What constitutes a late payment to Circle K, triggering interest charges?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to pay any amounts due to us under the Convenience Store Franchise Agreement by the due date, the payment will be considered late and we will charge you interest on the amount past due at the lesser of 1½ % per month or the maximum legal rate allowed under applicable law.
Interest on late payments is non-refundable.
A payment will be considered late if: (i) you fail to pay us the amount owed or (ii) if insufficient funds are available in your account to fully pay the amount owed.
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a payment is considered late if a franchisee fails to pay the amount owed to Circle K or if there are insufficient funds available in the franchisee's account to cover the full payment. This applies to amounts due under the Convenience Store Franchise Agreement and the Motor Fuel Agreement.
When a payment is late, Circle K may charge interest on the past due amount. The interest rate is the lesser of 1½% per month or the maximum legal rate allowed by applicable law, but will not exceed 18% per annum simple interest. This interest is non-refundable. Additionally, if there are insufficient funds at the time a payment is due, Circle K may charge an insufficient funds fee ranging from $50 to $250, or the maximum legal rate allowed by law, for each occurrence.
For a prospective Circle K franchisee, it's crucial to ensure timely payments to avoid these interest charges and fees. Setting up reliable payment methods and closely monitoring account balances can help prevent late payments and associated penalties. Franchisees should also be aware of the specific due dates for all payments under their agreements with Circle K to maintain compliance and avoid unnecessary costs.