Cinnabon vs Krispy Kreme Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Cinnabon vs Krispy Kreme including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Cinnabon Franchise
Krispy Kreme Franchise
Investment $23,100 - $430,900$200,500 - $4,115,000
Franchise Fee $30,000$12,500 - $25,000
Royalty Fee 6%4.5%
Advertising Fee 1.5%1.5%
Year Founded 19691937
Year Franchised 19860
Term Of Agreement 10-20 years-
Term Of Agreement 10-20 years-
Renewal Fee 50% of current franchise fee-


Business Experience Requirements

 
Cinnabon Franchise
Krispy Kreme Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills "Passion and enthusiasm in being a small business owner, and having the go-getter mentality… You've got to like people to do business at Cinnabon." - Mark Hong, director of franchise development
  • *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

     
    Cinnabon Franchise
    Krispy Kreme Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/Yes-/-
    Payroll No/Yes-/-

    Training & Support

     
    Cinnabon Franchise
    Krispy Kreme Franchise
    Training On-The-Job Training: 40 hours Classroom Training: 40 hours Additional Training: Additional training annually *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 Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform *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 Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app-
    Operations Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8 - 10

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    -

    Expansion Plans

     
    Cinnabon Franchise
    Krispy Kreme Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About Cinnabon

    Since 1969, malls throughout the world have been filled with the scent of Cinnabon. Each bakery serves fresh and prepackaged cinnamon rolls, Pecanbons (cinnamon rolls topped with pecans and caramel frosting), coffees and other drinks.
    If success was a freshly baked treat, it would be Cinnabon®.
    • Super sweet average net sales of $861,481 for the top quartile of franchise owners*
    • A global, iconic brand with enviable brand awareness and strong affinity with Millennials and Gen Z
    • A category leader that dominates the sweet treat segment
    • The strong support and tools of FOCUS Brands®
    Become a Cinnabon® franchise owner, and learn what it means to be the most popular kid on the block! Our one-of-a-kind, insanely craveable baked goods and specialty beverages have made Cinnabon® a world-class brand with world-class economics.
    Cinnabon® owns the cinnamon roll category, and we’re looking for people to grow our legacy and “bake” good on the promise that is our brand.


    The total investment necessary to begin operation of a Full Bakery franchise ranges from $214,050 to $430,900 in a Traditional Location and from $122,500 to $419,200 in a Non-Traditional Location. This includes $30,000 to $30,400 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of an Express Bakery ranges from $23,100 to $43,500 in a new Schlotzsky’s® restaurant and from $59,000 to $155,750 in any other location. This includes $7,500 to $7,900 that must be paid to the franchisor or their affiliates.
    The total estimated investment necessary to begin operation of a Concession Bakery ranges between $110,000 and $244,600. This includes $5,000 to $5,400 that must be paid to the franchisor or their affiliates.
    Veteran Incentives  $5,000 off franchise fee
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    About Krispy Kreme

    Are you ready to embrace a franchise opportunity worth a million smiles? Owning a Krispy Kreme doughnut franchise could be the sweetest move you have ever made!
    In 1937, an entrepreneurial young man named Vernon Rudolph rented a small warehouse in Winston Salem, North Carolina so he could make doughnuts to sell to grocery stores. As it turns out, those doughnuts smelled so good that people walking past wanted to buy them. Vernon cut a hole in an outside wall and started selling them to passersby. Business began to boom! Vernon perfected the proprietary doughnut-making equipment and the secret recipe to be used in his new chain of shops, ensuring that every single doughnut made at a Krispy Kreme shop was deserving of the Krispy Kreme name. Now, with decades of franchising experience, Krispy Kreme has become one of the most beloved doughnut and coffee franchises on the market with worldwide brand recognition. As the leading specialty retailer of premium-quality doughnuts, including our signature Original Glazed, our vision is to be the worldwide leader in sharing delicious tastes and creating joyful memories.

    Krispy Kreme franchisees share our vision and benefit from our time-tested leadership and doughnut franchise experience in bringing our premium brand to more people in more places than ever before. We strive to fulfill our mission statement: to touch and enhance lives through the joy that is Krispy Kreme. As a Krispy Kreme doughnut and coffee franchise owner, you become part of something more than just making doughnuts and coffee - you will share in the sweet success we strive for each and every day, as well as the smiles of your customers when they taste our delicious sweet treats. From our Hot Doughnuts Now sign and Doughnut Theater to our iconic paper hats, Krispy Kreme is a sweet and unique flavor of a brand.

    The total initial investment necessary to begin operation ranges from $1,287,500 to $2,750,000 for a Factory Store;
    $558,500 to $1,500,000 for a Tunnel Oven Shop;
    $440,500 to $1,200,000 for a Fresh Shop;
    $200,500 to $453,000 for a Box Shop; and
    $1,617,500 to $4,115,000 for a Commissary Facility.
    These totals include the following amounts that must be paid to us as initial fees and for a variety of goods and services, as follows: for a Factory Store, $355,000 to $580,000; for a Tunnel Oven Shop, $91,000 to $134,000; for a Fresh Shop, $30,000 to $33,000; for a Box Shop, $30,000 to $33,000; and for a Commissary Facility, $355,000 to $1,070,000.

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