What records is Circle K allowed to review and audit at the Circle K station?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee grants TMC the right to enter the Premises unimpeded to review and audit all records including, but not limited to, all records of deliveries, sales and inventory reconciliation, to take samples of the Products sold at the Premises, and to inspect equipment.
- (d) Books and Records Licensee will throughout the Term of this Agreement and as applicable thereafter, maintain complete and accurate records of the volume of the Products sold at the Premises.
Licensee shall provide statements of sales volume to TMC on a quarterly basis, which statements shall be certified by Licensee as true, complete and accurate.
TMC will have the right to cause an audit to be made of Licensee's business in order to verify the volume of Products sold.
Licensee shall make available to TMC and its designated employees, agents, contractors and authorized representatives, books and records reasonably necessary to complete a full, complete and accurate audit of sales volumes.
Licensee also will allow TMC and its designated employees, agents, contractors and authorized representatives to have access to the Premises to complete such audit.
If the results of such audit show that any of Licensee's prior statements were understated by 2% or more, Licensee agrees to pay TMC the reasonable cost of such audit.
In any case, where an audit shows an understatement of sales volume, Licensee shall pay any deficiency in the Licensing Fee within 5 days following Licensee's receipt of notice of such deficiency.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC (likely referring to Circle K's parent company or a designated entity) has the right to review and audit all records at the franchisee's Circle K station. This includes records of deliveries, sales, and inventory reconciliation. TMC also has the right to take samples of the products sold and inspect the equipment on the premises.
Circle K franchisees are obligated to maintain complete and accurate records of the volume of products sold and provide quarterly sales volume statements to TMC, certified as true, complete, and accurate. TMC can audit the franchisee's business to verify the volume of products sold, and franchisees must make available all books and records reasonably necessary for a full and accurate audit of sales volumes. Franchisees must also allow TMC and its representatives access to the premises to complete such audits.
If an audit reveals that a franchisee's prior sales statements were understated by 2% or more, the franchisee is responsible for paying the reasonable cost of the audit. Additionally, any deficiency in the licensing fee resulting from an understatement of sales volume must be paid within 5 days of receiving notice of the deficiency. This ensures Circle K can verify sales and collect accurate royalty payments.