When is the Liquidated Damages (Purchase of Fuel) fee payable to Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Motor Fuel Business
| 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 th |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Liquidated Damages (Purchase of Fuel) fee is payable upon termination of the Motor Fuel Agreement. The amount of this fee is the greater of $0.04 per gallon multiplied by the minimum monthly volume in motor fuel gallons set forth in the Motor Fuel Agreement.
This means that if a Circle K franchisee's Motor Fuel Agreement is terminated, they will owe Circle K a liquidated damages fee. The calculation is based on a per-gallon amount ($0.04) applied to the minimum monthly fuel volume specified in their agreement.
Prospective franchisees should carefully review the terms of the Motor Fuel Agreement to understand how the minimum monthly volume is determined, as this will directly impact the amount of liquidated damages owed upon termination. Franchisees should also consider the circumstances under which the Motor Fuel Agreement can be terminated and the potential financial implications of such termination.