Originally published in Cohen, B., Bennett, J., & Bubb, J. (2009). Krispy Kreme: The franchisor that went stale. 5-109-007. Evanston, IL: Kellogg School of Management, Northwestern University.

The case depicts Krispy Kremes franchise system growth and decline as a lesson to entrepreneurs running a company as a franchisor. Burton D. Cohen, retired senior vice president and chief franchise officer for McDonalds Corporation from 1980 to 1999, explains the strengths and weaknesses in Krispy Kremes franchising strategy during the period from 1997 to 2006. Areas examined in the case include: franchisee agreements, accounting practices, volatility in stock valuation, franchise system growth, franchise ownership structure, product distribution strategy, and commissary growth. The case depicts how Krispy Kreme started and how it ended up in a low point.

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