Is there a deadline associated with signing the secured promissory note for Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
– Exhibit A (Secured Promissory Note)
indirect, absolute or contingent, now existing or hereafter arising, shall, at the option of Payee, become due and payable immediately, without presentment or notice, and Payee shall be authorized to exercise all of the rights and remedies provided herein, in the Loan Documents, and under the Uniform Commercial Code, as well as all other rights and remedies either at law or in equity. From and after any Default, the entire unpaid principal balance, and all unpaid interest that accrued as of the date of such Default, less any amount thereof that has been forgiven as of such date, shall automatically bear an interest at the rate of eighteen percent (18%) per annum, compounded monthly, or the highest rate of interest permitted by law.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
Based on the 2025 Circle K Franchise Disclosure Document, Exhibit A refers to the Secured Promissory Note. However, the document does not explicitly state a specific deadline for signing the secured promissory note.
However, the FDD does outline conditions under which the note can become due immediately. Specifically, if the franchisee defaults on any payment or fails to comply with the terms of the note or related loan documents, the payee has the option to demand immediate payment without prior notice. Following a default, the unpaid principal balance will accrue interest at a rate of 18% per annum, compounded monthly, or the highest rate permitted by law.
Prospective Circle K franchisees should carefully review the terms of the Secured Promissory Note and related loan documents to fully understand their obligations and the potential consequences of default. It would be prudent to seek clarification from the franchisor regarding any specific deadlines or requirements related to the signing and execution of the note to avoid potential issues or misunderstandings later on.