Does Circle K reserve the right to modify the Licensing Fee for Branded Businesses?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
THER FEES**
Branded Business
| 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 s |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K does reserve the right to modify the Licensing Fee for Branded Businesses. The licensing fee generally varies, but is typically $0.0075 per gallon of fuel sold at the Branded Business.
The Licensing Fee is paid monthly on the 25th day of each month via electronic funds transfer. Franchisees are required to pay this monthly Licensing Fee, which must exceed $500 per month, per site, referred to as the "Minimum Monthly Fee."
As a prospective franchisee, it's important to note that while the licensing fee is generally calculated per gallon of fuel sold, Circle K retains the right to change this fee. This could impact your profitability, especially if the modification increases the fee significantly. Therefore, it is crucial to understand the conditions under which Circle K might modify this fee and to factor this potential change into your financial projections.