Who must sign a written agreement to modify the Circle K Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
be responsible for the installation and maintenance of all signs. Any signage may not be used except as permitted hereunder and may not be altered or removed by Franchisee except with Franchisor's prior written consent or upon termination of this Agreement.
- 7.6 Equipment/Construction and Other Funding. Franchisor may offer to Franchisee funding for acquisition of certain Store equipment and/or construction of the Store ("Equipment/Construction Funding") if Franchisee qualifies for same. If Franchisee accepts the Equipment/Construction Funding, Franchisee must sign the Equipment/Construction Funding Agreement attached hereto as Exhibit 4 (the "Equipment/Construction Funding Agreement") and the Personal Guaranty (attached hereto as Exhibit 5). Franchisor will use the Equipment/Construction Funding funds, on Franchisee's behalf, to off-set the acquisition cost of Store equipment and the construction cost of the Store, and pay related invoices on Franchisee's behalf. The Equipment/Construction Funding will be amortized over the Term. Schedule A to the Equipment/Construction Funding Agreement sets forth the options available to Franchisee with respect to Equipment/Construction Funding. The amount of Equipment/Construction Funding, if any, that Franchisee is approved to receive will be noted on the Data Sheet. If, subsequent to the parties' execution of the Equipment/Construction Funding Agreement but before the store is deemed open as a Circle K Store hereunder, the merchandise sales levels at the store drop below the levels that Franchisor used to set the Equipment/Construction Funding amount, Franchisor reserves the right to reduce the Equipment/Construction Funding amount accordingly.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
Based on the 2025 Circle K Franchise Disclosure Document, if a franchisee accepts Equipment/Construction Funding from Circle K, the franchisee must sign the Equipment/Construction Funding Agreement and the Personal Guaranty. These agreements are attached as Exhibits to the Franchise Agreement.
The Equipment/Construction Funding Agreement outlines the terms of the funding provided by Circle K for store equipment and construction. The Personal Guaranty means that the franchisee is personally guaranteeing the obligations under the Equipment/Construction Funding Agreement. This is a common practice in franchising, as it provides the franchisor with additional security.
The amount of Equipment/Construction Funding, if any, that the franchisee is approved to receive will be noted on the Data Sheet. If, subsequent to the parties' execution of the Equipment/Construction Funding Agreement but before the store is deemed open as a Circle K Store, the merchandise sales levels at the store drop below the levels that Circle K used to set the Equipment/Construction Funding amount, Circle K reserves the right to reduce the Equipment/Construction Funding amount accordingly. This protects Circle K from over-investing in a store that is not performing as expected.
Additionally, the franchisee must furnish Circle K with a copy of the signed Lease within 10 days after it is signed. If the Lease is terminated due to a default by the franchisee, such Lease termination will constitute a breach of the Franchise Agreement and all other related agreements by the franchisee.