If only the KK corporate office understood what you do. By offering their product in grocery stores and even 7-11 type places they pretty much killed the golden goose because they were offering an inferior product when they did so. That turned a lot of people off because when they bought in these places they just ended up wondering what all the fuss was about, but at the same time it siphoned off business from the independent locations. Then there was the plain old scam aspect of the way the corporation (not the individual franchises) was run. In effect they weren’t selling donuts, they were selling franchises and once the hype wore off the house of cards began to crumble.
I doubt Krispy Kreme is dead as a product or as a brand. In their hot, fresh, right out of the fryer state the donuts are too good and too many people love them. The company will be resurrected but they may have to retrench quite a bit by closing outlets such as yours in order to restore their financial integrity.