What is the Circle K 'Credit Network Agreement' and what does it require the franchisee to do?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
monthly Royalty Fee.
- 12 If you do not offer any fuel for sale at the Franchised Location or if you enter into the Motor Fuel Agreement or the Branding Agreement, you will be required to sign the Credit Network Agreement (the "Credit Network Agreement"). Pursuant to the Credit Network Agreement, we will provide you with a debit/credit network that you will be required to use to process debit and credit card transactions. You will be required to pay a Network Fee (payable in advance on the 25th day of each month) and any debit/credit card (processing) fees and/or service (transaction) fees that we may charge. We currently charge the fees stated in the above table in connection with all credit/debit card transactions, and such fees are subject to change upon 30 days' prior notice to you, up to an increase of twenty percent (20%) in any twelve-month
period. We reserve the right to replace the TMC Network with a substitute network and charge fees for your access to and use of such substitute network.
OTHER FEES
Motor Fuel Business
| Type of Fee | Amount | Due Date | Remarks |
|---|
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Credit Network Agreement is required if a franchisee does not offer fuel for sale at their location or if they enter into the Motor Fuel Agreement or the Branding Agreement. Under this agreement, Circle K provides the franchisee with a debit/credit network to process card transactions.
As part of the Credit Network Agreement, franchisees must pay a Network Fee, which is currently $50 per month, payable in advance on the 25th of each month via electronic funds transfer. Circle K can modify this fee with 30 days' written notice, but increases are capped at 20% within any 12-month period. Franchisees are also responsible for any debit/credit card processing and service transaction fees that Circle K charges.
Terminating the Credit Network Agreement carries a liquidated damages fee. This fee is calculated as the lesser of 48 months or the remaining number of months under the agreement's term, multiplied by $3,000. This means a franchisee could owe a substantial amount if they terminate the agreement early, highlighting the importance of understanding the terms and potential costs associated with the Credit Network Agreement.