What are the Circle K franchisee's obligations regarding initial training?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ate, and any agreement executed upon renewal. Persons or entities that subsequently become Principal Equity Holders will execute the Guaranty within thirty (30) days after becoming a Principal Equity Holder.
- 8.14 Initial Training. Prior to commencing business operations at the Store, Franchisee or Franchisee's operations manager and Franchisee's Store Manager must successfully complete the initial training program provided by Franchisor (the "Training Program"). Franchisee or Franchisee's operations manager and the Store Manager must demonstrate competence in, and a thorough understanding of, each individual training segment before progressing to the next training segment. The classroom component of the Training Program will consist of two (2) weeks of training as determined by Franchisor, and will be conducted at Franchisor's training facilities, currently located in Tempe, Arizona, and at such other locations as specified by Franchisor, and will cover the basic operating procedures of the Business System as described in the mandatory provisions of the Business Systems Manuals and it may include technology training provided by a third-party technology provider. Additionally, Franchisee may be required to complete in-store training of up to two weeks at various Circle K Stores or similar convenience stores, based on Franchisor's evaluation of Franchisee's experience. Separately, Franchisee may be required to complete a regional one-week in-store training conducted by Franchisor ("Regional In-Store Training"). Franchisee must complete the Training Program no earlier than one hundred eighty (180) days prior to the opening of the Store. If the Training Program is completed more than one hundred eighty (180) days prior to the opening of the Store, Franchisee will need to be recertified by Franchisor before Franchisor will approve the opening of the Store.
If Franchisee is an existing convenience store franchisee of Franchisor, Franchisee may be required to attend a modified training program (the "Modified Training Program"), which will
be shorter in duration than the Training Program. If required, Franchisee must complete the Modified Training Program no earlier than one hundred eighty (180) days prior to the opening of the Store. If the Modified Training Program is completed more than one hundred eighty (180) days prior to the opening of the Store, Franchisee will need to be recertified by Franchisor before Franchisor will approve the opening of the Store. Regardless of whether Franchisee attends the Training Program or Modified Training Program, Franchisee must complete all pre-classroom assignments and pass the same final exam required of all Circle K franchisees.
Any training provided by Franchisor to any of Franchisee's employees will be limited to training or guiding the employees regarding the provision of approved products and services to customers in a manner that reflects the customer service standards of the Circle K System. Franchisee is, and will remain, the sole employer of its employees at all times, including during all training programs, and Franchisee is solely responsible for all employment decisions and actions related to its employees. Franchisee is solely responsible for ensuring that its employees receive adequate training.
- 8.15 Expenses. Franchisor will provide the Training Program to Franchisee or Franchisee's operations manager and one (1) Store Manager at no cost to Franchisee, except that Franchisee will be required to pay Franchisor's then-current fee for any third-party technology training and for the Regional In-Store Training. However, during the Training Program, Franchisee is responsible for all salaries, fringe benefits, payroll taxes, travel costs, lodging, food, and other personal expenses incurred by those attending the Training Program on Franchisee's behalf.
- 8.16 Opening Assistance. After Franchisee and Franchisee's Store Manager have successfully completed the Training Program, Franchisor will furnish a representative to the Store who will provide opening assistance and training to Franchisee and its employees as deemed necessary and appropriate by Franchisor, including, but not limited to, assistance with training employees, implementing the Business System, and evaluating initial business operations. Franchisee may not open the Store until Franchisor has given Franchisee written approval to open the Store.
- 8.17 Changes in Store Manager. If Franchisee hires a new or additional Store Manager, Franchisee is responsible to ensure that such new or additional Store Manager is adequately trained, which includes a complete review of the Business Systems Manuals and which may include successfully completing Franchisor's Training Program, at Franchisee's cost. Franchisee is also responsible for all travel, lodging, food, and other personal expenses incurred by all new or additional Store Managers attending the Training Program. All Franchisee Store Managers, including new or additional Store Managers, are required to be certified under the then-current Circle K training requirements by Franchisor within the first 90 days of employment by Franchisee, regardless of the method that Franchisee selects to conduct training.
- 8.18 Additional Training. Franchisor has the right to hold refresher and/or additional training programs for Franchisee and/or its Store Manager at a location or locations selected by Franchisor. Attendance at such additional training shall be mandatory for Franchisee so long as there is no tuition charged by Franchisor for such programs. Franchisee will be responsible for travel, lodging, food, and other personal expenses of those who attend on Franchisee's behalf.
Notwithstanding the above, if Franchisee receives a written notice of default that relates, in whole or in part, to Franchisee's failure to meet any operational standards, Franchisor may require, as a condition of curing the default, that Franchisee and/or Franchisee's manager(s) re-attend and successfully complete the training program, at Franchisee's expense.
- 8.19 Employee Training.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees (or their operations manager) and the store manager must complete the initial training program before commencing business operations. This training program includes demonstrating competence and understanding in each segment before advancing. The classroom portion is two weeks long, held at Circle K's training facilities (currently in Tempe, Arizona, or other locations specified by Circle K), covering basic operating procedures from the Business Systems Manuals, and may include third-party technology training. Franchisees may also need to complete up to two weeks of in-store training at Circle K stores or similar convenience stores, based on Circle K's evaluation of their experience, and may be required to complete a separate one-week regional in-store training.
Franchisees must complete the Training Program no earlier than 180 days before the store opens. If completed earlier, recertification is required before Circle K approves the opening. Existing Circle K franchisees may attend a shorter modified training program, also to be completed no earlier than 180 days prior to opening, with recertification needed if completed sooner. Regardless of the training program type, franchisees must complete all pre-classroom assignments and pass the same final exam as all Circle K franchisees.
Circle K provides the Training Program to the franchisee (or their operations manager) and one store manager at no cost, but the franchisee must pay Circle K's fee for any third-party technology training and the Regional In-Store Training. Franchisees are responsible for all salaries, fringe benefits, payroll taxes, travel, lodging, food, and other personal expenses for those attending the Training Program on their behalf. If a franchisee receives a written notice of default related to operational standards, Circle K may require the franchisee and/or their managers to re-attend and successfully complete the training program at the franchisee's expense. Franchisees are responsible for adequately training new or additional store managers, potentially including completing Circle K's Training Program at the franchisee's cost, and ensuring all store managers are certified under Circle K's training requirements within the first 90 days of employment.
Circle K also has the right to hold refresher or additional training programs for franchisees and/or their store managers. Attendance is mandatory if there is no tuition charged by Circle K, but the franchisee is responsible for travel, lodging, food, and other personal expenses. Franchisees are solely responsible for training their employees and ensuring they receive adequate training. After the franchisee and store manager complete the Training Program, Circle K will provide a representative to the store to offer opening assistance and training to the franchisee and its employees, as needed, including help with training employees, implementing the Business System, and evaluating initial business operations.