Circle K FDD Summary
Type of Business
This Disclosure Document describes the offer for the right to operate a retail convenience store under the “Circle K” trade name and service marks and the Circle K convenience store business system. This Disclosure document also describes the offer for the right to operate a motor fuel business for the sale of (a) Circle K-sourced motor fuel under the “Circle K” trade name and service marks and the Circle K motor fuel business system (the “Motor Fuel Business”) and (b) third-party sourced motor fuel under the Circle K marks (the “Branded Business”). As of the date of this Disclosure Document, the franchisor will offer a Motor Fuel Business or Branded Business only to franchisees that already operate or agree to open and operate a Store.
Corporate Information
TMC Franchise Corporation was incorporated under the laws of the state of Arizona on February 7, 1995, under the name Circle K Franchise Corporation. On September 27, 1997, they changed their name to TMC Franchise Corporation. Their principal business address is 1130 West Warner Road, Tempe, Arizona 85284. Circle K Stores Inc. is their parent, the owner of all of their common stock, and the owner of the Circle K trademarks. Circle K Stores Inc. was incorporated under the laws of the State of Texas on June 8, 1951.
Investment
The total investment necessary to begin operations of a Circle K convenience store franchise is from $610,500 to $1,601,500 for a newly constructed Circle K Store and $185,500 to $916,500 if you are converting an existing convenience store to a Circle K Store. This includes $25,000 that must be paid to the franchisor or their affiliates whether you open a newly constructed Circle K Store or if you convert an existing convenience store to a Circle K Store. If you purchase an existing company-operated Circle K Store from the franchisor, the amount you will pay to the franchisor is difficult to estimate based on real estate costs as well as the ancillary businesses usually associated with a convenience store and varies depending on the purchase price the franchisor negotiates.
The total investment necessary to begin operations of a Branded Business is from $8,150 to $67,150. Of this amount, there are not any fees paid to the franchisor or an affiliate. The total investment increases to $553,150 to $1,894,650 for a newly constructed or rebuilt Motor Fuel Business and $133,150 to $1,329,650 if you are converting an existing forecourt to a Motor Fuel Business. This includes $20,000 to $50,000 that must be paid to the franchisor or their affiliates. The total investment noted in this paragraph for a Branded Business or a Motor Fuel Business is in addition to the total investment necessary to begin operations of the Circle K convenience store franchise.