What was the total value of Circle K's intangible assets, net, as of April 28, 2024?
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, the company's intangible assets, net, were valued at $14,399,954 as of April 28, 2024. Intangible assets typically include items like trademarks, franchise agreements, and goodwill, which are not physical but have value to the company. For a prospective franchisee, this figure provides insight into the overall financial structure and asset composition of Circle K.
This number is part of the broader financial picture presented in Circle K's consolidated balance sheets. Reviewing the trend in intangible asset values over several years (in this case, also comparing it to the value as of April 27, 2025, which was $10,640,706) can indicate how Circle K's brand strength and other non-physical assets are evolving. A significant decrease could warrant further investigation to understand the reasons behind it.
Understanding the composition and valuation of these intangible assets can be crucial for franchisees, as these assets often contribute to brand recognition and customer loyalty. These factors directly impact the potential success and profitability of a Circle K franchise. Therefore, prospective franchisees should consider these figures as part of their due diligence process when evaluating the franchise opportunity.