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2008 C I R C L E K F R A N C H I S E B R O C H U R E


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2008 C I R C L E K F R A N C H I S E B R O C H U R E

  2. 2. hank you for your interest The Circle K Franchise Program T in the Circle K Franchise offers superior business systems, Program, operated by TMC extensive training and effective Franchise Corporation. promotional tools. Our ongoing business support and our We are offering Circle K franchise heritage brand is, in fact, the opportunities that build your Circle K advantage. convenience store business by providing shoppers with a one-of- We invite you to read through a-kind shopping experience. these materials and explore how you might obtain a franchise Recognizing the needs of today’s license to operate a Circle K on-the-go consumers, Circle K convenience store. brings convenience and quality products to the marketplace. If you are seeking a challenging opportunity, driven by the Circle K stores appeal to the expanding convenience retail neighborhood shopper filling in market, take advantage of our last minute items; the passer-by unique and rapidly growing wanting hot coffee and a snack; franchise offering. You owe it or the traveler craving a cold to yourself to learn more about drink and hot dog. Circle K.
  3. 3. We offer you the means to provide customers with all the reasons why they need to visit you over the competition. Build the Confidence of Customers Customer Loyalty Breeds Success Shopper loyalty is based on familiarity and trust. Customers view Circle K, with its bright red logo, as a brand on which they can rely for their convenience needs. Circle K stores are known worldwide for their quality products and great customer service. The Circle K standard serves as the foundation for ® established proprietary brands including ThirstBuster ® fountain drinks, Montego cigarettes, Freshest Coffee ® Going and prepaid communications cards. Superior proprietary brands tap into consumer needs and provide products that drive customers into Circle K stores. BECOMING A CIRCLE K FRANCHISEE When you become a Circle K Franchisee, you are joining a proven company that delivers a winning combination of marketing, operations and systems to grow your business. Our program allows you to operate your own business with easy access to the expertise of over 50 years of retailing experience.
  4. 4. Our Vision To share the heritage of Circle K’s proven brand, image, convenience retailing expertise, superior business systems and international presence for the benefit of our franchisees. Our Mission To grow the Circle K brand by granting franchise agreements to individuals who are dedicated to winning long-term customers by providing high-quality products and services, fully utilizing the operating system and taking full advantage of our ongoing support. For over 50 years, customers have come to Our Values recognize the convenience and quality associated These values give us a foundation for with the Circle K brand. What began in 1951 with working together successfully: the purchase of three Kay’s Food Stores in El Paso, • Relationships of mutual trust Texas, has become one of the nation’s largest • High ethical and moral standards chains of company-operated convenience stores. • Recognition of efforts and Circle K has more than 6,500 stores worldwide, achievements • Service-focused organization with 2,400 stores located in approximately 25 states • Leadership that recognizes and and 4,100 stores operating under the Circle K brand capitalizes on opportunities in six foreign countries. In 2003, Alimentation • Safe environment for employees Couche-Tard (ACT), the largest convenience store and customers • Superior, worldwide business operator in Canada with over 1,900 stores, systems purchased the Circle K brand. As a result of this acquisition, ACT operates or licenses more than The Circle K Advantage 8,900 stores worldwide. • Heritage of the Circle K brand • Strong business management systems that foster market share and potential for growth • Proven marketing, merchandising and promotional programs • Large-scale purchasing power • Strong franchisee support • Customer focused
  5. 5. Marketing, merchandising and promotional programs are created to meet the customer’s needs and grow the business. Succeed With Innovative Marketing and Merchandising Understanding the Customer and Knowing the Product We have established a strong MARKETING foundation for marketing and Our success in marketing and Circle K has developed merchandising success by promotions can be attributed to marketing and promotional tapping into how consumers several factors: our knowledge programs designed to enhance think, live, work and shop. Using of the consumer and our ability sales the first day your store this unique insight, we are able to bring it all together with opens. We have years of to offer you strategic store programs that build store traffic, valuable experience enticing layouts and merchandising create customer loyalty and customers with our products and programs. For this reason, generate sales. services and encouraging them Circle K stores are a preferred to shop Circle K for their destination for consumers. convenience items.
  6. 6. INTERNATIONAL OPPORTUNITIES MERCHANDISING We know consumers worldwide We have enhanced our Circle K product offerings appreciate convenience. We also through an innovative departmentalized merchandising recognize that regional, national and format. With this, we have reinvented our convenience international market needs vary. Circle K store business by creating a unique and unified product has been able to successfully tailor our presentation throughout the stores. brand tactics to address the different cultural identities in the many In the Circle K format, we merchandise by departments marketplaces in which we compete. such as Snacks, Grocery, Food Service and Beverages. We have developed systems to manage these individual Outside the United States, there are store departments. more than 4,100 Circle K stores implementing the latest ideas in Additionally, our store signage, graphics and displays all retailing. From in-store bakeries in work to reinforce key messages and communications to Hong Kong, to fast food innovations in the customer. Circle K’s unique merchandising, updated Indonesia, Mexico and Japan, these store graphics and well-designed floor plans present stores are taking advantage of our consumers with a positive shopping experience to keep brand, our expertise and resources, all them coming back. to meet the needs of populations that want and need more convenience. CIRCLE K’S CIGARETTE BACKBAR PROGRAM Cigarettes are a leading sales category for convenience stores. Circle K’s “Proprietary Backbar Program” helps Franchisees sell cigarettes responsibly by displaying all products behind the sales counter. Our program offers shoppers choice and selection, with high brand visibility. All the major cigarette companies participate in this program, offering Circle K Franchisees the opportunity to optimize their cigarette sales and rebates.
  7. 7. Circle K offers a wide range of tools and services designed to assist in managing your business and achieving your goals. Business Systems Support Expert Advice to Assist Your Decision Making From your initial site selection and training, to ongoing operational support and business systems, Circle K offers a wide range of tools and services to help you manage the business and achieve your goals. We allow you to select the hardware and software that best fit your store, providing guidance to ensure you select a system that will deliver fast customer service and accurate transactions. We require you operate your store with two electronic point-of-sale (EPOS) registers with scanning capabilities. You must have a PC-based back office that supports a business reporting system and transmits daily sales information to the Circle K data warehouse. Additionally, we provide innovative content and updated sales information on our proprietary “Franchisee only” website, As a Circle K Franchisee, you can access this website 24/7 from any PC with internet connection. NEW BUILD OR SITE CONVERSION TOOLS Circle K utilizes a network of professional engineering, Support that architectural, permitting and construction management consultants to serve as your advisors as you build or convert your site to a state-of-the-art facility. With vast lends success. access to key industry suppliers, Circle K provides individualized store layouts, and a fresh design to each of its franchisees. Proven site and store layouts and planograms help optimize your store’s sales potential. The combination of Circle K’s purchasing power and business methods all work together to help you stay ahead of your competition.
  8. 8. Retail Automation Systems The Circle K Franchise Program allows a high degree of flexibility in determining the right point-of-sale (POS) and back office system for each Circle K franchise location. We understand that each franchisee must operate a POS system that is compatible with the proprietary fuel or independent credit network that interfaces with the fuel dispensers and back office systems. As a Circle K Franchisee, we’ll assist you in determining the right store automation system for you. Circle K can put you in touch with the appropriate suppliers for systems that will provide fuel dispenser control and automation, as well as sales transaction processing, cashier and management reporting, and inventory control in a fully-scanned c-store environment. We can connect you with installation and training services, as well as providers for 24/7 help-desk call centers for those times when you need additional assistance. Your Franchise Development Manager has all the information on recommended vendors and suppliers for EPOS and Back Office solutions. We invite you to take advantage of Circle K’s expertise.
  9. 9. Steps To a Circle K Franchise Opportunity These steps will help you fully evaluate the opportunity of becoming a Circle K Franchisee. 1. CONFIDENTIAL APPLICATION Franchise Development Agreement, ready for If you choose to pursue a Department to arrange a execution. The franchise fee is franchise opportunity with us, personal meeting to review due upon execution of the please complete and return the details of the Franchise Franchise Agreement. application in the enclosed Program. self-addressed envelope. Once 6. TRAINING received, we will begin the 3. SITE EVALUATION Just prior to your store qualification process, which After you identify a suitable opening, you will attend includes both a credit and location, we will determine several weeks training at our background check. if it meets Circle K minimum Circle K SMART Academy. standards. 2. UNIFORM FRANCHISE 7. PRE-OPENING PREPARATION OFFERING CIRCULAR 4. GROUP INTERVIEW We will work with you to If you meet the preliminary Qualified candidates complete develop your Grand Opening franchise qualifications, we will a personality assessment Program including point-of-sale send you a Uniform Franchise and meet with Circle K materials and grand opening Offering Circular (UFOC) which management to ensure your specials and events. contains a standard TMC professional goals and our Franchise Corporation business system are a match. 8. OPEN FOR BUSINESS! Franchise Agreement, as well as a copy of the company’s 5. FRANCHISE AGREEMENT financial statements and other SIGNING pertinent information. You will We will provide you with a also be contacted by the complete Franchise For More Information on the Circle K Franchise Opportunity Contact: TMC FRANCHISE CORPORATION Worldwide Franchise Division (DC 7) P.O. Box 52085 Phoenix, Arizona 85072-2085 Phone: 800-813-7677 / 602-728-8000 E-mail: Visit our web page at
  10. 10. Marketing & Merchandising Services Marketing & Merchandising Services The experienced Category Development What does the Promotional Fee and Brand Management staff at Circle K provide you? are constantly developing new programs • Door signs to build traditional convenience categories • Point-of-purchase materials such as beer and soda, as well as creating • Monthly promotional display signs new concepts such as food service, • Local promotional plans electronic services and fill-in shopping. • Cigarette center signs Supported by consumer research and • Monthly promotional bulletins promotional concept testing, these • Grand opening rebates programs are designed to provide you • Grand opening signs with the confidence of a proven marketing • Advertising in selected markets approach. Each month, you’ll receive a • Sales incentives detailed merchandising plan specific to • Equipment rebates your geographic area. Following the • New program introductions Circle K marketing programs will help • Local co-op advertising programs increase the shopability of your store, CIRCLE K PURCHASING and as a result, maximize the opportunity for sales and profits. ASSISTANCE * Our strong presence in the marketplace PROPRIETARY MERCHANDISING creates a host of efficiencies for you as a PROGRAMS Circle K Franchisee. This means you may We have developed proprietary qualify to participate in a variety of cost- merchandising programs that give you saving agreements with many major an edge in your respective market. As a manufacturers. Our national wholesaler Circle K Franchisee, you will receive store programs offer special rebates and off- layouts and schematics. These detailed invoice allowances, which may be passed sets not only make it easy for you because along to Circle K Franchisees on selected you know where everything fits, but they product purchases. Our purchasing are also designed to enhance impulse assistance not only includes national purchasing behavior by shoppers. merchandise brands, but also fixtures, equipment and supplies that are designed PROPRIETARY PRODUCTS specifically for Circle K stores. Circle K is known for a variety of popular GRAND OPENING PROGRAM proprietary brands, including ThirstBuster®, Circle K PhoneCardsSM, Montego® cigarettes We will assist you in creating a Grand and the Freshest Coffee Going®. These Opening Program just for your Circle K. brands are well recognized in the industry A qualified Franchise Business Consultant today. will work with you to build a powerful grand opening program. PROMOTIONAL FEE CONSUMER RESEARCH AND NEW Through the Circle K Promotional Fee, CONCEPT DEVELOPMENT you will receive promotional plans and programs developed by professional Circle K’s Research and New Concept Category Managers that are designed Development Teams are committed to specifically for Circle K stores. Additionally, providing new and exciting programs, you will receive an array of promotional which meet today’s customer needs for materials that help build a strong, loyal solutions that make their lives easier. customer base for your Circle K store. From the moment you open the doors, this *Requires Franchisee to meet vendor and fee provides professionally produced Circle K proof of performance requirements materials to promote products and services. We can even help you develop area-specific events, allowing you to tailor your marketing efforts around local activities.
  11. 11. Business Systems & Services Business Systems & Services Circle K offers a wide variety of business TRAINING support tools and services to help optimize To assist you in your business, we offer a your sales and profits. comprehensive training program at the “SMART Academy,” our training center with THE RIGHT SITE a state-of-the-art classroom and systems. Whether you are building your first or You will receive hands-on training on the your tenth store, our Engineering and Circle K Franchise Business Systems. Construction Department can offer a Circle K Orientation Program variety of services to assist in designing and constructing your store. This is an initial opportunity for you to review the Circle K offering and for us to get REAL ESTATE to know you, before a Franchise Agreement is signed or fees are paid. It also allows Site Selection Assistance you to experience first-hand the typical • Preliminary site due diligence review convenience store and fuel responsibilities for customer service representatives (CSR’s) ENGINEERING and site management. Provide templates for building design, signage and site layout, plus review and Circle K SMART Academy Training comment on proposed site layouts. Several weeks of classroom and in-store • Provide standard site development training will be provided prior to opening and estimated construction budget your site, including: costs (This will not include all site S Systems: An in-depth review and specific situations.) practice of the Circle K Operations Manual • Provide a standard checklist and Business systems, including an of architectural standards and accumulation of over 50 years of Circle K’s specifications best practices. • Provide recommended layouts M Marketing: Learn the fundamentals of and designs convenience store marketing, merchandising and Circle K’s proprietary Construction Consulting Assistance programs and purchasing power. • Conduct periodic site inspections A Accounting: Learn the fundamentals of and provide associated written retail and business accounting practices status reports including planning, gross profit analysis • Provide on-site project management and retail reporting. • Provide procurement assistance R Retail: Learn how to control inventory, • Provide answers to your construction ordering, receiving merchandise and questions establishing retail prices, which maximize sales and profits. T Training: Learn Circle K standards and how to train your store employees on Circle K’s proprietary CD Training Program which includes our WE CARD Training on responsible sales of beer, cigarettes and other age-restricted products. continued on next page
  12. 12. Business Systems & Services Business Systems & Services Continued OPERATIONAL SUPPORT SYSTEMS FRONT & BACK OFFICE SYSTEMS Circle K supports your business efforts Today’s convenience store represents a and provides advice on your operational demanding environment that must balance questions and challenges. The Operations the needs of the customer along with the Team assists with your store opening and requirements of the business. We will offer works with you to keep your business our Franchisee the tools to achieve this running day-in and day-out. balance while improving the customer buying experience. We can recommend New Store Operating Assistance solutions for Point-of-Sale and Back-Office We provide you with the tools and systems and connect you with vendors knowledge necessary to get your store that both supply and support the latest staffed, stocked and ready for operation. technologies in the industry. Our system includes training manuals, new store kits and grand opening plans. WWW.CIRCLEKFRANCHISE.COM Business & Marketing Consultant As a Circle K Franchisee, you will have 24/7 Each Franchisee will have ready access to access to a fully-secure proprietary web Circle K’s qualified business and marketing site designed exclusively for Circle K consultants. Working in the field alongside Franchisees. At the click of a mouse, you each Franchisee, these professionals can view and download marketing sales provide on-going consultation, guidance planners, product pricing, manuals, guides, and support to help maximize revenue and forms, and a wealth of content specifically operating efficiencies. tailored to franchise operations. OPERATIONS MANUALS Known as the Circle K Franchise Business Operating System, each Franchisee will also receive the following manuals on CD. Volume I Guide to Establishing a Circle K Franchise Volume II Grand Opening Guide Volume III Guide to Circle K Franchise Store Operations Supplemental Guides Electronic Point-of-Sale Systems Guide Human Resources Guide Loss Prevention Guide
  13. 13. International International All of us at Circle K are committed to If you become a Master Licensee, our building long-term value for our International Team will work closely with International Licensees by operating the you to provide a superior level of service. finest convenience retailing system in the This is a relationship that will begin with world, through advanced store operations, the customization of the Circle K retailing marketing, real estate, information systems, format through a detailed local retailing and human resources management. analysis. Following the analysis, you are assisted in all areas of the business INTERNATIONAL OPERATIONS necessary to establish and maintain a thriving retailing business. Our trend-setting global retailing system is built on a wide range of convenience LEADERSHIP IN ALL ASPECTS OF store ideas and advances that are drawn CONVENIENCE RETAILING from a network of over 4,100 stores outside the United States. From in-store bakeries We believe providing leadership and in Hong Kong and Indonesia, to fast food innovation in the fundamental aspects innovations in China and Japan, the Circle K of convenience retailing are the most Master License Agreement offers you important roles we can offer you. We access to the expertise of an experienced can provide that leadership through an group of convenience store retailers. This experienced International Team, a network global perspective not only keeps each of International Licensees, and the full Master Licensee up to date on the latest resources of our U.S. operations. developments in retailing, but it also provides a continual flow of leading-edge The Circle K Business System offers you programs to help build sales and profits. global leadership in: • Store Operations GROWING THE CIRCLE K • Marketing and Merchandising BRAND GLOBALLY • Real Estate • Information Systems As customers look for ways to improve • Licensee Support and simplify their lives, we continue to • Training Programs see opportunities for growth worldwide. Circle K’s International Franchise Division MARKETING AND is meeting shopper demands by expanding MERCHANDISING LEADERSHIP into attractive markets and offering master licenses to qualified applicants. An ideal We know that customers all over the world applicant is one that brings the financial need convenience. We understand that resources, local market knowledge and international market needs vary. We will operating commitment necessary to tailor our brand tactics to address the establish a thriving convenience store different cultural identities in the various business. We provide the operating markets where we operate. expertise, marketing programs, training and continual innovation necessary to establish your business and keep it growing. continued on next page
  14. 14. International International Continued REAL ESTATE LEADERSHIP LICENSEE SUPPORT LEADERSHIP Circle K has developed one of the most Every Circle K Master Licensee in the world sophisticated real estate management enjoys being connected to an innovative, programs available in retailing today. growth-oriented convenience retailing From market analysis to real estate system. Accessing the full resources of inventory management to sales forecasting, Circle K’s U.S. operations, and the network our Real Estate system provides a of successful International Licensees, comprehensive program for real estate you will benefit from the vast array of management. This system is supported the latest technologies and services needed with complete training and consultation to establish a profitable convenience with your real estate personnel. retailing business. CONTACT INFORMATION The tools and services of the Circle K Real Estate system are: TMC Franchise Corporation • Market Analysis Worldwide Franchise Division (DC 7) • Site Selection P.O. Box 52085 • Sales Forecasting Model Phoenix, Arizona 85072-2085 • Financial Analysis Model • Market Strategy Planning Phone: 602-728-8000 • Real Estate Inventory Analysis 800-813-7677 and Planning • Real Estate Staffing Consultation Web Page: Email: In convenience retailing, location is vital. Therefore, initially making the right real estate decisions will result in higher sales and profits for years to come.
  15. 15. Application Application TO COMPLETE AN CONTACT INFORMATION APPLICATION ON-LINE: If you need additional assistance or more information, contact us at: Please go to the following link: TMC Franchise Corporation Worldwide Franchise Division (DC 7) Click on Investment Info and Application. P.O. Box 52085 Phoenix, Arizona 85072-2085 Follow the directions for completing the application form. Phone: 602-728-8000 800-813-7677 TO COMPLETE AN Web Page: APPLICATION MANUALLY: Email: Please go to the following link: Click on Investment Info and Application. Download the APPLICATION PDF using Adobe Acrobat Reader. If you do not have access to the internet, please contact Circle K Franchise and an application will be forwarded to you.
  16. 16. TMC FRANCHISE CORPORATION Worldwide Franchise Division (DC 7) P.O. Box 52085 Phoenix, Arizona 85072-2085 E-mail: Phone: 800-813-7677 or 602-728-8000