What is the minimum monthly Royalty Fee a Circle K franchisee must pay?

According to Circle K's 2025 Franchise Disclosure Document, the minimum required monthly Royalty Fee payment amount used in the calculation of liquidated damages is $1,000. This means that even if a Circle K store has very low sales, the franchisee will still be responsible for a minimum royalty payment of $1,000 per month.

This minimum royalty fee could impact a franchisee's profitability, especially during slow sales periods or if the store is in a less profitable location. Franchisees need to factor this minimum payment into their financial projections and ensure they have sufficient capital to cover this expense, even if their sales are lower than expected.

It is important to note that the actual royalty fee is calculated as a percentage of gross sales, as detailed elsewhere in the FDD. The $1,000 minimum only comes into play when calculating liquidated damages, which are assessed in specific situations, such as when the franchise agreement is terminated early. Franchisees should carefully review the conditions under which liquidated damages are assessed to understand the full implications of this minimum royalty fee.