Have you ever thought of getting a Circle K franchise but have no idea how much it will set you back? And how do you go about applying for a franchise? This quick guide will walk you through the process and give you a bottom-line number you need to cover the Circle K franchise cost.
Whether you need a fresh cup of joe, a delicious meal on the go, or a nice, cold slush, Circle K is the perfect place to drop in. It all started in 1951 when Fred Hervey bought three Kay’s Food Stores in El Paso, Texas. Armed with entrepreneurial prowess, Hervey grew the chain and expanded to New Mexico and Arizona.
Almost seven decades after its birth, Circle K has evolved into a global brand represented in more than 20 countries. Now owned by its parent company Alimentation Couche-Tard, the brand takes pride in offering not only quality products but also excellent customer service.
Just as with most franchises, Circle K Stores are characterized by a unique system. This includes a distinctive interior and exterior look, as well as color schemes, decor, and staff uniform. All these work to display a cohesive appearance common among all stores under the brand.
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How Much Does a Circle K Franchise Cost?
But before you can serve up icy tumblers of Froster, first things first. How much will a franchise set you back? According to Circle K’s 2019 FDD, a newly constructed Circle K store will cost somewhere between $614,250 to $1,927,640.
On the other hand, converting an already existing convenience store into a Circle K will cost you much lower – around $189,250 to $1,020,640. Keep in mind, however, that these numbers only reflect the initial investment for the first few months of operations.
In addition to that, there are also other fees a franchisee may need to cover as indicated in the FDD.
The table below shows a breakdown of the Circle K franchise cost for newly constructed stores.
Cost Breakdown
Name of Fee
Low
High
Initial Franchise Fee
$0
$25,000
Back-Office System Training Fee ($1,000 per attendee)
$2,000
$2,000
Travel and Living Expenses While Training
$3,500
$15,500
Real Estate
Varies
Construction, Remodeling, and Leasehold Improvements
$175,000
$950,000
Other Site Development Costs, including Site Development Fee
$120,750
$300,750
Fixtures, Furniture and Equipment
$175,000
$325,000
EPOS and Computer Systems
$39,000
$46,000
Network Fee
$0
$150
Communications Fee
$0
$240
Signs
$15,000
$85,000
Security Deposits and Licenses and Permits
$2,000
$10,000
Utility Deposits
$1,500
$5,000
Vendor Deposits
$0
$16,000
Merchandise Inventory
$60,000
$100,000
Professional Fees
$1,000
$5,000
Insurance
$4,500
$12,000
Grand Opening Costs
$5,000
$10,000
Additional Funds (3 months)
$10,000
$20,000
Estimated Total
$614,250
$1,927,640
If you find the abovementioned figures to be a bit over your budget, then you’ll be happy to know that they offer an Equipment and/or Construction Funding program. Bear in mind, however, that this funding is only for qualified convenience store franchisees and may not apply to all franchise applicants.
For newly constructed stores, funding can range from $50 to $70 for each square foot of selling space the store contains. On the other hand, funding for qualified existing stores will depend on the existing convenience store’s gross sales for the most recently completed 12-month period.
For instance, if the store is earning $50,000 or less in the last 12 months, then the equipment and construction funding would range between up to 2.2 times the gross sales depending on the funding level.
How Do I Start a Circle K Franchise?
Now that you have a better picture of the Circle K franchise cost, let’s talk about applying for a franchise. Before you fill out any application forms, you need to meet these standards:
A net worth of $500,000
Liquid assets amounting to $100,000, and
Entrepreneurial spirit
If you pass these initial qualifiers, then you can call their toll-free number or talk with a Franchise Development Manager and accomplish an application form.
Circle K will then review your qualifications and if it’s a good fit, they’ll issue a Franchise Agreement for your site. Once the agreement is executed, the Site Development Team will assist you in custom-designing your site. Similarly, Marketing and Operations will help you establish your store’s merchandising plan.
One remarkable thing about this franchisor is the way they offer flexibility to tailor individual stores to best serve their client base. As a result, they help ventures thrive, be it a new business or an existing store.
