CIRCLE K Franchise Startup Cost, Profit Margin, Revenue and Locations
Circle K is considered to be one of the biggest store chains across the United States, with numerous locations all over the world. Circle K has on offer everything a customer might need on the go: which will include coffee bar, beverages, refrigerated foods, dry foods, packaged foods and other types of groceries. Some other stores also offer gasoline for sale.
We will be getting to know information on how much is a Circle K franchise in the course of this article.
FRANCHISE INFORMATION ABOUT THE COMPANY
Circle K was established in the year 1951. The founder, Fred Harvey purchased three Kay’s Food outlets in Texas and coined the name Circle K. The store chain is managed by Alimentation Couche-Tard, which is a Canadian company- they also manage and run On The Run stores.
Circle K stores can mostly be found in the Western, Southern, Midwestern and South-western parts of United States. The company, with its numerous locations across the world, can also be referred to as “Convenience”.
IS CIRCLE K A FRANCHISE?
With the large number of stores that Circle K has across the United States and the rest of the world, one might want to ask if it is a franchise. Yes, Circle K is a franchise and they have been involved in the sales of franchise opportunities since the year 1999.
CIRCLE K FRANCHISE INFORMATION
Circle K franchisees are equipped with the necessary technical and operational information they need to excel in their business. The company has over 60 years of experience in the management of convenient stores. Though they started franchising in the late 90’s, but they seem to have perfected their franchise model, that every new franchisee has a better chance of success with Circle K.
Circle K, at the moment, seeks for franchise agreement from coast to coast across the United States. As a franchisee with the company, you will benefit from business management assistance, centralized purchasing power, round-the-clock support and an established relationship with vendors.
WHY BUY INTO CIRCLE K FRANCHISE OPPORTUNITY?
There are so much to benefit from when you buy into Circle K franchise opportunity. It is quite lucrative dealing with the company with their numerous plans for their franchisees:
- FLEXIBLE FRAMEWORK: As a franchisee with Circle K, you will be presented with the opportunity to work with a company that not only assist you to grow in business, but also presents you with the flexibility to fine-tune your store to the taste of your customers.
- BRAND RECOGNITION: When you buy into a Circle K franchise, you will have the opportunity to be part of a brand that has presence in thousand of locations and quite a household name among shoppers who are seeking for a great shopping experience and quality delivery services.
- SUPPORT TEAM: The company’s support team are available for franchisees round the clock to offer their experiences to assist you to grow your business
- FUNDING: Circle K may offer funding assistance to their franchisees based on the size of their location for new outlets.
- PURCHASING OF EQUIPMENT: Equipment needed in the business are quite expensive. Circle K offers assistance to their franchisees in purchasing equipment by leveraging on the relationship they already have with dealers.
HOW MUCH DOES A CIRCLE K FRANCHISE COST?
The Circle K franchise cost is the summation of all the investments needed to establish a franchise unit. The initial investment needed to start a franchise unit is between the range of $185,000 and $1,600,000. New franchisees will also need to have a net-worth requirement of about $500,000 and then a liquid cash requirement of funds that are non-borrowed of about $100,000.
THE CIRCLE K FRANCHISE FEE
The payment that a new franchisee will make to the company in order for them to be granted the license to operate with the company’s name is the Circle K franchise fee. It is non refundable and renewable after some years of operation. The initial franchise fee is $25,000. Franchisees are also expected to pay an additional royalty fee of 3 – 7.5% of the monthly gross revenue of the franchise unit. Also payable is an ad royalty fee of 1.5%.
DOES CIRCLE K FRANCHISE OFFER TRAINING?
Circle K will offer training to their new franchisees or any other head of the franchise unit. It is mandatory to complete the set training by the company and training will hold for a period of 2 weeks, which will include both class room learning as well as on-the-job training.
Training is in different stages and will be held at the company’s Head office in Arizona or any other approved training center by the company.
TERMS OF AGREEMENT
A Circle Kfranchise unit has a limited period at which it can operate. This can be renewed at the expiration of the period. The period of agreement for a Circle K franchise term is 10 years from the date the store opens for business. Another period of 10 years can be granted by the company if the franchisee is able to meet with the terms and conditions set for renewal.
HOW TO OPEN A CIRCLE K FRANCHISE
Once you have acquired all the information you need on how to open a Circle K franchise, the next step is to forward your application to the website of the company. This will be reviewed and feedbacks will be given after some days.
If your application is approved, you will be assigned a franchise manager who will assist you with the process of setting up your franchise unit.