When is the Licensing Fee payable for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| $0.12 | 3.25% | | 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 site (the “Minimum Monthly Fee”). | | Type of Fee | Amount | Due Date | Remarks | |---|---|---|---| | Liquidated Damages (Credit Network Agreement) | An amount equal to the lesser of (i) 48 or (ii) the remaining number of months under the term of the agreement, multiplied by $3,000. | Payable upon termination of the Credit Network Agreement | | | Card Type | Per Transaction Fee | Processing Fee | |---|---|---| | Visa | $0.12 | 1.80% | | MasterCard | | | | Debit | | | | All Others | $0.12 | 3.25% |
Notes to table:
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Unless otherwise stated in this Disclosure Document, all fees are imposed by and payable to us or our affiliates and are nonrefundable. The fees outlined in this table are uniformly imposed throughout the Circle K convenience store system except as provided for herein.
1 The Royalty Fee is based upon a percentage of Gross Sales.
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 by electronic funds transfer. This fee is paid as consideration for the franchisee's right to use TMC trademarks in connection with advertising, marketing, and resale of motor fuel products at the premises.
The Licensing Fee is the greater of either $0.0075 per gallon of motor fuel products sold or $500 per site. The FDD also states that Circle K reserves the right to modify the Licensing Fee.
For a Circle K franchisee, this means that a consistent monthly payment for the Licensing Fee must be made via electronic funds transfer. Franchisees should be aware of potential changes to the fee, as Circle K retains the right to modify it. It is also important to note that even if the calculation based on gallons sold is less than $500, the franchisee is still obligated to pay the minimum monthly fee of $500 per site.