HOW MUCH IS A KRISPY KREME FRANCHISE?
Do you want to involve yourself in a franchise that is worth a great deal? One that has the potentials of bringing in millions of smiles upon your face? Buying into the Krispy Kreme Franchise opportunity could be that great opportunity that you have been looking for. You won’t be surprised that a lot of people just like you have been asking us how much is a Krispy Kreme Franchise?
ABOUT THE COMPANY
Krispy Kreme Doughnuts was established in the year 1937 by an enterprising young lad who went by the name Vernon Rudolph. He started in a small warehouse he rented in Winston Salem, North Carolina, with the intention of making doughnuts and then selling to grocery stores. The recipe and the aroma of the doughnuts attracted passers-by and they were always asking Vernon to sell to them. In no time, he made a hole on the outside wall of the warehouse and began to sell to them as they passed by.
DOES KRISPY CREME SELL FRANCHISE?
One question that you would love to ask before you proceed with this article is “Does Krispy Kreme Sell Franchise? Yes they do. In fact, Krispy Kreme Doughnuts operate their outlets as company-owned and franchises stores all across the world. In only the United States of America, teh company has about 250 stores in about 37 states and more than half of these stores are Krispy Kreme Franchise owned by different franchisees across the country.
HOW TO BUY A KRISPY KREME FRANCHISE
It is possible to buy a Krispy Kreme Franchise in different ways. As a franchisee, you can either decide to buy a new franchise or better still, you can go for the option of buying an exisiting franchise on the open market. Either ways, you will be buying into the Krispy Kreme Concepts and philosophy. However, what you should understand is that buying into the franchise may not be as simple as you may think it to be.
KRISPY KREME FRANCHISE OFFER
It is possible to operate a Krispy Kreme store in these three different formats: Factory store, Fresh shop and a Tunnel over shop. Each of these stores can be considered a retail facility and are utilised principally for on-the-premises sales of a wide range of doughnuts, beverages and other foods that are related to the doughnut services which Krispy Kreme recommends. The different stores have different formats which are:
- FACTORY STORE: This is a a retail sales point where doughnuts are manufactured on-site and are strictly done according to the standards of the company. These stores may also posses the capacity to distribute fresh doughnuts to Fresh shops and tunnel oven shops.
- FRESH SHOP: These are shops that have no facilities to manufacture doughnuts on their own. They only receive doughnuts from a Factory Store and then put finishing touches on them
- TUNNEL OVEN SHOP: A tunnel oven shop also has limited facilities as compared with a Factory Store. What they do here is to also receive doughnuts from a Factory store and finishes them as it is necessary to dispense.
WHAT IS COST OF A KRISPY KREME FRANCHISE?
As an entrepreneur, if you have finally decided to buy into the Krispy Kreme Franchise, then the next question to ask is what is the cost of a Krispy Kreme Franchise? To buy into their franchise, you will need an initial investment up to the tune of $300,000 to $2,000,000. You are also expected to have the financial capacity within this range and the ability to fund multi-unit stores. A Krispy Kreme Franchisee is also expected to have liquid assets of about $300,000.
WHAT IS THE INITIAL FEE OF A KRISPY KREME FRANCHISE?
One of the benefits of owning a franchise is that you are presented with the opportunity to get a complete business model of the company with standard procedures of operations. The downside of this is the cost, which is quite inevitable.
The initial Franchise Fee at Krispy Kreme is within the range of $25,000 to $40,000. Although the exact fee you will be expected to pay will only be disclosed after you have been approved to get the franchise license.
You will be expected to make a Development Fee of between $12,500 to $25,000 per store and also a Royalty fee of 4.5% of the net sales of the store. And also a Brand Fund fee of 2% of the net sales and an ad placement fee of 1% of the net sales.
WHAT YOU ARE REQUIRED TO HAVE TO BUY A KRISPY KREME FRANCHISE
Even after you have completed the Krispy Kreme Franchise Application, this is no guarantee that you will be given the approval to run a store. Your net worth will be duly considered by the company and it was reported that you will be expected to be worth between $3 to 5 million.
And not only this, you are also expected to have a good experience in the food service industry.
As a Krispy Kreme franchisee, you are entitled to be trained by the company. You will be trained alongside a General Manager, an assistant General Manager and up to 4 employees of the store, which will be serving at different units of the store.