Can TMC change the Credit Card Program for Circle K franchisees?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
EMENT**
This Credit Network Agreement (the "Agreement") is made and entered into as of the Effective Date (as set forth on the signature page hereto) and is by and between TMC Franchise Corporation ("TMC") and _______________________ ("Purchaser"). All capitalized terms not defined in this Agreement will have the meanings ascribed to them in the Underlying Agreement (defined below).
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- TMC's Credit Card Program. Purchaser agrees to participate fully in and comply with the terms and conditions of TMC's program regarding acceptance and processing of payments in connection with customer purchases of products and services of the Circle K Business using credit cards, debit cards, stored value cards and all other types of transaction payment cards that have been approved by TMC or its affiliates from time to time, as such program may be modified from time to time by TMC or its affiliates (the "Credit Card Program"). For the purposes of this Agreement, the terms "credit card" or "credit cards" will mean and include, where applicable, the credit cards, debit cards, stored value cards and all other types of transaction payment cards that have been approved by TMC or its affiliates from time to time under the Credit Card Program. Purchaser will immediately forward all customer applications for Circle K®-branded credit cards to TMC for approval and card issuance by TMC or its designee ("Circle K® credit cards"). The termination or expiration of this Agreement will automatically terminate all rights of Purchaser with respect to any Credit Card Program, including without limitation, all rights of Purchaser to process credit card charges with TMC or its affiliates. Purchaser's participation in any Credit Card Program will be subject to all of the terms and conditions established from time to time by TMC or its affiliates.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC Franchise Corporation (TMC) can modify the Credit Card Program for Circle K franchisees. The Credit Network Agreement states that franchisees must comply with the terms and conditions of TMC's program regarding the acceptance and processing of payments using credit cards, debit cards, stored value cards, and other transaction payment cards approved by TMC or its affiliates. This program can be modified by TMC or its affiliates from time to time.
Circle K franchisees are obligated to accept all credit cards designated by TMC and must adhere to all card agreements between TMC or its affiliates and VISA, MasterCard, American Express, other card issuers, and/or any bank. These card agreements are incorporated by reference into the Credit Network Agreement. Franchisees cannot discriminate against Circle K-branded credit card holders compared to holders of other credit cards.
TMC also reserves the right to change the processing and per-transaction fee amounts charged to Circle K franchisees, provided they give 30 days' prior written notice. Additionally, TMC can replace the TMC Network with a substitute network and charge fees for access to and use of the substitute network, which will then be considered the TMC Network for the purposes of the agreement. TMC also has the right to terminate the Credit Card Program with just 48 hours' prior written notice to the franchisee.