Krispy Kreme Doughnuts Inc. signed a deal with restaurant operators in Hong Kong to open new franchises there and in Macau.
The development agreement means the Chinese regions could get up to 20 Krispy Kreme shops in the next five years, with the first one scheduled to open this fall.
Winston-Salem-based Krispy Kreme (NYSE: KKD) doesn’t hold an ownership interest in the Hong Kong-based franchisee, Krispy Kreme Hong Kong Ltd. The franchisee is operated by Wayne and Brian Parfitt, who already operate restaurants in Hong Kong and Vietnam.
International expansion through franchising is a key plank in Krispy Kreme’s strategy. The doughnut maker is still facing a number of lawsuits and government investigations into its accounting and business practices.
Krispy Kreme also disclosed late Monday that it has completed a series of financial transactions with its Australian franchisee, Krispy Kreme Australia Pty Limited, that are intended to disentangle Krispy Kreme from the franchisee.
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