What is the minimum monthly Licensing Fee per site that a Circle K franchisee must pay?
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, franchisees are required to pay a monthly Licensing Fee. This fee is calculated based on fuel sales, specifically $0.0075 per gallon of fuel sold at the branded business. However, Circle K stipulates a minimum monthly fee that franchisees must pay, regardless of their fuel sales volume.
The minimum monthly Licensing Fee is $500 per site. This means that even if a Circle K franchisee's fuel sales are low enough that the calculated fee based on gallon sales is less than $500, they are still obligated to pay the $500 minimum. This ensures that Circle K receives a baseline payment for the use of its trademarks in connection with motor fuel sales.
It's important to note that Circle K reserves the right to modify the Licensing Fee, so this amount could change in the future. Prospective franchisees should factor this minimum fee into their financial projections to ensure they can meet this obligation, especially during periods of lower sales volume.