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Below is an in-depth analysis and side-by-side comparison of Cindy's Cinnamon Rolls 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 | $69,000 - $130,500 | $200,500 - $4,115,000 |
Franchise Fee | $25,000 | $12,500 - $25,000 |
Royalty Fee | 5% | 4.5% |
Advertising Fee | - | 1.5% |
Year Founded | 1985 | 1937 |
Year Franchised | 1986 | 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 | - | *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, Toll-free phone line, Grand opening, 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 |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 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 | Yes | - |
Cindy and Tom Harris were inspired to open their own shop after seeing customers line up to watch warm cinnamon rolls come out of the oven at a bakery. The couple felt making and selling warm cinnamon rolls in a mall would be a hit, so they opened their first Cindy's Cinnamon Rolls store in Fort Collins, Colorado, in 1985. Customers were drawn to the store by the smell of the baking rolls, and would line up for the warm rolls and coffee.
Cindy's began franchising in 1986 and now has stores in malls across the United States in addition to several international locations.