When is the Licensing Fee payment due for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ed the Products meet all applicable local, state and federal laws and regulations and TMC's standards and requirements. TMC reserves the right to update and modify its standards and requirements from time to time and Licensee agrees to comply with any updates or modifications within 60 days of receiving notice of the change.
6. Fees/Method of Payment.
- (a) Licensing Fee. Licensee agrees to pay TMC a monthly fee equal to $0.0075 for each gallon of Product sold at the Premises (the "Licensing Fee") provided, Licensee's minimum total Licensing Fees each month must exceed $500 (the "Minimum Monthly Fee").
- (b) Payments. On the 25th day of each month, Licensee'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, the monthly Licensing Fee is due to TMC (TMC Franchise Corporation) on the 25th day of each month. The payment method is via electronic funds transfer (EFT). Licensees must establish a commercial account with a financial institution that provides EFT services and authorize TMC to initiate transfers of funds between their account and TMC's account for all amounts due under the Branding Agreement.
Circle K requires franchisees to provide a statement detailing the sales of all products sold at the premises for the prior calendar quarter. This statement must be provided to TMC on or before the 21st day after the end of each calendar quarter. All Licensing Fees paid during each month will be reconciled with each quarterly statement, and any underpayment of the Minimum Monthly Fee will immediately be due to TMC and paid via EFT.
If an EFT transaction is rejected due to insufficient funds, Circle K may collect an insufficient funds fee of $50 for each rejected payment. Additionally, if a franchisee fails to pay any amounts due under the Agreement by the due date, the payment 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 under applicable law. Franchisees must maintain sufficient funds in their account to cover payments to TMC at the time of the EFT transaction.