By what day of the month are recurring payments to Circle K required, and what payment methods are acceptable?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Optional Program revenue with Franchisor, and may be required to enter into a separate agreement with Franchisor and/or a third-party vendor approved by Franchisor.
- 5.5 Method of Payment; Insufficient Funds Fee. Except as otherwise stated in this Agreement, all recurring payments required to be paid to Franchisor under this Agreement will be paid by electronic funds transfer via the Automated Clearing House ("ACH") or wire transfer (at Franchisor's election) to Franchisor or its Affiliates by the 25th day of each month for the preceding calendar month's business activity (or by such other due date as we may from time to time specify).
If the payment due date is a Saturday, Sunday, or a legal holiday, the payment will be made on the immediately following business day. Prior to Open Date, Franchisee hereby agrees to make arrangements with its bank to allow Franchisor or its Affiliates to draw on Franchisee's bank account on a continuing basis by ACH or wire transfer for the amount of all fees and payments due Franchisor as provided herein and agrees to execute the Electronic Funds Transfer Authorization ("EFT Authorization") set forth in Exhibit 3. If Franchisee fails to timely make such arrangements or execute the EFT Authorization, Franchisee will be required to pay Franchisor a fine of $50 per each day such noncompliance continues. If
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, recurring payments must be paid by the 25th day of each month for the preceding calendar month's business activity. These payments are made to Circle K or its Affiliates. However, Circle K may specify a different due date from time to time. If the 25th falls on a Saturday, Sunday, or legal holiday, the payment is due on the next business day.
Circle K requires that franchisees make these recurring payments via electronic funds transfer through the Automated Clearing House (ACH) or by wire transfer, at Circle K's election. Before the store's opening date, franchisees must arrange with their bank to allow Circle K or its Affiliates to draw on the franchisee's bank account for all fees and payments due. Franchisees must also execute an Electronic Funds Transfer Authorization form.
Failure to arrange for electronic funds transfer or to execute the required authorization will result in a fine of $50 per day until compliance. Additionally, if there are insufficient funds in the franchisee's account when payment is due, Circle K may charge an insufficient funds fee, up to the maximum rate allowed by law, for each failed payment.