Circle K
Formerly known as The Maids International
Bottom line
- Total investment $1.5M – $2.7M including a $25K franchise fee, 3.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M).
- Rated STRONG with a risk score of 40/100. SBA loan default rate of 0.0% across 157 loans (below the industry average).
- System contracting at -7.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Circle K unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Circle K units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$970K
on $4.9M purchase
Total debt
$3.9M
SBA $2.4M + senior + seller note
Overview
About
Circle K franchisees operate convenience stores selling fuel, beverages, snacks, and prepared foods. Day-to-day responsibilities include inventory management, staff scheduling, fuel dispenser maintenance, payment processing, and customer service across extended hours (often 24/7). Operators must manage fuel margins, shrinkage, and supplier relationships while adhering to brand standards and compliance requirements.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Circle K presents elevated risk due to contracting unit count, undisclosed net income, unprotected territories, active litigation, and substantial capital requirements in a declining system.
Score breakdown · what drove the 40 / 100 rating
- 01MINORSystem declining 8.3% YoY with 6,063 units down from ~6,615 last year, indicating contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo average net income disclosed in Item 19 prevents assessment of actual profitability; disclosed $1.39M revenue doesn't guarantee positive returns after $25K-$55K annual royalties plus operating costs
- 03MINORUnprotected territory creates direct cannibalization risk; franchisees compete with corporate-owned and other franchised Circle K locations in same market
- 04HIGHMultiple active litigation cases (TMC v. Broadway, Universal Property Services v. Lehigh Gas, TMC v. Golen) suggest operational disputes and potential franchisor relationship issues
- 05MINORHigh upfront investment ($1.46M–$2.74M) combined with 10-year commitment and declining unit count increases difficulty recovering capital
- 06HIGHGoing Concern status is FALSE, but system decline warrants clarification on franchisor financial stability and long-term viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
81 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Circle K · FDD (2024) PDF