What is the 'Store' defined as in the Renewal Addendum for Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 Equipment and Circle K Systems. TMC, as franchisor, has entered into a Franchise Agreement with Franchisee (the "Franchise Agreement") granting Franchisee the right to operate a convenience store (hereinafter the "Store") at a specified location (the "Premises") utilizing the Circle K operating systems, point of sale systems and trademarks (collectively, "Circle K Systems").
- 1.1.1 Franchisee agrees to purchase or lease (for the term of the Franchise Agreement) and install on the Premises the electronic point of sale equipment and back office system as set forth on Exhibit A attached hereto and/or from time to time designated by TMC (collectively, "Equipment"), to provide for, inter alia, electronic capture and transmission of transaction data for credit and debit cards, gift cards, electronic messages, inventory management, purchase, and sales reporting, in order to maintain the operation of the Store in accordance with the terms of the Franchise Agreement and related agreements. The Equipment includes card authorization systems and integrated retail store management systems, back office system, and any other retail point of sale systems as may be required by TMC from time to time. Franchisee agrees to upgrade and replace the Equipment from time to time as required under the Franchise Agreement.
- 1.1.2 Franchisee acknowledges that TMC is not supplying, leasing, selling, supporting or maintaining the Equipment or providing training to Franchisee related thereto and TMC only requires that the Equipment be purchased or leased from designated third-party suppliers that provide appropriate training, support and maintenance and that the Equipment comply with the technical configurations established or approved by TMC to ensure that the Equipment is compatible with the Circle K Systems. If TMC is required to conf
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, specifically within the context of point-of-sale equipment, the 'Store' is defined as a convenience store that the franchisee has the right to operate under the Franchise Agreement. This store operates at a specified location, referred to as the 'Premises,' and utilizes Circle K's operating systems, point of sale systems, and trademarks, which are collectively known as 'Circle K Systems'.
This definition is important because it clarifies the scope of the franchisee's rights and responsibilities regarding the operation of the Circle K store. The franchisee is granted the right to operate a convenience store at a specific location using Circle K's established systems and trademarks. This ensures uniformity and consistency across all Circle K franchise locations, which is a common practice in the franchise industry.
The franchisee is required to purchase or lease and install specific electronic point of sale equipment and a back-office system to maintain operations in accordance with the Franchise Agreement. This equipment is essential for electronic capture and transmission of transaction data, inventory management, and sales reporting. The franchisee must also upgrade and replace the equipment as required by Circle K.
It is important to note that Circle K does not supply, lease, sell, support, or maintain the equipment or provide training related to it. Instead, Circle K requires that the equipment be purchased or leased from designated third-party suppliers who provide the necessary training, support, and maintenance. This ensures that the equipment complies with Circle K's technical configurations and is compatible with the Circle K Systems.