Which items in the Circle K Disclosure Document relate to the franchisee's fee obligations?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| f. Fees | Article 5 & Section 6.1 of Convenience Store Franchise Agreement Section 2.1 of Software Agreement Sections 4, 8, & 19 of Motor Fuel Agreement Sections 7 & 8(f) of Branding Agreement Security Deposit Agreement Section 1 Credit Network Agreement Sections 3 and 4 | Items 5, 6 & 7 |
- 10 You must obtain our consent to any transfer or assignment of your interest in the Convenience Store Franchise Agreement, and you or the proposed transferee must pay us a transfer fee in an amount equal to the then-current Initial Franchise Fee prior to the proposed transferee attending training.
For example, as of the date of this Disclosure Document, the transfer fee would be $25,000.
A reduced transfer fee of $3,000 may apply in the following circumstances: (1) the transfer is to your spouse or adult child, if you are an individual, or, if Franchisee is a corporate entity or partnership and the Transfer is to the adult spouse or child of the majority owner; (2) the transfer is to a corporation in which you are the principal shareholder retaining a majority ownership interest and you remain the officer responsible for the full-time personal operation and supervision of the Store; (3) the transfer is the transfer of any interest of any partner or shareholder to another existing or new partner or shareholder, provided your majority partner or shareholder remains the same; or (4) only your name is changed (if you are a corporation or other entity).
You will be required to pay us a monthly Network Fee in exchange for the right to use the TMC Network. The monthly Network Fee you will be required to pay will be our then-current Network Fee, which as of the date of this Disclosure Document is $50 per month. We reserve the right to modify the Network Fee upon 30 days' advance written notice. See also Item 6.
are payable by Franchisee hereunder in the same manner and at the same time as Royalty Fees as set forth in Article 5.
All publicity and promotional costs including the full cost of any price reductions and other customer inducements incurred in such grand opening advertising campaign will be at the sole expense of Franchisee, which expense will be in addition to Franchisee's obligation to pay the Promotional Fees as set forth above; provided, however, that Franchisor will reimburse Franchisee (from the Local and Regional Promotional Fees) any pre-approved expenditures in the amount of $.50 for each $1.00 Franchisee spends, up to a maximum reimbursement of $4,000.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 53–55)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, and specifically notes that the franchisee's fee obligations are discussed in Items 5, 6, and 7 of the disclosure document. These fees are tied to specific sections within the Convenience Store Franchise Agreement, the Software Agreement, the Motor Fuel Agreement, the Branding Agreement, the Security Deposit Agreement, and the Credit Network Agreement. This indicates that franchisees should carefully review these items and related agreements to fully understand their financial commitments to Circle K.
Item 6 further details specific fees, such as the transfer fee required for transferring the franchise to another party. As of the date of the 2025 Disclosure Document, this transfer fee is $25,000, but it could change. A reduced transfer fee of $3,000 may apply under certain circumstances, such as transfer to a spouse or child, or to a corporation where the franchisee retains majority ownership. This fee is non-refundable, regardless of the outcome of the transfer.
Item 11 mentions a monthly Network Fee for franchisees who use the TMC Network for processing debit and credit transactions, particularly if they do not offer fuel for sale or if they execute the Motor Fuel Agreement or the Branding Agreement. As of the date of the 2025 Disclosure Document, this fee is $50 per month, but Circle K reserves the right to modify this fee with 30 days' advance written notice. Additionally, Item 22 discusses Promotional Fees, which franchisees pay in the same manner and at the same time as Royalty Fees. These fees are used for category development, marketing, sales promotions, and advertising programs. Franchisees are also responsible for the costs associated with the grand opening advertising campaign for their store, although Circle K may reimburse a portion of these expenses up to a maximum of $4,000.