Who is responsible for the replacement of items like ink and ribbons for the Equipment at a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is also solely responsible for the replacement of items, including, but not limited to, ink, ribbons, invoice tickets, pin pads, cleaning cards, and papers for terminals.
TMC shall not be responsible to Franchisee for any loss of funds or profits resulting from tampering with, malfunction or failure of the Equipment to operate properly.
Franchisee further agrees to pay all license fees and other charges required by manufacturers and third-party software licensors for the use, operation, and maintenance of the Equipment, and all damages caused by Franchisee's negligence or misuse.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the replacement of items such as ink, ribbons, invoice tickets, pin pads, cleaning cards, and paper for the terminals related to the Equipment. The Equipment refers to the electronic point of sale equipment and back office system that the franchisee agrees to purchase or lease for the term of the Franchise Agreement. This equipment is essential for the electronic capture and transmission of transaction data, inventory management, and sales reporting.
This means that as a Circle K franchisee, you will bear the costs associated with maintaining the operational readiness of the point-of-sale systems. These costs, while seemingly minor individually, can accumulate over time and should be factored into your operating budget. It is important to ensure that you have a reliable supplier for these consumables to minimize downtime and maintain smooth business operations.
Circle K will not be responsible for any loss of funds or profits resulting from the malfunction or failure of the Equipment to operate properly. The franchisee is also 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, as well as any damages caused by the franchisee's negligence or misuse. Therefore, it is important to have a maintenance plan in place and to train employees on the proper use of the equipment to avoid unnecessary expenses.