When must a Circle K franchisee provide a certificate of insurance to the franchisor or its designee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.10 Certificate of Insurance.
Franchisee shall provide to Franchisor or Franchisor's designee a certificate of insurance prior to the Open Date and throughout the Term (upon Franchisor's request and upon each renewal of an insurance policy) demonstrating compliance with the requirements of this Article 13.
Franchisor's failure to demand delivery of a certificate shall not be a waiver by Franchisor of Franchisee's obligation to furnish either a complying certificate or the required insurance coverage.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee must provide a certificate of insurance to Circle K or its designee before the store's Open Date. This certificate serves as proof that the franchisee is compliant with the insurance requirements outlined in Article 13 of the franchise agreement.
Furthermore, the franchisee is obligated to provide this certificate throughout the term of the franchise agreement. This ongoing requirement includes submitting the certificate upon Circle K's request and each time the franchisee renews their insurance policy. This ensures continuous compliance with the insurance standards set by Circle K.
It's important to note that Circle K's failure to specifically demand the delivery of a certificate of insurance does not waive the franchisee's responsibility to furnish both a compliant certificate and the required insurance coverage. The franchisee remains responsible for maintaining the necessary insurance, regardless of whether Circle K actively requests the certificate. This places the onus on the franchisee to proactively manage their insurance obligations and ensure they are always in compliance with the franchise agreement.