Is the Circle K Franchisee required to maintain the collateral in good repair and operating condition?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
vises the Circle K Store general floor plan layout, Franchisee agrees to reconfigure the Store's floor plan layout to bring the floor plan into conformance with Franchisor's then-current specifications within three (3) months.
- 7.4 Maintenance and Repair. As between Franchisee and Franchisor, Store maintenance and repair will be the sole responsibility of Franchisee. Franchisee will at all times maintain the interior and exterior of the Store and the Franchised Location and all fixtures, furnishings, signs, and equipment located at the Store and surrounding area used in connection with such business in the highest degree of cleanliness, orderliness, safety, and sanitation and in
good repair as set forth in the mandatory provisions of the Business Systems Manuals. Franchisee will make such additions, alterations, repairs, and replacements as necessary to conform to Franchisor's requirements. All replacements of furniture, fixtures, and equipment must conform to the quality standards for Circle K Stores, any applicable laws, ordinances, and regulations, and must be approved by Franchisor in writing.
- 7.5 Signs. Franchisee will display at the Franchised Location signs, advertising, slogans, and symbols as Franchisor may prescribe from time to time, subject to any Lease and local zoning restrictions. Franchisee will pay for permitting and exterior signage at the Franchised Location and will be responsible for the installation and maintenance of all signs. Any signage may not be used except as permitted hereunder and may not be altered or removed by Franchisee except with Franchisor's prior written consent or upon termination of this Agreement.
- 7.6 Equipment/Construction and Other Funding. Franchisor may offer to Franchisee funding for acquisition of certain Store equipment and/or construction of the Store ("Equipment/Construction Funding") if Franchisee qualifies for same. If Franchisee accepts the Equipment/Construction Funding, Franchisee must sign the Equipment/Construction Funding Agreement attached hereto as Exhibit 4 (the "Equipment/Construction Funding Agreement") and the Personal Guaranty (attached hereto as Exhibit 5).
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee is responsible for maintaining the store. Specifically, the franchisee must maintain both the interior and exterior of the store, the franchised location, and all fixtures, furnishings, signs, and equipment in a clean, orderly, safe, and sanitary condition, and in good repair. This maintenance standard is detailed in the Business Systems Manuals, which the franchisee is obligated to follow.
The franchisee is also responsible for making necessary additions, alterations, repairs, and replacements to meet Circle K's requirements. Any replacements of furniture, fixtures, and equipment must adhere to Circle K's quality standards, comply with applicable laws and regulations, and receive written approval from Circle K.
Circle K also mandates periodic remodeling to maintain brand standards. Franchisees must begin remodeling within three months of receiving written notice from Circle K and complete it within a reasonable time. While extensive remodeling is generally required no more than once every five years, Circle K can require replacements or reconfigurations sooner if items become worn or if Circle K revises its store layout. This ensures that all Circle K locations maintain a consistent and up-to-date image.