When does interest begin to accrue on the Conversion/Improvement Amount for Circle K franchisees?

According to Circle K's 2025 Franchise Disclosure Document, interest on the Conversion/Improvement Amount begins to accrue on the date that Circle K first disburses the funds. This is referred to as the "Disbursement Date." The interest accrues on a monthly basis and is compounded monthly until the total principal is either fully repaid or forgiven.

This means that as a prospective Circle K franchisee, you will start incurring interest charges on the loan as soon as you receive the funds from Circle K. It is important to factor this into your financial planning and ensure you understand the terms of repayment or forgiveness outlined in the Amortization Schedule.

The interest rate itself is specified as a percentage per annum, but the exact rate is not provided in this excerpt, only represented by underscores. The interest rate will either be that percentage or the highest lawful rate of interest allowed under applicable law, if lower. The specific rate should be clarified with Circle K during the due diligence process to fully understand the cost of borrowing.