Krispy Kreme Doughnuts Inc was incorporated in 1999 in the State of North Carolina. The Company is a retailer and wholesaler of doughnuts, complementary beverages and treats and packaged sweets. The Company's business, which began in 1937, is owning and franchising Krispy Kreme stores. The Company's Original Glazed doughnut is sold and distributed together with complementary products such as coffees and other beverages. The Company's four business segments are Company Stores, Domestic Franchise, International Franchise and KK Supply Chain. The Company Stores segment is comprised of the doughnut shops operated by the Company. These shops sell doughnuts and complementary products through the on-premises and wholesale channels and come in two formats: factory stores and satellite shops. Factory stores have a doughnut-making production line, and many of them sell products through both on-premises and wholesale channels to more fully utilize production capacity. Factory stores also include commissaries which serve only wholesale customers. Satellite shops, which serve only on-premises customers, are smaller than factory stores, and include the hot shop and fresh shop formats. As of February 2, 2014, there were 95 Company shops in 18 states and the District of Columbia, including 76 factory and 19 satellite shops. The Domestic Franchise segment consists of the Company's domestic store franchise operations. Domestic franchise stores sell doughnuts and complementary products through the on-premises and wholesale channels in the same way and using the same store formats as do Company stores. As of February 2, 2014, there were 159 domestic franchise stores in 30 states, consisting of 107 factory and 52 satellite stores. The International Franchise segment consists of the Company's international store franchise operations. International franchise stores sell doughnuts and complementary products almost exclusively through the on-premises sales channel using shop formats similar to those used in the United States, and also using a kiosk format. A portion of sales by the franchisees in Canada, the United Kingdom and Australia are made to wholesale customers. As of February 2, 2014 there were 574 international franchise shops in 23 countries, consisting of 125 factory stores and 449 satellite shops. The KK Supply Chain segment produces doughnut mixes and manufactures doughnut-making equipment, which all factory stores, both Company and franchise, are required to purchase. In addition, KK Supply Chain sells other ingredients, packaging and supplies, mainly to Company-owned and domestic franchise stores. As of February 2, 2014, there were 254 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 574 shops in 23 other countries. Of the 828 total stores, 308 were factory stores and 520 were satellites. The Company competes for sales with many sweet treats, including those producers, such as Dolly Madison, Entenmanns, Little Debbie, Sara Lee, and regional brands. The Company is subject to federal, state and local environmental laws and regulations.