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Below is an in-depth analysis and side-by-side comparison of T.J. Cinnamons 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 | $22,100 - $39,200 | $200,500 - $4,115,000 |
Franchise Fee | $5,000 | $12,500 - $25,000 |
Royalty Fee | Varies | 4.5% |
Advertising Fee | - | 1.5% |
Year Founded | 1985 | 1937 |
Year Franchised | 1985 | 0 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | Then-current franchise fee | - |
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 | Training program provided through manual | *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, Purchasing cooperatives | *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 | Ad slicks | - |
Operations |
Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | No | - |
When Ted and Joyce Rice first started selling cinnamon rolls at state fairs and rodeos, they were just looking to make some extra money and add to their retirement fund. Yet the demand for their sticky product was so great they were forced to turn their parttime venture into a fulltime T.J. Cinnamons bakery in Kansas City. The company began franchising and grew to nearly 250 locations in the late 1980s. But by the mid-'90s a declining economy, lower traffic, and inexperienced operators left only 47 bakeries operating. Arby's parent company acquired the business in 1996 and has since revived the bakery concept to be an add-on business that can be combined with any existing restaurant.