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Terminating a Franchise by Krispy Kreme

You’re a franchisee and your financial and operational problems are snowballing out of control.  The result is you’re not operating in compliance and you’re late on payments to the franchisor, and the franchisor decides that you need to stop operating.   How does the franchisor shut down your store using the courts?

See Krispy Kreme v Satellite Donuts (franchisee)

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.


  1. Uhhhh….okay. When I read the headline and then the article I felt a disconnect. What I got out of this was the zee did not pay the zor what it was due and the zee also was creating donuts that did not meet standards.

    I did not read anything that states the zee thought their donuts were in compliance or any such allegation.

    Did I miss something?

    • I wanted to illustrate the process of how a zor moves to shut down a zee using the courts. The zee was clearly in the wrong according to the article. I edited the post’s text to hopefully be more clear. Thanks for pointing it out.

  2. This article is clear to me I think if you sign an FDD you need to pay your royalties monthly as outlined in your Franchise Agreement.

  3. Errington Walters

    Two sides to every story and we have yet to have our day in court.

  4. Franchise Agreement Should be more clear and yes plz do homework before passing a judgement.

  5. Alexender Mccuort

    I was the one that totally screwed up the business model…

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