From the filings

HQ-led decisions

Krispy Kreme

Retail food

Krispy Kreme's franchise agreement authorizes only the Computer System it specifies — POS, terminals, firewall and virus protection purchased from Krispy Kreme, its affiliates, or designated suppliers. CEO Michael Tattersfield and COO/CFO Josh Charlesworth lead a system with 123 franchised shops and franchised-outlet count down 9.6% year over year.

For software vendors selling into US franchise brands.

Live signals

Total units
368
123 franchised
Unit growth YoY
-9.559%
vs prior filing
AUV
—
Item 19, 2022
Royalty
4.5%
of gross sales
Ad fund
2%
national + local
Initial fee
$25K
per unit
Investment range
$2.02M–$4.33M
all-in, Item 7
Procurement
—
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

6.5%of gross sales (FY2022)

Ongoing fees: 6.5% of gross sales (FY2022)Royalty 4.5%, Ad fund 2%. Total 6.5% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 4.5%Ad fund 2%

Mandated & recommended tech

The systems vendors compete with

Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.

FacebookMeta
MarketingItem 11

due to your mandatory participation in promotional activities. System Website We have established one or more websites and participate in social networking sites like Facebook and Twitter to advertise

TwitterX
MarketingItem 11

due to your mandatory participation in promotional activities. System Website We have established one or more websites and participate in social networking sites like Facebook and Twitter to advertise

Franchisor behaviours

What the franchisor requires

20 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 12 questions the text does not settle, which is not a no.

Accounting

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

You must submit to us, at any time, sales information and other financial data, including profit and loss statements, balance sheets, cash flows, category sales data and other related data generated by the Computer System and also permit us to access your Computer System to download this information at any time.

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 14

As described in the Franchise Agreement, you must acquire extruders, doughnut cutters, and related equipment directly from us or our affiliates.

Is there a franchisee advisory council, association or committee?

Yes

Item 11

We have also established a more formal franchisee advisory council (the “Council”).

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 11

We may modify occasionally the specifications and components of the Computer System you must use.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 6

Fees to evaluate Our reasonable costs As incurred We may impose fees to cover our proposed alternative and expenses costs in evaluating alternative suppliers suppliers you propose in accordance with the Franchise Agreement.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Item 17

assign phone numbers

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Item 11

In addition to establishing and maintaining a secure environment, you must comply with all industry regulations and standards related to information technology and security.

Franchise management

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Item 11

We will revise the System Standards Manuals occasionally.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 11

You will not be permitted to open a Shop until we approve the Site.

Marketing

Is a minimum grand opening advertising spend required?

Yes

Item 11

You must conduct a grand opening marketing program (the “Grand Opening Marketing Program”) for each Shop you open.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

For each 12-month period during the term of the Franchise Agreement, you must spend at least 2.5% of Net Sales of the Shop for local advertising and promotion of the Shop

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Item 11

You must participate in all promotional activities, as we require, that we participate in for substantially all similarly situated Krispy Kreme Shops and Doughnut Factories owned by us and located in the U.S.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 7

You must purchase or lease certain of these items from us, our affiliates, or designated suppliers.

Must equipment be purchased from designated or approved suppliers?

Yes

Item 7

You must purchase or lease certain of these items from us, our affiliates or designated suppliers.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

Before opening, you must sign and deliver to us and your bank all required documents that permit us to debit your bank account for each week’s Royalty, Brand Fund, and Advertising Placement Fund contributions, any purchases that you make from us, and any other amounts due to us.

Must the franchisee participate in a gift card program?

Yes

Item 11

You must participate in all promotional activities, as we require, that we participate in for substantially all similarly situated Krispy Kreme Shops and Doughnut Factories owned by us and located in the U.S. Such participation will include, without limitation, limited-time offerings of Products, Product…

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 15

Under the Franchise Agreement, you must designate a General Manager, who must provide direct, on-premises supervision of the Shop.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must install and use at the Shop the POS System, computer terminals, personal computers, operating software, virus protection, internet connectivity, firewall protection, and other related hardware, peripherals, and software (collectively, the “Computer System”) that we authorize and no other.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

You must submit to us, at any time, sales information and other financial data, including profit and loss statements, balance sheets, cash flows, category sales data and other related data generated by the Computer System and also permit us to access your Computer System to download this information at any time.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

We may charge reasonable fees for providing periodic or additional training programs, and you will be responsible for your managers’ wages, salaries, travel, room and board, and living expenses incurred in attending such periodic and additional training.

The filing answers no to 2 questions
  • Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 11
  • Must the franchisee participate in a regional advertising cooperative when one exists?Item 11

The vendor opportunity at Krispy Kreme Krispy Kreme runs 368 US locations out of Winston-Salem, North Carolina, 123 of them franchised and 245 company-owned, in the retail food segment. Franchised-outlet count fell 9.6% year over year.

Who controls software purchasing Krispy Kreme's franchise agreement is tightly centralized. Franchisees must install and use only the POS System, computer terminals, personal computers, operating software, virus protection, internet connectivity and firewall protection that Krispy Kreme authorizes, and no other. Krispy Kreme may modify the required Computer System's specifications at any time, and franchisees must obtain any newly designated components within 60 days of notice. CEO Michael Tattersfield and Global President, COO and CFO Josh Charlesworth lead the brand.

Tech named in the FDD, and what is actually required The filing requires franchisees to purchase certain computer hardware and software, including a POS System, personal computers and peripheral equipment, from Krispy Kreme, its affiliates, or other suppliers it may designate. Only POS System vendors and platforms Krispy Kreme has certified may be used, and Krispy Kreme reserves the right to change certified systems and to certify any vendor at its option. Internet access must carry firewall protection Krispy Kreme approves and run over a fully managed private DSL or cable modem, and a franchisee licensed to use Krispy Kreme's Platform pays a $150 monthly Hosting Fee and a $150 monthly Maintenance Fee per shop. Krispy Kreme estimates the Computer System will cost approximately $90,000 to $130,000 depending on shop size.

Procurement, renewals, and timing Krispy Kreme's FDD makes no financial performance representation. Royalty runs at 4.5% of Net Sales on a 15-year initial term. Item 8 requires franchisees to buy doughnut-making equipment, proprietary doughnut mixes, coffee beans and associated syrups, coffee grinders, apparel and paper goods from Krispy Kreme, and computer hardware and software from Krispy Kreme, its affiliates, or its designated suppliers. On renewal, franchisees sign a then-current agreement, upgrade the site to current standards, and pay a $10,000 successor franchise fee for one additional 15-year term.

How to read the Krispy Kreme FDD The 2022 Franchise Disclosure Document below spells out the exact Computer System and designated-supplier language. Talk to FranCloud for a ranked list of retail food franchise systems worth pitching next.

Questions vendors ask

Krispy Kreme, answered from the filing

Krispy Kreme's franchise agreement centralizes technology decisions at headquarters: CEO Michael Tattersfield and Global President, COO and CFO Josh Charlesworth lead a system where franchisees may only run the Computer System Krispy Kreme authorizes.
Krispy Kreme requires franchisees to install and use only the POS System, computer terminals, personal computers and related software it authorizes, purchased from Krispy Kreme, its affiliates, or designated suppliers. Only POS System vendors and platforms Krispy Kreme has certified may be used, and firewall protection must be approved by Krispy Kreme.
Krispy Kreme runs 368 US locations, of which 123 are franchised shops and 245 are company-owned, in the retail food segment. Franchised-outlet count fell 9.6% year over year.
Franchisees currently must buy doughnut-making equipment, proprietary mixes, coffee beans and computer hardware and software from Krispy Kreme, its affiliates, or suppliers it designates, and may submit an unapproved supplier to Krispy Kreme for a decision on approval.
Franchised-outlet count fell 9.6% year over year. On a 15-year initial term, franchisees can renew for one successor 15-year term by paying a $10,000 successor fee and meeting then-current site standards.
The embedded PDF viewer below holds Krispy Kreme's 2022 Franchise Disclosure Document — use it to check the exact Computer System and designated-supplier language.
Source

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Krispy Kreme2022 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Krispy Kreme’s FDD on file does not disclose a franchisee directory.

Ownership

The portfolio behind Krispy Kreme

unknown of cotton parent.

Related Retail food brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.