What is the monthly Licensing Fee that a Circle K licensee must pay to TMC?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
e expenses incurred by TMC to 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 provided the Products meet all applicable local, state and federal laws and regulations and TMC's standards and requirements. TMC reserves the right to update and modify its standards
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 TMC Franchise Corporation (TMC) 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 location sells a low volume of product in a given month, the licensee is still obligated to pay the minimum monthly fee of $500. Conversely, if the location sells a high volume, the monthly licensing fee will increase proportionally based on the per-gallon calculation.
These licensing fees are due to TMC on the 25th day of each month. Payments must be made via electronic funds transfer (EFT). Circle K also requires licensees to reconcile all licensing fees paid with quarterly statements detailing product sales. Any underpayment of the minimum monthly fee will be immediately due to TMC.
In addition to the licensing fee, the franchisee will also be responsible for a monthly Network Fee, which TMC may increase upon 30 days' advance written notice. This Network Fee is associated with the Credit Network Agreement and provides network connectivity to the licensee.