For a Circle K motor fuel conversion, how is the network fee paid and to whom?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ally depending upon the condition of your stores.
Note 5 If you will not offer any motor fuel at the Franchised Location or if you sign the Motor Fuel Agreement or the Branding Agreement, you will be required to also sign the Credit Network Agreement (attached as Exhibit 6 to the Convenience Store Franchise Agreement) and pay us the then-current monthly Network Fee, in exchange for the use of our electronic point of sale network ("TMC Network"), including the EPOS Credit/Debit Equipment (as defined in the Credit Network Agreement). The amounts included in the table above reflect three months of the current Network Fees.
Note 6 You will pay for the permitting and the exterior sign fixtures which include our trademark.You will pay for the installation of the sign fixtures and any maintenance associated with these signs.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly Network Fee to Circle K in exchange for the use of the TMC Network. The TMC Network is Circle K's electronic point of sale network, which includes the EPOS Credit/Debit Equipment. Item 7 includes estimates for three months of Network Fees.
This fee is mandatory if the franchisee does not offer motor fuel at the franchised location or if they sign the Motor Fuel Agreement or the Branding Agreement. In these cases, the franchisee will also be required to sign the Credit Network Agreement.
Prospective franchisees should consider the ongoing monthly expense of the Network Fee when evaluating the financial feasibility of a Circle K franchise, especially in relation to potential revenue and profit margins. Understanding the terms and conditions outlined in the Credit Network Agreement is also crucial to ensure compliance and avoid any potential penalties or disruptions to the business.