Under what financial condition is a Circle K franchisee not required to pay Promotional Fees?

According to Circle K's 2025 Franchise Disclosure Document, a franchisee is not required to pay Promotional Fees on Gross Sales exceeding $125,000 per month. This means that once a Circle K store's gross monthly sales surpass this threshold, the franchisee is exempt from paying additional promotional fees on any sales above that amount.

This provision offers a potential financial benefit to franchisees who operate high-volume Circle K stores. By capping the application of promotional fees, it allows franchisees to retain a larger portion of their revenue as their sales increase. This can improve profitability and provide an incentive for franchisees to focus on driving sales growth.

It's important to note that this exemption is based solely on the store's gross monthly sales volume. Other fees and financial obligations outlined in the Franchise Agreement, such as Royalty Fees, Co-Branded Royalty Fees, and other potential charges, still apply regardless of whether the store qualifies for the Promotional Fees exemption. Franchisees should carefully review the entire FDD to understand all their financial obligations to Circle K.