What condition must be met for Circle K to debit and credit my account for drafts?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
------------|--------------| | authorize CIRCLE K STORES INC. hereinafter called "CIRCLE K" | | | | | | or "you", to initiate | | | debit entries to our bank account number at the depository | | | | | | | | | named below, hereinafter called "Depository", which in turn shall debit the same to such | | | | | | | | | account. These debit entries will be in the form of electronic debit. | | | | | | | | | DEPOSITORY: | | | | | | | | | INSTITUTION | | | | | | | NAME: | | ABA#: | | | | | | | | | Branch: | | | | | | | | | Street Address: | | | | | | | | | City/State/Zip: | | | | | | | | | Phone Number: | | | | | | | |
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 honor
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K is authorized to debit and credit a franchisee's account for drafts, provided there are sufficient collected funds in the account to cover the drafts upon presentation. This authorization remains effective until the franchisee revokes it in writing, and Circle K acknowledges receipt of the notice.
This arrangement allows Circle K to manage financial transactions related to the franchise agreement efficiently. The authorization permits Circle K to debit the franchisee's account on or after the due date specified in the franchise agreement and other related agreements with TMC Franchise Corporation.
It's important to note that the franchisee will incur a $50 charge for any draft returned unpaid by their depository. However, the franchisee retains the legal right to dispute any item, despite signing the authorization form. This agreement ensures Circle K can handle financial transactions smoothly while also protecting the franchisee's right to address any discrepancies.