Circle-K Franchise Owner Salary, Profit & Failure Rate 2024

Convenience store businesses are evergreen with the potential to earn high profits and the ability to beat something as wrecking as Covid-19. So if you are looking for such a business opportunity, then Circle-K must have entered your mind.

In this guide on how much does Circle-K franchise owners make, we have shared the details on sales figures, growth figures, profitability stats, and much more.

Make sure to read this till the end to make the best use.

How Much Does A Circle-K Franchise Owner Make

About Circle K

Circle K is a widely recognized convenience store and gas station brand that is known for its quality products and impeccable customer service worldwide.

Circle K was formed in 1951 when Fred Harvey decided to purchase three Kay’s Food Stores in El Paso, Texas.

During the early years, Circle K started expanding to the southwestern part of the United States, and from then on, it started growing its retail network reaching 1,000 Circle K stores by 1975.

The company started offering franchising in 1999, and today, there are more than 650 Circle K franchise stores in the US and approximately 2000 stores internationally.

If you are interested in investing in this franchise, then you must study the company’s revenue and sales data, qualification requirements, and more that we have shared below.


How Much Does A Circle-K Franchise Owner Make?

According to Circle-K FDD data, based on the performance of 555 Circle-K franchised stores in 2021, the stores made an average sales of $1,240,956, the lowest and highest sales being $1,323,683 and $3,943,059, respectively.

Note that the sales you make as a Circle-K franchise owner may vary based on your location, marketing skills, service, etc., and you may be able to make more or less than this average number.

((https://www.franchimp.com/?page=pdf&f=101974_2021.pdf))


Estimated Initial Investment for New or Rebuilt Circle-K Locations

Type of expenditureAmount
Initial franchise fee$25,000
Regional in-store training fee$1,000
Inventory (merchandise and fuel)$100,000 – $220,000
Travel and Living Expenses While Training$3,500 – $15,500
Professional Fees$1,000 – $5,000
Security Deposits and Licenses and Permits$5,000 – $15,000
Real EstateVaries
Insurance$7,500 – $24,000
Grand Opening Costs$5,000 – $10,000
Construction, Remodeling, and Leasehold Improvements$750,000 – $1,600,000
Utility Deposits$1,500 – $5,000
Furniture, Fixtures & Equipment$500,000 – $1,075,000
Signs$20,000 – $120,000
EPOS and Computer Systems$39,000 – $46,000
Car Wash (equipment), if included$160,000 – $420,000
Car Wash (building), if included$350,000 – $650,000
EPOS and Computer Systems$39,000 – $46,000
Fuel Security Deposit$20,000 – $50,000
Vendor Deposits$0 – $16,000
Regional In-Store Training Fee ($500 per attendee)$1,000
Additional Funds (3 months)$10,000 – $20,000
Other Site Development Costs, including Site Development Fee$135,750 – $400,750
TOTAL $2,134,250 – $4,718,250

Circle-K Franchise Fees Breakdown

FeesAmount
Initial franchise fees$25,000
Royalty fees3.5% of Gross monthly sales & $0.0075 per gallon of monthly fuel sales or
$1,500 per month
Promotional fee0.25% of Gross sales (on Gross sales of up to $125,000)
Motor fuel purchase priceVaries
Motor fuel pass-through fee$35 – $50 per delivery
Late fee$25 per day starting on 11th day after due date

((https://www.franchimp.com/?page=pdf&f=101974_2021.pdf))


How Much Does A Circle-K Employee Earn? 

As per ZipRecruiter, Circle-K employees’ salary ranges from $10.05 per hour to $24.04 per hour.

If we look at this in annual terms, then an employee of Circle-K with the job title of Store Manager Trainee can earn an average of $20,896 annually, while a Circle-K employee with the job title of Restaurant manager can earn an average of $50,000 annually.

Please note that this is an average figure, and Circle-K’s employee salary may vary based on their skills, department, position, location, and more.


Pros & Cons Of Circle-K Franchise

Pros Of Circle-K Franchise

  • Flexible business model
  • Highly demandable niche
  • Provide training and support
  • Offer financing
  • Highly profitable

Cons Of Circle-K Franchise

  • High-cost investment
  • Have a net worth of $500,000 and $100,000 in liquid assets.

Circle-K Franchise Average Revenue & Profit

Circle-K has not shared any details about the revenue and profit it generates. However, as per Circle-K FDD, During the year 2021, Circle-K franchise stores made an average sales of $1,240,956.

So if we assume a profit margin of 15%, then we can calculate that a Circle-K franchise owner make annual net profits of $186,143 on average.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1240956.00
Rent10.62%(131851.57)
Insurance5.31%(65925.79)
Salaries21.25%(263703.15)
Franchise Royalty Fees5.31%(65925.79)
Utilities2.13%(26370.31)
Cost of Goods Sold (COGS)26.56%(329628.94)
Labor (Variable)13.81%(171407.05)
Total (Expenses)85.00%(1054812.60)
Net Profit15.00%186143.40

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Also note that the company has not disclosed any information regarding its franchise profit, so we suggest you to talk to eight-ten Circle-K franchise owners to determine what amount of profit you can potentially make from this business. 


Circle-K Company’s Overall Revenue & Profit

As per the latest report, Circle-K made a net profit of $810 million in the second quarter of 2023, which was a $100 million increase from the same quarter in 2022.

Additionally, Alimentation has $4.1 billion in revenues from its service and merchandise sales during the same period, showing an overall increase of 2.3% from the previous year.


Circle-K Franchise Failure Rate

To figure out the failure rate of Circle-K franchise, let us have a look at the number of outlets that opened and closed in the years 2019-2021:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019000
2020000
202101+1

For the Franchised outlets:

  • In 2019, the failure rate was (0)/0×100≈0.00%
  • In 2020, the failure rate was (0)/0×100≈0.00%
  • In 2021, the growth rate was (1)/0×100≈0.00%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201940244859+835
202048595032+173
202150325260+228

For the Company-Owned outlets:

  • In 2019, the growth rate was (835)/4024×100≈20.75%
  • In 2020, the growth rate was (173)/4859×100≈3.56%
  • In 2021, the growth rate was (228)/5032×100≈4.53%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201940244859+835
202048595032+173
202150325261+229

  • In 2019, the growth rate was (835)/4024×100≈20.75%
  • In 2020, the growth rate was (173)/4859×100≈3.56%
  • In 2021, the growth rate was (229)/5032×100≈4.55%

According to the above-mentioned data, we can see that the franchised outlets for Circle-K declined from 2019 to 2020, showing a failure rate of 0.00%. However, the number of outlets increased in the year 2021.

On the other hand, for company-owned outlets, the growth rate of Circle-K was lying in the range between 20.75% and 4.53% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Circle-K franchise has expanded in the years 2019-2021, showing a total growth rate between 20.75% and 4.55% which tells us that Circle-K is performing well and is a safe investment opportunity.


What Is Circle-K Known For?

Circle-K is a well-known and widely recognized convenience store and gas station company, and it is known for offering the highest quality fresh food items, basic household items, a range of snacks and beverages, and fuel and oil products.

What makes the company unique is that they have something for each and everyone and cater to people with all income levels.

Their quality products, coupled with great customer service, are what their customers love them for.


Is Circle-K Franchise Profitable?

Circle-K has not released any official data regarding the profit earned by its franchises. However, there are some key factors that point us to believe that the Circle-K franchise might be very profitable.

The first thing is that opening a Circle-K franchise requires a high investment, and a high investment usually means a possibility of earning higher profits.

The second thing is that between 2019 and 2021, not even a single Circle-K outlet closed for franchised and company-owned outlets, and there was a positive growth in the total number of outlets that opened. This means that the company is performing well.

Lastly, Circle-K is a convenience store brand, and such companies are always in demand. So all these factors point us to believe that the Circle-K franchise is definitely profitable.


Payback Period Of Circle-K Franchise

The investment of Cicrcle-K is 1,649,000 on average and a yearly profit is $186,143. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $1,649,000 / $186,143= 8.8 years

Based on these figures, it will take approximately 8-9 years to pay back the initial investment for Circle-K. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Circle-K Franchise Earning Potential

Looking at the number of Circle-K outlets that are frequently opening along with the fact that Circle-K is a convenience store, we believe that it has a potential to earn a high amount of money.

Also, the average sales figure of Circle-K is $1,240,956, which paints a positive picture of this franchise’s earning potential.

Since the company has not revealed much information, to learn more about this, it is recommended you talk to Circle-K franchise owners directly, as it would help you find out how much you could expect to make on average.


Wrap Up

After looking at the Circle-K franchise opportunity closely, we can conclude that this franchise can be obtained without much hassle because of the flexible onboarding process.

However, it requires a high cost of investment. The company has not shared any information regarding its profit, but we think that Circle-K is quite a profitable business opportunity.

Also, since Circle-K is a convenience store company, the demand for this business is not declining anytime in the future.

Overall, we think that you can consider investing in this business opportunity.


Frequently Asked Question

What is the minimum financial requirement to own a Circle-K franchise?

To own a Circle-K franchise you must have $100,000 in liquid assets and a net worth of $500,000.

Does Circle-K offer financing?

Yes, based on the scope of your project, Circle-K might offer funding for the construction or conversion of your franchise store.

How long is the Circle-K franchise term?

The initial term for Circle-K franchise is 10 years from the day the store opens.

Does Circle-K offer veterans discounts?

Yes, Circle-K offers a 10% discount on franchise fees to eligible veterans.

Where Is Circle-K Headquartered?

The headquarters of Circle-K is located in Laval, Canada.

Who Owns Circle-K?

Cicrcle-K is present in more than 24 countries and territories. It was acquired by Alimentation Couche-Tard in 2003.

How Many Locations Does Circle-K Has?

With 7,230 stores in the United States, Circle-K is second to 7-Eleven. As of 2023, there are more than 14,800 with Circle-K worldwide.

Who founded Circle-K?

Circle-K was founded by Fred Hervey in 1951. He purchased three Kay’s Food Stores in El Paso, Texas, then named them ‘Circle K Food Store Inc.’

Leave a Comment