In this FDD Talk post based on Item 19 of Krispy Kreme’s 2014 FDD, you will find the answers to the following questions:

What was the 2013 average net on-premises revenue for Krispy Kreme Factory Stores that were in operation during the entire 12-month period ended February 2, 2014? How many stores were included in the sample?

What was the 2013 average net on-premises revenue for Krispy Kreme Factory Stores that were in operation during the entire 12-month period ended February 2, 2014, with less than 2,700 square footage, and containing a smaller line of production equipment? How many stores were included in the sample?

What was the 2013 average net on-premises revenue for Krispy Kreme Hot Shop Stores that were in operation during the entire 12-month period ended February 2, 2014? How many stores were included in the sample?

What was the 2013 average net on-premises revenue for Krispy Kreme Fresh Shop/Kiosk Stores that were in operation during the entire 12-month period ended February 2, 2014? How many stores were included in the sample?

How does Krispy Kreme define the term “Net On-Premises Revenue”?

How did Krispy Kreme obtain the information used in Item 19? Has this information been audited or verified?

What were the average revenues; food, packaging, and freight cost; labor; benefits; gross profit; marketing; operating expenses; other expenses; store EBITDAR; royalties; franchise EBITDAR; store count; and average annual revenue per store for company-owned retail Factory Stores (by quintile)?

What were the average revenues; food, packaging, and freight cost; labor; benefits; gross profit; marketing; operating expenses; other expenses; store EBITDAR; royalties; franchise EBITDAR; store count; and average annual revenue per store for company-owned Hot Shop Stores (by quintile)? How many of these stores are free-standing and how many are located in end-caps or strip centers?

Do these expenses include any allocation of corporate overhead costs related to support functions, including, but not limited to, regional store supervisory management, accounting, information technology, human resources, and marketing?

Which expenses for corporate stores may reflect economies of scale and circumstances that are not available to you?

Aside from the specific expenses already mentioned, what other categories of expenses may franchisees experience?

What are Franchise Chatter’s latest views on Krispy Kreme’s financial performance representations?

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