Franchisel.com — FDD Diligence Memo
CIRCLE K (STANDARD)
Generated 2026-04-06 · 2024 FDD · Government-filed source
CIRCLE K (STANDARD)
2024 FDD Diligence Memo
Score of 67/10 driven by: low financial transparency.
Sys Health
9
Fin Strength
6
Support
6
Contract
7
Red Flags & Key Signals
Franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This is not automatically a negative signal — it means economics cannot be scored from the disclosure.
Review Item 3 narrative for claim types. Franchisee-vs-franchisor suits are a stronger red flag than third-party disputes.
You waive the right to sue in court. Arbitration typically favors the franchisor. Review the venue and arbitrator selection process.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
Franchisor financial statements are audited by ey with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — not included in filed FDD (voluntary per FTC Franchise Rule)Economics not rated — Item 19 not available.
Not DisclosedThis franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This does not indicate bad economics — it means revenue projections cannot be sourced from the disclosure document.
Item 20 — System Health
Item 20 — 2024 FDDModest growth — net +3 units.
→ StableSystem is expanding slowly.
Total Units
0
Net Growth
+3
Turnover
0%
Year-over-Year Trends
2024 FDDOpened
+0
Closed
-0
Net
+3
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2024 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19No Item 19
This franchisor did not include a Financial Performance Representation in their FDD. Item 19 is voluntary per FTC rules — absence does not indicate poor economics.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
The agreement requires mandatory arbitration. Ask: have you ever had a dispute with the franchisor — how was it handled? Did you feel you had recourse?
Look for: Franchisees who've been through disputes. Understand if the arbitration process felt fair or heavily stacked toward the franchisor.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales.
Item 12 · 2024 FDD
Data sources: 2024 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2024 FDD filed with MN CARDS (file #9917). Source: 9917-2024.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.