Krispy Kreme vs Sprinkles Cupcakes Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Krispy Kreme vs Sprinkles Cupcakes including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$200,500 - $4,115,000 | $576,000 - $1,075,000 |
Franchise Fee |
$12,500 - $25,000 | N/A |
Royalty Fee |
4.5% | - |
Advertising Fee |
1.5% | - |
Year Founded |
1937 | 2012 |
Year Franchised |
0 | 2020 |
Term Of Agreement |
- | - |
Term Of Agreement |
- | - |
Renewal Fee |
- | - |
Business Experience Requirements |
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 |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
-/- | -/- |
Start-up Costs |
-/- | -/- |
Equipment |
-/- | -/- |
Inventory |
-/- | -/- |
Receivables |
-/- | -/- |
Payroll |
-/- | -/- |
Training & Support |
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 |
*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 |
- | - |
Operations |
- | - |
Expansion Plans |
US Expansion |
- | Yes |
Canada Expansion |
- | - |
International Expansion |
- | Yes |
Company Overviews
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.
#85 on Franchise Rankings.com
About Sprinkles Cupcakes
Sprinkles
opened “the world’s first cupcake bakery” in Beverly Hills, as reported
by the Food Network, and is credited by the Los Angeles Times as “the
progenitor of the haute cupcake craze.” Founded by Candace Nelson, judge
on Food Network’s hit show “Cupcake Wars,” and husband Charles,
Sprinkles has inspired long lines of devoted Hollywood stars and serious
epicureans alike. From Tom Cruise to Oprah Winfrey, Blake Lively to
Ryan Seacrest, celebrities are abuzz about Sprinkles!
Baked
fresh in small batches throughout the day, Sprinkles Cupcakes are
handcrafted from the finest ingredients and contain no preservatives,
trans fats or artificial flavors. Sprinkles has locations nationwide, a
traveling Sprinklesmobile - the world’s first cupcake truck, and sells
its cupcake mixes at over 250 Williams-Sonoma stores throughout the US
and Canada.
In
2012, Sprinkles debuted the world’s first Cupcake ATM and continued its
foray into classic American desserts with the launch of Sprinkles Ice
Cream & Cookies.
“The Sprinkles Baking Book” hit the New York Times
Best Sellers list in October, 2016.
The total investment necessary to begin operation of a Production
Bakery is $781,000 to $1,075,000. This includes $40,000 to $43,250 that
must be paid to the franchisor or affiliate.
The total investment
necessary to begin operation of a Pantry Bakery is $576,000 to $895,000.
This includes $40,000 to $43,250 that must be paid to the franchisor or
affiliate. The franchisor and you may choose to sign a Development
Rights Agreement under which you will develop a number of Sprinkles
Cupcakes Bakeries. The franchisor expects the Development Rights
Agreement to cover between 2 and 10 Sprinkles Cupcakes Bakeries.
The
total investment necessary to begin operation under a Development Rights
Agreement is $40,500 to $202,500. This includes $40,000 to $200,000
that must be paid to the franchisor or affiliate.