Is TMC a party to any agreement between a Circle K franchisee and the approved primary supplier?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
When you purchase your merchandise and goods or receive services from our approved primary supplier, you will contract directly with our approved primary supplier and will be solely responsible for payment to our approved primary supplier for your purchases. TMC will not be a party to any agreement between you and our approved primary supplier and will not guarantee any payments to our approved primary supplier on your behalf. You will pay the then-current price in effect for all purchases you make from us, our affiliate or any third-party vendor we designate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, TMC will not be a party to any agreement between a Circle K franchisee and the approved primary supplier. Franchisees contract directly with the approved primary supplier for their purchases and are solely responsible for payments to that supplier. TMC does not guarantee any payments to the approved primary supplier on behalf of the franchisee.
This arrangement means that Circle K franchisees have a direct financial relationship with the primary suppliers, managing their accounts and payments independently. While Circle K may negotiate arrangements with suppliers, the franchisee is ultimately responsible for fulfilling their financial obligations to those suppliers. This is a fairly standard practice in franchising, where the franchisee operates as an independent business owner.
Prospective Circle K franchisees should carefully review the terms and conditions of the agreements with the approved primary suppliers, ensuring they understand their payment obligations and any potential risks associated with these agreements. Understanding the payment terms, potential discounts, and rebate programs offered by these suppliers is crucial for managing the store's profitability.