Krispy Kreme Franchise in the Philippines: What You Need to Know
If you have a sweet tooth, you would know that donut is one of the sweetest desert or snack that you could have. The enticing goodness of confectionary sugar, rainbow sprinkles, nuts, strawberry jam, chocolate and a lot more, donuts have been part of the sweet toothed person’s grind for that sweet sugar fix. From the simple sugar glazed donut to the wide variety of fillers inside as well, you just can’t seem to get enough of its sugary sweetness with every bite. When you hear the word donut, one of the most popular brands around the globe would come to mind and that is no other than Krispy Kreme. The good news is, this global brand is open for franchising!
Origins of Krispy Kreme
Vernon Rudolph, a young man with entrepreneurial dreams started renting a small warehouse in Winston Salem, North Carolina way back in the year 1937 to sell his donuts. The donuts that he sells smells so good that people are starting to be lured to his donut store. From these humble beginnings, the global brand Krispy Kreme soon started to grow and now for over sixty five years it is still leading in thus industry with an exponential sales growth. Krispy Kreme has opened its doors to franchising outside the United States from 2001 and since then its stores have opened around the globe. As of this moment, about seventy percent of Krispy Kreme stores are situated outside the United States which makes it a beloved and iconic global brand.
Krispy Kreme in the Philippines
Krispy Kreme opened its first store in the Philippines last November 30, 2006. This flagship store is franchise owned and the development deal is awarded to the Real American Donut Company. The Real American Donut Company Inc is operated and owned by the principal owners of Max’s restaurant. The very first Krispy Kreme in the country is located at Bonifacio High Street in Bonifacio Global City, Taguig city.
The market target of Krispy Kreme in the Philippines is from middle to high end customers. According to Jeff Welch, the senior vice president for international operations of Krispy Kreme, they do know that for Filipinos, eating is a social event. He also added that we do love sweets and since food has been part of our culture, and with this they are assured that Krispy Kreme would certainly be welcomed and loved in our country. And so it was and is continuously being patronized because as of this moment, there are over 30 stores nationwide and they are as follows: Metro Manila: 29, North Luzon: 3, South Luzon: 4, Visayas: 4 and Mindanao: 5 and is continuously growing.
Financial Requirements Of Being A Franchisee Of Krispy Kreme in the Philippines
Before you start your venture in availing a Krispy Kreme franchise, you need to consider the following factors:
Real estate cost
Store type and size
The cost of the construction of the store
The operating and labor expense
Importation costs and availability of the ingredients
An upfront territorial fee is required to be paid by Krispy Kreme franchisees. The amount is dependent on the market size and the number and type of stores that would be developed.
How Much Does It Cost To Open A Krispy Kreme Franchise?
The initial franchise fee of Krispy Kreme is $12,500 to $25,000 and this will grant you to run your business using the trade name.
Individual Unit Costs
Initial Investment: $275,000-$1,911,250
Initial Franchise Fee: $12,500-$25,000
Royalty Fee: 4.5%
Advertising Fee: 5%
Franchise fee paid prior to opening based on the store type:
Flagship Factory Store – $25,000
Fresh Shop – $10,000
Kiosk – $10,000
Steps On How To Franchise Krispy Kreme in the Philippines
You need to complete the application online from the company’s site.
Once your application has been approved, you are required to pay the franchise fee. The exact amount will be disclosed to you once you are approved. You can only open the store in the approved area that is mentioned in your license.
You can start enjoying your Krispy Kreme franchise store!
For more information and details, you may reach Krispy Kreme through the following contact details:
Mr. Jimmy Fuentebella, Chairman
Ms. Veronica Bejasa, Business Development Associate