Is insurance coverage purchased by the Seller considered part of the Circle K purchaser's coverage requirements?

According to Circle K's 2025 Franchise Disclosure Document, any insurance coverage purchased by the Seller does not contribute to the Purchaser's (franchisee's) insurance coverage requirements. The franchisee is responsible for obtaining their own insurance coverage to meet the requirements outlined in the franchise agreement.

The franchisee is required to secure specific insurance policies, including Comprehensive General Liability Insurance with minimum limits of $1,000,000 per occurrence and an aggregate coverage of no less than $2,000,000. If the franchisee operates a service bay or car wash, they must also obtain Legal Liability Insurance with a minimum limit of $500,000 per occurrence and coverage in the general aggregate amount of no less than $1,000,000. Additionally, Automobile Liability Insurance with a combined single limit of not less than $1,000,000 per occurrence is required, along with Workers Compensation Insurance as required by law and Employer's Liability Insurance with a coverage limit of the greater of such amount required by law or $500,000 per occurrence. Furthermore, environmental pollution/impairment insurance coverage in an amount of at least $1,000,000 is mandated.

The insurance policies obtained by the franchisee must name Circle K and its affiliates as additional insured and be primary relative to any other existing insurance. The policies must also include provisions that waive the insurer's rights of subrogation against Circle K. These insurance requirements are minimums and might not fully cover all of the franchisee's insurance needs, and Circle K may require additional coverage. If the franchisee fails to secure the required insurance, Circle K has the option to obtain coverage on the franchisee's behalf, with the franchisee responsible for reimbursing Circle K for all associated costs.