factual

Does Circle K make representations about a franchisee's future financial performance?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Justin Shelton at 1130 West Warner Road, Tempe, Arizona

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–86)

What This Means (2025 FDD)

According to Circle K's 2025 Franchise Disclosure Document, Circle K does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. This means that Circle K does not provide any guarantees or projections regarding potential sales, revenues, expenses, earnings, income, or profit levels for a Circle K franchise. Circle K also does not authorize its employees or representatives to make any such representations, either orally or in writing.

However, if a prospective franchisee is purchasing an existing Circle K outlet, Circle K may provide the actual records of that specific outlet. This allows the potential franchisee to review the historical performance of the store they are considering buying. It is important for prospective franchisees to understand that any financial performance information or projections they receive from sources other than the official records of an existing outlet should be reported to Circle K's management.

This policy is fairly common in franchising, as franchisors often avoid making income claims to reduce legal risks and ensure that franchisees' expectations are not inflated. Prospective franchisees should be cautious about any financial projections or promises made by individuals not authorized by Circle K and should rely on their own independent research and due diligence when evaluating the potential profitability of a Circle K franchise. Contacting Justin Shelton at 1130 West Warner Road, Tempe, Arizona is the recommended way to report unauthorized financial performance information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.