Under what condition may a Circle K franchisee be permitted self-insurance?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.17 Financial Responsibility. Franchisee shall be responsible for all deductibles under the required policies of insurance. Franchisor may permit self-insurance by prior written approval. Franchisor shall have the exclusive right to accept or deny Franchisee's request to self-insure.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee may be permitted self-insurance with prior written approval from Circle K. Circle K retains the exclusive right to either accept or deny a franchisee's request to self-insure.
This means that while Circle K requires franchisees to maintain certain insurance policies, they may, under specific circumstances, allow a franchisee to self-insure. However, this is not an automatic right and requires explicit permission from Circle K.
It is important for prospective franchisees to understand the conditions under which Circle K might grant such approval. Factors that Circle K may consider could include the franchisee's financial stability, their history of claims, and their overall risk management capabilities. Franchisees should discuss the requirements for self-insurance with Circle K during their due diligence process.