Circle K Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000
Investment required
$8,000 - $5,367,000
Royalty fee
2.5% to 5.5%

Circle K: Leading the Way in Global Convenience Retail

Circle K is a well-established convenience store franchise that has been a significant player in the retail industry since its founding in 1951. Originating in El Paso, Texas, Circle K quickly expanded its operations, becoming known for its wide range of convenience products, including snacks, beverages, and fuel.

Today, the company is headquartered in Tempe, Arizona. Circle K began franchising in 1999 and has since grown into a global brand with a strong presence in the United States, Canada, Europe, and other regions.

The franchise differentiates itself by offering a full-service convenience store experience with a variety of products tailored to the needs of customers on the go. This includes not only traditional convenience items but also branded fuel options like Shell and BP. 

The brand's extensive reach and comprehensive product offerings have made it a popular choice for franchisees looking to invest in a reliable and established business model. As of today, Circle K operates thousands of stores under both corporate and franchise ownership, with a significant number of these locations outside the United States.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Circle K offers 5 types of franchises:

Type Initial Investment
Circle K Branded Business $8,150 to $119,150
Circle K Motor Fuel Conversions $539,150 to $2,152,150
New or Rebuilt Circle K Motor Fuel Businesses $1,999,150 to $5,367,150
Circle K Convenience Store Conversions $278,500 to $1,442,650
New or Rebuilt Circle K Convenience Store Locations $1,433,500 to $2,714,650

We are summarizing below the main costs associated with opening a new or rebuilt Circle K motor fuel businesses franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

New or rebuilt Circle K motor fuel businesses

Type of Expenditure Amount
Construction, Remodeling, and Leasehold Improvements $1,200,000 - $3,800,000
Other Site Development Costs $135,000 - $250,000
Equipment $500,000 - $950,000
EPOS and Computer Systems $51,000 - $65,000
Network Fee (3 months) $150
Signs $50,000 - $120,000
Inventory $40,000 - $120,000
Insurance $3,000 - $12,000
Fuel Security Deposit $20,000 - $50,000
TOTAL $1,999,150 - $5,367,150

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Number of units

2023
Franchised units

648

636

639

Company-owned units

5,349

5,261

5,301

Total units

5,997

5,897

5,940

Franchise Disclosure Document

Training 

Circle K provides a thorough training program to ensure that franchisees are well-equipped to manage their convenience store effectively. The training begins with a remote classroom component, which is conducted through video and audio applications. 

This is followed by a two-week regional in-store training program at an existing company-operated location. During this in-store training, franchisees gain hands-on experience in the day-to-day operations, including inventory management, customer service, and the specific business systems that Circle K utilizes.

In addition to the initial training, Circle K may require additional in-store training based on the franchisee's prior experience. This could overlap with the regional training or be conducted separately, depending on the needs of the franchisee. 

Circle K also offers periodic ongoing training in specialized fields, ensuring that franchisees and their managers stay updated with the latest operational techniques and company standards. This continuous support underscores Circle K’s commitment to helping its franchisees succeed.

Territory Protection

Circle K does not offer exclusive territory protection to its franchisees. The Franchise Agreement grants the right to operate one convenience store at a specific location, but franchisees may face competition from other Circle K franchises, company-owned stores, or other brands controlled by the franchisor. 

This means that while franchisees have the right to operate at their designated location, they may still encounter nearby competitors within the Circle K network or other related brands.

This lack of territorial exclusivity can be challenging for franchisees, as it increases the potential for market saturation and direct competition.

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