Because there was no Kispy Kreme business anywhere nearby, a Minnesota college student drove 270 miles to Clive, Iowa, every Saturday to buy up to 100 boxes of
doughnuts, drive them back, and re-sell them to customers willing to pay $17 to $20 per dozen. Some customers reportedly paid Jayson Gonzales as much as $100 per doughnut run for the doughnuts.
'There has not been a Krispy Kreme outpost in Minnesota for 11 years, which prompted the high demand Gonzalez saw.'
Upon learning about this, Krispy Kreme sent Gonzales a letter telling him he had to
'shut down' his business because his side business was a
'liability' to Krispy Kreme. KK added,
"We appreciate Jayson's passion for Krispy Kreme and his entrepreneurial spirit as he pursues his education."
1. So, was Gonzales breaking any law by re-selling the doughnuts be purchased? Did / Does KK have any legal leg to stand on in demanding Gonzales stop making these runs and re-selling the doughnuts?
IMO, if they did, Gonzales would have received an official, legal 'Cease and Desist' order instead of a corporate letter informing Gonzales that he 'had' to stop.
2. What 'Liability' was Gonzales' re-selling the doughnuts causing in a location where KK chose not to have a franchise?
If anything, IMO again, KK should reach out to Gonzales and THANK him for pointing out such a high-demand area for expansion, if not offering to give him part (if not total) ownership of his own KK franchise in the are in which he was re-selling their doughnuts!
What say YOU?
Krispy Kreme orders Minnesota student who bought, resold doughnuts to 'shut down operations'
.