What determines the Effective Date of the Equipment/Construction Funding Agreement for a Circle K franchise?

According to Circle K's 2025 Franchise Disclosure Document, the Equipment/Construction Funding Agreement's effective date is determined by when the franchisor signs the agreement. Specifically, the agreement is "effective as of the date this Agreement is signed by Franchisor".

This means that the franchisee will not be able to rely on the funding agreement until Circle K has officially signed the document. The agreement outlines the terms under which Circle K offers loans and credit accommodations to the franchisee for acquiring equipment, personal property, fixtures, and construction at the site before the store's opening date. The funding amount is capped at a "Maximum Amount", as specified in Schedule A of the agreement.

Prospective Circle K franchisees should be aware that the actual availability of funding and the specific amount depend on Circle K's approval and signing of the agreement. Franchisees should also note that the funding is intended for specific purposes related to store setup and construction, and any changes to the store's sales levels before opening could affect the funding amount. Understanding these conditions is crucial for managing the financial aspects of establishing a Circle K franchise.