What was the net income and comprehensive income for Circle K in the second year reported?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Revenues: | |||
|---|---|---|---|
| Initial franchise sales | $ 1,036,157 | $ 1,030,058 | $ 1,076,538 |
| Royalty and promotional fees | 59,421,781 | 60,722,633 | 63,929,364 |
| Fuel sales, net | 4,205,466 | 2,723,519 | 2,044,397 |
| Interest and other income | 6,503,683 | 5,867,604 | 4,357,577 |
| Total Revenues | 71,167,087 | 70,343,814 | 71,407,876 |
| Expenses: | |||
| Selling, general, and administrative expenses | 37,295,957 | 36,565,205 | 33,600,199 |
| Trademark expense | 391,871 | 408,796 | 447,750 |
| Depreciation and amortization expense | 7,776,052 | 8,959,374 | 8,449,524 |
| Total Expenses | 45,463,880 | 45,933,375 | 42,497,473 |
| (Loss) Gain on Disposals and Terminations | (7,610) | (1,541,825) | 38,139 |
| Income before income taxes | 25,695,597 | 22,868,614 | 28,948,542 |
| Provision for income taxes | 6,607,382 | 7,582,373 | 7,547,431 |
| Net Income and Comprehensive Income | $ 19,088,215 | $ 15,286,241 | $ 21,401,111 |
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the net income and comprehensive income for the second year reported was $15,286,241. This figure represents the company's profit after all expenses and taxes have been deducted from its total revenues. For a prospective franchisee, understanding Circle K's net income can provide insight into the financial health and stability of the company.
Analyzing the revenues and expenses, Circle K's total revenues for the second year were $70,343,814. The expenses, including selling, general, and administrative expenses, trademark expenses, and depreciation and amortization expenses, totaled $45,933,375. After accounting for a loss on disposals and terminations of $1,541,825 and deducting the provision for income taxes of $7,582,373, the resulting net income and comprehensive income was $15,286,241.
It's important for potential franchisees to consider these figures in the context of their own business plans and financial goals. While past performance is not indicative of future results, it can offer a benchmark for assessing the potential profitability of a Circle K franchise. Prospective franchisees should also investigate the factors that contribute to these financial results, such as market conditions, operational efficiency, and the effectiveness of Circle K's business model.