What is the standard transfer fee for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
days' written notice.
- 10 You must obtain our consent to any transfer or assignment of your interest in the Convenience Store Franchise Agreement, and you or the proposed transferee must pay us a transfer fee in an amount equal to the then-current Initial Franchise Fee prior to the proposed transferee attending training. For example, as of the date of this Disclosure Document, the transfer fee would be $25,000. If no current franchise disclosure document exists at the time of the transfer, then the transfer fee will be equal to the Initial Franchise Fee of the most recent franchise disclosure document in effect prior to the transfer. A reduced transfer fee of $3,000 may apply in the following circumstances: (1) the transfer is to your spouse or adult child, if you are an individual, or, if Franchisee is a corporate entity or partnership and the Transfer is to the adult spouse or child of the majority owner; (2) the transfer is to a corporation in which you are the principal shareholder retaining a majority ownership interest and you remain the officer responsible for the full-time personal operation and supervision of the Store; (3) the transfer is the transfer of any interest of any partner or shareholder to another existing or new partner or shareholder, provided your majority partner or shareholder remains the same; or (4) only your name is changed (if you are a corporation or other entity). The transfer fee is not refundable un
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee must obtain Circle K's consent for any transfer of their franchise agreement. The standard transfer fee is equal to the then-current Initial Franchise Fee before the proposed transferee attends training. As of the date of the 2025 Disclosure Document, this fee is $25,000. If no current franchise disclosure document exists at the time of the transfer, then the transfer fee will be equal to the Initial Franchise Fee of the most recent franchise disclosure document in effect prior to the transfer. This fee is non-refundable under any circumstances.
However, Circle K offers a reduced transfer fee of $3,000 in specific situations. This lower fee applies if the transfer is to a spouse or adult child, to a corporation where the franchisee retains majority ownership and operational responsibility, to an existing or new partner/shareholder where the majority partner/shareholder remains the same, or if only the franchisee's name changes (for corporations or entities).
Prospective Circle K franchisees should note that the transfer fee can be a significant cost when selling their franchise. Understanding the conditions for the reduced fee can help in planning for potential transfers within the family or business. It is also important to be aware that the transfer fee is non-refundable, regardless of the outcome of the transfer application.