Who is responsible for all deductibles under the required policies of insurance for a Circle K franchise?

According to Circle K's 2025 Franchise Disclosure Document, the franchisee is responsible for all deductibles associated with the required insurance policies. This means that in the event of a claim, the franchisee must pay the deductible amount before the insurance coverage applies. This financial responsibility is a standard practice in franchising, as it ensures the franchisee has a vested interest in maintaining safe and compliant operations.

Circle K may permit self-insurance by the franchisee, but this requires prior written approval from Circle K. The franchisor has the exclusive right to either accept or deny a franchisee's request to self-insure. Self-insurance, if approved, could potentially allow a franchisee more control over their risk management but also places a greater financial burden on them to cover potential losses.

The insurance requirements outlined in the Franchise Agreement do not limit or restrict the franchisee's defense and indemnity obligations to Circle K. Similarly, the franchisee's obligation to obtain and maintain the specified insurance policies is not limited by any insurance that Circle K may maintain. This clarifies that the franchisee's insurance responsibilities are independent of any coverage held by the franchisor, ensuring that Circle K is protected regardless of the franchisee's insurance status.