What are the remodeling obligations for a Circle K franchisee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
All Remodeling must be done in accordance with the standards and specifications prescribed by Franchisor and any applicable laws, ordinances, and regulations.
Franchisee will commence Remodeling within three (3) months from the date Franchisee receives written notice from Franchisor specifying the required Remodeling, and will diligently complete such Remodeling within a reasonable time thereafter.
Franchisee will not be required to conduct any extensive Remodeling more than once every five (5) years during the Term (each such five year period, the "Remodel Period"); provided, however, that (i) if Franchisor determines in good faith that an item or items of furniture, fixtures, or equipment (such as countertops, displays, and fascia) have become so worn in the ordinary course of business prior to the expiration of the applicable Remodel Period and repairs cannot be reasonably made so as to conform the Franchised Location with Franchisor's then-current image standards, such item(s) shall be replaced by Franchisee upon Franchisor's request prior to the expiration of the Remodel Period; or (ii) at such time as Franchisor revises the Circle K Store general floor plan layout, Franchisee agrees to reconfigure the Store's floor plan layout to bring the floor plan into conformance with Franchisor's then-current specifications within three (3) months.
- 7.4 Maintenance and Repair.
As between Franchisee and Franchisor, Store maintenance and repair will be the sole responsibility of Franchisee.
Franchisee will at all times maintain the interior and exterior of the Store and the Franchised Location and all fixtures, furnishings, signs, and equipment located at the Store and surrounding area used in connection with such business in the highest degree of cleanliness, orderliness, safety, and sanitation and in good repair as set forth in the mandatory provisions of the Business Systems Manuals. Franchisee will make such additions, alterations, repairs, and replacements as necessary to conform to Franchisor's requirements. All replacements of furniture, fixtures, and equipment must conform to the quality standards for Circle K Stores, any applicable laws, ordinances, and regulations, and must be approved by Franchisor in writing.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are obligated to remodel their stores according to Circle K's standards, specifications, and all applicable laws. Remodeling must start within three months of receiving written notice from Circle K, and it must be completed diligently within a reasonable time.
Generally, franchisees are not required to undertake extensive remodeling more than once every five years, which is defined as the "Remodel Period." However, there are exceptions to this rule. If Circle K determines that items like furniture, fixtures, or equipment have become too worn and cannot be repaired to meet Circle K's current image standards, the franchisee must replace those items before the end of the five-year Remodel Period upon Circle K's request. Additionally, if Circle K revises the general floor plan layout, franchisees must reconfigure their store's floor plan to match the new specifications within three months.
The franchisee is solely responsible for store maintenance and repair, ensuring the interior and exterior of the store, along with all fixtures, furnishings, signs, and equipment, are maintained to the highest standards of cleanliness, orderliness, safety, sanitation, and good repair, as detailed in the Business Systems Manuals. Franchisees must make necessary additions, alterations, repairs, and replacements to meet Circle K's requirements, with all replacements conforming to Circle K's quality standards and requiring written approval from Circle K.