Krispy Kreme has completed a reported $90 million agreement with joint venture partner WKS Restaurant Group, transferring 23 company-owned locations in California and Hawaii to the restaurant operator. The transaction supports Krispy Kreme’s broader strategy of reducing company-owned store operations while expanding through franchise partnerships.
According to Restaurant Dive, the deal brings WKS Restaurant Group’s Krispy Kreme franchise portfolio to 73 units and strengthens its role in the brand’s retail and fresh delivery network.
WKS Expands Its Krispy Kreme Portfolio
Through the transaction, WKS acquired 23 Krispy Kreme locations across California and Hawaii. Following the acquisition, the group’s Krispy Kreme franchise unit total reached 73.
WKS also operates an extensive fresh delivery network for Krispy Kreme, with approximately 1,000 delivery points, including retail locations such as Kroger, Target, and Walmart.
The combination of company-operated retail locations transferred to a franchise partner and an established delivery network illustrates the different channels through which Krispy Kreme products reach customers.
Supporting Store Development and Fresh Delivery
The agreement also includes plans for WKS to develop additional Krispy Kreme stores and expand the brand’s fresh delivery system.
This creates opportunities for growth through both traditional retail locations and points of distribution within existing retail environments.
Fresh delivery locations can help make Krispy Kreme products available to customers beyond standalone shops, while additional stores can support the brand’s physical presence in local markets.
A Broader Refranchising Strategy
The transaction forms part of Krispy Kreme’s effort to reduce its company-owned store base and rely more heavily on franchise partners.
Under a franchising model, local or regional operators take responsibility for operating agreed locations in accordance with the franchise relationship. For a brand pursuing expansion, partnerships can provide access to operators with existing infrastructure, market experience, and multi-unit management capabilities.
WKS brings experience across several restaurant brands. Restaurant Dive reports that the group also operates Wendy’s, Denny’s, and El Pollo Loco restaurants across 19 states.
What This Means for Franchise Development
The WKS transaction illustrates several themes relevant to franchise development:
- Multi-unit ownership: A franchise partner can operate a portfolio of locations across multiple markets.
- Existing operating experience: Established restaurant groups may bring management systems and operational expertise.
- Multiple distribution channels: Growth can include both standalone shops and fresh delivery points.
- Partner-led expansion: Franchise agreements can support development while changing the balance between company-owned and franchised operations.
The structure and requirements of each franchise relationship depend on the specific agreement, market, and development plan.
Exploring Franchise Opportunities
For prospective franchise partners, the transaction offers an example of how established operators can participate in brand expansion through multi-unit development and distribution networks.
Businesses considering a franchise opportunity should prepare information about their operating experience, financial capacity, target markets, and proposed development strategy.
Interested in exploring a Krispy Kreme franchise opportunity?
Visit our Franchise Application page to submit your information and proposed development plans.
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