Who is responsible for the media costs associated with placing Circle K advertisements or promotions in radio or television media?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, Franchisor may, from time to time, develop advertisements or promotions for the use in radio or television media.
Franchisor may make such advertisements or promotions available to Franchisee upon Franchisee's request; provided, that Franchisee will be solely responsible to place the advertisement or promotion and pay for media costs and the costs of voice-over, footage or other costs to identify the location of the Store.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if Circle K develops advertisements or promotions for radio or television media and makes them available to franchisees, the franchisee is responsible for placing the advertisement or promotion and paying for the media costs. The franchisee also pays for the costs of voice-over, footage, or other costs to identify the location of the store.
This means that while Circle K may provide the creative content for radio and television ads, the franchisee bears the financial burden of getting those ads on the air or on television. This includes not only the cost of the media buy itself but also any additional production costs to customize the ad for the franchisee's specific location.
This arrangement is not uncommon in franchising, where franchisees often contribute to a marketing fund that covers broader advertising initiatives, while local advertising costs are the responsibility of the franchisee. Prospective Circle K franchisees should factor these advertising costs into their operating budget and understand that these costs are in addition to the monthly promotional fees they are required to pay.