Under what conditions can TMC terminate the Circle K Credit Card Program?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
r any reason.
For each transaction subject to Purchaser's repurchase hereunder, TMC may either charge the applicable amount owed to Purchaser's account or require Purchaser to make immediate refund to TMC, in the manner specified by TMC, without any deduction for any transaction and/or processing fees. Any credit card transactions that are charged back to Purchaser pursuant to this Section will be the sole responsibility of Purchaser.
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- Termination of Credit Card Program. TMC shall have the right to terminate the Credit Card Program, and all related agreements, by giving Purchaser 48 hours' prior written notice, and TMC may, at any time and with or without cause, terminate the Circle K® credit card privileges of Purchaser without terminating this Agreement or any other agreement between TMC and Purchaser. In the event of termination of this Agreement or Purchaser's right to participate in the Credit Card Program, TMC or its designee will continue to purchase credit card sales invoices from Purchaser for a period of 10 days following termination; provided the credit card sales invoices submitted by Purchaser are for transactions at the Premises that occurred prior to the date of termination and otherwise comply with the terms of this Agreement. For avoidance of doubt, Purchaser's repurchase obligations set forth herein will also continue beyond the date of termination. Termination of this Agreement or the Credit Card Program will not affect the rights or obligations of either party under this Agreement that may have arisen or accrued prior to the date of termination.
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- Indemnification. Purchaser shall indemnify, defend and hold TMC and its affiliates
harmless from and against any and all losses, liabilities, damages, costs, expenses and claims arising out of or related to (i) the use of the TMC Network or the Equipment, or (ii) Purchaser's failure to comply with the terms of this Agreement, including without limitation, any Credit Card Program.
9.
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) has the right to terminate the Credit Card Program under certain conditions. TMC can terminate the Credit Card Program, including all related agreements, by providing the Purchaser (the franchisee) with 48 hours' prior written notice. Additionally, TMC has the right to terminate the Circle K credit card privileges of the Purchaser at any time, with or without cause, without terminating the overall agreement between TMC and the Purchaser.
In the event of termination of the Credit Card Program, TMC or its designee will continue to purchase credit card sales invoices from the Purchaser for a period of 10 days following termination. However, this is contingent on the credit card sales invoices being for transactions that occurred at the Premises before the termination date and that they comply with the terms of the agreement. The franchisee's repurchase obligations will continue even after the termination date. Termination of the Credit Card Program does not affect any rights or obligations that arose before the termination date.
Furthermore, the Credit Network Agreement will terminate immediately if the Underlying Agreement (the CIRCLE K® Convenience Store Franchise Agreement, Motor Fuel Agreement, or Branding Agreement) is terminated, expires, or is not renewed. The agreement can also be terminated if the Purchaser defaults on their obligations under the Credit Network Agreement, including any Credit Card Program or Card Guide, and fails to correct the default within 10 days after receiving written notice from TMC. TMC can also terminate the agreement with 48 hours' prior written notice or if TMC discontinues operation of the TMC Network and does not designate a substitute network.
These stipulations are important for a prospective Circle K franchisee to consider, as they outline the circumstances under which the Credit Card Program can be terminated, potentially impacting their business operations and revenue streams. Franchisees should be aware of their obligations and the conditions that could lead to termination to avoid any disruptions.