What does the Equipment include for a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 equipment franchisees must purchase or lease includes electronic point of sale equipment and a back office system. This equipment is essential for the electronic capture and transmission of transaction data related to credit and debit cards, gift cards, electronic messages, inventory management, and purchase and sales reporting. The purpose of this equipment is to maintain store operations in line with the franchise agreement.
The equipment specifically includes card authorization systems, integrated retail store management systems, back office systems, and any other retail point of sale systems that Circle K may require from time to time. Franchisees are also responsible for upgrading and replacing this equipment as needed under the Franchise Agreement.
It is important to note that Circle K itself does not supply, lease, sell, support, or maintain the equipment, nor do they provide training related to it. Instead, franchisees must acquire the equipment from designated third-party suppliers who offer the necessary training, support, and maintenance. The equipment must also comply with Circle K's technical configurations to ensure compatibility with the Circle K Systems. If Circle K configures the equipment for the franchisee, the franchisee is obligated to reimburse Circle K for the associated costs, including travel and lodging expenses.
Any new or additional equipment delivered to the franchisee or installed on the premises becomes part of the existing equipment and is subject to the terms and conditions of the franchise agreement.