According to the agreement, when may Circle K debit the account?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
For each transaction subject to Purchaser's repurchase hereunder, TMC may either charge the applicable amount owed to Purchaser's account or require Purchaser to make immediate refund to TMC, in the manner specified by TMC, without any deduction for any transaction and/or processing fees. Any credit card transactions that are charged back to Purchaser pursuant to this Section will be the sole responsibility of Purchaser.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC Franchise Corporation ("TMC") may charge the amount owed to the Purchaser's account for each transaction subject to the Purchaser's repurchase. Alternatively, TMC can demand that the Purchaser provide an immediate refund to TMC in a manner that TMC specifies. This will be done without any deduction for transaction or processing fees. The franchisee is solely responsible for any credit card transactions charged back to them.
This means that as a Circle K franchisee, you may be debited for customer credit card transactions that are charged back to Circle K. This could occur for various reasons, such as fraud, customer disputes, or processing errors. The agreement allows Circle K to directly debit your account or require an immediate refund, giving them a direct mechanism to recover these funds.
It is important for a prospective Circle K franchisee to understand the circumstances under which chargebacks may occur and to implement measures to minimize them. This could include verifying customer identification, using secure payment processing systems, and promptly addressing customer complaints. Understanding these chargeback procedures and potential liabilities is crucial for managing the financial aspects of the franchise.