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Ultimate Guide to the Circle K Franchise

Mar 30, 2022

Guide to the Circle K Franchise

Circle K is a major convenience store chain looking to expand even further. It has several franchise opportunities in the following states: Alabama, Arizona, California, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, and Texas.

You might have heard that Circle K is the best-known brand in convenience store franchising. But what makes a Circle K franchise so special? What should you consider before buying a Circle K franchise? And how much does a Circle K franchise cost?

Entrepreneurs can’t start a company without knowing the ins and outs of the brand, the leading franchise development firm for emerging brands, Fransmart offers all the information one needs to know about franchising. This article gives an overview of Circle K and its franchising process as per its FDD— including its franchise fees, available location, how much franchise owners earn, and more.

Circle K Business Highlights

  • Circle K is one of the largest chains in the United States.
  • Circle K began in 1951 and brings in over $7 billion in revenue.
  • Circle K offers everything a customer might need on the go, apart from fuel, including a coffee bar, beverages, dry foods, packaged foods, refrigerated foods, groceries.
  • It is owned by Alimentation Couche-Tard, a Canadian convenience store operator which also owns many other Canadian, American and European convenience brands.
  • Circle K franchise’s initial investment is between $185,000 and $1,600,000.
  • The initial franchise term is 10years from the store’s opening date. It is renewable for one term based on the franchisor’s approval.

Company Statistics

  • Global Sales: $12,457,942,533
  • S. Units: 5,976
  • International Units: 3,416
  • Total Units: 9,392
  • Percent Franchised: 31%
  • % International Units: 36%
  • S. Franchised Units: 615
  • International Franchised Units: 2,288
  • Sales Growth %: 22.0%
  • Unit Growth %: 16.7%

Circle K’s Franchise Cost

Guide to the Circle K Franchise

It will cost between $2,134,250 and $4,718,250 to open a Circle K franchise. The total investment costs include a $25,000 franchise fee. Here is a breakdown of the investment costs for buying a Circle K franchise:

Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Regional In-Store Training Fee ($500 per attendee) $1,000 $1,000
Travel and Living Expenses While Training $3,500 $15,500
Real Estate Varies.
Construction, Remodeling, and Leasehold Improvements $750,000 $1,600,000
Other Site Development Costs, including Site Development Fee $135,750 $400,750
Furniture, Fixtures & Equipment $500,000 $1,075,000
Car Wash (building), if included $350,000 $650,000
Car Wash (equipment), if included $160,000 $420,000
EPOS and Computer Systems $39,000 $46,000
Signs $20,000 $120,000
Security Deposits and Licenses and Permits $5,000 $15,000
Utility Deposits $1,500 $5,000
Vendor Deposits $0 $16,000
Inventory (merchandise and fuel) $100,000 $220,000
Professional Fees $1,000 $5,000
Insurance $7,500 $24,000
Grand Opening Costs $5,000 $10,000
Fuel Security Deposit $20,000 $50,000
Additional Funds (3 months) $10,000 $20,000
ESTIMATED TOTAL (new or rebuilt convenience store locations) $2,134,250 $4,718,250

Circle K offers qualified franchisees a funding program. It may cover construction, equipment leasing or purchasing, and business improvement costs. The franchisor determines the amount it offers the franchisee in funding upon evaluating the business opportunities and its pressing needs. Circle K is also part of the Franchise Registry, which can help connect you with third-party lenders.

What Existing Franchise Owners Say About Circle K Franchise?

“The reasons for not buying a Circle K franchise are the high investment cost, fees, and royalties.”

“I think Circle K is a great company to work for. I really like how they treat their store owners and make things easy. The training and support I’ve received from Circle K have been very beneficial to my business.”

Available Franchise Locations

Circle K started international operations in 1979. Its international operations now comprise 2,003 international franchise units in Asia, Africa, the Middle East, and North America. Circle K actively seeks qualified master license applicants that can develop over 100 stores in key international markets across these continents. It is also accepting franchise development in select American markets.

How To Buy a Circle K Franchise

You can either become a single-unit or multi-unit franchisee. Single unit franchisees are encouraged for new franchisees, while multi-unit franchisees are encouraged for existing franchisees and business owners who own multiple retail locations. You have an option to either convert an existing retail location or build a new franchise location.

Fransmart is committed to ensuring you become a successful franchise owner in the franchise industry, with its team of professionals ready to walk you through the 10 steps involved in buying a franchise.

Advantages and Disadvantages of a Circle K Franchise

Advantages:

  • Recognized brand name
  • Upwards of 4% growth in the industry
  • Strong customer service

Disadvantages:

  • High start-up costs
  • Saturated market
  • Lower profit margins than other franchise opportunities

Conclusion:

For an investor looking to build wealth through franchising, there are other industries and brands that could return stronger ROI than Circle K.

Fransmart has a portfolio of emerging brands with lower start-up costs, easier operations and the opportunity for better ROI including:

If you’re ready to explore all your franchise options, contact Fransmart today for help choosing the ideal franchise for your goals.

Your Franchise Journey Starts Here

Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.