Has the cost to open a Circle K Franchise gotten too high? You’ll need to invest between $614,00 and $1.93 million to open a Circle K depending on the location. Not cheap! Obviously, the startup cost here is significant. But that doesn’t mean this franchise isn’t a worthwhile investment.
The franchise added 62 additional locations in 2018 and another 75 locations in 2019. This is strong growth for a convenience and gas station chain that was founded all the way back in 1951.
Interested in understanding how much you could make with this convenience store / gas station? I break down the profitability of this opportunity and share whether or not it’s worth evaluating further. Take our 8-minute franchise quiz to get matched the right opportunity for your personal finances and interests.
- Financial Requirements and Fees
- How Much Profit Does Circle K Franchisees Make Per Year?
- Circle K SWOT Analysis
- Is the Circle K Worth the Cost to Invest?
Financial Requirements and Fees
Circle K Official Website.
Wondering how much a Circle K franchise costs in the country? Here’s an itemized list of fee ranges with corresponding highs and lows for each item which you’ll need to be familiar with upon determining if this franchise is indeed for you.
|
Item |
Fees |
|
|
Low |
High |
|
| Initial Franchise Fee |
$25,000 |
|
| Inventory (merchandise and fuel) | $100,000 | $220,000 |
| Security Deposits and Licenses and Permits | $5,000 | $15,000 |
| Travel and Living Expenses While Training | $3,500 | $15,500 |
| Professional Fees | $1,000 | $5,000 |
| Regional In-Store Training Fee ($500 per attendee) |
$1,000 |
|
| Insurance | $7,500 | $24,000 |
| Real Estate |
Varies. |
|
| Utility Deposits | $1,500 | $5,000 |
| Grand Opening Costs | $5,000 | $10,000 |
| Additional Funds (3 months) | $10,000 | $20,000 |
| Construction, Remodeling, and Leasehold Improvements | $750,000 | $1,600,000 |
| Furniture, Fixtures & Equipment | $500,000 | $1,075,000 |
| Other Site Development Costs, including Site Development Fee | $135,750 | $400,750 |
| Car Wash (building), if included | $350,000 | $650,000 |
| Car Wash (equipment), if included | $160,000 | $420,000 |
| Signs | $20,000 | $120,000 |
| Utility Deposits | $1,500 | $5,000 |
| EPOS and Computer Systems | $39,000 | $46,000 |
| Vendor Deposits | $0 | $16,000 |
| Fuel Security Deposit | $20,000 | $50,000 |
Financial Requirements
For more than 50 years, Circle K franchisees have become one of the most renowned convenience store companies in the area. Right now, you might be trying to ask yourself a few questions, the first of which is: Is Circle K the best choice for me? Here are some figures you need to consider.
|
Requirement |
Fee |
| Liquid Capital | $100,000 |
| Net Worth | $500,000 |
| Total Investment | $189,250 – $2,204,150 |
| Franchise fee | $25,000 |
There are actually two types of franchise agreements for two types of stores you may want to open with them. They are namely:
- Single-Site – This is the most typical kind of contract. If you want to convert a retail site or are new to franchising, this is a good road to take.
- Multi-Site – This arrangement is appropriate for candidates who have a network of retail outlets or for existing franchisees who want to open more stores.
The cost of starting a Circle K franchise varies between $189,250 to $2,204,150. Aspiring franchisees will need to have a net worth of $500,000 and $100,000 in liquid cash (not borrowed).
The Circle K franchise fee is a one-time payment made by a new franchisee in exchange for a business license. It is non-refundable, but after 10 years of use, it can be renewed. The initial franchise fee costs $25,000, with a royalty fee ranging from 3 to 7.5 percent of monthly sales. Ad royalty fees of 1.5 percent must also be paid by franchisees.
Not Sure What Franchise is Right For You? Take Our 8-Minute Business Quiz.
Circle K Stores, Inc. is a convenience store chain operated by Alimentation Couche-Tard, a Canadian multinational company. Established in 1951 in El Paso, Texas, the company filed into bankruptcy in 1990 and was sold to Alimentation Couche-Tard in 2003. Circle K had 9,799 locations in North America (mostly in the United States and Canada) as of February 2020, 2,697 locations in Europe, and an additional 2,380 stores under franchise agreements across the world. The company’s largest region is Arizona’s Grand Canyon.
Circle K has been the largest company-owned and contro