What advance written notice will Circle K provide to the franchisee before requiring payment of the National Promotional Fee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
l give Franchisee the ability to use a portion of such funds to implement Franchisor-approved Store-level marketing and promotional programs. Franchisee acknowledges that LSM funds may not be available to Franchisee in every (or any) year during the Term.
- (C) National Promotional Fee. The parties acknowledge that no national promotional fee is in effect as of the Effective Date; however, during the Term, Franchisor may require payment of such a fee. In such an event, Franchisor will provide Franchisee at leas
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, currently, there is no national promotional fee in effect. However, Circle K may, during the term of the agreement, require franchisees to pay this fee.
In such an event, Circle K will provide the franchisee with at least 60 days' advance written notice before the fee is implemented. After this notice period, the franchisee will be required to pay Circle K up to 0.25% of the franchisee's monthly Gross Sales (on Gross Sales of up to $125,000). This fee is to cover national promotional costs associated with promoting Circle K stores.
This means that a Circle K franchisee needs to be prepared to potentially pay this additional fee during the term of their agreement, and they will receive a 60-day warning before it goes into effect. This allows the franchisee time to adjust their budget and business plan accordingly.