What is the duration of the Circle K agreement's term?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 term of the Credit Network Agreement is tied to the underlying franchise agreement. Specifically, the Credit Network Agreement remains in effect for the same term as either the Circle K Convenience Store Franchise Agreement (if no motor fuel is offered) or the Circle K Motor Fuel Agreement or Branding Agreement (if Circle K-branded motor fuel is sold at the premises). This means the duration of the Credit Network Agreement directly mirrors the length of the primary franchise agreement a franchisee has with Circle K.
For a prospective Circle K franchisee, this means the Credit Network Agreement, which governs the acceptance and processing of credit and debit card payments, will last as long as their main franchise agreement. This alignment simplifies the overall business relationship, as the franchisee doesn't have to worry about the credit card processing agreement expiring before or after their primary franchise term. The franchisee's rights to participate in Circle K's credit card program, including processing payments, automatically terminate upon the expiration or termination of the Credit Network Agreement.
It is important for franchisees to understand the terms and conditions of both the primary franchise agreement and the Credit Network Agreement, as they are interconnected. Franchisees should also be aware of any modifications TMC (TMC Franchise Corporation) or its affiliates might make to the Credit Card Program over time, as the franchisee is obligated to comply with these changes. This ensures that the franchisee remains compliant with Circle K's standards for payment processing throughout the duration of their franchise agreement.