What is the name of the wholly-owned subsidiary included in Circle K's consolidated financial statements?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") on the historical cost basis of accounting and include the accounts of the Company and its wholly owned subsidiary Holiday Diversified Services, LLC. Certain selling, general and administrative ("SG&A") services are provided to the Company by Couche-Tard or Circle K Stores and their affiliates. Certain other SG&A services are allocated to the Company based on usage, actual costs, or other allocation methods considered reasonable by Couche-Tard or Circle K management (note 9). Accordingly, the expenses included in these consolidated financial statements may not be indicative of the level of expenses which might have been incurred had the Company been operating as a separate stand-alone company.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the consolidated financial statements include the accounts of TMC Franchise Corporation and its wholly-owned subsidiary, Holiday Diversified Services, LLC. This means that the financial performance and position of Holiday Diversified Services, LLC are combined with those of TMC Franchise Corporation to provide a comprehensive view of the company's overall financial health.
For a prospective Circle K franchisee, this indicates that the financial statements presented in the FDD offer a consolidated view of multiple entities under the Circle K umbrella. Understanding the relationship between TMC Franchise Corporation and its subsidiary, Holiday Diversified Services, LLC, can provide additional insight into the overall financial structure of the Circle K franchise system.
It's important to note that the expenses included in these consolidated financial statements may not be indicative of the level of expenses which might have been incurred had the Company been operating as a separate stand-alone company. Certain selling, general, and administrative services are provided to the Company by Couche-Tard or Circle K Stores and their affiliates, and some expenses are allocated based on usage, actual costs, or other allocation methods. Therefore, prospective franchisees should consider these factors when reviewing the financial statements and assessing the financial performance of Circle K.