Krispy Kreme, Inc. (NASDAQ: DNUT) has announced a significant strategic move as part of its broader global turnaround plan, revealing an agreement to sell its Japan operations to Unison Capital, Inc., a leading private equity firm in Asia. The transaction represents Krispy Kreme’s first international refranchising agreement since launching its multi-year transformation strategy in August, signaling a major step forward in reshaping the company’s global footprint and balance sheet.
Under the terms of the agreement, Unison Capital will acquire Krispy Kreme’s Japanese business for estimated cash proceeds of approximately $65 million, subject to final fiscal year 2025 financial results for the Japan market. Krispy Kreme stated that the net proceeds, after transaction-related fees and expenses, are expected to be used primarily for debt reduction, reinforcing the company’s focus on strengthening its financial position and improving long-term flexibility. The transaction is anticipated to close in the first quarter of 2026, pending customary regulatory approvals and closing conditions.
A Milestone Year for Krispy Kreme in Japan
The announcement comes at a symbolic moment for the iconic doughnut brand, as Krispy Kreme recently celebrated its 20th anniversary in Japan. The company first entered the Japanese market in 2006 with the opening of its flagship store in Shinjuku, Tokyo, introducing Japanese consumers to its signature Original Glazed doughnuts and theatrical “Hot Light” experience.
Over the past two decades, Krispy Kreme Japan has established itself as a recognizable and beloved brand, adapting its menu and marketing strategies to suit local tastes while maintaining its global brand identity. Today, the business operates 89 retail locations and serves consumers through nearly 300 fresh delivery points of access across major metropolitan areas, including Tokyo, Osaka, and other key cities nationwide.
Japan has long been considered one of Krispy Kreme’s more mature and stable international markets, with strong brand awareness, consistent consumer demand, and a loyal customer base. However, as part of its evolving corporate strategy, the company has determined that refranchising the market under a capable local partner would better align with its long-term objectives.
Refranchising as a Core Strategic Pillar
The sale of Krispy Kreme’s Japan operations reflects the company’s broader effort to transition toward a capital-light, franchise-led growth model. This approach prioritizes partnerships with experienced local operators who can drive growth, optimize operations, and expand market presence while reducing corporate-level capital requirements and operational complexity.
Krispy Kreme CEO Josh Charlesworth emphasized the strategic importance of the deal, describing it as a meaningful milestone in the company’s turnaround plan.
“We are pleased to announce our first international refranchising agreement since launching our turnaround plan in August, marking meaningful progress on a key pillar of the plan,” Charlesworth said. “Unison is a proven, skilled operator with deep expertise in the retail beverage and restaurant sectors, and we believe they are an ideal long-term partner to operate and grow Krispy Kreme in Japan.”
Charlesworth also highlighted the financial benefits of the transaction, noting that refranchising the Japan business will enhance Krispy Kreme’s financial flexibility while supporting its debt reduction goals.
“The sale of our Japan business is an important step in advancing our refranchising initiative, supporting greater financial flexibility and reducing debt,” he added.
By shifting ownership of the Japanese operations to Unison Capital, Krispy Kreme aims to retain brand presence and royalty income in the market while reallocating corporate resources toward core priorities, including innovation, digital engagement, and expansion in key growth markets.
Unison Capital Brings Local Expertise and Expansion Ambitions
Founded in 1998, Unison Capital is one of Japan’s most established private equity firms, with a strong track record of investing in consumer-focused businesses. The firm has raised approximately $5 billion in assets across six funds in Japan and three funds in South Korea, with investments spanning consumer brands, healthcare services, and B2B sectors.
Unison’s portfolio has included several well-known food and beverage concepts, such as bubble tea chains, noodle restaurants, sushi brands, and wine retailers, giving the firm extensive hands-on experience in scaling and optimizing restaurant and retail businesses across Asia.
Unison Co-Founder and Managing Partner Tatsuya Hayashi expressed enthusiasm about the acquisition and the opportunity to steward one of the world’s most recognizable doughnut brands in Japan.
“We are excited to assume ownership of Krispy Kreme’s operations in Japan and to be joining forces with such an iconic global brand,” Hayashi said. “For two decades, Krispy Kreme’s fresh doughnuts have brought joyful experiences to communities across Japan and we look forward to building on that tradition.”
Hayashi also emphasized alignment between the two companies in terms of quality, growth, and long-term vision.
“We share their commitment to excellence and growth and are proud to represent Krispy Kreme as a trusted partner in operating and expanding the brand’s footprint in Japan,” he added.
Under Unison’s ownership, Krispy Kreme Japan is expected to continue operating under the existing brand, with potential opportunities for store optimization, menu innovation, digital ordering enhancements, and selective expansion into new locations and formats.
Strengthening Krispy Kreme’s Global Transformation
The refranchising of the Japan business underscores Krispy Kreme’s disciplined approach to portfolio management as it navigates a challenging global consumer environment marked by inflationary pressures, shifting consumer spending patterns, and heightened competition in the quick-service restaurant sector.
By monetizing a mature international market while retaining a strategic partnership, Krispy Kreme can reduce leverage and focus its efforts on regions with higher growth potential, including expanding fresh delivery networks, improving operational efficiency, and strengthening relationships with franchise partners worldwide.
The transaction also highlights the growing role of experienced regional operators in driving the next phase of growth for global food brands, particularly in markets where local consumer insights, supply chain expertise, and operational agility are critical to success.
As Krispy Kreme looks ahead, the Japan refranchising agreement with Unison Capital represents both a financial inflection point and a strategic reaffirmation of its long-term vision: to build a more resilient, asset-light global business while continuing to deliver moments of joy to doughnut lovers around the world.
With the deal expected to close in early 2026, investors and industry observers will be watching closely to see how the partnership unfolds—and how it shapes the next chapter of Krispy Kreme’s international growth story.
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