How and when is the Network Fee paid to TMC for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | Lump Sum | Upon signing | TMC |
| (Note 1) | Agreement | |||
| Regional In-Store | $1,000 ($500 | Lump Sum | Upon signing | TMC |
| Training Fee | per attendee) | Agreement | ||
| Travel and Living | $3,500-$15,500 | As Incurred | As Incurred | Airlines, Hotels, |
| Expenses While Training | Restaurants, Rental Cars or | |||
| (Note 2) | TMC | |||
| Real Estate (Note 3) | (Note 3) | (Note 3) | (Note 3) | (Note 3) |
| Construction, Remodeling, and Leasehold Improvements (Note 4) | $850,000- $1,500,000 | As Billed | As Incurred | Contractors, Suppliers or Other Third Parties |
| Other Site Development | $40,000 - | As Incurred | As Incurred | Architects, Engineers and |
| Costs (Note 4) | $100,000 | Other Third Parties | ||
| Furniture, Fixtures & | $400,000- | As Billed | As Incurred | Suppliers |
| Equipment | $800,000 | |||
| EPOS and Computer | $40,000 - | As Incurred | As Incurred | Suppliers |
| Systems | $50,000 | |||
| Network Fee (3 months) | $0 - $150 | EFT Draft | Monthly | TMC |
| (Note 5) | ||||
| Signs | $20,000- | As Billed | As Incurred | Suppliers |
| (Note 6) | $55,000 | |||
| Security Deposits and | $2,000-$15,000 | As Incurred | Prior to Opening | Lessor or Gov’t Agencies |
| Licenses and Permits | ||||
| (excluding impact fees) | ||||
| (Note 7) | ||||
| Utility Deposits | $1,500-$10,000 | Lump Sum | Prior to Opening | Utility Companies and |
| (Note 8) | Other Service Providers | |||
| Vendor Deposits | $0-$16,000 | Lump Sum | As required by Vendors | Vendors |
| Merchandise Inventory | $60,000- | As Billed | As Incurred | Third Party Vendors |
| (Note 9) | $100,000 | |||
| Professional Fees | $1,000-$5,000 | As Incurred | As Incurred | Attorneys, Accountants, |
| (Note 10) | and Other Professionals | |||
| Insurance (Note 11) | $4,500-$12,000 | As Billed | As Incurred | Insurance Carriers |
| Grand Opening Costs | $5,000-$10,000 | As Billed | As Incurred | Suppliers and Vendors |
| (Note 12) | ||||
| Additional Funds | $10,000- | As Billed | As Incurred | Employees, Suppliers, and |
| (3 months) (Note 13) | $20,000 | Vendors | ||
| TOTAL | $1,463,500 - | |||
| (Note 14) | $2,734,650 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly Network Fee to TMC in exchange for using the TMC Network, which includes the EPOS Credit/Debit Equipment. The method of payment for this fee is through an EFT (Electronic Funds Transfer) draft.
The Network Fee is paid monthly to TMC. The FDD includes an estimated initial investment table that accounts for three months of Network Fees, with the amount ranging from $0 to $150. This suggests the monthly fee could be between $0 and $50.
Prospective Circle K franchisees should note that the actual monthly Network Fee might vary. It is important to clarify the exact amount of the monthly Network Fee with Circle K during the due diligence process to accurately forecast operating expenses. Understanding the full scope of this ongoing fee is crucial for assessing the overall profitability of the franchise.