Under what conditions will Circle K not designate or honor a request for Funding?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee and Franchisor hereby executed this Agreement as of the Effective Date:
| FRANCHISOR: TMC Franchise Corporation | FRANCHISEE: «ContractName» |
|---|---|
| Signature: | Signature: |
| Justin Shelton, Asst. Secretary | Title: |
| Effective Date: | Date: Signature: Title: Date: Signature: Title: Date: |
Schedule A to Equipment/Construction Funding Agreement
For a newly constructed Circle K Store and raze and rebuilds, two levels of funding are available, which, for purposes of the calculation of the Royalty Fees are referred to as "Level 2" funding amount and "Level 3" funding amount. The "Level 2" Maximum Amount is up to $50 for each square foot of selling space the Store contains. The "Level 3" Maximum Amount is up to $70 for each square foot of selling space the Circle K Store contains. Franchisor will determine the square footage of the Circle K Store to establish the Maximum Amount.
For bay conversions, store re-openings, store expansion projects, or conversions where Franchisor cannot adequately verify existing sales levels, two levels of funding are available, which, for purposes of the calculation of the Royalty Fees are referred to as "Level 2" funding and "Level 3" funding. The "Level 2" Maximum Amount is up to $40 for each square foot of selling space the Circle K Store contains, capped at $90,000. The "Level 3" Maximum Amount is up to $60 for each square foot of selling space the Circle K Store contains, capped at $135,000. Franchisor has the right to determine the square footage to establish the Maximum Amount.
For
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
Based on the 2025 Circle K Franchise Disclosure Document, the availability and amount of funding for Circle K stores depend on several factors, including whether it is a newly constructed store, a conversion, or a store undergoing renovations. For new Circle K stores and raze and rebuilds, there are two levels of funding: Level 2, which provides up to $50 per square foot of selling space, and Level 3, which offers up to $70 per square foot. The franchisor determines the store's square footage to calculate the maximum funding amount.
For bay conversions, store re-openings, store expansion projects, or conversions where Circle K cannot adequately verify existing sales levels, two funding levels are also available. Level 2 provides up to $40 per square foot, capped at $90,000, while Level 3 offers up to $60 per square foot, capped at $135,000. Again, Circle K determines the square footage to establish the maximum funding amount. For conversion stores, the maximum funding amount is based on the verified annual gross sales for the most recent 12-month period, as determined by both the franchisee and Circle K.
However, the FDD stipulates that if a conversion store's tobacco sales are substantially over the average percentage of total sales, the funding may be altered. The document does not specify the exact threshold that would trigger an alteration of funding, nor does it detail how the funding would be modified in such cases. Prospective franchisees should clarify with Circle K the specific criteria used to evaluate tobacco sales percentages and how these percentages impact funding decisions.