What is the significance of the number '20' in the context of the Circle K secured promissory note?

Based on the 2025 Circle K Franchise Disclosure Document, the number 20 is relevant to the potential increase in processing and transaction fees associated with debit/credit card transactions. Circle K retains the right to modify these fees, providing 30 days' advance written notice. However, the increase is capped at twenty percent (20%) within any twelve-month period.

This means that a Circle K franchisee could experience an increase in the fees they pay for processing debit and credit card transactions. While Circle K must provide advance notice, franchisees need to be aware that these fees can fluctuate. This could impact their profitability, especially if a large portion of their sales comes from credit and debit card transactions.

Franchisees should carefully monitor any communications from Circle K regarding changes to these fees and factor potential increases into their financial planning. Understanding the terms outlined in the Circle K Card Guide and other related manuals is crucial for managing these costs effectively. This fee structure is fairly standard in the franchise industry, as franchisors often pass along processing fees, but the potential for a 20% increase should be considered.