What was the reported amount for Circle K's intangible assets as of April 28, 2024?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
nada July 7, 2025
1 CPA Auditor, public accountancy permit No. A123475
TMC FRANCHISE CORPORATION (a wholly owned subsidiary of Circle K Stores Inc.) CONSOLIDATED BALANCE SHEETS
| April 27, 2025 | April 28, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash | $ - | $ - |
| Royalty and other receivables | 11,184,013 | 8,632,081 |
| Deferred income taxes (Note 3) | 2,603,791 | 2,827,683 |
| Total Current Assets | 13,787,804 | 11,459,764 |
| Property and equipment, net (Note 4) | 12,287,489 | 14,462,542 |
| Intangible assets, net (Note 5) | 10,640,706 | 14,399,954 |
| Note receivable from parent company (Note 8) | 5,000,000 | 5,000,000 |
| Other assets (net of a provision for doubtful accounts of $20,814 | 19,353,216 | 18,074,122 |
| and $20,814 as at April 27, 2025, and April 28, 2024 (Note 6) | ||
| Goodwill | 11,490,467 | 11,490,467 |
| Total Assets | $ 72,559,682 | $ 74,886,849 |
| LIABILITIES AND SHAREHOLDER'S EQUITY | ||
| Accounts payable and accrued liabilities (Note 7) | $ 27,642,008 | $ 30,818,812 |
| Payable to affiliate | 2,450,540 | 2,333,349 |
| Deferred revenue | 1,228,332 | 1,247,292 |
| Total Current Liabilities | 31,320,880 | 34,399,453 |
| Deferred revenue | 6,992,157 | 7,720,471 |
| Deferred income taxes (Note 3) | 2,396,831 | 3,224,997 |
| Total Liabilities | 40,709,868 | 45,344,921 |
| Shareholder's Equity: | ||
| Common stock, $0.01 par value, 1,000,000 shares | ||
| authorized, 1,001 issued and outstanding | 10 | 10 |
| Additional paid-in capital | 88,201,000 | 88,201,000 |
| Receivabl |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the company's consolidated balance sheets show the value of intangible assets. As of April 28, 2024, Circle K reported intangible assets, net of amortization, totaling $14,399,954.
Intangible assets typically include items like trademarks, franchise agreements, and goodwill, which are not physical but have monetary value. These assets are reported net of amortization, meaning the original cost has been reduced over time to reflect their usage.
A prospective Circle K franchisee should consider the value of these assets, as they reflect the overall brand strength and market position of the company. Understanding how these assets are managed and protected can be an important part of evaluating the long-term potential of a Circle K franchise.