What is the estimated range for insurance costs for a Circle K franchise?

According to the 2025 Circle K Franchise Disclosure Document, the cost of insurance for a Circle K store can vary significantly. The FDD indicates that the cost depends on factors such as the insurance company selected, the store's location, the value of equipment and improvements, and the number of employees. Circle K franchisees are required to obtain and maintain insurance coverage for their store, as specified in the Convenience Store Franchise Agreement or Motor Fuel Agreement. Franchisees must also name Circle K and its affiliates as "Additional Insureds" on all insurance policies, with the exception of Worker's Compensation and Property Insurance, where applicable. The low end of the initial investment in Item 7 assumes that the franchisee has obtained the required insurance coverage.

Given the variability in insurance costs, prospective Circle K franchisees should obtain quotes from multiple insurance providers to understand the potential expenses for their specific location and circumstances. Factors like local regulations, crime rates, and the store's proximity to high-traffic areas can influence insurance premiums. It is also important to ensure that the insurance coverage meets the minimum requirements outlined in the franchise agreement to avoid any compliance issues.

While the FDD does not provide a specific dollar range for insurance costs, it highlights the importance of securing adequate coverage and factoring these expenses into the overall initial investment. Franchisees should consult with experienced insurance brokers who understand the specific needs of convenience store and gas station operations to obtain appropriate and cost-effective coverage. Understanding these costs is crucial for accurate financial planning and ensuring the long-term viability of the Circle K franchise.