Krispy Kreme is giving 500 boxes of doughnuts to a student after trying to shut down his business reselling them in his hometown

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In this Saturday, Oct. 26, 2019 photo, Catherine Newton, left, buys three boxes of Krispy Kreme doughnuts from Jayson Gonzalez in Little Canada, Minn. Gonzalez, a Minnesota college student, says Krispy Kreme has told him to stop making doughnut runs to Iowa. Gonzalez told the Pioneer Press he was told his sales created a liability for the North Carolina-based company. (Deanna Weniger/Pioneer Press via AP)

Associated Press

Krispy Kreme is giving a college student 500 boxes of doughnuts after first asking him to stop his resale business of its product.

Jayson Gonzalez, 21, of Champlin, Minnesota, told the Associated Press that he would drive 270 miles to a Krispy Kreme store in Clive, Iowa, each weekend to buy up to 100 boxes — each containing 12 doughnuts — and bring them back to Champlin, Minnesota, and resell them. Minnesota has been without Krispy Kreme stores for 11 years.

Gonzales said he would charge $17 to $20 a box, while the boxes usually sell for about $10. He stopped, however, at the request of Krispy Kreme’s Nebraska office, which called him after the St. Paul Pioneer Press reported on his money-making scheme.

But Krispy Kreme has apparently changed its mind and is now encouraging Gonzalez to continue his business venture, according to a statement provided to Business Insider.

Krispy Kreme Doughnut Corporation said that upon reaching out to Gonzalez, it learned he was hoping to graduate from Metropolitan State University in St. Paul in 2021 debt-free and was putting money made from the doughnuts toward that.

Krispy Kreme praised the accounting student’s “entrepreneurial spirit” and said it wanted to help him achieve his goals. The first step is donating 6,000 doughnuts (500 boxes of 12) toward his cause.

The company said it had initially told Gonzalez to stop selling its doughnuts because it wanted to “ensure product quality and regulatory compliance to protect both Jayson and Krispy Kreme.”

“Our main concern is that the doughnuts Jayson sells maintain our high product quality standards, given the distance and manner in which he is transporting and distributing them,” the company said. “So, we are happy to work with Jayson as an independent operator to ensure consistent delivery of our high-quality doughnuts to our fans in Minnesota. We wish Jayson great success and we’re thrilled to help him achieve it by donating 500 dozen doughnuts when he restarts his business.”

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