I.

EXECUTIVE SUMMARY
When you think of Donuts what comes into minds? Your local donut shop or the only and

only Krispy Kreme donuts.The original hot and glazed donut.Coming from a humble beginning our

founder started on the basics of sell hot fresh glazed donuts to people and we continue this

commitment to our consumers.With 1004 stores in total we can offer sweet treats to people all

around the united states as well around the word in different countries.

Even though we are a popular franchise we only have about 1004 store location

nationwide.We cant offer to people even within the United States a lot of locations.For example

California only has about 53 store .If we are able to expand within the United States alone then we

can bring our commitment level even higher for even more people.We also have a reputation for

being unhealthy we have to find a way to fix that by coming up with better substitutes as well better

healthier products while staying true to our core of deliver sweets to people

As a franchise our goal is to expand the business so the Krispy Kreme brand is more well

know around also everywhere.We as a company already have a target market which range from

young to old,prices are affordable.We just have to market our self better and the expansion of

different stores scattered across the United States would also help to improve not only just our

sales,but the commitment we want to make to everyone to bring sweet and delicious treats to

people.

We have the opportunity to improve as we have a strong basic and there is a strong fan

base already.There is always opportunity to grow as a franchise We just need to improve our

physical stores as there is only 1004.With new franchisees owner you can spread throughout any

location a while keeping our commitment the same to the people/

Our primary market is Generation Y of Naperville because young adults would love to eat

sweet treats during their work or break. My secondary target market is Generation Z of Naperville

because children loves to eat sweet desserts.

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 Our competitive advantage is that we offer our old but yet still popular donuts that no one

else has the receipt to.This receipt has been pass down with Krispy Kreme donuts franchisee.We

also do a good job at serving service as we are always happy to serve customers.

Krispy Kreme will be successful in the next few years by doing advertisements, selling more

products, and other strategies to make my business in tact.

The overall cost of franchise is approximately $275,000. The franchise fee would be around

$25,000 and the royalty fee is 4.5% of the revenues that the franchise is require to pay to the

franchisor. The interest expense of Krispy Kreme for three month can be around $400,000 and for

12 month is around $1.6 million. The ad placement fund fees is up to 1% of the net sales and the

equipment/signage/furniture/fixture fees would be around $90,000 to $190,000. The initial

inventory would be around $10,000 to $13,000. The training expenses would be around $15,000 to

$20,000. Lastly, the production equipment would be approximately $56,000 to $96,000.

II. BUSINESS HISTORY, BACKGROUND & OBJECTIVES

A.
Krispy Kreme is a franchise business that sells premium quality doughnuts and other

amazing sweet treats. This business has been opened since July 12, 1937 and has been a

successful franchise ever since. Krispy Kreme was founded by Vernon Rudolph and opened

up the store in Winston-Salem, North Carolina near the grocery stores. He decided to build

Krispy Kreme when he bought a secret doughnut recipe from a French chef in New Orleans.

Krispy Kreme began to franchise in 1955 and started growing since then. Ever since, people

have been going to this doughnut shop to taste the delicious treats for many decades.

Todays Krispy Kreme has has been a successful franchise business that opened up

more than 1,000 stores around the world. The average cost of the products are around

$2-$5 and the average cost of buying a dozen doughnuts are approximately $8-$15. The

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 products that Krispy Kreme offers are their original glazed doughnuts, special-quality

doughnuts, hot and cold beverages, and chillers. Krispy Kreme is a one of a kind and

unique doughnut shop where it can only be located in 28 different countries.

B.
To start a Krispy Kreme business, the initial investment to start one is approximately

$275,000 to $1,900,000. The start-up cost is also around $25,000 to $50,000. The

development fee and franchise fee for each store is $12,500 to 25,000. Of the net sales, the

royalty fee is 4.5%, brand fund fee is 2%, and ad placement fund fee is 1%.

Q1 (Months 1-3) Q2 (Mths 4-6) Q3 (Months 7-9) Q4 (Mths 10-12)

Short funding for the franchise fee: Brand up Fee: development fee:
Term franchise $25,000 up to 2% $12,500-$25,000

Long-Ter begin to save Liquid Capital: Net worth required: initial investment is
m money $300,000 $2,000,000 around
Objectives $275,000-$1,911,25
0

C.
Throughout the years, Krispy Kreme had many major success and achievements

through its years. In 2012, this business celebrated its 75th birthday and started the Glaze

the Nation Tour where they became mobile and sold some of their doughnuts on the road.

Another achievement is that they reached up to 1,000 stores to be opened in 2015 in

Kansas City, Kansas. Lastly, Krispy Kreme helps the community by creating fundraisers and

help raise money for good causes. With these achievements,it allowed Krispy Kreme to

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 advertise their name and increase their business to open up more stores around the globe.

D.
Even though Krispy Kreme is a successful franchise for more than 75 years, they also had

to go through many challenges and obstacles. For instance, the company was not getting the

revenue they expected when they opened up new markets because some of the stockholders

capital were paying for the plant and equipment, which is a fixed cost increasing the operating

expenses for the company. Another example is that Krispy Kreme recorded a net loss of $18.6

million in 2004 since the capital was limited to pay the interest on loans, they couldn't pay off the

fixed cost because it was too high. Lastly, many people have been changing their diet to eating

healthier meals whereas Krispy Kreme has only been selling sweet treats and desserts. These

challenges shows that Krispy Kreme need to resolve their situations and find a way to increase

their sales.

SWOT Analysis

Strengths: Weaknesses:

affordable and high quality products lack of customers

market research shows appeal extends lack of healthy products

to all major demographic groups lack of advertisement

including age and income

scattered locations

Opportunities: Threats:

advertise the business Dunkin Donuts (prime competitor)

social media, flyers, television, more competition/similar concept

etc inconsistency among department staff

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 make special sales

add healthy products into their menu

E.
Krispy Kreme had made some changes in their business throughout the years. For instance,

since their business began to increase in 1963, automation began to take over the hand production

since there was an increase of demand for their products. In June 1, 2014, Tony Thompson was

appointed of new Krispy Kreme President and CEO. Then in 2015, Krispy Kreme had made 1,000

stores to be open around the world. Lastly, Krispy Kreme invented a new product called Nutty

Cocoa Ring which is a nutella and nuts doughnut. These changes were made to better the

company and to allow Krispy Kreme to take a step into their business.

III. BUSINESS ENVIRONMENT

A.
Krispy Kreme has opened in many different parts of the world. Mainly, they open in

most of the states in the US, especially in California, Texas, Florida, and Georgia. However,

Krispy Kreme did not open in 12 states located in the upper part of the United States. But

they are located in many other countries such as Canada, Japan, United Kingdom, and

many other countries.

However, Krispy Kreme is mostly popular in the United States. In May 16, 2007,

Krispy Kreme entered into a interest rate derivative contracts having an amount of $60

million. Also, Krispy Kreme has common stocks of 370, 739 shares, which is $31.81 per

share in May 5, 2003. In the past years, Krispy Kreme has an increase of employment with

more than 4,300 (2014). The use of technology has also changed in the company. In the

early 1900s, they handmade their doughnuts. Due to the high demand of their products,

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 they abandoned the hand production and starting using mechanical machines. The

automation began to increase the production of their doughnuts and other delicious

products.

IV. PRODUCTS AND/OR SERVICES

A.
Krispy Kreme is famous for their delicious confectionery. Their best selling product is the

original glazed doughnut. This product is traditional and simply delicious. Also, they sell different

types of doughnuts such as Kreme filled doughnuts, doughnut holes, and holiday special

doughnuts. The Kreme filled doughnuts are usually filled with different flavors such as strawberry,

raspberry, chocolate, blueberry, and other variety fillings. The doughnut holes are usually the holes

poked out from the other doughnuts. These doughnut holes are bite sized desserts that come in

many different flavors as well. Lastly, their holiday special doughnuts are used to draw the

customers to buy their products on special occasions such as on Valentines Day, Spring,

Halloween, Christmas, and other holidays. These Holiday special products makes this franchise

innovative because they got to sell their food on occasions that is relevant to the holiday.

ROI of Krispy Kreme

B.
Some of the changes that Krispy Kreme has made to the present line of their products in

the past decade. In 2000, Krispy Kreme began to sell a new product that were different

shaped doughnuts. The heart shaped doughnut became their popular product that same

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 year. Then in 2011, the company introduced the new Krispy Kreme coffee. This launched

them to create the Krispy Kreme Signature Coffee Blend which goes with their delicious

doughnuts and other confectioneries. This also allowed them to sell K-cup caps for the

coffee, which includes, smooth, decaf, and other creams for coffee. Lastly, they launched

the new coffee thins in May 2016. These are chocolates bite size coffee treats. These

products will help the increase the sales in their business.

V. PRESENT MARKET
I would want to set up Krispy Kreme is an urban location such Illinois because Krispy

Kreme has an increase of popularity in their specific areas.Near

Cities in Illinois such as Naperville has a population of around

147,000 people. This will allow a variety of people to come try out

the store. Also, this will benefit my store because it will allow more

consumers to buy the products near a populated location. The

geographic locations of the potential customer would be living in or

near the city. This will allow the customers to come and eat a sugar

snack before work, during their break, and even after work. Putting up Krispy Kreme into our stores

will benefit not only the brand of the business but the people in the populated area to try new types

of desserts that Krispy Kreme can offer.

A.
The primary target market will be Generation Y of Naperville. The average age of these

customers will be around 30-40 years old and they will have a moderate annual income of

$75,000. These customers would live in a middle class urban areas and they would be the type of

people that are very outgoing, social,and loves confectionery desserts.

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 The secondary target market would be

Generation Z of Naperville. The average age

of these customers will be around 5-18 year

olds. This young generation would want to try

out and explore the sweet confectionaries in

Krispy Kreme. The average annual income of

their guardians would be around $70,000.

They would also live in a middle class area

who loved to try new food, sociable, and has

a sweet tooth.

My Krispy Kreme business will fit in

the Food & Beverage Industry because Krispy Kreme sells desserts and coffee. The total

population of Naperville, Illinois is 147,100 and the projected target market population would be

around 50,000.The estimates market size would be approximately 4.5%. The type of customer

segment I am trying to focus on is segmented because provide products and services to customer

segments which may have very minute variations in their needs and requirements.

B.
In Gurufocus.com, it states, EV/EBITDA ratio is calculated as enterprise value divided by its

EBITDA. As of today, Krispy Kreme Doughnuts Inc's enterprise value is $0.0 Mil. This is because

Krispy Kreme Doughnuts Inc earnings before depreciation and amortization for the trailing twelve

months (TTM) ended in Jan. 2016 was $69.7 Mil. The franchise fee would be around $25,000 and

the royalty fee is 4.5% of the revenues that the franchise is require to pay to the franchisor. The

interest expense of Krispy Kreme for three month can be around $400,000 and for 12 month is

around $1.6 million. The ad placement fund fees is up to 1% of the net sales and the

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equipment/signage/furniture/fixture fees would be around $90,000 to $190,000. The initial

inventory would be around $10,000 to $13,000. The training expenses would be around $15,000 to

$20,000. Lastly, the production equipment would be approximately $56,000 to $96,000. The initial

investment to start a Krispy Kreme store is around $275,000 to $1,911,250.

C.
Krispy Kreme is known for their seasonal doughnuts. They would always keep their

doughnuts in season to attract customers to buy their product. Some of the products they sell in a

limited time are the nutty cocoa ring, heart shaped doughnuts, and other decorated doughnuts.

They keep their hours of operations the same. However, they busiest seasons of the year are

Valentines Day, Thanksgiving and Christmas and their slow seasons of the year are Easter and St.

Patrick's Day. They try to keep all their doughnuts in stock so they wouldnt have to be sold out in

busy days. Krispy Kreme tries to make their doughnuts coordinated in most types of holidays in

order for their products to sell.

VI. COMPETITION Page(s)

A.

Krispy Kreme Dunkin Donuts Johnny Starbucks

Doughnuts

Factor 1 Affordable and Affordable and High price range Affordable and
high quality moderate quality and premium moderate quality
quality

Factor 2 Seasonal Seasonal Catering and Seasonal drinks

doughnuts doughnuts events

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Factor 3 High Variety of High variety of Limited variation Sells sandwiches,
doughnuts doughnuts, of doughnuts pastries, snacks,
drinks, and etc
sandwiches

Factor 4 CA: 3 stores CA: 4 stores Only in San Can be found in

IL: 3 stores IL: 50 stores Francisco many locations

Dunkin Doughnut:

Affordable price range

Many products such as beverages, sandwiches, and doughnuts

50 stores opened just in Chicago, Illinois

Johnny Doughnuts

Catering services

Premium quality doughnuts

Create own designs for doughnuts

Starbucks

Sells other products like sandwiches and other snacks

Famous for drinks/beverages

Affordable price range

B.
One main advantage that Krispy Kreme has is their name brand. Since they are very

popular, it can provide a source of competitive advantage over their competitors. Another

advantage is that they provide a one of a kind taste to their doughnuts, especially to their famous

glazed doughnut. Lastly, Market research shows appeal extends to all major demographic groups

including age and income. Even though they have these successful advantages they can provide

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other ways to meet their customer's wants and needs. They can expand the product line, continue

to utilize their Hot Doughnuts Now signs, and other opportunities to make their business more

appealing.

C.
Some of the few disadvantages that Krispy Kreme has is that their product line can be slow

and cant expand outside sweet treats to draw in health conscious customers and they dont

advertise as much for their products to grab the customer's attention

VII. MARKETING PLAN

A.

The target market of Krispy Kreme is Generation Y and Generation Z. These types of

customers will live in urban areas or near the city. The city of Naperville, Illinois has a population of

more than 147,000 and these people would live in middle class urban locations.

The primary target consumers are the Generation Y of Naperville. Their would be around

30-40 years old with a moderate income of $75,000. These types of people are very social,

enjoyable, and loves to eat sweet desserts.

The secondary target consumers are Generation Z of Naperville. Their average age would

be 5-18 year olds. Their parents income would be also moderate of around $70,000. These target

market would love to try new food, sociable, and has a sweet tooth.

Description of Primary Target Consumer

Demographics Geographics

Adults that live in Naperville, Illinois. Both Naperville, Illinois or Near Chicago
female and male with a ages of 30-40

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 Psychographics Buying Patterns

Adults that are outgoing, social, and enjoy
sweet confectionaries,
Adults will come back to purchase beverages
and food due to Krispy Kremes beverages and
food. Due to the difficulty of recreating these
drinks and food at home, consumers will want
to satisfy their wants by coming back.

Description of Secondary Target Consumer

Demographics Geographics

female and male youth that are the age Naperville or Chicago, Illinois
between 5-18

Psychographics Buying Patterns

Kids that are willing to try new foods, curious consumers will be coming back to purchase
and love to eat sweet treats, from Krispy Kreme since it is affordable

B.
Krispy Kreme is a well known franchise business. They dont usually put any effort in

marketing their products. The company barely spends any money on advertising depending on the

local community. The local publicity can be effective in advertising Krispy Kreme, so often the

newspaper or other media can provide free publicity for the store openings. The companys

approach is an natural extension of the brand equity, brand attributes, and creating relationships

with the customers. Krispy Kreme tried to build their relationship with their customers in order for

their company to be spread around the community. Krispy Kreme tries to help out the community

by doing sponsorships of local events and fundraising programs. They also utilize free-standing

newspaper inserts, mail, radio, television, or sales promotion for their products.

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 C. Promotion of the Business
Krispy Kreme_Media Channel Plan_2017_Allyssa Suarez
Primary Goal: to be the global leaders in doughnuts and complementary products
Secondary Goals: caring service improve customers experience
Promotion Period: Start Date January 1 End Date December 31

Projected
COMPANY OWNED Labor # Hrs Monthly
Strategy Desired Outcome
Per Month Budget /
Resources
Website 16 hours $160 $160
Blog 4 hours $40 $40
Email List update recent 12 hours $120 $120
Facebook products and other 20 hours $200 $200
Twitter useful information/ 10 hours $100 $100
Pinterest promotion about 2 hours $20 $20
YouTube Channel the business 0 hours $0 $0
Projected
EARNED Labor # Hrs Monthly
Strategy Desired Outcome
Per Month Budget /
Resources
Email Outreach grab customers
email / fill out
survey 8 hours $80 $80
PR 0 hours $0 $0
Projected
Labor # Hrs Monthly
PAID Strategy Desired Outcome
Per Month Budget /
Resources
Facebook 30 hours $300 $300
Twitter 10 hours $100 $100
Pinterest 2 hours $20 $20
Paid Search 0 hours $0 $0
Sponsored Placement Try to grab 10 hours $100 $100
customers
Content Amplification
attention and
Networks 10 hours $100 $100
make out business
Television Advertising 30 hours $300 $300
more appealing to
Outdoor Advertising the media. Also try 20 hours $200 $200
Radio Advertising to advertise the 2 hours $20 $20
Print advertising products. 10 hours $100 $100

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Coupons 10 hours $100 $100

Discounts 6 hours $60 $60

Magazine/ Newspaper 4 hours $40 $40

Projected Hours of 226 hours

Labor per month to
maintain Media Channel
Plan:
Labor Cost per hour for $4,068
Media @ $18.00 per
hour:
Monthly Cost of Media
Channel Plan COGS $4,068

VIII. MANAGEMENT AND ORGANIZATION

A.

Beginning to be the owner of the new Krispy Kreme Store in Naperville, Illinois, I will try to hire the

the best working and most qualified employers in order for my business to become successful. The

employees have to have leadership, and work well with others. They also have to learn how to

work the registers, deliver the product to the customers in an orderly fashion, and communicate

with the customers in order for better service experiences. Some qualifications that they should

have are communication skills, basic mathematical knowledge (for sales associates) and

leadership skills. Having these values can help fulfill the needs of the franchise.

B.
To further develop my management team is to

provide training for the employees. This can help them learn

and understand their purpose of their job and know what to

do in any business situation. I can try to personally train the

staff by showing them the franchise and show them where

everything
Student Name will be located, such as registers, inventory,
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etc. Some corporate ideals I would want my employees to follow are being generous to the

customers, and advertise the business outside the store. This way we can freely advertise Krispy

Kreme to grab the customers attention.

C.
There will be times where my presence will be absent or other reasons for incapacity. If I am

not present, the First Assistant Manager will take control during my absence. Some skills that this

manager needs is control and leadership. This assitant manager will temporarily be in the

restaurant manager position in which they will keep the store in order and evaluate any events that

happened while I was away. This way, I can fill them in information on how to be a restaurant

manager. This can also allow me to hand them this position if anything happens to me and will

learn the objectives in handling a business.

D.
For additional management personnel, I will get upper level staff from people who are willing

to get a job at Krispy Kreme. They will go through the process as the other employees did such as

getting training and learning how to work around the store.

IX. BUSINESS RESOURCES

Our franchise is required to purchase the doughnut-making equipment. Our equipment

produces the doughnuts in a uniform and consistent line.This equipment allows us to produce

doughnuts at a fast rate with approximately 65-1,000 dozen doughnuts per hour. However, I would

purchase smaller machines called tunnel ovens. These are used in hot shops and they complete

the production process by heating unglazed doughnuts to prepare them for the glazing process.

A.
The ingredients for the mixes are obtained from a variety of regional and national suppliers, who

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have tightened credit terms in the last year. Particularly of note, only one supplier provides the

ingredients to the companys trademarked original glaze. Further changes to contracts could

adversely affect the companys liquidity. To mitigate the risks associated with commodity price

fluctuations, the company utilizes forward purchases contracts and futures contracts.

B.
Identify other outside resources used/ or needed to fulfill customer requirements

Since Krispy Kreme sells products that are seasonal, we will need some outside resources to fulfill

the customer's requirements. We will be needing local help if we have any special events or

seasonal events. We will also need a landscaping staff in order to redecorate anything that is in

style in the store.

C.
Quality Control (QC) is a procedure or set of procedures intended to ensure that a

manufactured product or performed service adheres to a defined set of quality criteria or meets the

requirements of the client or customer. As

a manager of a Krispy Kreme franchise,

there are a few training requirements in

order to meet the customers

expectations and receive the highest

quality of the products. The Krispy

Kreme Management Training Program is

for new recruits to train them

Management skills such as in rotations in

retail, wholesale, and support center operations for 6 months. This program allows you to build

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your current skills and prepare run a Krispy Kreme store. This also allows you to work with other

trainees of the management team and interact with the CEO of Krispy Kreme. After finishing the

program, you will become a certified Assistant Manager and relocate a place to open up your

business that needs dictate.

Being the manager of your own business means that there are responsibilities for you to

look after. the Managers need to look after the Employees, food, and the environment of the store.

The manager has to make sure the employees are ready to work and stay positive throughout their

shift. Also, checking the food is a major responsibility a manager has in order the food is cooked

properly and has a good presentation. Lastly, the manager has to make sure that the restaurant is

clean and in order.

D.
There are a few ways where I can recruit for positions to find the right employees by

creating flyers and posting them around town and posting it on online websites for people who are

looking for jobs. After getting a group of recruits who are interested in working at Krispy Kreme, I

will try to find the best ones who are most qualified in a working environment in the store.

E.

Krispy Kreme also provides a program for employees

especially for sales supervisors. This program is the

Krispy Kreme Sales Supervisor Training Program. This

program was started in 1937 and is still an important

part of our company operation. This training helps and

guides sales supervisors to get them the idea to enjoy

driving, supervising a team and selling a world class

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product. This program also allows the sales supervisors to work with our sales manager to learn

how to make sales class, manage a fleet, develop the team and ensure the brand standards. The

other employees that will be working at krispy Kreme will get to learn and gain experience in

working in the kitchen, drive-thru ordering, and registering the cashier. All the employees are

required to have good customer interaction, keep the store clean, and delivering the product to the

customers on time.

F. Projected number of full-time and part-time employees

Being the restaurant manager, I will need support to help run the Krispy Kreme store. I will hire a 2

assistant managers in order to maintain a stable structure of the crew members. The second

assistant manager will train the trainee manager with skills and other qualities of being an assistant

manager. There will be other managers that will follow such as shift running floor, floor, and trainee

managers. Then the base of the crew members will be the training squad, crew members, and

trainee crew.

G. Organizational Chart of Franchise

Our AM shifts will have at most of 5 employees working behind the counter. 2 employees can be

working as cashiers, 3 employees cooking the food, and 1 employee can work as maintenance.

However, PM shift will have more workers than the AM shifts. We will need at least 8 employees

working in the store. 2-3 employees can work as a cashiers, 4 employees cook the doughnuts, and

1-2 employees can work as maintenance.

X. FINANCIAL PLAN AND DATA

A. The companys sales and profit trend

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 The majority of Krispy Kremes financial struggles stem from its overexpansion in the early

2000s. Capital expenditures on opening new company and franchise stores far outweighed the

decreasing revenues on increasingly unproductive stores. The company began to close stores and

taper domestic expansion in 2005, and its financials have seen mixed results. The company

reported revenues of $461 million in 2006, down 15% from $543 million in 2005. Net income,

however, was a loss of $41 million, which is much smaller than the $135 million loss in 2005,

signifying an actual increase in net income. These odd statistics reflect the companys drive to cut

costs. Indeed, operating costs in 2006 were $502 million, down 26% from $679 million in 2005.

The company evaluates its revenue and cost shares in three areas: pertaining to company stores,

franchises, and manufacturing and distribution. Off-site revenues and costs are components of

company stores and franchises, as each location with doughnut-making machinery produces and

supplies doughnuts to its local resellers. The growth rates of cost and revenues for each area have

been similar over the past four years. Company store revenues and costs have decreased

significantly, manufacturing and distribution revenues and costs have decreased slightly, and

franchise revenues and costs have remained relatively stable.

Companys revenue, costs, and net income

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B. Outline your strategy and timing for obtaining capital

THe general Krispy Kreme has a simply strategy in selling their products. Though they dont really

put lots of effort into their advertisement, the community around them already do it for them. For

example, local publicity such as newspapers, social media, and other public announcements will

help their reputation in the community. For my business, I would want to put more effort in

advertising my store. This will allow more people to come and show interest in coming into Krispy

Kreme. Also, I would try to strengthen my competitiveness through differentiation in products and

services. For instance, I will continue to utilize the hot doughnuts now sign to attract the

customers and expand the product line for increase of demand from customers.

C. Key Factors

D. Start Up Capital Summary

development Fee: $9,315

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 Initial Franchise Fee: $12,500

Real Estate and Improvements: $49,680 (rent for 1 year)

Construction Costs: $105,000

Equipment/Furniture/Fixtures: $120,000

Initial Inventory: $12,000

Production Equipment: $70,000

Grand Opening of Store: $20,000 (advertisements)

Training Expenses: $20,000

Security Deposits: $5,000

others funds (advertising, employee wages, electricity, etc

1 year: $114,2400

Total Estimated Initial Investment: $537,735

E. Loan & Repayment Plan

Seeking Loan of Approximately $485,000

estimated of years paid back loans: 15 years

6.5 interest rate

Annual payment: appx. $63,900

Personal Investment of Approximately $124,719

gifts of family members/friends

kickstarter donations/ grand opening funds

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XI. Krispy Kremes Income Statement For The First 3 Years

XII. CONCLUSION

The Krispy Kreme franchise will try to open in Naperville, Illinois with the initial franchise

cost to be approximately $275,000. There were lots of strong factors that play in the business such

as affordable donuts, appeals to all major demographics such as age and group, and has a

growing consistent expansion. However, there are a few weaknesses about the franchise. People

are become more health cautious, the competitiveness between Dunkin Donuts and Starbucks,

and decreasing discretionary income.

XIII. BIBLIOGRAPHY

http://www.gurufocus.com/term/ROC/KKD/ROC-/Krispy-Kreme-Doughnuts-Inc

http://www.123helpme.com/krispy-kreme-case-study-view.asp?id=165800

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http://www.npr.org/sections/thesalt/2014/09/18/349562067/sweet-dunkin-donuts-and-krispy-kreme-

pump-up-pledge-on-palm-oil

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