How to Start a Krispy Kreme Franchise in the Philippines

Surely, you have experienced the sweet sensation brought upon by donuts. They are one of the snacks that are often fancied and craved in the present. But what is the first brand that you can think of when it comes to donuts?

That’s right, Krispy Kreme. Today, we are going to talk all about it and how they provide opportunities for those who want to franchise their brand.

About Krispy Kreme Franchise

Krispy Kreme, most famous for its glazed donuts, is a company founded by Vernon Rudolph, American, in Winston-Salem in the year 1937. Rudolph first offered his products to grocery and convenience stores in their local town.

The company has gone through numerous downfalls including the Great Depression, a bankruptcy on its first expansion in the 2000s. Rudolph made great contributions to the company until May of 2016. There, JAB Holding Company reportedly purchased Krispy Kreme for over 1 billion dollars.

For the franchising process, take note that you will not be working with the main office as it is an international company. Instead, you will be communicating with Max’s Group because they hold the master franchise license for the brand.

Krispy Kreme Franchise Details

Here are the terms of Krispy Kreme’s franchise:

Initial Franchise fee: PHP 498,000 to PHP 1,245,000

Additional Franchise Fee: PHP 1,210,000 (Flagship Factory Store)

PHP 484,000 (Fresh Shop, and Kiosk)

Estimated Investment: PHP 5M-7M

Outlet Term: 3 Years

Royalty Fee: 4.5%

Marketing Fee: 5%

Minimum Lot Size: 50 SQM + Drive-Thru

Inclusions:

  • Store Construction
  • Equipment and machinery
  • Furniture and fixture
  • Initial Hiring and Training of Staffs
  • Pre-Opening Marketing and Operating Support
  • Sub Franchise Fee

Take note that the amount of the franchise fee and investment will highly depend on the type and size of your store. The prices stated above are also originally in US dollars and are only converted, except for the estimated investment which is provided by Max’s Group.

Here are the requirements in applying for a franchise:

  • Letter of Intent
  • Accomplished Application Form

You can send the letter and download the application form on Max Group’s official website. Once sent, the process will go like this:

  1. Interview.
  2. Approval.
  3. Franchise Awarding.

Krispy Kreme Franchise Contact Details 

Main Office Address: 11th Floor EcoPlaza Building, 2305 Chino Roces Avenue Extension, Makati City, 1231, Metro Manila, Philippines

Website:

  • Max’s Group: www.maxsgroupinc.com/
  • Krispy Kreme: now.krispykreme.com.ph/

Phone Number: +63 (2) 8-784-9000

Email: info@maxsgroupinc.com

The Advantages and Disadvantages of Franchising Krispy Kreme

Pros:

  • The brand is well-known locally and internationally. If you have a good location, a high ROI is guaranteed.
  • Max’s Group’s area managers will personally visit your store and check its quality. This is good because you can ensure quality control over your outlet.

Cons:

  • The franchise fees are a little high compared to others. This is why your financial capability is thoroughly checked during the interview.
  • Krispy Kreme’s franchise terms are also short. Considering the franchise fee and the 3-year term can be financial pain if not managed properly.

The downsides, however, can be solved with proper management. The fee for franchising is high but so is the return on investment. This is a win-win situation for you and the company.

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