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Below is an in-depth analysis and side-by-side comparison of Cinnzeo vs Krispy Kreme including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $214,000 - $621,000 | $200,500 - $4,115,000 |
Franchise Fee | $15,000 | $12,500 - $25,000 |
Royalty Fee | 7% | 4.5% |
Advertising Fee | - | 1.5% |
Year Founded | 1987 | 1937 |
Year Franchised | 1998 | 0 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | $4K | - |
Business Experience Requirements |
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Experience | *Passionate about the Krispy Kreme brand and products *Proven track record of running a successful multi-unit restaurant business *Highly committed to providing great customer service *Financial resources to fund a multi-unit store development plan including a minimum $1 million in liquid assets and a minimum net worth of $2 million. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | *Initial Production Training (three to four weeks) *Processing Standards (one to two weeks) *Shift Management Training (four to five weeks) *Equipment Maintenance (1 week) |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | *New product innovation and unique occasion product offerings *Access to Krispy Kreme University �" a six month, all-inclusive training for Operations Directors, General Managers and Assistant General Managers *Grand opening support *Ongoing restaurant franchise operations support for the term of the franchise agreement *In-store training for hourly staff *Real estate and site selection support *Conceptual drawings *Project management and construction support *Access to area development agreements *Ability to impact communities with a unique and robust fundraising program |
Marketing | - | - |
Operations |
Number of employees needed to run franchised unit: 2 - 6
Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
The founders of Cinnzeo got their start as franchisees for another cinnamon roll company in 1987. In the next 10 years, they opened 20 stores in Western Canada, but grew unhappy with the direction the company was aking. In 1997, the franchisees decided not to renew their contract and instead opened their own company. By 2000 Cinnzeo, now led by president Brian R. Latham, had grown from those original 20 stores to 64, expanding into the Philippines and parts of Southeast Asia.