Elaph Special Acquisition Company (Elaph), the holding company of Twenty Four Seven, has announced the signing of a master license and franchise agreement to own and operate Circle K-branded convenience stores in the United Arab Emirates.
Under the agreement, the regional headquarters will be established in Dubai, with the option of expansion into Oman, Bahrain, Qatar, Jordan, Kuwait and the Kingdom of Saudi Arabia.
“The convenience store industry in the Gulf region is in the early stages of development. Circle K will be the first international operator to enter the region,” said Mohammed AG Hussain, Managing Partner of ESAC. “Twenty Four Seven and Elaph see this is a pivotal opportunity to introduce Circle K’s proven, high-quality concept to the region.”
Owned by Canadian-based, Alimentation Couche-Tard, Circle K, with over 3,300 stores in North America, is one of the most popular and successful operators of convenience stores known for its variety of popular proprietary brands such as ThirstBuster, Montego cigarettes, “Take Away Café” and Froster; it also boasts an established presence in China, Japan, Indonesia, Vietnam, Hong Kong, Guam and Mexico, totaling over 3,800 stores.
“Twenty Four Seven fully expects branding our convenience store operations with a recognised industry leader will greatly advance our foothold and competitive position in a young and growing market,” said Fahmi AlShawa, Managing Director of Twenty Four Seven.
The Circle K franchise offers a sophisticated, proprietary system for the establishment and operation of convenience stores which includes communications systems and management models, merchandising-options and “smart” store schematics. Under the arrangement of the license agreement, Circle K also provides business assistance and centralised purchasing power through established vendor relationships.
“There’s a growing need for convenience stores in the region as our modern lifestyles get more complex,” added AlShawa. “Circle K’s business model offers unlimited opportunities for
franchisees to adapt its successful operation module to new markets, and we are extremely pleased to be the first to bring the brand to the Middle East.”
According to a confidentiality agreement set between the parties, the financial terms cannot be disclosed at this time.
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