Does Circle K authorize its representatives to make financial representations orally?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Did any employee or other person speaking on behalf of TMC Franchise Corporation make any statement or promise regarding the costs involved in operating a CIRCLE K Store, Motor Fuel Business and/or Branded Business that is not contained in the Disclosure Document or that is contrary to, or different from, the information contained in the Disclosure Document? Check one: () Yes () No. If yes, please comment: |
|---|
| Except as stated in Item 19, did any employee or other person speaking on behalf of TMC Franchise |
| Corporation make any oral, written or visual claim, statement, promise or representation to you that |
| stated, suggested, predicted or projected sales, revenues, expenses, earnings, income or profit levels |
| at any |
| CIRCLE K Store, Motor Fuel Business and/or Branded Business, or the likelihood of success at |
| your business? Check one: |
| ( ) Yes ( ) No. If yes, please state in detail the oral, written or visual |
| claim or representation: |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–86)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, prospective franchisees are asked to confirm whether any Circle K representative made financial promises or claims not included in the FDD. Specifically, the questionnaire asks if any employee made oral, written, or visual claims regarding potential sales, revenues, expenses, earnings, income, or profit levels. Franchisees must check 'Yes' or 'No' to indicate whether such claims were made. If 'Yes' is selected, they are required to provide details about the claim or representation.
This disclosure is crucial for prospective Circle K franchisees because it highlights the importance of relying solely on the financial information provided in the FDD. Oral promises or claims made by representatives that are not documented in the FDD are not binding on Circle K. This protects both the franchisee and Circle K by ensuring that all financial expectations are clearly outlined in the official documents.
It is a common practice in the franchise industry to include such disclaimers to prevent misunderstandings and potential legal disputes arising from undocumented claims. Franchisees should be wary of any financial projections or promises made outside of the formal FDD and are encouraged to seek clarification from Circle K in writing for any discrepancies or additional information they may receive. This ensures that all parties are aligned on the financial expectations and obligations of the franchise agreement.