What happens if a Circle K franchisee chooses not to accept the Equipment/Construction Funding?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Provide you with site development standards, construction standards, and specifications, based on the as-built plans you provide to TMC of your existing store in a CAD format. If a CAD format is not available, TMC will hire a firm to complete the measurements and provide a plan for your Store in a CAD format, using funds from your Equipment/Construction Funds. If you choose not to accept the Equipment/Construction Funding, you will bear the costs associated with providing the CAD. Once the plan has been approved, TMC will provide you with a complete floor plan, work scope, interior sign and paint plan, and exterior sign and image plan for the project. All construction plans, material specifications, and floor designs must be approved by us before you begin construction (Convenience Store Franchise Agreement, Sections 7.1, 7.2, and 7.6).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 60–72)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if a franchisee chooses not to accept the Equipment/Construction Funding, they will be responsible for the costs associated with providing the store plan in a CAD format. Typically, Circle K would use funds from the Equipment/Construction Funds to hire a firm to complete the measurements and provide a plan for the store in CAD format.
This means that a franchisee who declines the Equipment/Construction Funding must independently cover the expenses of creating the CAD plan. After the plan is approved, Circle K will provide the franchisee with a complete floor plan, work scope, interior sign and paint plan, and exterior sign and image plan for the project.
All construction plans, material specifications, and floor designs must be approved by Circle K before construction can begin. This ensures that the store adheres to Circle K's standards and specifications, regardless of whether the franchisee accepts the Equipment/Construction Funding or not.