Circle K Franchise Costs, Fees & FDD

Year Business Began: 1951

Franchising Since: 1999

Headquarters: Tempe, Arizona

Estimated Number of Units: 14,030

Franchise Description: TMC Franchise Corporation is the franchisor. Alimentation Couche-Tard is the franchisor’s ultimate parent company. A Circle K business that is franchised to operate as a “Circle K” shall be a full-service convenience store and motor fuel business with sufficient floor space, vehicle parking, and inventory levels to offer all of the merchandise and services of a traditional convenience store, that offers only Circle K-supplied and branded fuel, and that complies with the specifications of a Circle K business as further described in the franchisor’s business systems manuals.
Training Overview: Franchisees (or their operations manager) and their business manager must successfully complete the training program to the franchisor’s satisfaction. All classroom training will take place remotely through video and audio computer applications and/or at other locations as specified by the franchisor. Trainees will also be required to attend a two-week regional in-store training program conducted by the franchisor’s trainers at an existing company-operated location. Depending on the franchisee’s experience, the franchisor may require that they complete additional in-store training, which may or may not overlap with the regional in-store training. On-the-job training may be conducted at various Circle K businesses based on the franchisor’s determination of the franchisee’s business experience. The franchisor will offer periodic training for franchisees or their operations manager and their store manager in specialized fields. The franchisor may hold additional or refresher training courses from time to time and may require that franchisees and their business managers attend these courses.

Territory Granted: The Franchise Agreement grants franchisees the right to operate one convenience store only at the specified location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that are owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: The franchisor does not require that franchisees personally manage the franchised business, but they must be actively involved in the day-to-day operations of the business and spend adequate management time required to maintain the standards of the agreements. If franchisees do not personally manage the store, the business must be directly supervised “on-premises” by a manager who has successfully completed the training program, and this person must be designated as the “key person” in the agreements. The franchisor requires franchisees to offer and sell at their Circle K business only those products and services specified or approved by the franchisor, which will include those products and services generally offered at Circle K businesses. Franchisees must offer for sale all products and services designated as required for all franchisees. Convenience store products and services must be presented in the store according to the floor plan and gondola plan specifications of the Plan-O-Gram presentation design provided to franchisees by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the store is deemed by the franchisor to be open for business. If franchisees are in good standing, they can renew for one renewal term. Franchisees must execute the then-current form of Franchise Agreement at renewal.

Financial Assistance: The franchisor offers a funding program for business improvements/ construction/ equipment/ conversion costs to qualified franchisees. The amount of the funding offered (between $100,000 and $1,000,000) will be determined by the franchisor, and will depend on the condition of the premises, including the necessary improvements and branding requirements as well as the fuel pricing structure for the Circle K business. Franchisees may be eligible to receive a 10% discount off of the initial franchise fee amount due at the time they sign the Franchise Agreement, if they provide acceptable documentation that they have received an honorable discharge from the United States Army, Navy, Air Force, Marine Corps or Coast Guard.

Estimated Initial Investment

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	$1,800,000	$5,000,000
Other Site Development Costs, including Site Development Fee	$135,000	$250,000
Furniture, Fixtures & Equipment	$500,000	$1,200,000
Car Wash (building), if included	$150,000	$300,000
Car Wash (equipment), if included	$215,000	$900,000
EPOS and Computer Systems	$50,000	$85,000
Signs	$50,000	$150,000
Security Deposits and Licenses and Permits (excluding impact fees)	$5,000	$25,000
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	$30,000	$125,000
Additional Funds (3 months)	$10,000	$20,000
ESTIMATED TOTAL (new or rebuilt convenience store locations)	$3,079,500	$8,301,500

 
Other Fees

Type of Fee	Amount
Royalty Fees	The greater of (a) (i) 3.5% of monthly gross sales and (ii) $0.0075 per gallon of monthly motor fuel sales, or (b) $1,500 per month, per franchised business.
Royalty for Additional Business Product or Service Offering	Currently, 1% of total gross sales of an additional business.
Optional Program Fees	Varies depending on the program but currently ranges from 5% to 75% of optional program revenue.
Promotional Fees	General Promotional Fee: 0.25% of gross sales (on gross sales of up to $125,000) for general promotional costs. Local and Regional Promotional Fee: Up to 1.25% of gross sales (on gross sales of up to $125,000) for local and regional promotional costs. National Promotional Fee: Up to 0.25% of gross sales (on gross sales of up to $125,000).
Motor Fuel Pass-Through Fee	$35 to $50 per delivery.
Interest	Lower of maximum legal rate allowed by law or 1.5% per month.
Insufficient Funds Fee/EFT Non-Compliance Fee	The then-current fee. Currently $50 per payment (or per day of noncompliance, as applicable) or the maximum legal rate allowed by law.
Late Fee	$25 per day beginning on the 11th day after the due date.
Audits and Inspections	The franchisor’s actual costs of audit/inspection plus late payments as noted above; annual cost of inspection generally ranges from $0 to $400.
Inspection Non-Compliance Fee	The then-current fee. Currently $1,000 per failed inspection, plus reimbursement of the franchisor’s costs incurred in connection with the failed inspection.
Software License Fee	$0 per accounting period (currently).
POS and Back-Office System Monthly Support and Maintenance Fees	Based on prevailing fee schedule; current fees range from $600 to $1,000 per accounting period.
Transfer Fee	The then-current initial franchise fee.
Relocation Fee	50% of then-current initial franchise fee.
Liquidated Damages (Franchise Agreement)	An amount equal to royalty payments for a period equal to lesser of 52 accounting periods or the remaining term of the Franchise Agreement, based on the average royalty fee payments per accounting period payable by franchisees for the most recent 13 accounting periods or for a shorter period if the Franchise Agreement hasn’t been in effect for 13 accounting periods.
Liquidated Damages (Purchase of Fuel)	An amount equal to the greater of: (i) $0.04 per gallon multiplied by the minimum accounting period volume in motor fuel gallons set forth in the motor fuel agreement, multiplied by the lesser of (a) 52 accounting periods or (b) the number of accounting periods remaining under the term of the motor fuel agreement, or (ii) $0.04 per gallon multiplied by the average accounting period volume in motor fuel gallons actually purchased by franchisees (calculated for the period starting on the effective date of the motor fuel agreement until the termination date) multiplied by the lesser of (a) 52 accounting periods or (b) the number of accounting periods remaining under the term of the motor fuel agreement.
Debit/Credit Card Fee/Service Charge	The then-current fees.
Liquidated Damages (Credit Network Agreement)	An amount equal to the lesser of (i) 52 or (ii) the remaining number of months under the term of the agreement, multiplied by $3,000.
Debranding Fee	If the franchisee fails to debrand the site to the franchisor’s satisfaction, the franchisee must reimburse the franchisor for all costs incurred in removing from the convenience store items of trade dress (such a special valances, aimers, etc.), signs and other promotional materials bearing the Circle K marks or otherwise related to the business system. This amount is estimated to be $10,000.
Renewal Fee	$5,000
Taxes	Actual cost.

The above information has been compiled from the FDD of Circle K. Year of FDD: 2025.
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