factual

What qualifications must the on-premises manager have to supervise the Circle K business if the franchisee does not personally manage it?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

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ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS

We do not require that you personally manage the Store, Motor Fuel Business or Branded Business, but you must be actively involved in the day-to-day operations of the Store, Motor Fuel Business and/or Branded Business and spend adequate management time required to maintain the standards of the Convenience Store Franchise Agreement, Motor Fuel Agreement and/or Branding Agreement. If you do not personally manage the Store or Motor Fuel Business, the business must be directly supervised "onpremises" by a manager who has successfully completed our training program and this person must be designated as your "Key Person" in the Convenience Store Franchise Agreement and Motor Fuel Agreement. You or your operations manager and your store manager must successfully complete the required training program in order to be authorized and permitted to operate and manage the Circle K Store and Motor Fuel Business. The on-premises manager need not have an ownership interest in the franchise.

You, your manager, and other employees must agree to maintain confidentiality of the proprietary information described in Item 14.

The Store, Motor Fuel Business and/or Branded Business is to be open for business in normal operations (doors open and fully illuminated) 24 hours a day, 7 days a week (including all holidays), unless otherwise agreed by us in writing, or unless prohibited by law. If you operate the Store and/or Motor Fuel Business and/or Branded Business for less than 24 hours any day during a month in a locality that is not prohibited by local law or ordinances to operate 24 hours a day, or if you operate the Store, Motor Fuel Business and/or Branded Business for 24 hours a day, 7 days a week but utilize a pass-through window or bullet-resistant glass surrounding your sales counter for any such time, your monthly Royalty Fee may be increased by up to 1%.

No employee of yours will be deemed to be an employee of ours for any purpose whatsoever, and nothing in any aspect of the Business System, the Motor Fuel System, the Branded System or the Marks in any way shifts any employee or employment related responsibility from you to us. You alone are responsible for hiring, firing, training, setting hours for and supervising all employees.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 77–78)

What This Means (2025 FDD)

According to Circle K's 2025 Franchise Disclosure Document, if a franchisee does not personally manage the Store or Motor Fuel Business, the business must be directly supervised "on-premises" by a manager. This manager must have successfully completed Circle K's training program. Furthermore, this person must be designated as the franchisee's "Key Person" in the Convenience Store Franchise Agreement and Motor Fuel Agreement. The on-premises manager is not required to have an ownership interest in the franchise.

In addition to completing the training program, the franchisee or their operations manager and store manager must demonstrate competence and a thorough understanding of each individual training segment before progressing to the next one. The classroom component of the Training Program consists of two weeks of training, as determined by Circle K, at their training facilities or other specified locations. This training covers the basic operating procedures of the Business System as described in the Business Systems Manuals and may include technology training provided by a third-party technology provider.

Moreover, if a franchisee hires a new manager or an additional store manager, they are responsible for ensuring that the new manager is adequately trained to manage the Circle K Store. This includes a complete review of the Business Systems Manuals and may include, at the franchisee's cost, successfully completing Circle K's training program. Regardless of the training method, the new store manager is required to successfully complete training and be certified by Circle K within the first 90 days of employment. This ensures that all managers are up to date with Circle K's standards and procedures.

Circle K also specifies that no person who has been convicted of a felony, has otherwise committed any act involving fraud, or has engaged in any acts that could adversely affect or be detrimental to the goodwill of the Marks and the Business System will be permitted to be employed as a Store Manager. This requirement aims to protect the brand's reputation and maintain the integrity of the business system.

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.