Legal Question in Business Law in California

Krispy Kreme Doughnut Reselling

I want to purchase Krispy Kreme doughnuts from one of their franchises, such as Van Nuys, La Habra, etc., and sell/deliver them to coffee & bagel houses for a higher price then I paid, who will then sell them to customers for a higher price then they paid. Is there anything wrong in doing this? We will not represent ourselves as affiliated with Krispy Kreme, nor will the coffeee & bagel shops. We are simply providing a convenience by driving the long distance to the closest Krispy Kreme franchise, and bringing them to locations more convenient for many people/businesses. Is there anything illegal in this. Can the Krispy Kreme corporation stop us from doing this. Thanks in advance.


Asked on 8/26/01, 12:01 am

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Krispy Kreme Doughnut Reselling

I haven't done any research on this, but "off the top of my head" I would say Krispy Kreme can prevent you from doing this if they choose, and they would probably so choose. One of several possible grounds is that you do not have the right to use their trademark. You should approach Krispy Kreme and ask permission in any event; if they are going to make trouble for you, you should know in advance and avoid the costs of a likely lawsuit.

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Answered on 9/04/01, 1:35 am
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Krispy Kreme Doughnut Reselling

Thanks for your email. Although I have seen the same type of operation as what you've described done in many places here in Southern California, I can only STRONGLY recommend that you approach Krispy Kreme and see if they have some sort of licensing agreement first. This will avoid you facing an injunction, or a potentially very costly lawsuit.

Although you are providing a convenience for others, you are also using another company's products, trademarks, logos, etc., and if someone reasonably believed that you were working on behalf of Krispy Kreme or with their permission, you may make Krispy Kreme liable if you had something bad happen.

If you have any further questions, please feel free to email or call me at 1-877-568-2977.

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Answered on 9/04/01, 4:02 am


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