What are the Circle K franchisee's obligations regarding maintenance and repair of the franchised location?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
vises the Circle K Store general floor plan layout, Franchisee agrees to reconfigure the Store's floor plan layout to bring the floor plan into conformance with Franchisor's then-current specifications within three (3) months.
- 7.4 Maintenance and Repair. As between Franchisee and Franchisor, Store maintenance and repair will be the sole responsibility of Franchisee. Franchisee will at all times maintain the interior and exterior of the Store and the Franchised Location and all fixtures, furnishings, signs, and equipment located at the Store and surrounding area used in connection with such business in the highest degree of cleanliness, orderliness, safety, and sanitation and in
good repair as set forth in the mandatory provisions of the Business Systems Manuals. Franchisee will make such additions, alterations, repairs, and replacements as necessary to conform to Franchisor's requirements. All replacements of furniture, fixtures, and equipment must conform to the quality standards for Circle K Stores, any applicable laws, ordinances, and regulations, and must be approved by Franchisor in writing.
- 7.5 Signs. Franchisee will display at the Franchised Location signs, advertising, slogans, and symbols as Franchisor may prescribe from time to time, subject to any Lease and local zoning restrictions. Franchisee will pay for permitting and exterior signage at the Franchised Location and will be responsible for the installation and maintenance of all signs. Any signage may not be used except as permitted hereunder and may not be altered or removed by Franchisee except with Franchisor's prior written consent or upon termination of this Agreement.
- 7.6 Equipment/Construction and Other Funding. Franchisor may offer to Franchisee funding for acquisition of certain Store equipment and/or construction of the Store ("Equipment/Construction Funding") if Franchisee qualifies for same. If Franchisee accepts the Equipment/Construction Funding, Franchisee must sign the Equipment/Construction Funding Agreement attached hereto as Exhibit 4 (the "Equipment/Construction Funding Agreement") and the Personal Guaranty (attached hereto as Exhibit 5). Franchisor will use the Equipment/Construction Funding funds, on Franchisee's behalf, to off-set the acquisition cost of Store equipment and the construction cost of the Store, and pay related invoices on Franchisee's behalf.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the franchisee is solely responsible for store maintenance and repair. This includes maintaining both the interior and exterior of the store and the franchised location. The franchisee must also maintain all fixtures, furnishings, signs, and equipment in a clean, orderly, safe, and sanitary condition, and in good repair, as detailed in the Business Systems Manuals.
The Circle K franchisee is obligated to make necessary additions, alterations, repairs, and replacements to meet Circle K's requirements. All replacements of furniture, fixtures, and equipment must adhere to Circle K's quality standards, as well as any applicable laws, ordinances, and regulations, and must be approved by Circle K in writing.
Circle K also requires franchisees to conduct remodeling of the store within three months of receiving written notice from Circle K, and to complete the remodeling within a reasonable time. Extensive remodeling is required no more than once every five years, unless Circle K determines that certain items need replacement sooner due to wear and tear, or if Circle K revises the store's general floor plan layout. In these cases, the franchisee must make the necessary changes to conform to Circle K's current standards.