.

You agree, at your own expense, to do the following with respect to developing the STORE at the Site:

(1) secure all financing required to develop and operate the STORE;

(2) obtain all building, utility, sign, health, sanitation, business and other permits and licenses required to construct and operate the STORE;

(3) construct all required improvements to the Site and decorate the STORE in compliance with plans and specifications we have approved;

(4) purchase or lease and install all required equipment, fixtures, furnishings, and signs required for the STORE; and

(5) purchase an opening inventory of authorized and approved materials and supplies.

Comment: Depending on the franchisor, you may be required to construct the outlet without the assistance of the franchisor. This may involve the construction of a building if the franchise is a stand-alone unit and/or leasehold improvements and retro-fitting if the outlet is within a commercial complex.

Such an undertaking may require you to hire a commercial contractor who will then hire all the trades people necessary to build your outlet. The contractor will simply follow the spec plans that are supplied by the franchisor. You may also need to hire an interior decorator who will co-ordinate the interior design of the franchise as per the franchisor’s specifications.

Most franchisors in the retail or fast-food sectors of franchising do provide a turnkey operation because it ensures that all “system standards” – design, outfitting, and construction – are maintained and consistent throughout the chain.

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