What are the components of the 'Circle K Systems' that the Franchisee will utilize?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
c Point of Sale and Software Agreement (this "Agreement") is entered into by and between TMC Franchise Corporation, an Arizona corporation, with offices at 1130 West Warner Road, Tempe, Arizona 85284 ("TMC"), and «ContractName» ("Franchisee"), effective as of the Effective Date (as defined below).
1. POINT OF SALE EQUIPMENT
- 1.1 Equipment and Circle K Systems. TMC, as franchisor, has entered into a Franchise Agreement with Franchisee (the "Franchise Agreement") granting Franchisee the right to operate a convenience store (hereinafter the "Store") at a specified location (the "Premises") utilizing the Circle K operating systems, point of sale systems and trademarks (collectively, "Circle K Systems").
- 1.1.1 Franchisee agrees to purchase or lease (for the term of the Franchise Agreement) and install on the Premises the electronic point of sale equipment and back office system as set forth on Exhibit A attached hereto and/or from time to time designated by TMC (collectively, "Equipment"), to provide for, inter alia, electronic capture and transmission of transaction data for credit and debit cards, gift cards, electronic messages, inventory management, purchase, and sales reporting, in order to maintain the operation of the Store in accordance with the terms of the Franchise Agreement and related agreements. The Equipment includes card authorization systems and integrated retail store management systems, back office system, and any other retail point of sale systems as may be required by TMC from time to time. Franchisee agrees to upgrade and replace the Equipment from time to time as required under the Franchise Agreement.
- 1.1.2 Franchisee acknowledges that TMC is not supplying, leasing, selling, supporting or maintaining the Equipment or providing training to Franchisee related thereto and TMC only requires that the Equipment be purchased or leased from designated third-party suppliers that provide appropriate training, support and maintenance and that the Equipment comply with the technical configurations established or approved by TMC to ensure that the Equipment is compatible with the Circle K Systems. If TMC is required to configure the Equipment for Franchisee, Franchisee will be obligated to reimburse TMC for the reasonable costs and expenses of such configuration, including, but not limited to, expenses for travel and lodging.
- 1.1.3 Any new or additional Equipment delivered to Franchisee or installed on the Premises shall become attachments, accessions, and/or accessories to the Equipment and shall be subject to the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Circle K Systems that a franchisee will utilize include the Circle K operating systems, point of sale systems, and trademarks. The franchisee must purchase or lease electronic point of sale equipment and a back-office system, as specified in Exhibit A or as designated by TMC, to manage transaction data, inventory, and reporting. This equipment includes card authorization systems and integrated retail store management systems.
The franchisee is responsible for ensuring the equipment is compatible with Circle K Systems and for covering any configuration costs incurred by TMC. They are also obligated to upgrade and replace the equipment as required by the Franchise Agreement. The franchisee must also purchase, install, and maintain an electronic point-of-sale cash register system (EPOS System) and a back-office computer system that meets Circle K's standards and specifications, which may be modified over time.
In addition to the physical and electronic systems, Circle K provides franchisees with Business Systems Manuals, including Store Guides and Operations and Reference Manuals, which must be available at the store at all times. Franchisees are required to conduct business in accordance with the mandatory provisions of these manuals to maintain uniform operating standards. Circle K retains the right to revise these manuals, and franchisees must operate their stores in accordance with any such revisions.