Under what condition will a Circle K franchisee be obligated to reimburse TMC for equipment configuration?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 configure the Equipment for Franchisee, Franchisee will be obligated to reimburse TMC for the reasonable costs and expenses of such configuration, including, but not limited to, expenses for travel and lodging.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee will be required to reimburse TMC for the reasonable costs and expenses of configuring equipment for the franchisee. This includes, but is not limited to, expenses for travel and lodging. TMC requires that franchisees purchase or lease equipment from designated third-party suppliers that provide appropriate training, support, and maintenance and that the equipment complies with the technical configurations established or approved by TMC to ensure compatibility with Circle K Systems.
This means that if a Circle K franchisee needs TMC to step in and configure the point-of-sale equipment, the franchisee will have to cover the costs TMC incurs. These costs could potentially include travel for TMC personnel to the franchise location and accommodation during the configuration process.
It is important to note that TMC does not supply, lease, sell, support, or maintain the equipment or provide training to the franchisee. The franchisee is responsible for ensuring the equipment is properly configured, either through the designated third-party suppliers or, if necessary, by reimbursing TMC for direct configuration services.