What was the royalty and promotional fees revenue for Circle K in the latest year reported?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Revenues: | |||
|---|---|---|---|
| Initial franchise sales | $ 1,036,157 | $ 1,030,058 | $ 1,076,538 |
| Royalty and promotional fees | 59,421,781 | 60,722,633 | 63,929,364 |
| Fuel sales, net | 4,205,466 | 2,723,519 | 2,044,397 |
| Interest and other income | 6,503,683 | 5,867,604 | 4,357,577 |
| Total Revenues | 71,167,087 | 70,343,814 | 71,407,876 |
| Expenses: | |||
| Selling, general, and administrative expenses | 37,295,957 | 36,565,205 | 33,600,199 |
| Trademark expense | 391,871 | 408,796 | 447,750 |
| Depreciation and amortization expense | 7,776,052 | 8,959,374 | 8,449,524 |
| Total Expenses | 45,463,880 | 45,933,375 | 42,497,473 |
| (Loss) Gain on Disposals and Terminations | (7,610) | (1,541,825) | 38,139 |
| Income before income taxes | 25,695,597 | 22,868,614 | 28,948,542 |
| Provision for income taxes | 6,607,382 | 7,582,373 | 7,547,431 |
| Net Income and Comprehensive Income | $ 19,088,215 | $ 15,286,241 | $ 21,401,111 |
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the revenue from royalty and promotional fees for the latest year reported was $63,929,364. This figure is part of the overall revenue reported by Circle K. This shows the income Circle K receives from its franchisees based on a percentage of their sales and contributions to promotional activities.
For a prospective Circle K franchisee, understanding this revenue stream is crucial. It highlights how the franchise generates income and the importance of royalty and promotional fee obligations for franchisees. Franchisees need to factor these fees into their financial projections and business plans.
Reviewing the trend of royalty and promotional fees over the three years presented in the FDD can provide insights into the stability and growth of this revenue stream. The increase from $59,421,781 to $63,929,364 over the three years suggests a positive trajectory, which may be reassuring for potential franchisees. However, it's important to consider other factors, such as the number of operating franchises and changes in royalty rates, to get a complete picture.