For how long must the environmental pollution/impairment coverage extend beyond the expiration, termination, or nonrenewal of the Circle K agreement?

According to Circle K's 2025 Franchise Disclosure Document, the environmental pollution/impairment coverage must extend for at least two years beyond the expiration, termination, or nonrenewal of the agreement. This requirement ensures that Circle K franchisees maintain coverage for potential environmental liabilities even after their franchise agreement concludes.

This extended coverage is particularly important considering the nature of Circle K's business, which involves the storage, handling, and sale of motor fuel products. The policy must cover all environmental liabilities arising from these activities at the premises. The franchisee can meet these requirements by participating in the federal Environmental Protection Agency (EPA) approved state financial assurance fund or other EPA approved method to demonstrate financial responsibility or by satisfying any of the other financial assurance test requirements of the EPA's Financial Responsibility Regulations (40 CFR Part 280).

For a prospective Circle K franchisee, this means budgeting for environmental pollution/impairment insurance with a duration that extends beyond the franchise term. The franchisee must secure environmental pollution/impairment insurance coverage in an amount of at least $1,000,000 on a continuous and uninterrupted basis. This coverage protects the franchisee from potential environmental liabilities and ensures compliance with Circle K's requirements and environmental regulations.