What are the Circle K franchisee's obligations regarding compliance with laws and payment of taxes?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.10 Compliance with Laws.
Franchisee will, at all times and at its expense, conduct and operate the Store (including any Additional Business) in strict compliance with all applicable federal, state, and local laws, ordinances, and regulations pertaining to the purchase, construction, remodeling and operation of the Store, including, without limitation, the Americans With Disabilities Act.
Without limiting the foregoing, Franchisee acknowledges and agrees that, as between Franchisor and Franchisee, Franchisee is solely responsible for ensuring that all thirdparty products and services used in connection with the construction and/or operation of the Store, whether or not approved or recommended by Franchisor, comply with all applicable laws and regulations.
Additionally, Franchisee will, at its expense, be solely responsible for determining the licenses and permits required by law for the operation of the Store, for obtaining and qualifying for all construction or operation licenses and permits required by law, and for complying with all applicable federal, state, and local laws.
- 8.11 Payment of Taxes.
Franchisee will be solely responsible for and will timely pay all federal, state, city, and local taxes and assessments including, but not limited to, individual and corporate income taxes, sales and use taxes, excise taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, unemployment taxes, personal property taxes (including related to signage containing the Marks), real estate taxes, gasoline or motor fuel taxes, and all others taxes payable in connection with the operation of the Store and sale of merchandise and services.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are responsible for operating their stores in strict adherence to all applicable federal, state, and local laws, ordinances, and regulations. This includes laws pertaining to the purchase, construction, remodeling, and operation of the store, as well as the Americans With Disabilities Act. Franchisees must ensure that all third-party products and services used in connection with the store's construction and operation comply with all applicable laws and regulations, regardless of whether they are approved or recommended by Circle K.
Circle K franchisees are also responsible for determining the necessary licenses and permits required to operate the store legally. This includes obtaining and qualifying for all construction or operation licenses and permits mandated by law. Franchisees must also stay up-to-date with any changes in these laws and regulations and ensure ongoing compliance.
Furthermore, Circle K franchisees are solely responsible for the timely payment of all federal, state, city, and local taxes and assessments. These taxes include, but are not limited to, individual and corporate income taxes, sales and use taxes, excise taxes, franchise taxes, gross receipts taxes, employee withholding taxes, FICA taxes, unemployment taxes, personal property taxes (including those related to signage), real estate taxes, and gasoline or motor fuel taxes. This obligation extends to all taxes payable in connection with the operation of the store and the sale of merchandise and services. Franchisees must manage their finances diligently to ensure all tax obligations are met on time to avoid penalties or legal issues.