Circle K Franchise Disclosure Document Analysis

Franchisor Funding Acceptance Permanently Raises Royalty Rate

Accepting TMC's Equipment/Construction Funding increases the royalty rate from 3.0% to as high as 5.5% of Gross Sales for the entire franchise term, and TMC retains a security interest in all funded equipment until the agreement expires or funding is repaid.

Source: p.34

No Exclusive Territory Granted — Franchisor May Compete Directly

Franchisees receive no exclusive territory whatsoever — TMC may open company-owned stores, grant other franchises, or sell Circle K-branded products through alternate channels at any location, regardless of proximity to an existing franchisee.

Source: p.40

Renewal Requires Then-Current Agreement With Potentially Different Terms

Franchisees seeking renewal must execute TMC's then-current franchise agreement, which may contain materially different fees, standards, or territorial provisions than the original agreement, and must also remodel to current standards and sign a general release of all claims against TMC.

Source: p.51