When is the Liquidated Damages (Licensing Fee) due for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 | |---|---|---| | Visa | $0.12 | 1.80% | | MasterCard | | | | Debit | | | | All Others | $0.12 | 3.25% |
Notes to table:
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Unless otherwise stated in this Disclosure Document, all fees are imposed by and payable to us or our affiliates and are nonrefundable. The fees outlined in this table are uniformly imposed throughout the Circle K convenience store system except as provided for herein.
1 The Royalty Fee is based upon a percentage of Gross Sales.
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, there are two types of liquidated damages, one related to the purchase of fuel and another related to the Credit Network Agreement. The Liquidated Damages (Purchase of Fuel) is payable upon termination of the Motor Fuel Agreement. This fee is calculated as $0.04 per gallon multiplied by the minimum monthly volume in motor fuel gallons as outlined in the agreement.
The Liquidated Damages (Credit Network Agreement) is payable upon termination of the Credit Network Agreement. The amount due is equal to the lesser of (i) 48 or (ii) the remaining number of months under the term of the agreement, multiplied by $3,000.
It is important to note that these liquidated damages apply specifically to the Motor Fuel Agreement and the Credit Network Agreement, respectively. A prospective franchisee should carefully review these agreements to understand the circumstances under which these liquidated damages may be assessed and the methods of calculation.