Can Circle K change the Maximum Amount of Funding, and if so, under what circumstances?

According to Circle K's 2025 Franchise Disclosure Document, Circle K has the authority to modify the Maximum Amount of Funding available to a franchisee. Circle K may change the Maximum Amount at any time in its sole discretion based on Circle K's verification of the square footage and/or gross sales of Franchisee's store.

Specifically, Circle K may reduce the Maximum Amount if, after the parties' execution of the Equipment/Construction Funding Agreement but before the Open Date, the merchandise sales levels at the Store drop below the amount that Circle K used to set the Maximum Amount. This means that if a franchisee's store underperforms in terms of merchandise sales prior to its official opening as a Circle K, the initial funding amount could be decreased.

This discretion allows Circle K to adjust funding based on the actual performance and characteristics of the store, ensuring that the funding aligns with the store's potential and operational status. Prospective franchisees should be aware of this clause, as it introduces an element of uncertainty regarding the final amount of funding they may receive, especially if there are fluctuations in sales levels before the store's opening.