What are the minimum Commercial General Liability Coverage limits required for a Circle K franchise?

s $50 per month. We reserve the right to modify the Network Fee upon 30 days' advance written notice.

The Convenience Store Franchise Agreement requires you to maintain certain types and minimum amounts of insurance coverage for your Store. You must maintain Commercial General Liability Coverage with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Liquor Liability with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate limit; Automobile Liability Coverage with minimum limits of $1,000,000 per occurrence; and, Commercial Property Insurance (an all risk full replacement policy). In addition, you must maintain Worker's Compensation Insurance with statutory limits; Employers Liability with a minimum of $500,000 per occurrence; Umbrella or Excess Insurance with a minimum of $1,000,000 per occurrence; and, any other insurance required by law. If you sell motor fuel, you must, at all times, comply with all Federal, State and local laws applicable to the ownership and operation of commercial underground storage tanks ("USTs"), including but not limited to requirements to maintain financial assurance for the USTs. The financial assurance obligation may be satisfied through participation in state administered UST funds, or where no such UST funds are applicable or available, then commercial UST insurance shall be maintained in accordance with applicable financial assurance requirements. If you elect to maintain financial assurance through another means (e.g., selfinsurance or standby trust), you must provide evidence of same to us. You will also be required to waive rights of subrogation for Worker's Compensation and Employers Liability. We do not represent that the prescribed levels of coverage will sufficiently insure you against all risks associate with the operation of a convenience store. The insurers must be rated A- VIII or better in A.M. Best's Insurance Guide, and the policy must name us, our parent and affiliated companies as additional insureds and provide that the same advance notice of cancellation or adverse modifications be given to us as is given to you.

You must participate in any loyalty programs and other marketing and promotional initiatives that we may from time to time establish. We may designate a single supplier for any of these programs or initiatives. You may be required to purchase equipment, supplies and/or other materials to participate in the programs. You must be in compliance with any rules and participation criteria applicable to these programs. We have the right to modify the participation criteria or discontinue these initiates at any time upon written notice to you. See also Item 11.

Motor Fuel Business

We or our affiliates are currently the only approved supplier of motor fuel. We reserve the right to require you to purchase additional products or services from us or our affiliates in the future. You must purchase the quantities of motor fuel from us or our affiliate as outlined in the Commodity Schedule attached to your Motor Fuel Agreement. The Commodity Schedule will identify both the quantity of motor fuel you are required to purchase and the pricing terms. If you purchase less than a full truckload of motor fuel when delivered, we may require you to pay us a Motor Fuel Pass-Through Fee.

You also must utilize the TMC Network, our electronic point of sale network, and, in connection therewith, purchase designated back-office system, license designated software and firmware and purchase other computer equipment that we designate. In connection therewith, you must sign the Credit Network Agreement which sets forth the terms and conditions under which you will utilize the TMC Network. You will be required to pay us a monthly Network Fee in exchange for the right to use the TMC Network. The monthly Network Fee you will be required to pay will be our then-current Network Fee, which as of the date of this Disclosure Document is $50 per month. We reserve the right to modify the Network Fee upon 30 days' advance written notice.

We will require you to work with a third-party management firm in connection with the construction and development of your forecourt. The third-party management firm we designate will depend on the geographic location of your Motor Fuel Business. A list of the third-party management firms we currently use is included in our Business Systems Manuals and may be revised or changed from time to time.

You must purchase all trademarked items and signage from one of our approved sources. We will provide you with a list of approved sources of trademarked items and signage.

Other than motor fuel, the TMC Network (including related software, firmware and equipment), trademarked items and signage, you may purchase any supplies, fixtures, equipment and signs for your Motor Fuel Business from any source. You will pay the then-current price in effect for all purchases you make from us, our affiliate or any third-party vendor we designate.

The cost of products, services or other items purchased according to our specifications could reasonably represent more than 50% of your total purchases and leases in connection with establishment of your Motor Fuel Business and more than 50% of your purchases and leases in operating the Motor Fuel Business.

Because we supply motor fuel to our Motor Fuel franchisees, our officers own an interest in a company that supplies products or services to Motor Fuel franchisees – TMC Franchise Corporation. Other than our officers' ownership in us, no officers own an interest in any of our other motor fuel business suppliers.

You will purchase all products and services from us at our then-current fee. We reserve the right to charge you more than our cost for these products and services in selling or supplying these products and services to you. During the year ended April 27, 2025, we derived revenue from the sale of motor fuel to our franchisees in the amount of $4,205,466 (5.9%) of our total revenue of $71,167,087. As of the date of this Disclosure Document, we do not receive any rebates or other consideration based upon the products or services you purchase or lease from a third party for your Motor Fuel Business, but we reserve the right to do so in the future.

There currently are no purchasing or distribution cooperatives for the Motor Fuel Business. We may negotiate purchase arrangement with suppliers (including price terms), for the benefit of the Motor Fuel System. We do not provide material benefits to you (for example, renewal or granting additional franchises) based on your purchase of particular products or services or use of particular suppliers.

The Motor Fuel Agreement requires you to maintain certain types and minimum amounts of insurance coverage for your Motor Fuel Business. You must maintain: (i) Comprehensive General Liability Insurance covering the premises, all operations at the premises, products completed operations liability,

products liability, contractual liability, fire, explosion and collapse liability, as well as coverage on all contractor's equipment (other than motor vehicles licensed for highway use) owned, hired, or used in connection with the Motor Fuel Business, bodily injury, and property damage, with minimum limits of at least $1,000,000 per occurrence, and an aggregate coverage of no less than $2,000,000;

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)