When is the initial franchise fee due for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump Sum | Upon signing | TMC |
| (Note 1) | Agreement |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the initial franchise fee is due upon signing the franchise agreement. The standard initial franchise fee is $25,000, which must be paid as a lump sum to TMC, Circle K's parent company. Note that this fee is for opening only one Circle K store.
The FDD also indicates that the amount of the initial franchise fee may vary depending on the number of stores a franchisee commits to opening. For instance, franchisees who agree to open six or more stores may be eligible for a reduced initial franchise fee of $10,000 per store.
It is important to note that the initial franchise fee is generally non-refundable, although Item 5 of the FDD provides additional information regarding how the Initial Franchise Fee is determined and for the conditions under which this fee is partially refundable. Circle K does not offer financing for the initial franchise fee, so prospective franchisees should ensure they have sufficient capital available when signing the agreement.