If a Circle K franchisee wants to relocate their store, what is required?
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 cannot relocate their store without prior written consent from Circle K. If Circle K consents to the relocation, the franchisee is responsible for constructing the new store according to Circle K's current specifications. This construction is at the franchisee's sole cost and expense.
In addition to covering the construction costs, the franchisee must also pay a relocation fee. This fee is equal to 50% of the initial franchise fee that the franchisee paid when they originally signed the Convenience Store Franchise Agreement. This relocation fee serves as reimbursement for expenses that Circle K incurs in connection with the store's relocation.
This requirement to obtain consent and bear all costs, including a percentage of the initial franchise fee, places a significant financial burden on franchisees wishing to move their Circle K store. Franchisees should carefully consider potential relocation costs and the likelihood of obtaining Circle K's approval before deciding to pursue a relocation.