Does Circle K have the authorization to initiate debit entries to my bank account?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
You are hereby authorized, as a convenience to us, to debit and credit our account for drafts on our account by the WELLS FARGO BANK NA as agent for CIRCLE K with CIRCLE K as payee, provided there are sufficient collected funds in such account to pay the same upon presentation. This authorization will remain in effect until revoked by us in writing, and you actually receive such notice. I agree that you shall be fully protected in honoring any such draft.
This Authorization Agreement allows CIRCLE K to debit and credit this account at frequent intervals for varying amounts. It is acknowledged and accepted that: CIRCLE K may debit our account on or after the due date defined by the terms of our franchise agreement and other agreements with TMC Franchise Corporation; there will be a $50 charge for any draft returned unpaid by your depository. By signing this form, we in no way relinquish any legal right to dispute any item. This authority is to remain in full force and effect until CIRCLE K and Depository have received written notification from
[Item 23: RECEIPTS]
- (b) Payments.
On the 25th day of each month, Licensee's monthly Licensing Fee, as specified in subpart (a) above, will be due to TMC and paid as outlined in subpart (d) below.
All Licensing Fees paid during each month will be reconciled with each quarterly statement Licensee provides to TMC as required by subpart (c) below, and any underpayment of the Minimum Monthly Fee will immediately be due to TMC and paid as outlined in subpart (d) below.
- (d) Method of Payment.
Licensee will pay the monthly Licensing Fee, and any other amounts owed under this Agreement, via electronic funds transfer ("EFT").
Licensee must establish a commercial account with a financial institution that provides EFT services and execute the Electronic Funds Transfer Authorization attached hereto as Exhibit B, which agreement authorizes TMC to initiate transfers of funds between Licensee's account and TMC's account for payment of all amounts due to TMC under this Agreement.
Licensee will not use, or permit to be used, said commercial account for personal, family, or household purposes.
Licensee will provide TMC with all information and authorization necessary to debit and credit Licensee's account.
Licensee agrees to maintain at all times funds in its account sufficient to make payments to TMC at the time of the EFT transaction.
Should any EFT transaction be rejected by Licensee's financial institution for Licensee's failure to maintain sufficient funds in Licensee's account, in addition to any other rights TMC may have under this Agreement or the law, TMC may collect an insufficient funds fee of $50 for each insufficient funds payment.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees authorize Circle K to initiate debit entries to their bank account for various transactions. Specifically, franchisees authorize Circle K to debit and credit their account for drafts by WELLS FARGO BANK NA as agent for CIRCLE K. This authorization remains in effect until the franchisee revokes it in writing and Circle K receives such notice. The franchisee also agrees to maintain sufficient funds in the account to cover these drafts.
Circle K may debit the franchisee's account on or after the due date defined by the terms of the franchise agreement and other agreements with TMC Franchise Corporation. If a draft is returned unpaid by the depository, the franchisee will incur a $50 charge. However, the franchisee retains the legal right to dispute any item, even with this authorization in place.
Furthermore, franchisees are required to pay the monthly licensing fee and any other amounts owed via electronic funds transfer (EFT). Franchisees must establish a commercial account that provides EFT services and execute an Electronic Funds Transfer Authorization, allowing TMC to transfer funds between the franchisee's account and TMC's account. If an EFT transaction is rejected due to insufficient funds, Circle K may collect an insufficient funds fee of $50 for each rejected payment. These measures ensure that Circle K can efficiently manage financial transactions with its franchisees, while also outlining the responsibilities and potential fees franchisees may incur.