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Apparently you can't re-sell Krispy Kremes

TXCyclones

TXCyclones

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After uproar, Krispy Kreme will let Minnesota college student resell its doughnuts

"Krispy Kreme has reversed course after initially telling a college student he couldn't resell its doughnuts in Minnesota, announcing that Jayson Gonzalez, 21, may continue his business as an independent operator. Krispy Kreme also said it will donate 500 dozen doughnuts to his business.

"I am definitely going to need a bigger vehicle," Gonzalez said in a Facebook post for his business, dubbed Krispy Kreme Run Minnesota."

https://www.cbsnews.com/news/krispy...oughnuts-and-will-donate-500-dozen-doughnuts/
 
isufbcurt

isufbcurt

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BCClone said:
His profit margin just dropped 7% or so due to sales tax
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Not really, usually sales tax is charged in addition to and not as a part of sales price.

I should saturate his market, my racing hauler is not being used this time of year I could haul thousands of dozens up to Minnesota and sell on my own. "evil laugh"
 
HFCS

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CtownCyclone said:
I think if Krispy Kreme isn't in Minnesota (i.e. don't have a license to operate) and know that this guy is reselling Krispy Kreme donuts where they aren't authorized to do business, they could face legal action by the state for operating without a license.

Or they could just be dicks.
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TXCyclones said:
After uproar, Krispy Kreme will let Minnesota college student resell its doughnuts

"Krispy Kreme has reversed course after initially telling a college student he couldn't resell its doughnuts in Minnesota, announcing that Jayson Gonzalez, 21, may continue his business as an independent operator. Krispy Kreme also said it will donate 500 dozen doughnuts to his business.

"I am definitely going to need a bigger vehicle," Gonzalez said in a Facebook post for his business, dubbed Krispy Kreme Run Minnesota."

https://www.cbsnews.com/news/krispy...oughnuts-and-will-donate-500-dozen-doughnuts/
Click to expand...

Ah yes, the old "sorry we got caught doing something people hated".
 
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HFCS

HFCS

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isufbcurt said:
Not really, usually sales tax is charged in addition to and not as a part of sales price.
Click to expand...

My accountant always asks if I made any large purchases in other states, kid sounds smart enough to know he'd have to report it.

At least they ask that in California returns, maybe most states don't?
 
BCClone

BCClone

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Not exactly sure.
isufbcurt said:
Not really, usually sales tax is charged in addition to and not as a part of sales price.

I should saturate his market, my racing hauler is not being used this time of year I could haul thousands of dozens up to Minnesota and sell on my own. "evil laugh"
Click to expand...


In Iowa,food isn’t taxed so they are usually an even price. Minny charges last I knew so he now will have screwed up prices.
 
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Cyclones_R_GR8

Cyclones_R_GR8

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HFCS said:
My accountant always asks if I made any large purchases in other states, kid sounds smart enough to know he'd have to report it.

At least they ask that in California returns, maybe most states don't?
Click to expand...
I've never seen that question on a Nebraska return
 
Cycsk

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As I thought more about it, I thought there may be a food safety issue. A state might want to regulate food distributors. And if something happened, the state might hold KK responsible because they knew that they were selling to a distributor.
 
CascadeClone

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Cycsk said:
As I thought more about it, I thought there may be a food safety issue. A state might want to regulate food distributors. And if something happened, the state might hold KK responsible because they knew that they were selling to a distributor.
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It is all about LIABILITY. 90% of corporate decision making is based on liability risk i.e. FEAR.

In this case, there is liability that:
-the donuts go bad if the guy doesn't handle them right and people get sick = bad press + they would get sued
-the guy turns out to be unsavory in some way, and your name is associated with him = bad press
-some aggressive tax agent decides that even though he is a separate entity, KK now has a presence in MN and must therefore be subject to paying tax there = financial costs
-the guy wrecks his car en route to MN and he (or anyone else in the crash) decides they want some money = they get sued
-probably other things I can't think of

There's probably more that I can't think of. It's similar to how you don't want just anyone using your logo. Any random person who associates with your company in any way can cause financial and reputational risk. Even if you had no knowledge at all of their activity. But ESPECIALLY if you knew about it and didn't do anything about it.
 
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VTXCyRyD

VTXCyRyD

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Suppose he licks each doughnut before reselling or just one of them?
source.gif
 
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intrepid27

intrepid27

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jcisuclones said:
Sounds like they really only wanted to make sure things were okay from a liability standpoint.
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I'm guessing like very other corporation in America they are caving to social pressure after looking like butt holes for picking on a starving college kid.
 
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