Krispy Kreme Reinstates Southern California Franchisee's License

LOS ANGELES--(BUSINESS WIRE)--Jan. 6, 2006--Great Circle Family Foods (GCFF) and Krispy Kreme Doughnuts have reached an agreement to resolve issues related to the notice of termination of franchise agreements sent by Krispy Kreme Doughnut Corporation on January 5, 2006.

By this resolution, all franchise agreements are reinstated and the notice of termination is withdrawn. Shipments of ingredients to permit continuous operations will resume immediately.

“Southern California customers can rest assured that their favorite doughnuts -- Krispy Kreme -- will be rolling off our conveyors without interruption”

"Southern California customers can rest assured that their favorite doughnuts -- Krispy Kreme -- will be rolling off our conveyors without interruption," said Richard Reinis, chief executive officer of GCFF.

GCFF employs nearly 750 people in Southern California and operates 28 Krispy Kreme Doughnuts locations.