Krispy Kreme franchise cost has no Item 7 to quote in 2026: Krispy Kreme’s latest 10-K gives average capital investment of $2 million to $5 million per Hot Light Theater Shop and $0.1 million to $1 million per Fresh Shop.
Key takeaways
- No registered FDD found: Minnesota’s CARDS registry returned no Clean FDD rows for “Krispy Kreme” or “Krispy” on November 3, 2026, so no Item 7 initial investment table is available to quote (Minnesota Department of Commerce CARDS).
- Three stated format costs: a Hot Light Theater Shop averages $2 million to $5 million, a Fresh Shop $0.1 million to $1 million and a fresh delivery door $2,000 to $6,000 in capital investment (Krispy Kreme, Inc. Form 10-K for fiscal 2025, Item 1).
- The circulating fee is from 2016: the $12,500 to $25,000 franchise fee and 4.5% royalty match the Krispy Kreme Doughnuts, Inc. 10-K for the year ended January 31, 2016; the 10-Ks for fiscal 2021 to 2025 print no fee or royalty rate.
- U.S. shops are company-run: the U.S. segment’s 7,463 points of access were 100% company-owned at December 28, 2025, and company-operated locations produced about 75% of fiscal 2025 systemwide sales (Form 10-K FY2025, Item 1).
- Franchising is growing by sale: Krispy Kreme sold its Japan business on March 2, 2026 for $69.3 million in gross cash and cut its western U.S. joint venture stake from 55% to 20% on March 23, 2026 (Form 10-Q for the quarter ended June 28, 2026, Note 3).
Is Krispy Kreme a franchise, or mostly company-run?
Krispy Kreme does sell franchises, but its U.S. business is run by the company. The fiscal 2025 Form 10-K states that Krispy Kreme “sells individual franchises domestically and internationally” plus development agreements, yet the U.S. segment’s 235 Hot Light Theater Shops and 68 Fresh Shops were all company-owned at December 28, 2025.
Franchised shops sit in a separate Market Development segment, which the 10-K defines as “franchise operations across the globe.” At fiscal 2025 year end it held 113 Hot Light Theater Shops, 1,130 Fresh Shops, 29 carts and food trucks and 1,637 fresh delivery doors. Those 1,243 franchise-segment shops were 58.5% of the 2,125 Krispy Kreme shops worldwide, the same share our tracker of unit growth at public franchisors records.
The franchise segment held 113 Hot Light Theater Shops and 1,130 Fresh Shops at December 28, 2025; all 303 U.S. segment shops were company-owned. Source: Krispy Kreme Form 10-K for fiscal 2025, accessed November 3, 2026.
| Segment (ownership) | Hot Light Theater Shops | Fresh Shops | Fresh delivery doors | Source |
|---|---|---|---|---|
| U.S. (100% company-owned) | 235 | 68 | 7,160 | 10-K FY2025, Item 1 |
| International (100% company-owned) | 52 | 527 | 4,225 | 10-K FY2025, Item 1 |
| Market Development (franchise) | 113 | 1,130 | 1,637 | 10-K FY2025, Item 1 |
| Total | 400 | 1,725 | 13,022 | 10-K FY2025, Item 7 KPI table |
The company plans to shift that mix. The same 10-K says Krispy Kreme “expects nearly 50% of systemwide sales to be generated by franchisees beginning fiscal 2027,” up from about 25% in fiscal 2025. In the U.S. it lists seven Doughnut Factories, one of them operated by a franchisee; abroad, 25 of 39 Doughnut Factories are franchisee-run.
Why is there no Item 7 for Krispy Kreme in the Minnesota registry?
Minnesota’s CARDS franchise registration database posts the disclosure documents franchisors register to sell in that state, and on November 3, 2026 it returned no Clean FDD rows for “Krispy Kreme” or for “Krispy.” With no registered FDD to open, this page cannot quote an Item 5 fee, an Item 6 royalty or an Item 7 total; every cost below comes from SEC filings instead.
An empty Minnesota result shows only that no current Krispy Kreme FDD is registered there; registration rules differ by state, as our map of franchise registration states shows. Under 16 CFR 436.2(a), any franchisor offering a U.S. franchise must hand over its current disclosure document at least 14 calendar days before the buyer signs or pays anything.
If Krispy Kreme offers you a franchise, request these 6 items from that document in this order:
- The issuance date on the cover page, and the states where the FDD is registered.
- Item 7, “YOUR ESTIMATED INITIAL INVESTMENT,” with a separate table for each format: Doughnut Factory, Hot Light Theater Shop and Fresh Shop (16 CFR 436.5(g) allows additional tables for variations such as premises size).
- Items 5 and 6: the initial fee, development fee, royalty percentage and advertising fund percentage now in force.
- Item 8: every product you must buy from Krispy Kreme or its designee, starting with doughnut mix and equipment (16 CFR 436.5(h)).
- Item 12: how the territory is drawn around a hub and its delivery routes.
- Item 19: whether any financial performance representation is made at all.
Our guide to reading a franchise disclosure document explains each of the 23 items in turn.
Hub, spoke or cabinet: what does each Krispy Kreme format cost to build?
The fiscal 2025 Form 10-K gives an average capital investment for three formats: $2 million to $5 million for a Hot Light Theater Shop, $0.1 million to $1 million for a Fresh Shop and $2,000 to $6,000 for a fresh delivery door. These are company averages in an annual report, not an Item 7 estimate, so they leave out franchise fees, training and opening working capital.
| Format | Hub or spoke | Makes doughnuts on site? | Average capital investment | Source |
|---|---|---|---|---|
| Doughnut Factory | Hub, not consumer facing | Yes | Not stated | 10-K FY2025, Item 1 |
| Hot Light Theater Shop | Hub, consumer facing | Yes | $2 million to $5 million | 10-K FY2025, Item 1 |
| Fresh Shop or kiosk | Spoke | No | $0.1 million to $1 million | 10-K FY2025, Item 1 |
| Cart or food truck | Spoke | No | Not stated | 10-K FY2025, Item 7 footnote 3 |
| Fresh delivery door (branded cabinet in a store) | Spoke | No | $2,000 to $6,000 | 10-K FY2025, Item 1 |
The fresh delivery door is a Krispy Kreme branded cabinet or merchandising unit inside a grocery store, club wholesaler, convenience store, quick service restaurant or drug store. The 10-K notes that this channel was formerly called “delivered fresh daily” or DFD, renamed because delivery frequency now varies by location.
How have the stated ranges moved since fiscal 2021?
Each Krispy Kreme, Inc. 10-K since the July 1, 2021 Nasdaq listing repeats the format ranges. The Hot Light Theater Shop top end rose from $4 million to $5 million in the fiscal 2023 filing, the Fresh Shop range never changed, and the delivery door top end fell from $10,000 to $6,000 in the fiscal 2025 filing.
| 10-K (filed) | Hot Light Theater Shop | Fresh Shop | Delivery door | Source |
|---|---|---|---|---|
| Fiscal 2021 (March 11, 2022) | $2 million to $4 million | $0.1 million to $1 million | $2,000 to $10,000 | 10-K FY2021, Item 1 |
| Fiscal 2022 (March 2, 2023) | $2 million to $4 million | $0.1 million to $1 million | $2,000 to $10,000 | 10-K FY2022, Item 1 |
| Fiscal 2023 (February 27, 2024) | $2 million to $5 million | $0.1 million to $1 million | $2,000 to $10,000 | 10-K FY2023, Item 1 |
| Fiscal 2024 (February 27, 2025) | $2 million to $5 million | $0.1 million to $1 million | $2,000 to $10,000 | 10-K FY2024, Item 1 |
| Fiscal 2025 (March 6, 2026) | $2 million to $5 million | $0.1 million to $1 million | $2,000 to $6,000 | 10-K FY2025, Item 1 |
Why can’t a Fresh Shop open without a hub?
A Fresh Shop has no doughnut line. The 10-K describes Fresh Shops as smaller shops and kiosks “without manufacturing capabilities, selling fresh doughnuts delivered from Hub locations.” The $0.1 million entry figure therefore applies only where a Hot Light Theater Shop or Doughnut Factory already runs delivery routes; in a new market, the first cost is the hub.
Hub counts show how unevenly spokes are attached. At December 28, 2025 the U.S. had 229 hubs (223 Hot Light Theater Shops and 6 Doughnut Factories), of which 159 served spokes and 70 served none. The franchise segment had 137 hubs: 111 Hot Light Theater Shops and 26 Doughnut Factories. The 10-K adds that hubs carry “largely fixed costs including rent, utilities, and labor,” which is why the company adds doors to existing hubs.
The arithmetic below stacks the 10-K averages for one hub with two Fresh Shops and 25 delivery doors. The mix is an illustration chosen by us, not a Krispy Kreme development schedule, and it excludes fees, delivery vehicles and working capital.
| Component | Count | 10-K average per unit | Low | High |
|---|---|---|---|---|
| Hot Light Theater Shop (hub) | 1 | $2 million to $5 million | $2,000,000 | $5,000,000 |
| Fresh Shop (spoke) | 2 | $0.1 million to $1 million | $200,000 | $2,000,000 |
| Fresh delivery door (spoke) | 25 | $2,000 to $6,000 | $50,000 | $150,000 |
| Total capital, our arithmetic | $2,250,000 | $7,150,000 |
The hub dominates both ends: it is 89% of the low total and 70% of the high total. Krispy Kreme sells “development agreements that grant to franchisees the right to develop shops in designated areas” (10-K FY2025, Note 1), and our study of area development agreements in 259 FDDs shows how development fees and schedules usually work.
Where did the $12,500 fee and 4.5% royalty come from?
The fee and royalty repeated across cost guides match the 10-K of Krispy Kreme Doughnuts, Inc. for the fiscal year ended January 31, 2016: a franchise fee of $12,500 to $25,000 per store, a royalty of 4.5% of on-premises sales, 1.0% of sales to the Brand Fund and, in many agreements, 0.50% to an advertising fund. None of the five 10-Ks filed since 2022 prints a fee or royalty rate.
| Date | Filing or event | What it states | Source |
|---|---|---|---|
| March 31, 2016 | 10-K, fiscal year ended January 31, 2016 | Fee $12,500 to $25,000 per store; 4.5% royalty; 15-year term | Krispy Kreme Doughnuts, Inc. 10-K |
| July 1, 2021 | Nasdaq listing as DNUT | New 10-K series begins; no fee schedule | 10-K FY2025, Item 5 |
| March 2, 2023 | 10-K for fiscal 2022 | Hot Light Theater Shop $2 million to $4 million | 10-K FY2022, Item 1 |
| February 27, 2024 | 10-K for fiscal 2023 | Hot Light Theater Shop $2 million to $5 million | 10-K FY2023, Item 1 |
| Third quarter 2025 | McDonald’s USA relationship ends | About 1,900 delivery doors exited | 10-K FY2025, Item 7 |
| March 6, 2026 | 10-K for fiscal 2025 | Delivery door $2,000 to $6,000 | 10-K FY2025, Item 1 |
| March 2 and 23, 2026 | Japan sale; western U.S. joint venture restructured | Stake in the western U.S. joint venture cut from 55% to 20% | 10-Q Q2 2026, Note 3 |
| November 3, 2026 | Minnesota CARDS search | No Clean FDD rows for Krispy Kreme | CARDS |
The table below checks the most repeated claims against the primary documents we could open. Pages are described, not named.
| Claim in circulation | What a primary document shows | Status |
|---|---|---|
| Franchise fee of $12,500 to $25,000 (several guides, undated) | 2016 10-K: franchise fee $12,500 to $25,000 per store and development fee $12,500 to $25,000 per location | Ten years old; not restated in 10-Ks for fiscal 2021 to 2025 |
| 4.5% royalty (several guides, undated) | 2016 10-K: 4.5% of on-premises sales and 1.5% of packaged-goods sales; older agreements 3.0% to 4.5% | 2025 10-K says only “a percentage of franchisee gross sales” |
| 2% brand fund (a franchise directory) | 2016 10-K: Brand Fund 1.0% for domestic franchisees, 0.5% international | No current rate in any filing we opened |
| $2,015,000 to $4,330,000, “based on 2022 FDD” (a franchise directory) | No Krispy Kreme FDD on Minnesota CARDS; 10-K average for a Hot Light Theater Shop is $2 million to $5 million | Cannot be checked against an FDD we could open |
| $440,500 to $3,410,000 (a franchise news site, updated December 2022) | Attributed there to a third-party estimate; 10-K averages are $0.1 million to $1 million and $2 million to $5 million by format | Estimate, not a filed Item 7 |
The 2016 filing also set international terms: royalties of 6.0% of retail sales and development and franchise fees “generally ranging from $20,000 to $50,000 per store.” Under the 2016 domestic terms, royalty, Brand Fund and advertising fund together came to 4.5% + 1.0% + 0.5% = 6.0% of on-premises sales where the advertising fund applied. Our franchise royalty rate dataset shows where current FDD royalties fall.
The fiscal 2025 10-K describes the fee structure without numbers: initial nonrefundable fees paid before opening, a monthly royalty “based upon a percentage of franchisee gross sales,” advertising fees as a percentage of net sales, a renewal fee and an initial domestic term of “typically 15 years” (international terms run 10 to 15 years).
What must a Krispy Kreme franchisee buy from the company itself?
Doughnut mix is the main tie. The fiscal 2025 10-K says Krispy Kreme is “the exclusive supplier of doughnut mixes to numerous domestic and international Krispy Kreme shops” and the sole supplier of critical ingredients to the majority of domestic franchise shops. Its own Winston-Salem, North Carolina plant makes the doughnut-making equipment, so a new hub buys its production line from the franchisor.
| Purchase | Supplier as stated in the 10-K | Where it is made | Source |
|---|---|---|---|
| Doughnut mix | Krispy Kreme, exclusive supplier to numerous domestic and international shops | Winston-Salem, NC plant (107,000 sq ft) and a third-party facility in Pico Rivera, CA | 10-K FY2025, Items 1A and 2 |
| Mix concentrate (international) | Krispy Kreme, exclusive supplier | Winston-Salem, NC only | 10-K FY2025, Item 1A |
| Specific critical ingredients | Sole supplier to the majority of domestic franchise shops | Not stated | 10-K FY2025, Item 1A |
| Doughnut-making equipment | Krispy Kreme, a range of lines by shop type | Winston-Salem, NC facility (101,710 sq ft) | 10-K FY2025, Items 1 and 2 |
| Other ingredients, packaging and supplies | Provided principally to company and domestic franchise shops | Weekly replenishment via one national distributor | 10-K FY2025, Item 1 |
These purchases are large next to fees. In fiscal 2025, Krispy Kreme booked $40.9 million of “mix and equipment revenue from franchisees” against $36.5 million of “franchise royalties and other” (10-K FY2025, Note 18). Mix and equipment revenue was $53.3 million in fiscal 2024 and $58.6 million in fiscal 2023, and it reached $37.5 million in the first two quarters of fiscal 2026 against $20.0 million a year earlier (10-Q Q2 2026, Note 18).
An FDD would have to list each required purchase under Item 8 and say whether the franchisor earns revenue on it (16 CFR 436.5(h)). Our research on franchisor supplier revenue shows how other systems disclose that income.
How fast is the franchised side growing after the 2026 refranchising deals?
The franchise segment grew mainly by transfer from the company. Market Development shops rose from 1,084 at December 31, 2023 to 1,243 at December 28, 2025 and 1,453 at June 28, 2026, after Krispy Kreme sold Japan on March 2, 2026 and reduced its western U.S. joint venture stake from 55% to 20% on March 23, 2026 (10-Q Q2 2026).
Franchise-segment shops reached 1,453 at June 28, 2026, up from 1,243 at December 28, 2025, after the Japan sale and the western U.S. joint venture deal. Sources: Krispy Kreme 10-K FY2025 and 10-Q Q2 2026.
| Date | Hot Light Theater Shops | Fresh Shops | Total franchise-segment shops | Source |
|---|---|---|---|---|
| December 31, 2023 | 116 | 968 | 1,084 | 10-K FY2025, Item 7 |
| December 29, 2024 | 108 | 1,095 | 1,203 | 10-K FY2025, Item 7 |
| December 28, 2025 | 113 | 1,130 | 1,243 | 10-K FY2025, Item 7 |
| June 28, 2026 | 180 | 1,273 | 1,453 | 10-Q Q2 2026 |
These were operator-group transactions, not single-shop resales. Japan sold for $69.3 million in gross cash, and in the western U.S. deal an affiliate of the joint venture partner bought the company-run California shops’ assets for $40.4 million, paid with a promissory note. Between December 28, 2025 and June 28, 2026, U.S. company-run Hot Light Theater Shops fell from 235 to 176 (10-Q Q2 2026).
New development continues alongside the deals. The fiscal 2025 10-K targets “at least three new countries every year and at least 100 new shops globally in fiscal 2026.” For a U.S. doughnut comparison that does publish an Item 7, see the format-by-format numbers in our Dunkin franchise cost breakdown.
What decides a Krispy Kreme owner’s income?
This page publishes no income figure, by site rule and because no Krispy Kreme FDD with an Item 19 could be opened. The drivers are visible in the filings: how many spokes and delivery doors share one hub’s fixed costs, the royalty and advertising percentages in the current agreement, and what Krispy Kreme charges for mix and equipment.
Three questions turn those drivers into numbers you can check. First, how many Fresh Shops and doors will your hub supply, given that 70 of 229 U.S. hubs had no spokes at fiscal 2025 year end? Second, what royalty and fund percentages does the current Item 6 set? Third, does Item 19 (16 CFR 436.5(s)) contain any representation, and on which formats? Our review of Item 19 disclosures explains what that item can and cannot show.
Which Krispy Kreme route matches your capital and role?
The route depends on capital and on whether you will run production. The 10-K averages put a producing hub at $2 million to $5 million and a delivery door at $2,000 to $6,000, and every Fresh Shop depends on a hub. The table matches each starting point to the format and the primary document that governs it.
| If you | Then | Basis |
|---|---|---|
| Have under $100,000 to invest | No Krispy Kreme shop fits: the lowest 10-K average is $0.1 million for a Fresh Shop, which needs a hub | 10-K FY2025, Item 1 |
| Own a grocery, convenience store or restaurant | The route is a fresh delivery door, a supply relationship at $2,000 to $6,000 average investment per door | 10-K FY2025, Item 1 |
| Can fund $2 million to $5 million per shop and run production | Ask for the FDD for a Hot Light Theater Shop, likely under a development agreement for a designated area | 10-K FY2025, Note 1; 16 CFR 436.2(a) |
| Run a multi-unit restaurant group | Watch refranchising: 2026 deals were market-sized ($69.3 million Japan; $40.4 million California assets) | 10-Q Q2 2026, Note 3 |
| Want only a Fresh Shop | Get the hub’s location and owner in writing before signing; the shop cannot make doughnuts | 10-K FY2025, Item 1 |
| Are quoted a fee or royalty | Ask which FDD issuance date it comes from; the common figures date to the 2016 10-K | 2016 10-K |
Buyers with less than $100,000 can compare formats that fit that budget in our list of franchises under $100,000. A franchise consultant can request a current FDD on your behalf, but the 14-day clock in 16 CFR 436.2(a) runs from your own receipt of it.
This page is general information, not legal, financial or investment advice; have a franchise attorney and an accountant review any Krispy Kreme agreement and its Item 7 before you sign.
How we compiled this
We searched Minnesota CARDS twice on November 3, 2026 and found no Krispy Kreme FDD, so no franchise disclosure figures appear here. We read 8 primary documents: Krispy Kreme, Inc. 10-Ks for fiscal 2021 to 2025, its 10-Q for the quarter ended June 28, 2026, the 2016 Krispy Kreme Doughnuts, Inc. 10-K and 16 CFR Part 436. Krispy Kreme’s U.S. website blocked our non-U.S. access, so we used none of its pages. We excluded all revenue-per-shop and earnings figures.
Frequently asked questions
Is Krispy Kreme a franchise?
Yes, in part. The fiscal 2025 Form 10-K says Krispy Kreme sells individual franchises in the U.S. and abroad, plus development agreements. Its franchise segment held 1,243 of 2,125 shops at December 28, 2025, but every shop in its U.S. segment was company-owned, and company locations produced about 75% of fiscal 2025 systemwide sales.
How much does a Krispy Kreme franchise cost?
No current Krispy Kreme FDD was on file in Minnesota’s CARDS registry on November 3, 2026, so there is no Item 7 total to quote. The fiscal 2025 Form 10-K gives average capital investment of $2 million to $5 million for a Hot Light Theater Shop, $0.1 million to $1 million for a Fresh Shop and $2,000 to $6,000 per delivery door.
How much does a Krispy Kreme franchise owner make?
Owner income figures are outside what we publish, and no Krispy Kreme FDD with an Item 19 could be opened here. Owner results turn on how many Fresh Shops and delivery doors share a hub’s fixed rent, utilities and labor, the current royalty and fund percentages, and mix and equipment prices. Ask for Item 19 of the current FDD.
What are the Krispy Kreme franchise requirements?
No net worth or liquidity minimum appears in any primary document we opened. The filings show the scale: a producing Hot Light Theater Shop averages $2 million to $5 million, domestic agreements typically run 15 years, and doughnut mix comes from Krispy Kreme as exclusive supplier to many shops. Item 7 of a current FDD would set the cash figures.
Is there a Krispy Kreme franchise for sale?
Recent sales have been whole markets sold to operator groups. Krispy Kreme sold its Japan business for $69.3 million in gross cash on March 2, 2026, and on March 23, 2026 sold company-run California shop assets for $40.4 million to an affiliate of its western U.S. joint venture partner, per its Form 10-Q for the quarter ended June 28, 2026.
How do you open a Krispy Kreme franchise?
Start by requesting the current FDD from Krispy Kreme; under 16 CFR 436.2(a) it must reach you at least 14 calendar days before you sign or pay. Then check Item 7 for each format, Item 8 for mix and equipment purchases, and confirm which hub will supply any Fresh Shop you plan.
Sources
- Krispy Kreme, Inc. Form 10-K, fiscal year ended December 28, 2025 (filed March 6, 2026), SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme, Inc. Form 10-Q, quarter ended June 28, 2026 (filed August 6, 2026), SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme, Inc. Form 10-K, fiscal year ended December 29, 2024, SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme, Inc. Form 10-K, fiscal year ended December 31, 2023, SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme, Inc. Form 10-K, fiscal year ended January 1, 2023, SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme, Inc. Form 10-K, fiscal year ended January 2, 2022, SEC EDGAR, accessed November 3, 2026.
- Krispy Kreme Doughnuts, Inc. Form 10-K, fiscal year ended January 31, 2016, SEC EDGAR, accessed November 3, 2026.
- FTC Franchise Rule, 16 CFR Part 436, eCFR, accessed November 3, 2026.
- Minnesota Department of Commerce, CARDS franchise registrations search, searched November 3, 2026.