Krispy Kreme franchise
2022 filing · August 16, 2022
Krispy Kreme at a glance
A doughnut shop selling Krispy Kreme doughnuts, coffee and other drinks, including Hot Light Theater shops that make doughnuts on site. At the end of 2021 there were 368 Krispy Kreme locations in the US, 123 franchised and 245 company-owned, so most are run by the company itself.
The business
- Franchisor
- Krispy Kreme Doughnut Corporation
- The company that sells the franchises
- Franchisor based in
- Winston-Salem, North Carolina
What you pay
- Cost to open
- $2.02M–$4.33M
- A Hot Light Theater shop
- Franchise fee
- $25,000
- Plus a $25,000 development fee per shop
- Royalty
- 4.5%
- 4.5% of net sales, including fundraising sales, paid weekly
- Brand fund
- Yes
- Up to 2% of net sales, paid weekly
- Agreement length
- 15 years
Where it is
- US locations, 2021
- 368
- Franchised and company-owned
- Franchised
- 123
- Company-owned
- 245
- States
- 28
- Most in California, Arizona and Georgia
From Krispy Kreme Doughnut Corporation’s 2022 filing; revenue and net loss from its audited financial statements, page 227; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Krispy Kreme among all franchises with the same figure.
| Figure | Krispy Kreme | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $3,172,500 | Costs more than 95% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4.5% | Lower than 92% of brands with a set rate |
| US locationsFranchised and company-owned | 368 | More than 92% of franchises |
How much a Krispy Kreme franchise costs
Opening a Hot Light Theater shop costs an estimated $2,015,000 to $4,330,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction costs ($1,040,000 to $2,860,000) and equipment/signage/furniture/fixtures ($350,000 to $550,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Development Fee | $25,000 | ||
| Initial Franchise Fee | $25,000 | ||
| Real Estate and Improvements – 3 Months | $25,000 | $95,000 | |
| Construction Costs | $1,040,000 | $2,860,000 | |
| Equipment/Signage/Furniture/Fixtures | $350,000 | $550,000 | |
| Truck | $25,000 | $50,000 | |
| Initial Inventory | $40,000 | $50,000 | |
| Production Equipment | $300,000 | $425,000 | |
| Grand Opening Marketing Program | $25,000 | $45,000 | |
| Training Expenses | $50,000 | $55,000 | |
| Security Deposits and Other Pre-Paids | $10,000 | $25,000 | |
| Additional Funds – 3 Months | $100,000 | $125,000 | |
| Total | $2,015,000 | $4,330,000 | |
Source: Krispy Kreme Doughnut Corporation, 2022 filing, page 23
Krispy Kreme franchise fee
The franchise fee is $25,000, plus a $25,000 development fee per shop. You pay it when you sign the franchise agreement.
Source: Krispy Kreme Doughnut Corporation, 2022 filing, page 18
Royalty and ongoing fees
| Royalty | 4.5% of net sales, including fundraising sales, paid weekly. |
|---|---|
| Brand or marketing fund | Up to 2% of net sales, paid weekly. |
| Local Advertising Requirement | At least 2.5% of Net Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Krispy Kreme Doughnut Corporation, 2022 filing, pages 18 and 19
Other fees as filed, from page 19. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Krispy Kreme does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Krispy Kreme Doughnut Corporation, 2022 filing, page 54
- Estimate Estimated yearly sales per location
- $2.2M–$4M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Krispy Kreme compares
Of the 14 donut franchises on this site, Krispy Kreme is the most expensive to open and the 3rd largest by number of locations.
| Figure | Krispy Kreme | Typical donut brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $2.02M | $416K | $222K |
| Cost to open, high end | $4.33M | $652K | $477K |
| Franchise fee | $25K | $40K | $40K |
| Royalty | 4.5% | 5.9% | 6% |
| US locations | 368 | 42 | 21 |
| Change in franchised locations, 0 yrs | −40% | +12% | – |
| Shares earnings figures | No | 9 of 14 | 2,147 of 3,352 |
Typical is the median across the 14 brands in donut franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned |
|---|---|---|
| 2019 | 187 (−18) | 173 |
| 2020 | 136 (−51) | 227 |
| 2021 | 123 (−13) | 245 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: coffee franchise costs and franchise failure rates.
Source: Krispy Kreme Doughnut Corporation, 2022 filing, page 54
Where Krispy Kreme locations are
At the end of 2021, Krispy Kreme had franchised locations in 28 states. The most are in California, Arizona and Georgia.
- California35
- Arizona8
- Georgia8
- Washington8
- Nevada6
- Utah5
| State | Franchised |
|---|---|
| California | 35 |
| Arizona | 8 |
| Georgia | 8 |
| Washington | 8 |
| Nevada | 6 |
| Utah | 5 |
| Connecticut | 4 |
| Florida | 4 |
| Mississippi | 4 |
| New Jersey | 4 |
All 28 states
| South Carolina | 4 |
|---|---|
| Iowa | 3 |
| Montana | 3 |
| Nebraska | 3 |
| New Mexico | 3 |
| Alabama | 2 |
| Alaska | 2 |
| Arkansas | 2 |
| Colorado | 2 |
| North Carolina | 2 |
| Oregon | 2 |
| Pennsylvania | 2 |
| Tennessee | 2 |
| Hawaii | 1 |
| Idaho | 1 |
| Illinois | 1 |
| Missouri | 1 |
| Texas | 1 |
Source: Krispy Kreme Doughnut Corporation, 2022 filing, page 55
Who owns Krispy Kreme?
Krispy Kreme franchises are sold by Krispy Kreme Doughnut Corporation. Its parent is Krispy Kreme Doughnuts, Inc., part of Krispy Kreme, Inc., which the 2022 filing describes as listed on Nasdaq.
Famous Krispy Kreme franchisees: Shaquille O’Neal (owns, as of 2022).
From Krispy Kreme Doughnut Corporation’s 2022 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 13–17. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Krispy Kreme Doughnut Corporation, 2022 filing, litigation on pages 13–17, bankruptcy on page 17
Krispy Kreme filings
The figures on this page come from Krispy Kreme Doughnut Corporation’s 2022 filing, issued August 16, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | August 16, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other donut franchises
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Krispy Kreme is also on these lists: bakery franchises, coffee franchises, food franchises.