Does Circle K provide any financial performance representations in Item 19?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as stated in Item 19, did any employee or other person speaking on behalf of TMC Franchise | Corporation make any oral, written or visual claim, statement, promise or representation to you that | stated, suggested, predicted or projected sales, revenues, expenses, earnings, income or profit levels | at any | CIRCLE K Store, Motor Fuel Business and/or Branded Business, or the likelihood of success at | your business? Check one:
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–86)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, Item 23 addresses whether any financial performance representations were made outside of Item 19. It indicates that unless stated in Item 19, no employee or representative of TMC Franchise Corporation (Circle K's parent company) is authorized to make any oral, written, or visual claims, statements, promises, or representations regarding potential sales, revenues, expenses, earnings, income, or profit levels for any Circle K store, motor fuel business, or branded business.
This means that prospective franchisees should not rely on any financial projections or promises made by Circle K representatives unless those representations are explicitly stated in Item 19 of the FDD. It is standard practice for franchisors to restrict financial performance representations to Item 19 to ensure consistency and accuracy in the information provided to potential franchisees. This protects both the franchisor and franchisee from misunderstandings or misinterpretations of potential financial outcomes.
Furthermore, the FDD emphasizes that Circle K makes no representations or warranties regarding any third-party studies of prospective locations, including any statements of potential volume, income, earnings, expenses, profits, or financial or business success. These third-party studies are not taken into account by TMC Franchise Corporation when evaluating potential site locations. This underscores the importance of conducting independent due diligence and not relying solely on third-party projections or assurances of profitability.
In summary, prospective Circle K franchisees should carefully review Item 19 of the FDD for any financial performance representations and understand that any other statements or promises made outside of Item 19 are not authorized by Circle K. They should also be aware that Circle K does not guarantee the success or profitability of any particular location, even if the site has been approved by the company.