Is a Circle K franchisee required to engage a designated project management firm for the development and construction of their Circle K store?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
You must engage one of our designated project management firms to assist you with certain aspects of the development and construction of your Store. Specifically, the third-party management firm will obtain sales area equipment and interior graphics bids, will purchase and/or install, on your behalf, convenience store equipment, prepare plans, check lists and equipment cut sheets, and provide other services to assist you in the development of your Store. You will be responsible for all costs and fees of the third-party management firm, but if you accept Equipment/Construction Funding, we may use a portion of these funds to cover certain costs (as we determine) associated with the use of the third-party management firm.
You will be required to work with TMC or its designee to develop an Auto CAD format "as-built" plan of the Store, which plan must include the interior walls, structural layout and utilities. We may require you to hire a consultant to prepare the Auto CAD format plan, in which case you will be required to engage the consultant within two weeks of signing the Convenience Store Franchise Agreement. You must pay for all costs associated with the Auto CAD format plan, unless you accept Equipment/Construction Funding, in which case the cost of the Auto CAD format plan will be paid for by the Equipment/Construction Funding.
The estimate contained in this Item 7 includes the cost for the third-party management firm. The cost will vary depending on the condition of the premises. In addition, as previously noted above, if you are converting an existing convenience store or stores, these costs may be reduced dramatically depending upon the condition of your stores.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 36–45)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to engage a designated project management firm to assist with specific aspects of the development and construction of their Circle K store. This firm will handle tasks such as obtaining bids for sales area equipment and interior graphics, purchasing and/or installing convenience store equipment, preparing plans, checklists, and equipment cut sheets, and providing other services to aid in store development.
The franchisee is responsible for covering all costs and fees associated with the third-party management firm. However, if the franchisee accepts Equipment/Construction Funding from Circle K, a portion of these funds may be used to offset certain costs related to the use of the project management firm, as determined by Circle K. The initial investment estimate outlined in Item 7 includes the cost for this third-party management firm, though the exact cost can vary depending on the condition of the premises.
Additionally, Circle K requires franchisees to collaborate with TMC or its designee to develop an Auto CAD format "as-built" plan of the store, detailing interior walls, structural layout, and utilities. Franchisees may be required to hire a consultant to prepare this plan within two weeks of signing the Convenience Store Franchise Agreement. The franchisee is responsible for all costs associated with the Auto CAD format plan, unless they accept Equipment/Construction Funding, in which case these costs will be covered by the funding.