How will TMC notify Circle K franchisees of modifications to the Network Fee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 22–35)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC (presumably Circle K's parent company or an affiliate) has the right to modify the Network Fee. Franchisees will receive 30 days' advance written notice of any changes. Furthermore, any increase is capped at a maximum of 20% within a 12-month period. The Network Fee is currently $50 per month.
This policy ensures that Circle K franchisees are informed about potential cost increases related to the Network Fee, allowing them time to adjust their financial planning. The 30-day notice period is a standard practice in franchising, providing franchisees with a reasonable window to prepare for the change. The 20% cap on increases within a year offers some protection against drastic cost fluctuations.
It is important for prospective Circle K franchisees to understand the conditions under which fees can be modified and the methods of notification. Franchisees should pay close attention to any written notices from TMC regarding fee changes to ensure they remain compliant and can effectively manage their business finances. Understanding these terms is crucial for maintaining a healthy and predictable business operation as a Circle K franchisee.