Circle K Franchise
Circle K is a franchise for a convenience store. Fred Hervey started Circle K in El Paso, Texas in 1951. He purchased 3 Kay’s Food Store that he renamed Circle K. He grew the franchise in New Mexico and Arizona.
In 1975, Circle K already had 1,000 stores nationwide. In 1979, they started franchising in the international market. Their first international store was opened in the country of Japan. The company also have stores in China, Hong Kong, Macau, Indonesia, Vietnam, Guam, United Arab Emirates, and in Mexico. In 1983, they came up with the Thirst Buster drink that’s still known as “Polar Pop” up to now. Under Karl Eller in 1983, it was turned to be the second biggest convenience store with about 4,631 USA stores in 32 states and about 1,300 stores internationally. In 1990, Eller resigned as Chief Executive Officer and then Investcorp bought out Circle K. In 1996, it was acquired by Tosco Corporation. In 2003, Tosco Corporation merged with Alimentation Couche-Tard which is a convenience store operator in Montreal. It was then renamed as ConocoPhillips. Conoco’s stores were then branded as Circle K. To date, there are about 6,000 Circle K stores in the US and seven other countries. It’s also important to them that their store blends in with the community. They don’t have a standard on the design. Although it must have the Circle K logo, the design may vary to blend in with its environment.
Circle K has also become a part of Pop Culture in the US. They were mentioned in “Bill and Ted’s Excellent Adventures”, Counting Crows’ “Cowboys”, OK Go’s “No Sign of Life”, Screening Weasel’s “Crying in my Beer”, Teenage Bottlerocket’s “Skate or Die” and Hong Kong even gave it a colloquial name “OK”. Circle K also does its part in helping the community through charitable institutions such as Habitat for Humanity, Friendly House, Homeward Bound, United Cerebral Palsy, Boys and Girls Club, and Chicanos Por La Causa.
What’s inside a Circle K store?
Each store has a soda ‘n’ drinks fountain, a coffee bar, coolers, food service, grocery, and a front counter.
Costs and Requirements of a Circle K Franchise
How do you become a franchisee? You have to have a net worth of $500,000 and a total liquid asset of at least $200,000. They do not allow absentee ownership. Total investment is at around $161,000-$1,353,000. Franchise fee is $15,000 with an on-going royalty fee of 4%. This is for a renewable 10 year term agreement.
What’s included in the franchise package?
There will be 2 weeks training at the headquarters and 2 weeks at your location. Included in training is the orientation, new employee training program, store training enhancement program, and there will be updated training materials available to keep you up to date. You will also be assisted in finding the right site, site development, and project management. Their operational support systems include new store operating assistance, business and marketing consultants, and the operation manuals. There will also be marketing and advertising support through propriety merchandising programs, propriety products, purchasing assistance, grand opening support and consumer research and new concept development.
You may reach them at:
Address: 1130 W. Warner Rd. Tempe, Arizona 85284