Is Circle K guaranteed to provide access to specific suppliers and service providers?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Periodically, we may negotiate purchase arrangements with certain suppliers and service providers for our benefit and/or the benefit of convenience store franchisees. However, access to such suppliers and service providers is not guaranteed, and it is possible that such suppliers and service providers will be unable or unwilling to deliver products to your store. Periodically, we may also receive consideration in the form of discounts, rebates, or marketing allowances on purchases that you make from these suppliers and service providers for services rendered, products purchased or rights licensed. We may keep such consideration we receive from these suppliers or service providers, or we may fund costs associated with advertising and promotions, or we may distribute such allowances to you in such amounts and allocation methods as we deem appropriate. We may designate a primary source or sources of supply for merchandise, goods, and services, and depending on geography that may be us or any of our affiliates. As of the date of this Disclosure Document, the primary suppliers have agreed to make the merchandise and products they carry, and the services they provide to Circle K Stores, available to TMC's franchisees. Our approved primary suppliers typically deliver approximately 50% of the merchandise recommended for sale at Circle K Stores, and you must purchase this merchandise from the primary supplier that serves the region in which your Store is located. The merchandise purchased from the primary suppliers includes grocery, candy, cigarettes, tobacco, proprietary items, food service items and supplies. The balance of the merchandise such as beverages, periodicals, baked goods, snack items and dairy products is received by direct delivery from the product manufacturer or distributor. Use of our designated primary source and other recommended vendors may facilitate the payment of advertising and promotional allowances. From time to time, we have one or more preferred vendors for fountain drinks and your participation will be required in order for you to receive rebates and fountain equipment reimbursements available from fountain vendors and to provide for consistent product availability at all Circle K Stores.
When you purchase your merchandise and goods or receive services from our approved primary supplier, you will contract directly with our approved primary supplier and will be solely responsible for payment to our approved primary supplier for your purchases. TMC will not be a party to any agreement between you and our approved primary supplier and will not guarantee any payments to our approved primary supplier on your behalf. You will pay the then-current price in effect for all purchases you make from us, our affiliate or any third-party vendor we designate.
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, access to specific suppliers and service providers is not guaranteed. While Circle K may negotiate purchase arrangements with certain suppliers and service providers for the benefit of franchisees, there is no assurance that these suppliers will be able or willing to deliver products to a franchisee's store.
Circle K designates primary sources of supply for merchandise, goods, and services, which may include Circle K or its affiliates. As of the date of the 2025 Disclosure Document, the primary suppliers have agreed to make their merchandise, products, and services available to Circle K franchisees. Franchisees are typically required to purchase approximately 50% of their merchandise from these primary suppliers, including items like groceries, candy, cigarettes, tobacco, proprietary items, food service items, and supplies. The remaining merchandise, such as beverages, periodicals, baked goods, snack items, and dairy products, are usually received via direct delivery from the product manufacturer or distributor.
Circle K also has preferred vendors for fountain drinks, and franchisee participation may be required to receive rebates and fountain equipment reimbursements. Franchisees contract directly with approved primary suppliers and are responsible for payments to those suppliers. Circle K is not a party to these agreements and does not guarantee payments on behalf of the franchisee. Franchisees will pay the current price in effect for all purchases from Circle K, its affiliates, or any designated third-party vendor.