What is the Circle K franchisee required to install on the premises?
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.
1.1.4 Franchisee agrees not to add additional hardware not designated by TMC to the Equipment, TMC Software (as defined below), and Third-Party Software (as defined below) without TMC's prior written consent.
1.2 Equipment Use and Maintenance. The Equipment shall be used solely for the storage and transmission of point of sale data pertaining to the Store and such other uses as may be approved in advance by TMC. Franchisee is solely responsible for ongoing maintenance and repair of the Equipment and all related hardware. Franchisee is also solely responsible for the replacement of items, including, but not limited to, ink, ribbons, invoice tickets, pin pads, cleaning cards, and papers for terminals.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must purchase or lease and install specific equipment on the premises. This includes an electronic point of sale (EPOS) system and a back-office system. The EPOS system facilitates electronic capture and transmission of transaction data for credit and debit cards, gift cards, electronic messages, inventory management, and purchase and sales reporting. This equipment is essential for maintaining store operations in accordance with the Franchise Agreement. Franchisees must also maintain a functioning automated teller machine (ATM) at the franchised location, unless Circle K waives this requirement.
The equipment must be purchased or leased from designated third-party suppliers who provide appropriate training, support, and maintenance, and the equipment must comply with Circle K's technical configurations to ensure compatibility with the Circle K Systems. Franchisees are responsible for upgrading and replacing the equipment as required under the Franchise Agreement. 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 of the agreement.
In addition to the EPOS system and ATM, franchisees are required to effect building improvements and install fixtures and equipment as required by Circle K's current specifications, as detailed in the Business Systems Manuals. All plans and specifications must be approved by Circle K before construction begins. Failure to construct and furnish the store according to the approved plans and specifications may result in termination of the Franchise Agreement. Franchisees are also required to apply to participate in the Supplemental Nutrition Assistance Program (SNAP), or a comparable program designated by Circle K, and accept SNAP benefits as a form of payment if approved.