What was the depreciation expense on property and equipment for Circle K in 2023?

According to Circle K's 2025 Franchise Disclosure Document, the depreciation expense on property and equipment was $4,284,011 for the year 2023. This figure represents the accounting expense recognized by Circle K for the reduction in the value of its tangible assets, such as buildings, equipment, and vehicles, due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense that reflects the allocation of the cost of an asset over its useful life.

For a prospective Circle K franchisee, understanding the depreciation expense is crucial for assessing the financial health and profitability of the franchisor. While franchisees do not directly incur this specific expense on Circle K's corporate assets, it provides insight into how the company manages its assets and reports its financial performance. A consistent and reasonable depreciation expense can indicate sound asset management practices.

It's important to note that this depreciation expense pertains to Circle K's overall operations and not necessarily the individual franchised locations. Franchisees will have their own depreciation expenses related to assets they own or lease for their specific Circle K store. Reviewing the franchisor's depreciation expense can still offer a broader understanding of the company's financial strategies and asset management.