What was the interest and other income for Circle K for the year ended April 30, 2023?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ers. Only the exact fuel volume intended for sale to franchisees is purchased from Circle K Stores. Fuel purchased from Circle K Stores was $121,521,993, $108,201,918, and $93,578,565, respectively for 2025, 2024, and 2023.
On December 12, 2003, the Company signed a note agreement with Circle K Stores providing for an advance of up to $15,000,000. As of April 27, 2025, $5,000,000 had been advanced to Circle K Stores pursuant to the note. Interest is paid on a semiannual basis on the last day of June and December at the federal short-term rate, as defined by the Internal Revenue Code of 1986, as amended. The resulting interest receivable is included in Receivable from parent company on the consolidated balance sheet. The note is payable on demand, however as the Company does not intend to c
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC Franchise Corporation, a wholly-owned subsidiary of Circle K Stores Inc., had interest income of $130,498 for the year ended April 30, 2023. This interest was earned on a note agreement with Circle K Stores, where up to $15,000,000 could be advanced. As of April 27, 2025, $5,000,000 had been advanced.
The interest is paid semi-annually on the last day of June and December, based on the federal short-term rate as defined by the Internal Revenue Code of 1986. The resulting interest receivable is included in the Receivable from parent company on the consolidated balance sheet. Although the note is payable on demand, it is classified as non-current on the consolidated balance sheet because the company does not intend to call the payment within the next twelve months.
For a prospective Circle K franchisee, this indicates the financial relationship between TMC Franchise Corporation and its parent company, Circle K Stores. The interest income is a component of TMC Franchise Corporation's overall financial performance, which is relevant to assess the financial stability of the franchisor. Understanding these related-party transactions can provide insight into the financial structure and potential dependencies within the Circle K franchise system.