When is the Licensing Fee due for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
THER FEES**
Branded Business
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Licensing Fee | Varies, but generally $0.0075 per gallon of fuel sold at Branded Business. We reserve the right to modify the Licensing Fee. | Payable monthly on the 25th day of each month by electronic funds transfer | You are required to pay us a monthly Licensing Fee, and your monthly Licensing Fees must exceed $500 per month, per s |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Licensing Fee is payable monthly on the 25th day of each month via electronic funds transfer. This fee compensates Circle K for the franchisee's right to use TMC trademarks in connection with advertising, marketing, and reselling motor fuel products at the premises.
The Licensing Fee varies, generally amounting to $0.0075 per gallon of fuel sold at the branded business. However, Circle K retains the right to modify this Licensing Fee. Regardless of the per-gallon calculation, franchisees must pay a minimum monthly fee of $500 per site.
Prospective Circle K franchisees should note that consistent and timely payment of this Licensing Fee is crucial to remain in good standing with the franchisor. Failure to pay by the due date could result in penalties, including interest charges. Franchisees should also be aware that Circle K reserves the right to modify the Licensing Fee, so it's important to stay informed of any changes to avoid unexpected costs.