In the Circle K agreement, what does 'Amount Funded' mean?

According to Circle K's 2025 Franchise Disclosure Document, the 'Amount Funded' refers to the total sum of financial assistance that Circle K actually provides to the franchisee under the Equipment/Construction Funding Agreement. This funding is intended to help franchisees cover the costs of acquiring equipment, personal property, fixtures, construction, and related labor needed to set up their Circle K store before the opening date.

The Equipment/Construction Funding Agreement outlines the terms and conditions of this financial support, including the maximum amount available ('Maximum Amount') and the specific purposes for which the funds can be used ('Permitted Purposes'). Schedule A of the agreement details different funding levels based on the type of store (new construction, conversion, etc.) and the store's square footage or sales volume. The amount of Equipment/Construction Funding, if any, that Franchisee is approved to receive will be noted on the Data Sheet.

For a prospective Circle K franchisee, understanding the 'Amount Funded' is crucial because it directly impacts the initial investment required to open the store. The franchisee needs to be aware of the maximum funding available, the conditions attached to it, and how the funds can be utilized. It's also important to note that Circle K reserves the right to reduce the funding amount if the store's projected sales levels decrease before it opens.

Circle K uses the Equipment/Construction Funding funds, on Franchisee's behalf, to off-set the acquisition cost of Store equipment and the construction cost of the Store, and pay related invoices on Franchisee's behalf. The Equipment/Construction Funding will be amortized over the Term. This arrangement helps franchisees manage their upfront costs and ensures that the funds are used for approved purposes, aligning with Circle K's standards and requirements for store setup and operation.