factual

Is a Circle K franchisee required to purchase motor fuel from Circle K or its affiliates?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

nue these initiates at any time upon written notice to you. See also Item 11.

Motor Fuel Business

We or our affiliates are currently the only approved supplier of motor fuel. We reserve the right to require you to purchase additional products or services from us or our affiliates in the future. You must purchase the quantities of motor fuel from us or our affiliate as outlined in the Commodity Schedule attached to your Motor Fuel Agreement. The Commodity Schedule will identify both the quantity of motor fuel you are required to purchase and the pricing terms. If you purchase less than a full truckload of motor fuel when delivered, we may require you to pay us a Motor Fuel Pass-Through Fee.

You also must 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 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

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, if you operate a Motor Fuel Business, you or your affiliates are currently the only approved supplier of motor fuel. Franchisees must purchase the quantities of motor fuel from Circle K or its affiliate as outlined in the Commodity Schedule attached to the Motor Fuel Agreement. The Commodity Schedule will identify both the quantity of motor fuel you are required to purchase and the pricing terms.

If a franchisee purchases less than a full truckload of motor fuel when delivered, Circle K may require the franchisee to pay a Motor Fuel Pass-Through Fee. Franchisees also must utilize the TMC Network, Circle K's electronic point of sale network, and, in connection therewith, purchase designated back-office system, license designated software and firmware and purchase other computer equipment that Circle K designates.

In connection with using the TMC Network, franchisees must sign the Credit Network Agreement which sets forth the terms and conditions under which they will utilize the TMC Network and pay a monthly Network Fee. As of the date of the 2025 Disclosure Document, the monthly Network Fee is $50 per month, but Circle K reserves the right to modify the Network Fee upon 30 days' advance written notice.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.