To whom are the fees payable for a Circle K franchise?

According to Circle K's 2025 Franchise Disclosure Document, unless otherwise stated, all fees are imposed by and payable to Circle K or its affiliates and are generally nonrefundable. This means that franchisees will typically make payments directly to Circle K corporate or to entities affiliated with Circle K, rather than to independent third parties, for most of the fees outlined in the FDD.

For example, royalty fees are specifically stated to be payable to Circle K. These royalty fees are a percentage of gross sales, with the specific percentage depending on factors such as the amount of equipment/construction funding the franchisee accepts from Circle K, whether the store is in an area that restricts royalties on alcohol sales (which may increase the royalty fee by 0.5%), and whether gaming machines are installed (which can further increase the fee by up to 1%). The franchisee's monthly royalty fee will be no less than $1,000. These royalty fees, along with other monthly payments, must be paid via electronic funds transfer or wired to Circle K or its affiliate by the 25th day of each month.

Other fees payable to Circle K or its affiliates include the Network Fee, currently at $50 per month, for the debit/credit network provided by Circle K. There's also a Licensing Fee for the right to use Circle K trademarks in connection with motor fuel sales, which is the greater of $0.0075 per gallon or $500 per site, payable monthly. Furthermore, if a franchisee transfers their interest in the franchise agreement, a transfer fee equal to the then-current Initial Franchise Fee (e.g., $25,000 as of the document's date) is payable to Circle K.

It is important for prospective franchisees to understand that these fees are generally nonrefundable, and failure to pay them on time can result in additional charges, such as interest on late payments or insufficient funds fees. Additionally, underpayment of amounts owed, especially if willful or exceeding 2% of actual gross sales, can lead to the franchisee being responsible for the cost of audits conducted by Circle K.