Does Circle K's acceptance of payment from a franchisee constitute a waiver of any provision of the Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Acceptance by Franchisor of any payment by Franchisee and the failure, refusal or neglect of Franchisor to exercise any right under this Agreement or to insist upon full compliance by Franchisee of its obligations hereunder including, without limitation, any mandatory specification, standard or operating procedure, will not constitute a waiver by Franchisor of any provision of this Agreement.
Franchisor will have the right to waive obligations or restrictions for other franchisees under their license agreements without waiving those obligations or restrictions for Franchisee, and, except to the extent prohibited by law, Franchisor will have the right to negotiate terms and conditions, grant concessions, and waive obligations for other franchisees without granting those same rights to Franchisee and without incurring any liability to Franchisee whatsoever.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the acceptance of any payment from the franchisee does not constitute a waiver by Circle K of any provision within the Franchise Agreement. Furthermore, if Circle K does not exercise any right under the agreement or fully insist on the franchisee's compliance with their obligations, it will not be considered a waiver by Circle K of any provision in the agreement. This includes, without limitation, any mandatory specification, standard, or operating procedure.
Circle K retains the right to waive obligations or restrictions for other franchisees without extending the same waivers to a specific franchisee. Circle K can also negotiate different terms and conditions, grant concessions, and waive obligations for other franchisees without incurring any liability to the franchisee.
This section of the Franchise Agreement protects Circle K by ensuring that their actions or inactions do not inadvertently relinquish their rights or the franchisee's responsibilities under the agreement. This is a common provision in franchise agreements, allowing franchisors flexibility in managing their franchise system while maintaining consistent standards and compliance overall.