Is a Circle K franchisee responsible for paying taxes related to the operation of the store?

According to Circle K's 2025 Franchise Disclosure Document, the franchisee is responsible for all taxes related to the store's operation. This includes federal, state, city, and local taxes and assessments. These taxes encompass a wide range, such as individual and corporate income taxes, sales and use taxes, excise taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, unemployment taxes, personal property taxes (including those related to signage with the Marks), real estate taxes, and gasoline or motor fuel taxes.

This means that a Circle K franchisee must budget for and manage various tax obligations, ensuring timely payments to avoid penalties. The franchisee's responsibility extends to taxes associated with the sale of merchandise and services, making it crucial to maintain accurate records and stay informed about applicable tax laws and regulations. Failing to comply with these tax obligations can lead to legal and financial repercussions for the franchisee.

This requirement is standard in the franchise industry, where franchisees typically operate as independent business owners responsible for their own tax liabilities. Prospective Circle K franchisees should consult with a tax professional to understand the full scope of their tax obligations and develop a sound financial management strategy.