House of Bread vs Krispy Kreme Franchise Comparison

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

Start-Up Costs and Fees
 
House of Bread Franchise
Krispy Kreme Franchise
Investment $157,000 - $347,000$200,500 - $4,115,000
Franchise Fee $35,000$12,500 - $25,000
Royalty Fee 6%4.5%
Advertising Fee -1.5%
Year Founded 19961937
Year Franchised 19980
Term Of Agreement 10 years-
Term Of Agreement 10 years-
Renewal Fee $5K-


Business Experience Requirements
 
House of Bread Franchise
Krispy Kreme Franchise
Experience
  • General business 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
     
    House of Bread Franchise
    Krispy Kreme Franchise
      In-House/3rd PartyIn-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
     
    House of Bread Franchise
    Krispy Kreme Franchise
    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, 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 Co-op advertising, Ad slicks, Regional advertising-
    Operations 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    		-

    Expansion Plans
     
    House of Bread Franchise
    Krispy Kreme Franchise
    US Expansion --
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About House of Bread

    After spending six years as a lawyer, Sheila McCann decided to do something different with her life. At Harvard Business School, she researched several business ideas before settling on a bread bakery. McCann had fond memories of baking with her grandmother as a child in Montana. Inspired by her grandmother's spirit of independence and endurance, she founded House of Bread in San Luis Obispo in 1996.

    The company targets its specialty breads to young professionals, health-conscious consumers and baby boomers looking to increase fiber in their diets. House of Bread lets customers sample its healthful, whole-grain breads and watch the bread being made. All stores feature on-site milling.

    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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