What factors affect the cost of insurance for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
your business and filing the necessary tax forms and returns.
Note 11 You must obtain and maintain at your expense insurance coverage for your Store as required in the Convenience Store Franchise Agreement. The cost of insurance varies, depending upon the insurance company you select, the location of your Store, 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.
Note 12 You must have a grand opening celebration at your Store. The Business Systems Manuals contain a grand opening guide to assist you. We will also provide a grand opening materials package to you. If you contribute Tier II Promotional Funds, you will be reimbursed (from the Promotional Fund) for preapproved expenditures in the amount of $0.50 for each $1.00 you spend, up to a maximum reimbursement of $4,000.
Note 13 This amount represents the range of your initial start-up expenses over the first 3 months of operation and includes payroll costs, but does not include any salary for one Store Manager, to the extent these costs are not covered by sales revenues. We estimate that the amount given will be sufficient to cover ongoing expenses for the start-up phase of the business, which we calculate to be three months.
Note 14 The estimates provided in the chart above are based upon a freestanding, full service new Circle K Store. We relied upon our collective experience in opening Circle K Stores during the past 25+ years when preparing these figures. Please note that the total amount of your initial investment does not include the cost of acquiring real estate.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, several factors can influence the cost of insurance for a Circle K franchise. These include the specific insurance company the franchisee selects, the store's location, the value of the equipment and improvements at the location, and the number of employees working at the Circle K store.
Circle K requires franchisees to obtain and maintain insurance coverage for their location, as stipulated in either the Convenience Store Franchise Agreement or the Motor Fuel Agreement, depending on the business type. Franchisees are responsible for covering the expense of this insurance.
Furthermore, Circle K mandates that franchisees 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 initial investment estimates provided by Circle K assume that franchisees have already obtained the necessary insurance coverage for their stores.