The North Carolina firm has awarded development rights for an undisclosed sum to three entrepreneurs in Lubbock, Amarillo and El Paso, TX; and two other undetermined sites.
Krispy Kreme will retain ownership of 33% to 40% in the new ventures, the New York Stock Exchange-traded company says in a prepared statement.
Hal Smith, owner, Hal Smith Restaurant Group and the Krispy Kreme franchisee for Oklahoma City and Tulsa, OK, will become managing partner of KK-TX LLC. The new firm will develop doughnut stores over the next five years in Lubbock and Amarillo, TX. Krispy Kreme will own 33% of the business.
Smith is the former president, Steak & Ale; former president/chief operating officer, Chili's Inc.; and former chairman/CEO/President, Chi-Chi's Mexican Restaurants. His Hal Smith Restaurant Group, based in Oklahoma City, OK, operates 26 full-service restaurants in six states.
Rigel Corp., headed by Jim Morrissey and John Chisholm, will develop stores in El Paso. Rigel is the existing Krispy Kreme franchisee for Phoenix and Tucscon, AZ and Albuquerque, NM. Rigel has operated Godfather's Pizza, KFC and Bruegger's Bagles. Krispy Kreme will retain 40% of the El Paso operation.
L&L Enterprise Holdings LLC will develop Krispy Kremes in undetermined cities in Montana and Wyoming. Lincoln Spoor is the franchisee for Reno, Las Vegas, Salt Lake City and Boise, ID. Krispy Kreme will own 33% of the new L&L doughnut business.
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