What is the interest rate charged on late payments to Circle K, and is it refundable?
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 |
| Liquidated Damages (Purchase of Fuel) | An amount equal to the greater of: (i) $0.04 per gallon multiplied by the minimum monthly volume in motor fuel gallons set forth in the | Payable upon termination of the Motor Fuel Agreement | |
| Card Type | Per Transaction Fee | Processing Fee | |
| --- | --- | --- | |
| Visa | $0.12 | 1.80% | |
| MasterCard | |||
| Debit | |||
| All Others | $0.12 | 3.25% | |
| Type of Fee | Amount | Due Date | Remarks |
| --- | --- | --- | --- |
| Licensing Fee | Varies, but generally $0.0075 per gallon of fuel sold at Branded Business. We reserve the right to modify the Licensing Fee. | Payable monthly on the 25th day of each month by electronic funds transfer | You are required to pay us a monthly Licensing Fee, and your monthly Licensing Fees must exceed $500 per month, per site (the “Minimum Monthly Fee”). |
| Type of Fee | Amount | Due Date | Remarks |
| --- | --- | --- | --- |
| Liquidated Damages (Credit Network Agreement) | An amount equal to the lesser of (i) 48 or (ii) the remaining number of months under the term of the agreement, multiplied by $3,000. | Payable upon termination of the Credit Network Agreement | |
| Card Type | Per Transaction Fee | Processing Fee | |
| --- | --- |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if a franchisee fails to pay amounts due under the Convenience Store Franchise Agreement by the due date, Circle K will charge interest on the past due amount. The interest rate is the lesser of 1½% per month or the maximum legal rate allowed under applicable law. This interest will not exceed 18% per annum simple interest. This interest on late payments is non-refundable. A payment is considered late if the franchisee fails to pay the amount owed or if there are insufficient funds available in the franchisee's account to fully pay the amount owed.
This policy applies to amounts due under the Branding Agreement and the Motor Fuel Agreement as well. The FDD specifies that the same interest rate terms (lesser of 1½% per month or the maximum legal rate, not exceeding 18% per annum) and non-refundability apply to late payments under these agreements as well. The conditions defining a late payment are consistent across all three agreements: failure to pay the amount owed or insufficient funds.
In addition to interest on late payments, Circle K may also charge an insufficient funds fee if there are insufficient funds available in the franchisee's account when payment is due. This fee ranges from $50 to $250 per payment, or the maximum legal rate allowed by law. Franchisees should be aware of these potential charges and ensure timely payments to avoid incurring interest and fees. The network fee is currently $50 per month, and Circle K 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.