For Circle K, does TMC disclaim any implied warranty of merchantability or fitness for a particular purpose?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
THE WARRANTY STATED ABOVE IS IN LIEU OF ALL OTHER WARRANTIES, AND TMC DOES NOT MAKE, AND FRANCHISEE DOES NOT RECEIVE, ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, AND TMC SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
FRANCHISEE SPECIFICALLY ACKNOWLEDGES AND AGREES THAT TMC MAKES NO EXPRESS OR IMPLIED WARRANTY REGARDING MERCHANTABILITY OR FITNESS OF USE OF THE EQUIPMENT FOR ANY PURPOSE WHATSOEVER.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC (TMC Franchise Corporation) explicitly disclaims any implied warranty of merchantability or fitness for a particular purpose. This disclaimer is part of the broader warranty provisions related to the software provided to franchisees. This means that Circle K franchisees are essentially accepting the software 'as is' and cannot hold TMC liable if the software does not perform as expected or is unsuitable for their specific needs.
This disclaimer extends to the equipment as well. TMC makes no express or implied warranty regarding merchantability or fitness of use of the equipment for any purpose whatsoever. The franchisee is responsible for the ongoing maintenance, repair, and replacement of equipment-related items. TMC is not responsible for any loss of funds or profits resulting from tampering, malfunction, or failure of the equipment to operate properly.
Such disclaimers are relatively common in franchise agreements. Prospective Circle K franchisees should carefully consider the implications of these disclaimers, especially regarding their responsibilities for software and equipment maintenance and potential losses due to malfunctions. It would be prudent to discuss these warranty limitations with TMC and potentially seek legal counsel to fully understand the risks involved.