What is the minimum monthly Licensing Fee required for a Circle K site?
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 motor fuel sales, specifically $0.0075 per gallon of motor fuel products sold. However, Circle K stipulates a minimum monthly fee, stating that the monthly Licensing Fees must exceed $500 per month, per site. Therefore, even if the calculation based on gallon sales is less than $500, the franchisee must pay a minimum of $500.
This minimum licensing fee has significant implications for prospective Circle K franchisees, especially those anticipating lower fuel sales volumes. Franchisees need to carefully project their expected fuel sales to understand if they will typically pay the minimum fee or a higher amount based on volume. If a franchisee consistently pays the minimum, it affects their overall profitability and should be factored into their financial projections.
The Licensing Fee is payable monthly on the 25th day of each month via electronic funds transfer. This fee compensates Circle K for the right to use their trademarks in connection with advertising, marketing, and reselling motor fuel products at the premises. Franchisees should be aware that Circle K retains the right to modify the Licensing Fee, so it's essential to stay informed about any potential changes that could impact their financial obligations.