What is the purpose of the Licensing Fee for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Network Fee | The then-current fee; Currently $50 per month | Payable monthly on the 25th day of each month by electronic funds transfer | TMC has the right to modify the Network Fee from time to time on 30 days’ advance written notice, up to an increase of 20% in any 12-month period. |
| Optional Program Fees | Varies depending on the program but ranges from 5% to 75% of Optional Program revenue | Payable monthly on the 25th day of each month by electronic funds transfer | See Note 1 |
| Motor Fuel | $35 to $50 per delivery | Upon demand | See Note 2 |
| Pass-Through | |||
| Fee | |||
| Licensing Fee | Greater of (i) $0.0075 per gallon of motor fuel products sold or (ii) $500 per site | Payable monthly on the 25th day of each month by electronic funds transfer | Paid as consideration for your right to use TMC trademarks in connection with advertising, marketing and resale of motor fuel products at the Premises. |
| Insufficient Funds Fee | $50 to $250 per payment or the maximum legal rate allowed by law | Upon demand | See Note 3 |
| Interest | Lower of maximum legal rate allowed by law or 1½% per month, not to exceed 18% per annum | See Note 4 | Interest on late payments is non- refundable. See Note 4 |
| Liquidated Damages (Purchase of Fuel) | An amount equal to the greater of: (i) $0.04 per gallon multiplied by the minimum monthly volume in motor fuel gallons set forth in the | Payable upon termination of the Motor Fuel Agreement | |
| Card Type | Per Transaction Fee | Processing Fee | |
| --- | --- | --- | |
| Visa | $0.12 | 1.80% | |
| MasterCard | |||
| Debit | |||
| All Others | $0.12 | 3.25% | |
| Type of Fee | Amount | Due Date | Remarks |
| --- | --- | --- | --- |
| Licensing Fee | Varies, but generally $0.0075 per gallon of fuel sold at Branded Business. We reserve the right to modify the Licensing Fee. | Payable monthly on the 25th day of each month by electronic funds transfer | You are required to pay us a monthly Licensing Fee, and your monthly Licensing Fees must exceed $500 per month, per site (the “Minimum Monthly Fee”). |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Licensing Fee is paid as consideration for the franchisee's right to use TMC trademarks in connection with advertising, marketing, and resale of motor fuel products at the premises. This fee is paid monthly on the 25th day of each month via electronic funds transfer.
The Licensing Fee is the greater of (i) $0.0075 per gallon of motor fuel products sold or (ii) $500 per site. The franchisee is required to pay a monthly Licensing Fee, and the monthly Licensing Fees must exceed $500 per month, per site (the “Minimum Monthly Fee”).
Circle K reserves the right to modify the Licensing Fee. This means that the fee could increase or decrease over the term of the franchise agreement. Franchisees should factor in the potential for changes to this fee when projecting their operating costs and potential profitability.