Who is responsible for reimbursing Circle K for expenses related to changes in plans/specifications and inspections to verify corrections?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor must pre-approve in writing any and all changes to the Store plans or specifications.
Franchisor may make periodic inspections of the site and may conduct a final inspection of the Store and may require corrections and modifications as it deems necessary to bring the Store into compliance with the plans and specifications previously approved by Franchisor.
If Franchisee fails to correct any unauthorized variance within thirty (30) days of receipt of notice of such default, Franchisor will be entitled to immediately terminate this Agreement.
Franchisee will reimburse Franchisor for all expenses incurred in connection with any changes to plans or specifications and any inspections to verify corrections of any defaults.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee is responsible for reimbursing Circle K for all expenses related to changes in store plans or specifications, as well as any inspections required to verify corrections of defaults. This means that if a franchisee makes unauthorized changes to the approved plans or fails to meet the required specifications, they will have to cover the costs Circle K incurs to address these issues.
This reimbursement covers expenses for both changes to the plans and specifications themselves, and for any inspections Circle K conducts to ensure that the franchisee corrects any deviations from the approved plans. If the franchisee does not correct any unauthorized variance within 30 days of receiving notice, Circle K has the right to terminate the franchise agreement.
This requirement underscores the importance of adhering to Circle K's approved plans and specifications. Franchisees should carefully consider the potential costs associated with non-compliance and ensure they have the financial resources to cover any necessary corrections and related inspection expenses. This also highlights the need for clear communication and written approval from Circle K for any proposed changes to avoid incurring these additional costs.