What happens if a Circle K payment is not received by the due date?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
a third-party vendor approved by us.
2 If insufficient funds are available in your account at the time payment is due, we may charge you an insufficient funds fee ranging from $50 to $250, or the maximum legal rate allowed by law, for each insufficient funds payment.
3 If you fail to pay any amounts due to us under the Branding Agreement by the due date, the payment will be considered late and we may charge you interest on the amount past due at the lesser of 1½ % per month or the maximum legal rate allowed under applicable law, but no more than 18% per annum simple interest. Interest on late payments is non-refundable. A payment will be considered late if: (i) you fail to pay us the amount owed or (ii) if insufficient funds are available in your
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a payment is considered late if the franchisee fails to pay the amount owed or if there are insufficient funds in their account to cover the payment. If a Circle K franchisee fails to pay any amounts due by the due date under the Branding Agreement or the Motor Fuel Agreement, Circle K may charge interest on the past due amount. This interest will be the lesser of 1½% per month or the maximum legal rate allowed under applicable law, but no more than 18% per annum simple interest. Interest on late payments is non-refundable.
Additionally, if there are insufficient funds available in the franchisee's account when payment is due, Circle K may charge an insufficient funds fee. This fee can range from $50 to $250, or the maximum legal rate allowed by law, for each insufficient funds payment.
Furthermore, if a Circle K store has not yet opened and the franchisee fails to arrange for payments via ACH or wire transfer or fails to execute the EFT Authorization, they may be charged a fee of $50 for each day of noncompliance. These late payment penalties and fees are standard practice in franchising to ensure timely payments and cover administrative costs associated with managing late or insufficient payments.