Is a Circle K franchisee required to purchase other computer equipment designated by the franchisor?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
iant with governmental regulations, including without limitation the Americans With Disabilities Act.
In connection with operating your Circle K Store, you must enter into the Software Agreement with us, an affiliate of ours or a third party we designate, which will cover the electronic point of sale equipment, back-office system, and any other computer system(s) we deem appropriate, to be used at your Circle K Store. (A copy of the Software Agreement is attached as Exhibit 2 to the Convenience Store Franchise Agreement.) Under the Software Agreement, you must maintain and service the equipment in accordance with our specifications and in accordance with any manuals relating to the equipment. You may be required to enter into a separate agreement with a third party we designate covering the use and maintenance of the systems required for your Store, including the electronic point of sale system, back office system, and/or any other computer system or communication software we deem necessary to run a Circle K Store, or to collect data from your Store. We currently require you to use Verifone or Radiant for your point of sale system and SSCS as your back office system.
If you will not offer any fuel for sale at the Franchised Location or if you will execute the Motor Fuel Agreement or the Branding Agreement, you will be required to utilize the TMC Network, our electronic point of sale network, and, in connection therewith, purchase designated back-office system, license designated software and firmware and purchase other related computer equipment that we designate. In connection therewith, you must sign the Credit Network Agreement which sets forth the terms and conditions under which you will utilize the TMC Network. You will be required to pay us a monthly Network Fee in exchange for the right to use the TMC Network. The monthly Network Fee you will be required to pay will be our then-current Network Fee, which as of the date of this Disclosure Document is $50 per month. We reserve the right to modify the Network Fee upon 30 days' advance written notice.
The Convenience Store Franchise Agreement requires you to maintain certain types and minimum amounts of insurance coverage for your Store. You must maintain Commercial General Liability Coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Liquor Liability with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Automobile Liability Coverage with minimum limits of $1,000,000 per occurrence; and, Commercial Property Insurance (an all risk full replacement policy). In addition, you must maintain Worker's Compensation Insurance with statutory limits; Employers Liability with a minimum of $500,000 per occurrence; Umbrella or Excess Insurance with a minimum of $1,000,000 per occurrence; and, any other insurance required by law. If you sell motor fuel, you must, at all times, comply with all Federal, State and local laws applicable to the ownership and operation of commercial underground storage tanks ("USTs"), including but not limited to requirements to maintain financial assurance for the USTs.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to purchase designated computer equipment. Specifically, if a franchisee will not offer fuel for sale or if they execute the Motor Fuel Agreement or the Branding Agreement, they must utilize the TMC Network, Circle K's electronic point of sale network. As part of this, they must purchase a designated back-office system, license designated software and firmware, and purchase other related computer equipment that Circle K designates. Franchisees must also sign a Credit Network Agreement and pay a monthly Network Fee for using the TMC Network. As of the date of the Disclosure Document, this fee is $50 per month, but Circle K reserves the right to modify it with 30 days' written notice.
In addition to the above, all Circle K franchisees must enter into a Software Agreement with Circle K, an affiliate, or a designated third party. This agreement covers the electronic point of sale equipment, back-office system, and any other computer systems Circle K deems appropriate for the store. Franchisees are responsible for maintaining and servicing this equipment according to Circle K's specifications and manuals. They may also be required to enter into a separate agreement with a third party designated by Circle K for the use and maintenance of systems, including the electronic point of sale system, back office system, and any other necessary computer or communication software. Currently, Circle K requires the use of Verifone or Radiant for the point of sale system and SSCS as the back office system.
For franchisees of a Branded Business, they must utilize the TMC Network, which includes purchasing a designated back-office system, licensing designated software and firmware, and buying other computer equipment that Circle K designates. They must also sign the Credit Network Agreement and pay a monthly Network Fee, which is currently $50 per month but can be modified with 30 days' notice. Other than the TMC Network (including related software, firmware and equipment), trademarked items and signage, franchisees may purchase any supplies, fixtures, equipment and signs from any source.