Circle K Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Circle K is a convenience-store franchise selling fuel, drinks, snacks, and prepared food, typically around the clock. Franchisees run extended-hour stores managing fuel margins, inventory, staffing, and shrinkage.
FranchiseVerdict summary · 2026
A Circle K franchise requires a total initial investment of $1.5M – $2.7M, including a $25K franchise fee and an ongoing 3.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.4M[2]. SBA 7(a) loans show a 6.7% charge-off rate across 80 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $1.5M – $2.7M
- 44th pct Retail
- Avg gross sales
- $1.4M
- 18th pct Retail
- Royalty
- 3.0%
- 2nd pct Retail
- Units
- 6,063
- 43rd pct Retail
- SBA charge-off
- 6.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
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).
- Verdict A (Strongest tier), verdict score 60/100 (higher is better). SBA loan charge-off rate of 6.7% across 80 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
Corporate structure & franchisor financials
- Legal entity
- TMC Franchise Corporation
- Parent company
- Circle K Stores Inc.
- Ultimate parent
- Alimentation Couche-Tard Inc.
- Predecessor
- of TMC in as much as TMC has remained the franchisor of the Circle K
- Prior franchisor entity
- CEO title
- President of TMC and Vice President of Worldwide Franchise
- Pat Fitzpatrick
- Incorporated in
- AZ
- HQ
- 1130 West Warner Road, Tempe, Arizona 85284
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $70.3M
- vs $71.4M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Pat Fitzpatrick
- Headquarters
- AZ
- Founded
- 1995
- FDD year
- 2024
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 413% above the typical retail franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown36 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (new or rebuilt convenience store) | $25K | $25K | |
| Regional In-Store Training Fee (new or rebuilt) | $1K | $1K | |
| Travel and Living Expenses While Training (new or rebuilt) | $4K | $16K | |
| Real Estate (new or rebuilt) | — | — | |
| Construction, Remodeling, and Leasehold Improvements (new or rebuilt) | $850K | $1.5M | |
| Other Site Development Costs (new or rebuilt) | $40K | $100K | |
| Furniture, Fixtures & Equipment (new or rebuilt) | $400K | $800K | |
| EPOS and Computer Systems (new or rebuilt) | $40K | $50K | |
| Network Fee (3 months) (new or rebuilt) | $0 | $150 | |
| Signs (new or rebuilt) | $20K | $75K | |
| Security Deposits and Licenses and Permits (new or rebuilt) | $2K | $10K | |
| Utility Deposits (new or rebuilt) | $2K | $5K | |
| Vendor Deposits (new or rebuilt) | $0 | $16K | |
| Merchandise Inventory (new or rebuilt) | $60K | $100K | |
| Professional Fees (new or rebuilt) | $1K | $5K | |
| Insurance (new or rebuilt) | $5K | $12K | |
| Grand Opening Costs (new or rebuilt) | $5K | $10K | |
| Additional Funds (3 months) (new or rebuilt) | $10K | $20K | |
| Initial Franchise Fee (convenience store conversion) | $25K | $25K | |
| Regional In-Store Training Fee (conversion) | $1K | $1K | |
| Total initial investment | $1.8M | $4.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $2.7M
- Middle of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 3.0%
- tiered · typical 6–8%
- Ad fund
- 1.8%
- typical 3–5%
- Total fee load
- 4.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 1.8% of gross sales |
| Technology fee | $0 |
| Training fee | $1K |
| Transfer fee | $25K |
| Renewal fee | $0 |
| Inventory (initial) | $60K – $100K |
| Total fee load | 4.5% of rev |
A 4.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 38% above the retail norm.
Source: FDD 2024 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$142K
10.3% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
14.9 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales by quartile - company-operated and franchised stores separately; also by store size and multi-year cohort data
- Sample size
- 529 units
- vs category median 47 · large
- Range (low → high)
- $148K→$4.1M
- Cohort dispersion (min → max)
- Quartile band
- $712K→$2.2M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 307 Retail brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.4M/year in gross sales. Revenue-to-investment ratio: 0.7x.
Fee burden
Total ongoing fee load of 4.5% — below the Retail average of 8.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -7.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail averages
How Circle K Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6,063
- Opened
- 22
- Last reporting year
- Closed
- 20
- Terminated
- 32
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 23
- Term expired, not renewed (per Item 20)
- Turnover rate
- 12.8%
- Company-owned
- 5,477
- Corporate units in the system
- % franchised
- 10%
- vs corporate-owned
- Net growth (3-yr)
- -7.9%
- Net unit change over 3 years
- 3-yr CAGR
- -7.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 22
- Closed (3yr)
- 20
- Terminated (3yr)
- 32
- Non-renewed (3yr)
- 23
- Transfers (3yr)
- 26
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 7.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 80
- Loan volume
- $110.2M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 6.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 27
- Defaults
- 3
- Typical loan rate
- 5.6%
- avg rate to borrowers
- Franchised industry avg
- 5.0%
- brand above franchise avg ↑
- Jobs supported
- 358
- 0.6 per loan
- Lender concentration
- 9%
- top lender's share
Franchise vs independent — in gasoline stations with convenience stores, franchised businesses charge off at 5.0% vs 16.0% for independents — franchising is associated with 69% lower SBA default risk in this category.
Vintage analysis
Circle K charge-off rate by loan vintage
Top lenders financing Circle K franchisees
Showing 3 of 27 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Circle K's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 13-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 6.7% — 58% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
TMC as plaintiff: 2 cases (v. Broadway Restaurants re post-termination obligations, settled $30,722 paid to TMC; v. Golen et al. re liquidated damages, settled with payment to TMC). TMC as defendant/cross-defendant: Universal Property Services v. Lehigh Gas et al. added TMC as defendant re misrepresentations in sale of 17 stores, settled 7/2024 with TMC paying $180,000. FTC order involving affiliate ACT and CrossAmerica re divestiture timing, $3.5M civil penalty paid.
Largest disclosed settlement: $180,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 4.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 10 years |
| Non-compete (miles)ℹ | 2 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | County where corporate headquarters are located (Maricopa County, AZ) |
| Jury trial waiver | Yes |
| Governing law | AZ |
| Litigation count | 3 |
View Item 3 litigation summary
TMC as plaintiff: 2 cases (v. Broadway Restaurants re post-termination obligations, settled $30,722 paid to TMC; v. Golen et al. re liquidated damages, settled with payment to TMC). TMC as defendant/cross-defendant: Universal Property Services v. Lehigh Gas et al. added TMC as defendant re misrepresentations in sale of 17 stores, settled 7/2024 with TMC paying $180,000. FTC order involving affiliate ACT and CrossAmerica re divestiture timing, $3.5M civil penalty paid.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 24 hrs
- Training location
- Remote (video/audio computer applications), online; additional in-store at regional franchise locations
- Ongoing training
- Required
- Site selection
- Franchisee (with franchisor review/approval)
- Franchisor financing
- Offered
- Item 10
- POS system
- EPOS (Electronic Point of Sale) / SSCS back-office system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: EPOS (Electronic Point of Sale) / SSCS back-office system
Item 20 · call current owners
Franchisee Contacts
458 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Circle K · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Circle K franchise?
The total investment to open a Circle K franchise ranges from $1.5M – $2.7M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Circle K franchise owners earn?
According to Item 19 of the Circle K FDD, the average gross sales per unit is $1.4M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Circle K's franchise failure rate?
Based on SBA 7(a) loan data, Circle K has a charge-off rate of 6.7% across 80 loans, meaning 6.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Circle K franchise locations are there?
As of their most recent FDD filing, Circle K has 6,063 total units in the United States, including 586 franchised units and 5,477 company-owned units. 22 new units were opened in the latest reporting year.
Is Circle K a good franchise to buy?
FranchiseVerdict rates Circle K as a A-grade franchise with a verdict score of 60 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.