When does the funding amortization begin for a Circle K franchisee who receives funding from TMC?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
------------|--------------| | authorize CIRCLE K STORES INC. hereinafter called "CIRCLE K" | | | | | | or "you", to initiate | | | debit entries to our bank account number at the depository | | | | | | | | | named below, hereinafter called "Depository", which in turn shall debit the same to such | | | | | | | | | account. These debit entries will be in the form of electronic debit. | | | | | | | | | DEPOSITORY: | | | | | | | | | INSTITUTION | | | | | | | NAME: | | ABA#: | | | | | | | | | Branch: | | | | | | | | | Street Address: | | | | | | | | | City/State/Zip: | | | | | | | | | Phone Number: | | | | | | | |
You are hereby authorized, as a convenience to us, to debit and credit our account for drafts on our account by the WELLS FARGO BANK NA as agent for CIRCLE K with CIRCLE K as payee, provided there are sufficient collected funds in such account to pay the same upon presentation. This authorization will remain in effect until revoked by us in writing, and you actually receive such notice. I agree that you shall be fully protected in honor
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
Based on the 2025 Circle K Franchise Disclosure Document, the company, TMC Franchise Corporation, may debit a franchisee's account on or after the due date that is defined by the terms of the franchise agreement and other agreements with TMC Franchise Corporation. This indicates that the amortization schedule and repayment terms for any funding or credit extended by TMC to the franchisee are governed by the specific agreements in place. These agreements would outline the due dates for payments, and TMC is authorized to debit the franchisee's account accordingly.
This authorization allows Circle K to manage payments directly from the franchisee's account, ensuring timely collection of funds owed under the franchise and credit agreements. The franchisee retains the right to dispute any item, but the authorization remains in effect until revoked in writing. This direct debit arrangement streamlines the payment process and reduces the risk of late or missed payments for Circle K.
Prospective Circle K franchisees should carefully review the terms of their franchise agreement and any related credit agreements with TMC to fully understand their payment obligations and the timing of amortization. It is important to clarify the specific due dates and any conditions that may affect the amortization schedule to avoid potential issues or disputes during the franchise term. Franchisees should also be aware of the $50 charge for any draft returned unpaid by their depository, as stated in the agreement.