Many people blame the downfall of Krispy Kreme on the "Atkins" diet craze where carbs were shunned, but in reality, it was a failed franchising system. The franchise was hurt by 1) too many outlets (stand alone stores, grocery stores, convenience stores) selling the product; 2) too close to each other and 3) they choked their franchise owners to death with high markups on machinery and product.
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