What was the total amount of paid-in capital for Circle K as of April 27, 2025?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
nada July 7, 2025
1 CPA Auditor, public accountancy permit No. A123475
TMC FRANCHISE CORPORATION (a wholly owned subsidiary of Circle K Stores Inc.) CONSOLIDATED BALANCE SHEETS
| April 27, 2025 | April 28, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash | $ - | $ - |
| Royalty and other receivables | 11,184,013 | 8,632,081 |
| Deferred income taxes (Note 3) | 2,603,791 | 2,827,683 |
| Total Current Assets | 13,787,804 | 11,459,764 |
| Property and equipment, net (Note 4) | 12,287,489 | 14,462,542 |
| Intangible assets, net (Note 5) | 10,640,706 | 14,399,954 |
| Note receivable from parent company (Note 8) | 5,000,000 | 5,000,000 |
| Other assets (net of a provision for doubtful accounts of $20,814 | 19,353,216 | 18,074,122 |
| and $20,814 as at April 27, 2025, and April 28, 2024 (Note 6) | ||
| Goodwill | 11,490,467 | 11,490,467 |
| Total Assets | $ 72,559,682 | $ 74,886,849 |
| LIABILITIES AND SHAREHOLDER'S EQUITY | ||
| Accounts payable and accrued liabilities (Note 7) | $ 27,642,008 | $ 30,818,812 |
| Payable to affiliate | 2,450,540 | 2,333,349 |
| Deferred revenue | 1,228,332 | 1,247,292 |
| Total Current Liabilities | 31,320,880 | 34,399,453 |
| Deferred revenue | 6,992,157 | 7,720,471 |
| Deferred income taxes (Note 3) | 2,396,831 | 3,224,997 |
| Total Liabilities | 40,709,868 | 45,344,921 |
| Shareholder's Equity: | ||
| Common stock, $0.01 par value, 1,000,000 shares | ||
| authorized, 1,001 issued and outstanding | 10 | 10 |
| Additional paid-in capital | 88,201,000 | 88,201,000 |
| Receivabl |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, as of April 27, 2025, the additional paid-in capital was $88,201,000. This figure represents the amount invested by shareholders above the par value of the common stock. The par value of common stock is $0.01 per share, with 1,000,000 shares authorized and 1,001 issued and outstanding.
For a prospective Circle K franchisee, understanding the company's equity structure can provide insights into its financial stability. Paid-in capital is a component of shareholder's equity, reflecting the capital received from investors in exchange for stock. A substantial amount of paid-in capital, such as the $88,201,000 reported, can indicate strong investor confidence and financial resources available to the company.
However, it's important to consider this figure in conjunction with other financial metrics. The financial statements also show a 'Receivable from parent' of ($91,667,564) which is a significant offset to the paid-in capital. Additionally, retained earnings were $35,316,368. Total shareholder's equity was $31,849,814 as of April 27, 2025. A potential franchisee should analyze these figures holistically to assess the overall financial health of TMC Franchise Corporation, a wholly owned subsidiary of Circle K Stores Inc.
Franchisees should consult with a financial advisor to fully understand the implications of these financial statement figures. While a high paid-in capital can be a positive sign, it is crucial to evaluate the entire financial picture, including liabilities, assets, and overall equity, to make an informed decision about investing in a Circle K franchise.