What were the total trademark expenses for Circle K for the year ended April 30, 2023?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ffiliate owned by Couche-Tard, for certain merchandising and support services. Merchandising and support services charged by CKPB accumulated to $9,459,738, $9,160,149, and $5,486,180, respectively, for 2025, 2024 and 2023.
The Company is charged an annual trademark fee by Circle K Stores for the use of the "Circle K" tradename. T
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 99–100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the company incurs an annual trademark fee charged by Circle K Stores for the use of the "Circle K" tradename. This trademark expense is calculated based on the percentage of franchise sites relative to the total number of sites operating under the Circle K tradename.
For the year ended April 30, 2023, Circle K's trademark expenses amounted to $447,750. This figure represents the cost incurred by TMC Franchise Corporation for the right to use the Circle K trademark in its franchising operations during that year.
Prospective franchisees should understand that this trademark expense is one of the ongoing costs associated with operating a Circle K franchise. The amount may fluctuate from year to year, depending on the number of franchise locations and the overall number of Circle K locations. It's important for potential franchisees to factor in this expense when evaluating the financial viability of a Circle K franchise.