What fee does a Circle K franchisee have to pay if they relocate their store?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Convenience Store Franchise Agreement grants you the right to operate one convenience store only at the location specified. You may not relocate your site without our prior written consent. If we consent to relocation of your Store, you must construct the new Store in accordance with our current specifications and at your sole cost and expense, including a relocation fee of 50% of the Initial Franchise Fee you paid when you signed the Convenience Store Franchise Agreement as reimbursement for expenses we have incurred in connection with the relocation.
Source: Item 12 — TERRITORY (FDD pages 72–75)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee must obtain prior written consent from Circle K to relocate their store. If Circle K consents to the relocation, the franchisee is responsible for constructing the new store according to Circle K's current specifications, covering all costs and expenses associated with the relocation.
Specifically, the franchisee must pay a relocation fee equal to 50% of the initial franchise fee they originally paid when signing the Convenience Store Franchise Agreement. This fee is intended to reimburse Circle K for expenses they incur related to the relocation.
This policy means that relocating a Circle K store can be a significant financial undertaking for a franchisee. In addition to construction costs, the franchisee must be prepared to pay a substantial relocation fee to Circle K. Prospective franchisees should carefully consider these potential costs and discuss them with Circle K representatives to fully understand the financial implications of relocating a store.