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Below is an in-depth analysis and side-by-side comparison of LaMar's Donuts 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 | $288,500 - $366,500 | $200,500 - $4,115,000 |
Franchise Fee | $28,500 | $12,500 - $25,000 |
Royalty Fee | 5% | 4.5% |
Advertising Fee | - | 1.5% |
Year Founded | 1960 | 1937 |
Year Franchised | 1993 | 0 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal 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 | As needed | *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, 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 | Co-op advertising, Ad slicks, National media, Regional advertising | - |
Operations |
Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | No | - |
Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.
In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.