Donut maker Krispy Kreme Doughnut announced this morning that it would seek the development of the Dallas, Texas, market by refranchising three company-owned stores there.
The company said it has entered into a letter of intent with Sun Holdings, an operator of almost 400 restaurants in Texas and Florida -- including Burger King, Popeye's, Arby's, CiCi's, Golden Corral, and Del Taco, as well as 10 T-Mobile stores -- to develop the donut chain in the Dallas area. The sale of the stores is subject to certain conditions, including the execution of a definitive asset purchase agreement and a development agreement.
As of February 3, Krispy Kreme had 142 domestic franchise stores in 29 states, consisting of 99 factory and 43 satellite stores.
Krispy Kreme Senior VP of U.S. Stores Cindy Bay said: "Execution of the letter of intent with Sun Holdings represents another step forward in our plans to accelerate the pace of domestic franchise expansion. We look forward to announcing the execution of definitive agreements for the Dallas market."
Headquartered in Winston-Salem, N.C., Krispy Kreme Doughtnut has 770 locations in 22 countries around the world. It generated $448 million in revenue over the last 12-month period ending May 5.
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