Who is responsible for the payment of expenses related to the Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ny Circle K Store, except with the prior written consent of Franchisor.
ARTICLE 11 ELECTRONIC POINT OF SALE SYSTEM; REPORTS, INSPECTIONS AND FINANCIAL STATEMENTS
11.1 EPOS System, Computer Systems and Internet Access. Franchisee shall purchase, install and maintain, at Franchisee's expense, an electronic point-of-sale cash register system, designated by Franchisor that meets standards and specifications established by Franchisor, as modified by Franchisor from time to time in response to business, operations and marketing conditions (the "EPOS System"). In addition to the EPOS System, Franchisee must purchase,
install and maintain, at its expense, a back-office computer system, including without limitation both hardware and software, or other existing or future communication or data storage systems, designated by Franchisor which meet standards and specifications established by Franchisor, as modified by Franchisor from time to time in response to business, operations and marketing conditions (collectively "Computer Systems"). Franchisee must purchase the EPOS System and any required Computer Systems from a source or sources designated by Franchisor. Franchisor has the right to designate a single source from whom Franchisee must purchase the EPOS System or any required Computer Systems, any components thereof or associated service. Franchisee agrees that Franchisor will have full, including electronic, access to Franchisee's EPOS System and any required Computer Systems and the Store-related data and information these systems collect and store at all times, in order for Franchisor to have the ability to monitor Franchisee's daily sales and business activity. Franchisee may not utilize any other payment device or system (in addition to the EPOS System and the Computer Systems) in the operation of the Store without Franchisor's prior written approval.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the franchisee is generally responsible for the payment of expenses related to the franchise. Specifically, the franchisee is responsible for purchasing, installing, and maintaining the electronic point-of-sale (EPOS) system and back-office computer systems at their own expense. These systems must meet Circle K's standards and specifications, and the franchisee is obligated to upgrade or replace the equipment as required. If Circle K configures the equipment for the franchisee, the franchisee must reimburse Circle K for the reasonable costs and expenses of such configuration, including travel and lodging.
Furthermore, the franchisee is responsible for participating in a Circle K extranet website or other online communication systems at their own expense, if required by Circle K. The franchisee must also ensure compliance with all applicable laws related to the EPOS system or other technology used in the store's operation, including data protection, privacy, security laws, and payment card industry (PCI) and Europay, MasterCard and Visa (EMV) compliance. The franchisee is not excused from their obligations if the EPOS system or computer systems fail or malfunction.
In addition to technology-related expenses, the franchisee is responsible for requiring employees to wear standard attire or uniforms approved by Circle K and complying with Circle K's uniform requirements. The franchisee is also responsible for performing all recordkeeping duties according to the Business Systems Manuals. These stipulations highlight the franchisee's broad responsibility for covering various operational and compliance-related costs associated with running a Circle K franchise.