Some Basic Information On The Krispy Kreme Franchise
The Krispy Kreme franchise specializes in fresh glazed donuts. Chances are, if you look at their logo, you will be reminded of bygone eras. Perhaps it should be no surprise, considering that the first Krispy Kreme store opened in 1937. To this day, the facilities sport neon signs a feeling of the past. Unfortunately, as an investment opportunity, Krispy Kreme has never achieved as much success as other franchises.
Over the years, various companies and businesses have bought into the franchise. Among others, Beatrice Foods Company owned Krispy Kreme until 1982. At that time, a group of outlet owners were able to buy out the contract. Since then, they have focused on trying to expand the franchise beyond is usual areas in the South Eastern United States. During the 1990's, Krispy Kreme did enjoy some level of success from these efforts.
Today, over 9% of the franchise is owned by M A Kharafi, an investment group located in Kuwait. For the most part, newer Krispy Kreme facilities have not enjoyed much success in the United States and Canada. As an example, a number of business owners opened outlets in the United States, only to wind up filing bankruptcy within a few years. Consider that a number of outlets in California, Arizona, and New Mexico were closed in 2006 by the companies that invested in them. At the same time, Canadian investors appear hesitant to go forward with new stores.
That said, the indicators look better for for European and Middle Eastern countries. Among other things, Krispy Kreme has done well in Australia, and South Korea. In addition, a number of large chains in the United States carry Krispy Kreme donuts. As an example, Wal-Mart and Target carry their products, as do Tesco gas stations.
Depending on your interests and willingness to take a risk, it might be useful to invest in the Krispy Kreme franchise. Among other things, you may want to open a store that splits the product line between donuts and office supplies. This could include items like printer ink and copy machine toner. As customers come in to purchase these items, they may also be drawn to buy your donuts, and perhaps bring some back for co-workers.
You may also want to invest in the Krispy Kreme franchise as a way to get acclimated to the restaurant business. Among other things, you will not need to spend as much on the initial licensing, and may have more freedom in choosing where you open your store. That said, you may also want to make sure that you can opt out of the franchise with as little difficulty as possible.
Even though the Krispy Kreme franchise would not be my first choice of investment opportunities, it may be a viable option for some people. Among other things, if you are not going to count on the outlet for a living, it may serve as a viable loss for tax purposes. You may also find that as consumer interests shift, Krispy Kreme may still come up with an item that starts a new trend. |