How must a Circle K licensee pay the monthly Licensing Fee and other amounts owed?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
e's monthly Licensing Fee, as specified in subpart (a) above, will be due to TMC and paid as outlined in subpart (d) below. All Licensing Fees paid during each month will be reconciled with each quarterly statement Licensee provides to TMC as required by subpart (c) below, and any underpayment of the Minimum Monthly Fee will immediately be due to TMC and paid as outlined in subpart (d) below.
- (c) Statements. On or before the 21st day after the end of each calendar quarter, Licensee must provide TMC with a statement detailing the sales of all Products sold at the Premises for the prior calendar quarter.
- (d) Method of Payment. Licensee will pay the monthly Licensing Fee, and any other amounts owed under this Agreement, via electronic funds transfer ("EFT"). Licensee must establish a commercial account with a financial institution that provides EFT services and execute the Electronic Funds Transfer Authorization attached hereto as Exhibit B, which agreement authorizes TMC to initiate transfers of funds between Licensee's account and TMC's account for payment of all amounts due to TMC under this Agreement. Licensee will not use, or permit to be used, said commercial account for personal, family, or household purposes. Licensee will provide TMC with all information and authorization necessary to debit and credit Licensee's account. Licensee agrees to maintain at all times funds in its account sufficient to make payments to TMC at the time of the EFT tr
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, licensees are required to pay their monthly licensing fee and any other amounts owed via electronic funds transfer (EFT). This means a prospective Circle K licensee must establish a commercial account with a financial institution that offers EFT services. The licensee must then complete and submit an Electronic Funds Transfer Authorization form, which allows Circle K to initiate fund transfers between the licensee's account and Circle K's account for all payments due under the agreement. The monthly licensing fee is due on the 25th day of each month.
It is critical that the licensee does not use this commercial account for personal, family, or household purposes. The licensee is responsible for providing Circle K with all necessary information and authorization to debit and credit their account. Furthermore, the licensee must ensure that sufficient funds are available in the account to cover payments to Circle K at the time of the EFT transaction.
If an EFT transaction is rejected due to insufficient funds, Circle K may charge the licensee a $50 insufficient funds fee for each rejected payment, in addition to any other legal rights Circle K may have. Moreover, if any payment is not made by the due date, it will be considered late, and Circle K may charge interest on the past due amount. The interest rate will be the lesser of 1½% per month or the maximum legal rate allowed by applicable law. This highlights the importance of maintaining adequate funds and adhering to the payment schedule to avoid penalties and interest charges.