What is the payment schedule for Insurance for a Circle K branded business?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
esponsibility to confirm that all of the specific deposits required for your location are paid.
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.
Note 7 The estimates provided in the charts above are based upon the cost of branding a location under the Circle K trademarks. We relied upon our collective experience in branding Circle K forecourts during the past 10 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, the payment schedule for insurance is not explicitly detailed. However, Note 6 in Item 7 states that franchisees must obtain and maintain insurance coverage at their own expense, as required in the Branding Agreement. The cost of this insurance will vary based on factors such as the insurance company selected, the location of the facility, the value of equipment and improvements, and the number of employees.
While the FDD does not specify the payment schedule, it does mention that franchisees may be required to pay security deposits for insurance premiums, which may or may not be refundable. These deposits, along with utility deposits, are typically required when the service is applied for. Franchisees are responsible for confirming that all specific deposits required for their location are paid.
To gain a clearer understanding of the insurance payment schedule, prospective Circle K franchisees should inquire directly with the franchisor about typical payment terms, whether monthly, quarterly, or annually. They should also ask about any available payment plans or financing options for insurance premiums. Understanding these details is crucial for budgeting and managing the initial investment and ongoing operational costs.