What is the 'Effective Date' in relation to the Circle K Credit Network Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------------------| | $50,000 or less | Up to 1.1 times Gross Sales | | $50,001 to $75,000 | Up to 1.3 times Gross Sales | | $75,001 to $100,000 | Up to 1.4 times Gross Sales | | $100,000 | Up to 1.5 | | to $150,000 | times Gross Sales | | $150,001+ | Up to 1.6 times Gross Sales |
Exhibit 5
PERSONAL GUARANTY
[Attached as Exhibit J to this Franchise Disclosure Document]
Exhibit 6
CREDIT NETWORK AGREEMENT
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.
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 is established as of the Effective Date, as indicated on the signature page of the agreement. This date marks the commencement of the agreement between TMC Franchise Corporation (TMC) and the franchisee, referred to as the Purchaser. All terms not specifically defined in the Credit Network Agreement will carry the same meanings as defined in the Underlying Agreement, which is either the Convenience Store Franchise Agreement, the Motor Fuel Agreement, or the Branding Agreement.
The Effective Date is significant because it determines when the Credit Network Agreement officially begins. The agreement outlines the terms and conditions under which the franchisee will participate in TMC's program for processing customer payments via credit cards, debit cards, and other transaction payment cards. The franchisee is obligated to comply with the terms of this program, which TMC can modify over time.
For a prospective Circle K franchisee, understanding the Effective Date is crucial, as it signifies the start of their obligations and rights under the Credit Network Agreement. The franchisee must adhere to TMC's guidelines regarding credit card processing and equipment usage from this date forward. Moreover, the term of the Credit Network Agreement is linked to the Underlying Agreement, meaning its duration mirrors that of the franchise or motor fuel agreement. This interconnectedness highlights the importance of aligning the terms and conditions of all related agreements to ensure a smooth and compliant operation of the Circle K business.