Global doughnut chain Krispy Kreme has closed a $90 million refranchising transaction with its joint venture partner WKS Restaurant Group, marking a key step in its shift toward a more franchise led, capital light business model.
The deal, completed on March 23, sees Krispy Kreme sell a significant portion of its stake in its US joint venture to WKS, while expanding the partner’s role across the Western US market.
The total consideration tied to the transaction is about $90 million, including nearly $50 million in cash received at closing. The move is part of a broader turnaround strategy focused on refranchising company owned operations, simplifying the business, and improving balance sheet flexibility. Management has indicated that proceeds from the transaction will be used primarily to reduce debt and support long term growth.
As part of the agreement, WKS Restaurant Group will increase its ownership in the Western US joint venture and take on a larger operational footprint, reinforcing Krispy Kreme’s reliance on experienced franchise partners to scale in key regions.
The refranchising deal follows a series of portfolio moves by the company, including restructuring its Western US operations and agreeing to divest its Japan business, as it looks to streamline operations and focus on higher return markets.
Founded in 1937, Krispy Kreme operates across a mix of company owned stores, franchise outlets, and retail partnerships, with more than 1,400 locations globally.
The latest transaction underscores a wider industry shift toward asset light franchise models, with Krispy Kreme positioning itself to accelerate expansion through partners while improving financial discipline.
