Circle K
Retail & Consumer Goods · Convenience Retail
- Active units
- 41
- Avg unit volume
- $2.6M
- Royalty
- 3.5%
Franchised, year-end 2024
of weekly Net Sales
About Circle K
Circle K is a convenience store chain operating in the United States. The company provides a wide range of products and services, catering to customers’ daily needs and is known for its convenience and customer service. Circle K is owned by Alimentation Couche-Tard, a Canadian multinational company. Circle K was originally founded in 1951 in El Paso, Texas, and began as a single store selling groceries. The company quickly expanded and by 1975, it had over 1,000 stores. Over the years, Circle K has grown through acquisitions and mergers, gaining a significant presence in the United States convenience store market. The headquarters of Circle K are located in Tempe, Arizona. Circle K offers a variety of products and services including gasoline, snacks, beverages, tobacco products, lottery tickets, and a range of convenience items. Many stores also offer fast food options and amenities such as ATMs and money transfer services. The company aims to provide customers with a convenient and one-stop shopping experience. On a global scale, Circle K has a significant presence with stores and operations in North America, Europe, Asia, and the Middle East. The company operates under different brand names in different regions, including Circle K, Couche-Tard, Statoil, and Topaz, among others. Circle K has also formed joint ventures and partnerships in various international markets to expand its reach and market share. In terms of market position, Circle K is one of the largest convenience store chains in the world. Its parent company, Alimentation Couche-Tard, reported global revenues of $54.7 billion in 2020. Circle K faces competition from other major convenience store chains such as 7-Eleven, Sheetz, and Wawa. In terms of notable events, Circle K has undergone several rebranding efforts and expansions. In 2015, Alimentation Couche-Tard acquired The Pantry Inc., a major convenience store chain in the United States, further expanding Circle K's footprint. The acquisition enabled Circle K to establish a strong presence in the Southeastern United States. As of the latest available information, Circle K continues to expand its operations globally and focus on providing customers with convenient and quality products and services. The company regularly seeks growth opportunities through acquisitions and partnerships to strengthen its market position in the highly competitive convenience store industry.
Key terms
- Franchise fee
$25k
- Multi-unit development discount
If you develop multiple Circle K Businesses, first unit $25,000; each additional unit Initial Franchise Fee reduced to $15,000.
- Multiple Site Operator schedule
Per-unit fee under MSA: 5=$15,000; 6-9=$10,000; 10-19=$7,500; 20+=$5,000 (non-refundable; all paid at MSA signing).
- Brand fund
0.3% of Net Sales
- Local advertising
1.3% of Net Sales
- Footprint
3,200 sq ft
- Multiple Site Operator Agreement
Total Initial Franchise Fees between $75,000 and $100,000 depending on number of Circle K Businesses (5 to 20). Per-unit schedule: 5=$15,000; 6-9=$10,000; 10-19=$7,500; 20+=$5,000. Paid at signing for all units committed.
- Veteran discount
10.0% off franchise fee — 10% discount off of the Initial Franchise Fee with acceptable honorable discharge documentation
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2024 filing); filings on file: 2024, 2025.
Growth
- Total locations41
Franchised units open at year-end
- New openings30
Gross new units opened during the calendar year
- 1-year unit growth rate272.7%
Net unit growth versus prior year
- 3-year unit CAGR220.2%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio30.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$2.6M
Uses Average Merchandise Sales for 52-week period ending 4/28/2024 for Reporting Franchised Businesses (11 units). Merchandise Sales excludes fuel and certain…
- Annual unit volume (25th percentile)$1.2M
52-week period ended 4/27/2025; excludes motor fuel sales, car wash revenues, and certain non-merchandise items as defined.
- Annual unit volume (75th percentile)$2.3M
52-week period ended 4/27/2025; excludes motor fuel sales, car wash revenues, and certain non-merchandise items as defined.
- 1-year Median AUV growth rate-34.0%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$5.7M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open6 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate3.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio0.5×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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