Krispy Kreme Doughnuts Inc. and its largest franchise operator have settled their dispute over a decision by the doughnut company to terminate the franchisee’s license, which had temporarily barred the firm from selling doughnuts under the famous brand name, both companies said Friday.

On Thursday, Krispy Kreme said it had terminated the license of Great Circle Family Foods LLC, which operates 28 Krispy Kreme locations with nearly 750 employees in Southern California. Krispy Kreme said it took the action because the company had not paid required royalties and fees.