Following termination of the Circle K Agreement or Credit Card Program, does the Purchaser's obligation to repurchase continue?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of termination of this Agreement or Purchaser's right to participate in the Credit Card Program, TMC or its designee will continue to purchase credit card sales invoices from Purchaser for a period of 10 days following termination; provided the credit card sales invoices submitted by Purchaser are for transactions at the Premises that occurred prior to the date of termination and otherwise comply with the terms of this Agreement. For avoidance of doubt, Purchaser's repurchase obligations set forth herein will also continue beyond the date of termination.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee's repurchase obligations continue even after the termination of the Credit Card Program or the franchise agreement. Specifically, TMC or its designee will continue to purchase credit card sales invoices from the franchisee for 10 days following termination, provided that the invoices are for transactions that occurred before the termination date and comply with the agreement terms.
This continuation of repurchase obligations means that even after a Circle K franchise agreement ends, the franchisee remains responsible for certain financial obligations related to credit card transactions. This includes potential chargebacks or disputes on transactions that occurred before the termination date. The franchisee's financial responsibility extends beyond the active operation of the franchise.
This clause protects TMC from potential losses related to transactions that occurred during the franchise term but may surface after termination. For a prospective franchisee, this highlights the importance of maintaining accurate records and adhering to all credit card processing guidelines to minimize potential liabilities that could extend beyond the franchise term. Franchisees should ensure they understand and comply with all terms of the Credit Card Program to avoid future financial repercussions.