ise This segment consists of the company’s international store franchise operations. International franchise stores sell doughnuts and complementary products almost exclusively through the on-premises sales channel using shop formats similar to those used in the United States, and also using a kiosk format. As of February 2, 2014, there were 574 international franchise shops in 23 countries, consisting of 125 factory stores and 449 satellite shops. KK Supply Chain This segment produces doughnut mixes and manufactures doughnut-making equipment, which all factory stores, both company and franchise, are required to purchase. In addition, KK Supply Chain sells other ingredients, packaging and supplies, principally to Company-owned and domestic franchise stores. As of February 2, 2014, there were 254 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 574 shops in 23 other countries around the world. Of the 828 total stores, 308 were factory stores and 520 were satellites. Distribution Channels The company and its franchisees sell products through two channels: On-premises: Sales to customers visiting company and franchise factory and satellite stores, including sales made through drive-thru windows, along with discounted sales to community organizations that in turn sell doughnuts for fundraising purposes. Wholesale: Sales of fresh doughnuts and packaged sweets primarily on a branded basis to various retail customers, including convenience stores, grocery stores/mass merchants, and other food service and institutional accounts. These customers display and resell the doughnuts and other products from self-service display cases, and in packages merchandised on display units. Products are delivered to customer locations by the company’s fleet of delivery trucks operated by a commissioned employee sales force. Distribution through wholesale sales channels is limited to stores in the United States. Strategic Initiatives The company’s strategic initiatives include developing and testing domestic small shop formats to drive sales and profitability; improving its focus on shop operations; driving revenues by improving beverage offerings and deploying new products; investing for growth in the domestic franchise system; building on its success internationally; improving franchisee support; continuing to invest in research and development; and increasing its investments in technology. Trademarks and Trade Names The company’s doughnut shops are operated under the Krispy Kreme trademark, and it uses various federally and internationally registered trademarks and service marks, including Original Glazed and Hot Krispy Kreme Original Glazed Now and the logos associated with these marks. It has also registered some of its trademarks in approximately 60 other countries. Government Regulation The company must comply with regulations adopted by the Federal Trade Commission and with various state and foreign laws that regulate the offer and sale of franchises. The work conditions at the company’s facilities are regulated by the Occupational Safety and Health Administration and are subject to periodic inspections by this agency. History Krispy Kreme Doughnuts, Inc. was founded in 1937.
krispy kreme doughnuts inc
370 Knollwood Street
Winston-Salem, NC 27103
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