Is Circle K currently charging a Software License Fee, and if not, what is required to implement it?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The Software License Fee is for the right to utilize the TMC Software, as defined in the Electronic Point of Sale and Software Agreement (the "Software Agreement") (a copy of which is attached to the Convenience Store Franchise Agreement as Exhibit 2), required for your Store and includes all upgrades as they become available.
The Software License Fee is paid to us in the same manner as the Royalty Fee.
Currently, we are not charging a Software License Fee, but have the right to do so upon sixty (60) days' written notice.
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, Circle K is not currently charging a Software License Fee. However, Circle K retains the right to implement this fee in the future. To do so, Circle K is required to provide franchisees with sixty (60) days' written notice before the fee is implemented.
The Software License Fee, if implemented, would grant franchisees the right to use the TMC Software, which is defined in the Electronic Point of Sale and Software Agreement. This software is required for the operation of the Circle K store and includes all available upgrades. The Software License Fee would be paid in the same manner as the Royalty Fee.
This clause gives Circle K the flexibility to introduce a new fee for software usage, which could impact a franchisee's operating costs. Prospective franchisees should consider this potential future expense when evaluating the overall financial investment and potential profitability of a Circle K franchise. It is important to factor in the possibility of this fee when projecting future expenses and to inquire with current franchisees about their experiences and expectations regarding this potential fee.