When purchasing merchandise and goods from Circle K's approved primary supplier, who is responsible for payment?

According to Circle K's 2025 Franchise Disclosure Document, when a franchisee purchases merchandise, goods, or services from Circle K's approved primary supplier, the franchisee is directly responsible for payment to that supplier. The franchisee contracts directly with the approved primary supplier for these purchases. Circle K itself will not be a party to any agreement between the franchisee and the supplier, and Circle K does not guarantee any payments to the supplier on behalf of the franchisee. The franchisee is obligated to pay the then-current price for all purchases made from Circle K, its affiliates, or any designated third-party vendor.

This arrangement means that Circle K franchisees have a direct financial relationship with the approved primary suppliers. Franchisees must manage their accounts and ensure timely payments to maintain a good standing with these suppliers. This direct responsibility is a standard practice in franchising, where franchisees operate as independent business owners.

It is important for prospective Circle K franchisees to understand that they cannot rely on Circle K to act as an intermediary or guarantor in their dealings with the primary suppliers. Franchisees should carefully review the payment terms and conditions with each approved primary supplier to avoid any potential disputes or disruptions in supply. This also highlights the importance of budgeting and financial planning to ensure sufficient funds are available to cover these purchases.