What is the estimated range for construction, remodeling, and leasehold improvements costs for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump Sum | Upon signing | TMC |
| (Note 1) | Agreement | |||
| Regional In-Store | $1,000 ($500 | Lump Sum | Upon signing | TMC |
| Training Fee | per attendee) | Agreement | ||
| Travel and Living | $3,500-$15,500 | As Incurred | As Incurred | Airlines, Hotels, |
| Expenses While Training | Restaurants, Rental Cars or | |||
| (Note 2) | TMC | |||
| Real Estate (Note 3) | (Note 3) | (Note 3) | (Note 3) | (Note 3) |
| Construction, Remodeling, and Leasehold Improvements (Note 4) | $850,000- $1,500,000 | As Billed | As Incurred | Contractors, Suppliers or Other Third Parties |
| Other Site Development | $40,000 - | As Incurred | As Incurred | Architects, Engineers and |
| Costs (Note 4) | $100,000 | Other Third Parties | ||
| Furniture, Fixtures & | $400,000- | As Billed | As Incurred | Suppliers |
| Equipment | $800,000 | |||
| EPOS and Computer | $40,000 - | As Incurred | As Incurred | Suppliers |
| Systems | $50,000 | |||
| Network Fee (3 months) | $0 - $150 | EFT Draft | Monthly | TMC |
| (Note 5) | ||||
| Signs | $20,000- | As Billed | As Incurred | Suppliers |
| (Note 6) | $55,000 | |||
| Security Deposits and | $2,000-$15,000 | As Incurred | Prior to Opening | Lessor or Gov’t Agencies |
| Licenses and Permits | ||||
| (excluding impact fees) | ||||
| (Note 7) | ||||
| Utility Deposits | $1,500-$10,000 | Lump Sum | Prior to Opening | Utility Companies and |
| (Note 8) | Other Service Providers | |||
| Vendor Deposits | $0-$16,000 | Lump Sum | As required by Vendors | Vendors |
| Merchandise Inventory | $60,000- | As Billed | As Incurred | Third Party Vendors |
| (Note 9) | $100,000 | |||
| Professional Fees | $1,000-$5,000 | As Incurred | As Incurred | Attorneys, Accountants, |
| (Note 10) | and Other Professionals | |||
| Insurance (Note 11) | $4,500-$12,000 | As Billed | As Incurred | Insurance Carriers |
| Grand Opening Costs | $5,000-$10,000 | As Billed | As Incurred | Suppliers and Vendors |
| (Note 12) | ||||
| Additional Funds | $10,000- | As Billed | As Incurred | Employees, Suppliers, and |
| (3 months) (Note 13) | $20,000 | Vendors | ||
| TOTAL | $1,463,500 - | |||
| (Note 14) | $2,734,650 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the estimated cost for construction, remodeling, and leasehold improvements for a new or rebuilt motor fuel business ranges from $850,000 to $1,500,000. These costs are paid as billed and incurred to contractors, suppliers, or other third parties. Note 4 of Item 7 states that these cost estimates are dependent upon factors such as the general cost of building in your location, union or non-union costs, local building code and permit requirements, the size of your store, the types of materials used to construct your store, the cost of construction labor, the cost of property, and other similar factors.
For a c-store conversion, the estimated cost for construction, remodeling, and leasehold improvements ranges from $50,000 to $500,000. These costs are also paid as billed and incurred to contractors, suppliers, or other third parties. Other site development costs for a c-store conversion are estimated to be between $20,000 and $80,000, paid as incurred to architects, engineers, and other third parties.
These figures represent a significant investment for prospective Circle K franchisees. The wide range in costs highlights the variability depending on the specific location, size, and condition of the store. Franchisees should carefully consider these costs and conduct thorough due diligence to obtain accurate estimates for their specific circumstances. It is important to note that these costs do not include the cost of acquiring real estate, as mentioned in Note 14.