What was the total amount of accrued promotional expenses for Circle K as of April 27, 2025?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
f deferred construction allowances and deferred incentive payments approximates their carrying value.
7. Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of the following:
| April 27, 2025 | April 28, 2024 | |
|---|---|---|
| Accrued promotional expens |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the total accrued promotional expenses as of April 27, 2025, were $14,178,935. This figure represents the amount Circle K owed for promotional activities that had been conducted but not yet paid for as of that date. For comparison, the accrued promotional expenses as of April 28, 2024, were $15,892,650.
Accrued expenses are a common liability on a company's balance sheet, reflecting obligations for goods or services received but not yet invoiced or paid. In the context of a franchise like Circle K, these promotional expenses could relate to advertising campaigns, in-store promotions, or other marketing initiatives designed to drive sales and brand awareness. The franchisor often manages these promotions on behalf of its franchisees, and the accrued expenses represent the outstanding costs associated with those activities.
For a prospective Circle K franchisee, understanding the level of accrued promotional expenses can provide insight into the company's marketing activities and financial obligations. While franchisees may contribute to marketing funds, the accrued expenses reflect Circle K's overall management and execution of promotional strategies. It is important to note that these are accrued expenses, not necessarily the total marketing spend for the year, as advertising costs are expensed as incurred and paid by Circle K Stores on behalf of the Company. Advertising expenses were $15,002,452 for 2025.
It's worth noting that accrued promotional expenses are just one component of Circle K's overall liabilities. The FDD also lists other accrued liabilities, such as rebates payable to franchisees ($8,920,309 as of April 27, 2025) and general accounts payable and accrued expenses ($4,476,064 as of April 27, 2025). Reviewing these figures in conjunction with the accrued promotional expenses provides a more comprehensive view of Circle K's short-term financial obligations.