What is the estimated range for Insurance costs for a Circle K branded business?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 6 You must obtain and maintain at your expense insurance coverage for your location as required in the Branding Agreement. The cost of insurance varies, depending upon the insurance company you select, the location of your facility, value of equipment and improvements, number of employees, and other factors. You must name us and our Affiliates as "Additional Insureds" on all insurance policies except Worker's Compensation and Property Insurance, where applicable. The low end of the investment noted in Item 7 above assumes you have obtained the required insurance coverage for your Store.
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 cost of insurance for a Circle K branded business varies. The FDD indicates that the cost depends on factors such as the insurance company selected, the location of the facility, the value of equipment and improvements, and the number of employees. Franchisees are responsible for obtaining and maintaining insurance coverage as required in the Branding Agreement. Circle K and its affiliates must be named as "Additional Insureds" on all insurance policies, except for Worker's Compensation and Property Insurance, where applicable.
Prospective Circle K franchisees should obtain quotes from multiple insurance providers to assess the potential costs in their specific location. They should also factor in the value of their equipment and improvements, as well as the number of employees they intend to hire, as these elements can influence insurance premiums. Understanding these costs is crucial for accurate financial planning and ensuring the business is adequately protected.
The FDD notes that the low end of the initial investment estimates assumes that the franchisee has already obtained the required insurance coverage for their store. This implies that insurance costs are a necessary upfront expense for opening a Circle K franchise. Franchisees should confirm all specific insurance requirements and associated costs to ensure they are fully prepared to meet these obligations.