Can You Afford a Krispy Kreme Franchise?
This question can be easily answered depending on the available money you have now and the amount you want to invest. If you have all the money in the world, you can easily afford a Krispy Kreme Franchise, even if it is more expensive than a Subway franchise cost.
Comparing the Costs
The investment required to open a Krispy Kreme store is from $275,000 to $1,911,250. But the actual initial franchise fee is actually only around $12,500 to $25,000. This fee will grant you a license to run a store under the Krispy Kreme brand. In this respect, you can consider Krispy Kreme as one of the franchise opportunities under 10k.
On the other hand, the Subway franchise fee in the United States and Canada is $15,000. Outside of these countries, the franchise fee ranges from $10,000 to $15,000.
But that is not all. You also have to spend additional money to open a Subway store. Your total investment, usually, will be range from $116,000 to $263.000 if you are in the United States. If you are in Canada, your estimated investment will range from $102,000 to $234,000.
With these figures, you can easily see that a franchise with Krispy Kreme is more expensive than a franchise with Subway.
In addition, you must be able to fulfill several requirements before you are allowed to open a Krispy Kreme Franchise. These are Krispy Kreme’s strict rules for franchising
1. You should be in a position to raise the required capital.
Considering that the cost of a Krispy Kreme franchise is up to $2 million, the company requires you to have a net worth of at least $5 million to be considered.
You need to have the financial solvency to manage upfront costs and unexpected expenses. This is essential to being approved as a franchisee of Krispy Kreme.
2. You must have an ownership experience in the food industry.
That means, if you don’t own a restaurant or its business equivalent, you will not be considered. This qualification is important because it will help Krispy Kreme determine your track record in the food service industry.
With a good background in the food industry, your chances of making it good in the Krispy Kreme corporate climate is assured.
3. You will either be handpicked or interviewed to ascertain that the Krispy Kreme franchise that you will operate will perform well in your particular market or sphere of influence. This process will only be undertaken if you have proven yourself in the first two qualifications.
In effect, it is not just a question of whether you can afford a Krispy Kreme franchise or not. The requirement is much more extensive and personal than a monetary one.
For more information please visit our website: www.instituteforbusinessacquisitions.com
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