What are the Circle K franchisee's obligations regarding changes in plans and specifications for the store?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
imited to, environmental claims, suitability of site, design or plan thereof, and Franchisee will indemnify Franchisor for any such liability should any such claim arise.
- 7.2 Changes in Plans and Specifications; Inspections. Franchisor must pre-approve in writing any and all changes to the Store plans or specifications. Franchisor may make periodic inspections of the site and may conduct a final inspection of the Store and may require corrections and modifications as it deems necessary to bring the Store into compliance with the plans and specifications previously approved by Franchisor. If Franchisee fails to correct any unauthorized variance within thirty (30) days of receipt of notice of such default, Franchisor will be entitled to immediately terminate this Agreement. Franchisee will reimburse Franchisor for all expenses incurred in connection with any changes to plans or specifications and any inspections to verify corrections of any defaults.
- 7.3 Remodeling.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Circle K for any changes to the store's plans or specifications. Circle K has the right to conduct periodic inspections of the site, including a final inspection of the store, and can mandate corrections or modifications to ensure compliance with previously approved plans and specifications. Failure to correct any unauthorized deviations within 30 days of receiving notice can result in the termination of the Franchise Agreement.
Furthermore, the Circle K franchisee is responsible for reimbursing Circle K for all expenses incurred due to changes in plans or specifications, as well as any inspections required to verify corrections of defaults. This financial responsibility underscores the importance of adhering to the initial plans and specifications to avoid unexpected costs.
In addition to these obligations, Circle K franchisees are required to remodel, modernize, redecorate, and renovate the franchised location and store, including replacing and modernizing furniture, fixtures, supplies, and equipment to align with Circle K's current image. This includes ensuring that furniture, fixtures, and equipment are acquired from approved suppliers and installed according to Circle K's approved floor plans and specifications. These stipulations ensure uniformity and quality across all Circle K locations, maintaining brand consistency.
Overall, these requirements emphasize the importance of adhering to Circle K's standards and specifications, highlighting the need for franchisees to seek approval for any modifications and to maintain the store's appearance and functionality in accordance with Circle K's guidelines. This helps protect the brand's image and ensures a consistent customer experience across all locations.