Krispy Kreme Doughnuts Inc. said it is moving into China under a franchising deal that will lead to 35 locations in three of the country’s largest cities.
The Winston-Salem-based chain said Wednesday that South Korea-based KKD Lotte Holdings Company Ltd. will open stores in Shanghai, Beijing and Tianjin over the next four to five years.
Financial terms of the deal were not disclosed.
The company said about 75 percent of its stores are operated by franchisees, and half are located outside the United States.
Krispy Kreme has been hurt by allegations of misconduct by former management, a trend toward healthier eating and bankruptcy filings by several of its franchisees.