Who is the loss payee for all insurance policies that Circle K debtors are required to maintain?

According to Circle K's 2025 Franchise Disclosure Document, TMC FRANCHISE CORPORATION is the loss payee for all insurance policies that Circle K debtors are required to maintain. This means that in the event of an insured loss, the insurance proceeds will be payable to TMC FRANCHISE CORPORATION.

This requirement ensures that Circle K has a direct claim on any insurance payouts related to the franchisee's business, protecting Circle K's financial interests in the event of property damage, liability claims, or other covered losses. The franchisee, referred to as the DEBTOR, must maintain insurance coverage that is satisfactory to TMC FRANCHISE CORPORATION in terms of amounts, terms, and forms.

This arrangement is typical in franchising, where the franchisor has a vested interest in protecting its brand and ensuring the financial stability of its franchisees. By being named as the loss payee, Circle K can ensure that insurance proceeds are used to repair damages or settle claims in a way that protects the brand and maintains the operational standards of the franchise system. Franchisees should carefully review the insurance requirements and ensure they understand the implications of TMC FRANCHISE CORPORATION being named as the loss payee.