August 03, 2006
Krispy Kreme – the Great Circle Shrinks
According to this article, in what Krispy Kreme Doughnuts Inc.’s CEO called “another step in the turn around of Krispy Kreme,” Krispy Kreme settled litigation with its largest franchisee in Southern California, Great Circle Family Foods LLC. Great Circle sued Krispy Kreme, alleging that Krispy Kreme tried to force Great Circle into bankruptcy. Under the settlement, Krispy Kreme subsidiary Southern Doughnuts LLC will buy three Krispy Kreme franchises from Great Circle for $2.9 million, leaving Great Circle with 17 franchises. Earlier this year, Krispy Kreme revoked Great Circle’s license for failure to pay royalties and fees, but that aspect of the parties’ dispute settled quickly when Great Circle agreed to resume payment. Over the past year, Krispy Kreme has been reducing its number of stores in an effort to improve its performance.
Posted by franchiselawblog at August 3, 2006 12:17 PM