When are security deposits and licenses/permits due for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump Sum | Upon signing | TMC |
| (Note 1) | Agreement | |||
| Regional In-Store | $1,000 ($500 | Lump Sum | Upon signing | TMC |
| Training Fee | per attendee) | Agreement | ||
| Travel and Living | $3,500-$15,500 | As Incurred | As Incurred | Airlines, Hotels, |
| Expenses While Training | Restaurants, Rental Cars or | |||
| (Note 2) | TMC | |||
| Real Estate (Note 3) | (Note 3) | (Note 3) | (Note 3) | (Note 3) |
| Construction, Remodeling, and Leasehold Improvements (Note 4) | $850,000- $1,500,000 | As Billed | As Incurred | Contractors, Suppliers or Other Third Parties |
| Other Site Development | $40,000 - | As Incurred | As Incurred | Architects, Engineers and |
| Costs (Note 4) | $100,000 | Other Third Parties | ||
| Furniture, Fixtures & | $400,000- | As Billed | As Incurred | Suppliers |
| Equipment | $800,000 | |||
| EPOS and Computer | $40,000 - | As Incurred | As Incurred | Suppliers |
| Systems | $50,000 | |||
| Network Fee (3 months) | $0 - $150 | EFT Draft | Monthly | TMC |
| (Note 5) | ||||
| Signs | $20,000- | As Billed | As Incurred | Suppliers |
| (Note 6) | $55,000 | |||
| Security Deposits and | $2,000-$15,000 | As Incurred | Prior to Opening | Lessor or Gov’t Agencies |
| Licenses and Permits | ||||
| (excluding impact fees) | ||||
| (Note 7) | ||||
| Utility Deposits | $1,500-$10,000 | Lump Sum | Prior to Opening | Utility Companies and |
| (Note 8) | Other Service Providers | |||
| Vendor Deposits | $0-$16,000 | Lump Sum | As required by Vendors | Vendors |
| Merchandise Inventory | $60,000- | As Billed | As Incurred | Third Party Vendors |
| (Note 9) | $100,000 | |||
| Professional Fees | $1,000-$5,000 | As Incurred | As Incurred | Attorneys, Accountants, |
| (Note 10) | and Other Professionals | |||
| Insurance (Note 11) | $4,500-$12,000 | As Billed | As Incurred | Insurance Carriers |
| Grand Opening Costs | $5,000-$10,000 | As Billed | As Incurred | Suppliers and Vendors |
| (Note 12) | ||||
| Additional Funds | $10,000- | As Billed | As Incurred | Employees, Suppliers, and |
| (3 months) (Note 13) | $20,000 | Vendors | ||
| TOTAL | $1,463,500 - | |||
| (Note 14) | $2,734,650 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, security deposits and licenses/permits (excluding impact fees) are due prior to opening a Circle K store. The estimated cost for these deposits and licenses ranges from $2,000 to $15,000. These payments are made as incurred to either the lessor or government agencies.
Security deposits may be required under the real estate lease with a third party, and other deposits may be needed for utilities and insurance premiums. These amounts can vary significantly by location, so prospective franchisees should verify these estimates with local authorities to ensure accurate budgeting. Franchisees are responsible for confirming that all specific deposits required for their store are paid.
Utility service deposits are typically required when applying for the service and may or may not be refundable. It is the franchisee's responsibility to confirm that all specific deposits required for their location are paid. The security deposit you will be required to pay will depend on a number of factors, including the size of the storage tanks on your premises, expected through-put and your credit score. At Circle K's option, the Security Deposit may be paid by debiting your account in the amount of $0.010 per gallon of motor fuel purchased until the full amount of the Security Deposit is paid.