What are the requirements for Circle K franchisee's regarding suppliers?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.5 Suppliers. Franchisee will purchase all merchandise, supplies, equipment, and materials required for the operation of the Store from suppliers approved by Franchisor who demonstrate, to the satisfaction of Franchisor, the ability to meet Franchisor's standards and specifications for such items; who possess adequate capacity and facilities to supply Franchisee's needs in the quantities, at the times, and with the reliability requisite to an efficient operation; and who have been pre-approved by Franchisor. Franchisor has the right to appoint a single approved primary source of supply for many merchandise items, and Franchisee may be required to purchase these items from this primary source under Franchisor's negotiated contract. Franchisee will not purchase any distressed or salvaged products for resale or use in the Store. Franchisor and/or its Affiliates may from time to time make available to Franchisee goods, products, and/or services for use in the Store on the sale of which Franchisor and/or its Affiliates may make a profit, and Franchisor and/or its Affiliates may from time to ti
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to purchase merchandise, supplies, equipment, and materials from Circle K-approved suppliers. These suppliers must meet Circle K's standards and specifications, have the capacity to reliably supply the franchisee's needs, and be pre-approved by Circle K.
Circle K has the right to designate a single, approved primary source for many merchandise items, and franchisees may be required to purchase these items from that source under Circle K's negotiated contract. Franchisees are prohibited from purchasing distressed or salvaged products for resale or use in the store.
Circle K and its affiliates may offer goods, products, and services to franchisees for use in the store, on which Circle K and its affiliates may make a profit. This arrangement allows Circle K to maintain quality control and consistency across all franchise locations, while also potentially generating additional revenue for the company and its affiliates.