Circle K Franchise Review

In 1951, Fred Hervey purchased three Kay’s Food Stores in El Paso, Texas. This was the beginning of a worldwide conglomerate that would one day become one of the nation’s leading convenience store chains. Over the ensuing decades, Circle K would grow its network primarily through acquisitions, and by 1975, there were over 1,000 Circle K retail centers coast to coast. In 1979, Circle K expanded into Japan, establishing their international market presence.

By 1984, the Circle K Franchise Network reached over $1 billion in sales. Today, there are over than 6,000 Circle K retail stores in existence, including 2,100 Circle K locations in the USA and over 4,000 in seven foreign countries including Japan, Mexico, China, and Guam.

Background and Benefits

Convenience stores are hot news and the trend for profits appears to be rising steadily. The percent in-store sales increases have been reportedly between 5% and 17% every year since 2002. Circle K provides a recognized name brand and is a leader in the industry offering everything from financial services, to pay-as-you-go phones. Persons with existing stores who want national branding can contact Circle K for branding opportunities and operational advantages. Circle K offers franchisees a powerful brand with a surplus of goods and services that make short work of staying ahead of the competition.

Potential franchisees will need $100,000 in liquid assets and must have a net worth of $300,000. The franchise fee is a low $15,000 and it will require between a $546,000 and $1,353,000 total investment to operate one of these mega-brands. These estimates are for an approximate 3,200 square foot building on a lot between 20,000 to 40,000 square feet. Costs do not include real estate purchases or leasing fees, nor does it include costs for underground fuel storage tanks, above ground fuel equipment or fuel inventory. In-store training includes Circle K’s proprietary CD Training Program and the “We Card” training on age-restricted products such as beer and cigarettes.

With convenient locations all across the US, Circle K is one of America's most accepted places for financial and prepaid services. Gift cards are available from many industry favorites such as from iTunes, Blockbuster, Bed Bath & Beyond, and Sears. American Express Gift Cards are also available along with restaurant gift cards including Chili's Restaurants, Pizza Hut and many others. On top of this, refills for long distance domestic and international calling cards are available for pay-as-you-go wireless phones, and there are MoneyGram® Money Orders and ATM’s in almost every store.

• Circle K SMART Academy Training - 50 years of Circle K's best practices and purchasing power with ongoing operational support and business systems is one of the best we've seen.

Cons

• Target - Due to the phone cards and financial services, Circle K (like most C-Stores) can be a target for shoplifters.

Circle K Franchise Information

Business Established: 1951
Franchising Since: 1999
Initial Investment: $15,000
Total Investment: $546,000 - $1,353,000