Who is responsible for the ongoing maintenance and repair of the Equipment and related hardware in a Circle K franchise?

According to Circle K's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the ongoing maintenance and repair of the Equipment and all related hardware. This Equipment is defined as the electronic point of sale equipment and back office system that the franchisee purchases or leases to install at the premises. This equipment is essential for electronic capture and transmission of transaction data, inventory management, and sales reporting, ensuring the store operates according to the Franchise Agreement.

This means that Circle K franchisees must budget for and manage all costs associated with keeping their point-of-sale systems and related hardware operational. This includes not only repairs but also the replacement of consumable items such as ink, ribbons, invoice tickets, pin pads, cleaning cards, and paper for terminals. Circle K is not responsible for any losses or profits resulting from equipment malfunction or failure.

Furthermore, the franchisee is responsible for paying all license fees and other charges required by manufacturers and third-party software licensors for the use, operation, and maintenance of the Equipment. They are also liable for any damages caused by their negligence or misuse of the equipment. Circle K makes no warranties regarding the equipment's merchantability or fitness for any purpose.

Circle K also requires that franchisees do not add any additional hardware not designated by TMC to the Equipment without prior written consent. This ensures compatibility with the Circle K Systems. Franchisees must also maintain an electronic point-of-sale cash register system and a back-office computer system that meet Circle K's standards and specifications, as modified from time to time.