When is the nonrefundable transfer fee for a Circle K franchise due, and to whom is it paid?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
sented in writing to such assumptions), complied with all applicable provisions of this Agreement, and will have executed the Guaranty attached hereto.
- (E) Training. The proposed transferee and its Store Manager will have successfully completed the Training Program.
- (F) Transfer Fee. Prior to the proposed transferee attending training, Franchisee or proposed transferee will have paid to Franchisor a nonrefundable transfer fee in an amount equal to the initial franchise fee payable under the then-current form of franchise agreement. A minimum transfer fee of $3,000 may apply to the following circumstances: (1) the Transfer is to the spouse or adult child of Franchisee, if Franchisee is an individual, or, if Franchisee is a corporate entity or partnership and the Transfer is to the adult spouse or child of an owner of at least a majority ownership interest in Franchisee; (2) the Transfer is to a corporation (or other entity) in which
Franchisee is the principal shareholder/owner retaining a majority ownership interest and Franchisee remains the officer or manager responsible for the full-time personal operation and supervision of the Store; (3) the Transfer is a transfer of any ownership int
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the nonrefundable transfer fee is due prior to the proposed transferee attending training and is paid to Circle K. The transfer fee is equal to the initial franchise fee payable under the then-current form of franchise agreement.
However, a minimum transfer fee of $3,000 may apply in specific circumstances. These circumstances include transfers to a spouse or adult child of the franchisee, transfers to a corporation where the franchisee retains a majority ownership interest and remains responsible for the store's operation, transfers of ownership interest between existing partners or shareholders, or when only the franchisee's name is changed.
This means that if you decide to transfer your Circle K franchise, you or the person you're transferring it to must pay the transfer fee before they begin the required training. The amount will either be the same as the current initial franchise fee or the minimum $3,000, depending on the nature of the transfer. It's important to note that this fee is nonrefundable, regardless of whether the transfer is ultimately completed.