What quality standards and specifications described in the Business Systems Manuals must a Circle K franchisee comply with for furnishings, fixtures, equipment, operating supplies, food and beverages, signs, marketing and promotional materials, and other products and services?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Circle K Store
You must comply with our quality standards and specifications described in the Business Systems Manuals for furnishings, fixtures, equipment (including computer hardware and software), operating supplies, food and beverages, signs, marketing and promotional materials, and other products and services offered at your Store, and for the construction, renovation, maintenance, and repair of your Store. We will provide you with a list of approved sources of merchandise, supplies, fixtures, equipment, signs, and uniforms necessary for the construction and operation of your Store. The cost of required furnishings, fixtures, signs, equipment and 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 Store and more than 50% of your purchases and leases in operating the Store.
You must purchase approved products and services that meet our current standards and specifications as established in the Business Systems Manuals or otherwise in writing – including all Circle K proprietary products. Carrying these proprietary products ensures a consistent brand presence and meets our consumers' expectations of the brand. TMC reserves the right to periodically update and alter these specifications and standards and to add to, or delete from, the list of products and services approved for sale or use in Circle K Stores. As further described below, you may be required to purchase many products from a primary source of supply as we designate under our negotiated arrangements with suppliers and service-providers. Otherwise, you may purchase approved products or services from sources who demonstrate to our continuing reasonable satisfaction the ability to meet our standards and specifications, who possess adequate quality controls, and the capacity to meet your needs promptly and reliably, and who have been approved by us in advance in writing. If you wish to have a supplier or service provider designated as an "approved" supplier, you may submit information about the supplier and its relevant products or services to us for review. We must be permitted to inspect the supplier's facilities and will require samples to be tested and evaluated either by an independent testing facility or other facility designated by us. Our review typically will be completed within 60 days. Suppliers approved in this manner will not be required to make payments to us in order to deal with any of our franchisees.
You will be required to engage the services of one of our designated project management firms to assist you in the development and construction of your Store, and you will be required to work with such firm and TMC or its affiliate to develop a marketing floor plan that will show key equipment, gondolas, backbars, and cabinetry. You will also be required to work with TMC or its designee to develop an Auto CAD format plan of the Store, which will include the interior walls, structural layout and utilities. You must pay for all costs associated with the marketing floor plan and the Auto CAD format plan, unless you accept Equipment/Construction Funding, in which case the cost of the Auto CAD format plan and certain of the costs (as determined by us) of the marketing floor plan will be paid for by the Equipment/Construction Funding.
As of the date of this Disclosure Document, some TMC Franchise Corporation officers own an interest, including stock ownership, in the following companies that supply products or services to Circle K convenience store franchisees: ConocoPhillips, Phillips 66, Coca-Cola and Philip Morris. Other than the companies just identified, no officers own an interest in our convenience store suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must adhere to the quality standards and specifications outlined in the Business Systems Manuals. These standards apply to furnishings, fixtures, equipment (including computer hardware and software), operating supplies, food and beverages, signs, marketing and promotional materials, and other products and services offered at the store. Additionally, these standards extend to the construction, renovation, maintenance, and repair of the store itself.
Circle K will provide franchisees with a list of approved sources for merchandise, supplies, fixtures, equipment, signs, and uniforms necessary for the store's construction and operation. The cost of these required items purchased according to Circle K's specifications could reasonably represent more than 50% of the franchisee's total purchases and leases related to establishing and operating the store. Franchisees are required to purchase approved products and services that meet Circle K's current standards and specifications, including all Circle K proprietary products, to ensure a consistent brand presence and meet consumer expectations.
Circle K retains the right to periodically update and alter these specifications and standards, as well as modify the list of approved products and services. Franchisees may be required to purchase many products from a primary source of supply designated by Circle K under negotiated arrangements with suppliers and service providers. Otherwise, franchisees can purchase approved products or services from sources who demonstrate the ability to meet Circle K's standards and specifications, possess adequate quality controls, and have the capacity to meet the franchisee's needs promptly and reliably, and who have been approved by Circle K in advance in writing. If a franchisee wishes to have a supplier approved, they can submit information about the supplier for review, which typically takes 60 days. Approved suppliers are not required to make payments to Circle K to deal with any of its franchisees.
The standards exist to protect Circle K's interests in the Business System, the Motor Fuel System, the Branded System, and the Marks, and not to control matters reserved to the franchisee. The Business Systems Manuals will include guidelines or recommendations in addition to required standards, and Circle K reserves the right to determine if a franchisee is meeting a required standard and whether an alternative is suitable to any recommendations or guidelines.