Global law firm Dentons has advised Millat Convenience (Pty) Ltd. on a master license agreement with Circle K Procurement and Brands Limited. The agreement grants Millat the exclusive right to open and operate Circle K franchises throughout South Africa for a period of 30 years.
Circle K is the global leader in convenience stores, with more than 14,100 stores across 24 countries worldwide. Established in 1951 in Texas, U.S., it was acquired by Canadian-based multinational Alimentation Couche-Tard in 2003. This deal represents an important milestone in its worldwide expansion plan, marking its entrance into the Southern African market. The first Circle K store is expected to be opened in Gauteng province towards the end of October 2022.
The Millat Group is a Johannesburg-based family office with a diversified investment portfolio. It has a solid track record of bringing international brands into South Africa. Over the last year, Millat has worked extensively to lay the foundation for the opening of Circle K stores across the country.
“Bringing Circle K to South Africa aligns with our concept of introducing customer-centric brands, experiences and compelling food service offerings,” commented Hamza Farooqui, CEO of Millat Group. “This further speaks to our strategy to play within the leisure, hospitality, food service and convenience segments.”
Babette Marzheuser-Wood, managing director of Dentons Franchise Advisory and co-head of the Europe Consumer Products and Services group added: “This is one of the most exciting franchising transactions in Africa so far this year: it will bring a world-renowned convenience store brand to a new market of 60 million people. It was our pleasure to represent Millat on this deal, which is a key milestone in their growth strategy.”