What is the 'Credit Card Program' as defined in the Circle K Credit Network Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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This Credit Network Agreement (the "Agreement") is made and entered into as of the Effective Date (as set forth on the signature page hereto) and is by and between TMC Franchise Corporation ("TMC") and _______________________ ("Purchaser"). All capitalized terms not defined in this Agreement will have the meanings ascribed to them in the Underlying Agreement (defined below).
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- TMC's Credit Card Program. Purchaser agrees to participate fully in and comply with the terms and conditions of TMC's program regarding acceptance and processing of payments in connection with customer purchases of products and services of the Circle K Business using credit cards, debit cards, stored value cards and all other types of transaction payment cards that have been approved by TMC or its affiliates from time to time, as such program may be modified from time to time by TMC or its affiliates (the "Credit Card Program"). For the purposes of this Agreement, the terms "credit card" or "credit cards" will mean and include, where applicable, the credit cards, debit cards, stored value cards and all other types of transaction payment cards that have been approved by TMC or its affiliates from time to time under the Credit Card Program. Purchaser will immediately forward all customer applications for Circle K®-branded credit cards to TMC for approval and card issuance by TMC or its designee ("Circle K® credit cards"). The termination or expiration of this Agreement will automatically terminate all rights of Purchaser with respect to any Credit Card Program, including without limitation, all rights of Purchaser to process credit card charges with TMC or its affiliates. Purchaser's participation in any Credit Card Program will be subject to all of the terms and conditions established from time to time by TMC or its affiliates. Purchaser shall accept all credit cards designated by TMC and will, in addition to the terms and conditions contained in this Agreement, be fully subject to and will comply with all card agreements in force between TMC or its affiliates and VISA, MasterCard, American Express, other card issuers and/or any bank, and these card agreements are expressly incorporated herein by reference. Purchaser shall not discriminate in any manner against Circle K® credit card holders as opposed to the holders of any other credit card, such as bank credit cards, that Purchaser is authorized to accept. As used herein the term "Circle K Business" means all business conducted at the Premises (as defined below) under the Circle K trademarks and business system.
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- Term. This Agreement shall be effective commencing on the Effective Date and, except as set forth in paragraph 6 below, shall remain in effect for the same term (including any extensions thereof) as (a) the CIRCLE K® Convenience Store Franchise Agreement between TMC and Purchaser for the operation of the Circle K Business at the Premises, if no motor fuel is offered for sale to the public at the Premises (as defined below) or (b) the Circle K® Motor Fuel Agreement or Circle K® Branding Agreement, as applicable, between TMC and Purchaser, for the sale of Circle K-branded motor fuel at the Premises. The Convenience Store Franchise Agreement, the Motor Fuel Agreement or the Branding Agreement pursuant to which this Agreement was executed by the parties shall be referred to herein as the "Underlying Agreement".
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Credit Network Agreement outlines the terms for franchisee participation in Circle K's credit card program. This program encompasses the acceptance and processing of payments made via credit cards, debit cards, stored value cards, and other transaction payment cards approved by TMC or its affiliates. The program may be modified by TMC or its affiliates over time. The terms 'credit card' or 'credit cards' include all the approved payment methods under the Credit Card Program. Franchisees must forward all customer applications for Circle K-branded credit cards to TMC for approval and card issuance. Franchisee participation in the Credit Card Program is subject to the terms and conditions established by TMC or its affiliates.
Circle K franchisees are required to accept all credit cards designated by TMC and must comply with all card agreements between TMC or its affiliates and VISA, MasterCard, American Express, other card issuers, and/or any bank. These card agreements are incorporated by reference into the Credit Network Agreement. Franchisees are prohibited from discriminating against Circle K credit card holders compared to holders of other credit cards.
Upon termination or expiration of the Credit Network Agreement, all rights of the franchisee related to the Credit Card Program, including the right to process credit card charges with TMC or its affiliates, are automatically terminated. TMC has the right to terminate the Credit Card Program with 48 hours' prior written notice to the franchisee and may terminate a franchisee's Circle K credit card privileges without terminating the entire agreement. Even after termination of the agreement or the Credit Card Program, TMC or its designee will continue to purchase credit card sales invoices from the franchisee for 10 days, provided the transactions occurred before the termination date and comply with the agreement's terms. The franchisee's repurchase obligations continue beyond the termination date, and termination does not affect rights or obligations that arose before termination.