What is the minimum total monthly licensing fee that a Circle K licensee must pay?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the calculation of $0.0075 per gallon sold results in a figure less than $500, the licensee is still obligated to pay the minimum monthly fee of $500. This ensures that Circle K receives a baseline revenue from each licensed location, regardless of sales volume.
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 calculated licensing fee will exceed the minimum, as the licensee will always be responsible for paying at least $500 per month.