What is the minimum total Licensing Fee that a Circle K licensee must pay each month?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
correct the breach. Nothing contained in this subparagraph (f) shall be understood or deemed to waive or
modify any of TMC's rights, or any of Licensee's obligations, under this Agreement.
- Products. Licensee may purchase Products from any source provi
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a licensee must pay a monthly licensing fee. This fee is calculated as $0.0075 for each gallon of product sold at the premises. However, Circle K stipulates a minimum total licensing fee of $500 per month.
This means that even if a Circle K licensee's sales volume would calculate to less than $500 using the per-gallon fee, they are still obligated to pay the $500 minimum. This ensures that Circle K receives a baseline revenue from each location, regardless of individual store performance.
For a prospective Circle K licensee, this minimum fee represents a fixed monthly cost that must be factored into their financial projections. It is crucial to estimate sales volume accurately to determine whether the per-gallon fee will exceed the minimum, or if the licensee will consistently be paying the $500 minimum. This can significantly impact profitability, especially in lower-volume locations. Licensees should consider this minimum payment as a baseline expense when evaluating the financial viability of a Circle K franchise.