How must monthly payments be made 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, several fees are payable monthly via electronic funds transfer. These include the Network Fee, currently at $50 per month, Optional Program Fees, which vary from 5% to 75% of Optional Program revenue, and the Licensing Fee, which is the greater of $0.0075 per gallon of motor fuel products sold or $500 per site. These fees are due on the 25th day of each month.
This means that as a Circle K franchisee, you'll need to set up electronic funds transfer (EFT) to ensure timely payments of these fees. Failing to do so, or having insufficient funds, can result in additional charges. Specifically, if you don't arrange for ACH or wire transfer before your store opens, Circle K may charge you $50 for each day of noncompliance. Additionally, insufficient funds will result in a fee ranging from $50 to $250 per payment, or the maximum legal rate allowed by law.
Interest will be charged on late payments at the lower of the maximum legal rate or 1.5% per month, not exceeding 18% per annum. It's important to note that interest on late payments is non-refundable. Therefore, franchisees must maintain diligent financial practices to avoid these extra costs and ensure smooth operations with Circle K.