When is the Insufficient Funds Fee due to Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Network Fee | The then-current fee; Currently $50 per month | Payable monthly on the 25th day of each month by electronic funds transfer | TMC has the right to modify the Network Fee from time to time on 30 days’ advance written notice, up to an increase of 20% in any 12-month period. |
| Optional Program Fees | Varies depending on the program but ranges from 5% to 75% of Optional Program revenue | Payable monthly on the 25th day of each month by electronic funds transfer | See Note 1 |
| Motor Fuel | $35 to $50 per delivery | Upon demand | See Note 2 |
| Pass-Through | |||
| Fee | |||
| Licensing Fee | Greater of (i) $0.0075 per gallon of motor fuel products sold or (ii) $500 per site | Payable monthly on the 25th day of each month by electronic funds transfer | Paid as consideration for your right to use TMC trademarks in connection with advertising, marketing and resale of motor fuel products at the Premises. |
| Insufficient Funds Fee | $50 to $250 per payment or the maximum legal rate allowed by law | Upon demand | See Note 3 |
| Interest | Lower of maximum legal rate allowed by law or 1½% per month, not to exceed 18% per annum | See Note 4 | Interest on late payments is non- refundable. See Note 4 |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Insufficient Funds Fee is due 'upon demand.' This fee is charged if there are insufficient funds in the franchisee's account at the time a payment is due to Circle K. The amount of the Insufficient Funds Fee ranges from $50 to $250 per payment, or the maximum legal rate allowed by law.
This means that if a Circle K franchisee's payment is rejected due to insufficient funds, Circle K can immediately demand payment of both the original amount due and the Insufficient Funds Fee. This policy is fairly standard in franchising, as it protects the franchisor from losses due to payment issues.
Prospective Circle K franchisees should ensure they maintain sufficient funds in their accounts to cover all payments to Circle K to avoid incurring these fees. It is also important to understand the specific circumstances under which payments are due to Circle K to proactively manage their account balances and avoid any surprises.