What action is a Circle K franchisee required to take if they learn about an infringement of the Circle K Marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately if you learn about an infringement of or challenge to your use of our Marks. We have the right to take whatever action we believe is, in our judgment, appropriate. TMC and our affiliates have the right to manage and resolve disputes with third parties concerning the Marks. Except as noted below, we are not required to defend you against any claim opposing your use of the Marks. You may tender the defense of any trademark action to us within 7 days after you receive it. You can hire your own attorney to defend you in this action, but you must pay your own legal expenses. If any claim relates just to your use of the Marks in complete compliance with your Convenience Store Franchise Agreement, Motor Fuel Agreement and/or Branding Agreement, we will defend you against any such claim and will protect, indemnify, and hold you harmless from any loss from this claim. You may not contest our rights to the Marks, trade secrets, or our proprietary and distinctive business system.
Source: Item 13 — TRADEMARKS (FDD pages 75–76)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee is required to notify Circle K immediately if they become aware of any infringement or challenge to the use of Circle K's trademarks. This requirement ensures that Circle K can take appropriate action to protect its brand and intellectual property.
The FDD specifies that Circle K has the right to take whatever action it deems appropriate in response to an infringement. This includes managing and resolving disputes with third parties concerning the trademarks. While Circle K is not generally required to defend a franchisee against claims opposing their use of the marks, there is an exception.
If a claim arises solely from the franchisee's use of the Circle K marks in complete compliance with the Convenience Store Franchise Agreement, Motor Fuel Agreement, and/or Branding Agreement, Circle K will defend the franchisee against the claim. In this specific situation, Circle K will also protect, indemnify, and hold the franchisee harmless from any loss resulting from the claim. The franchisee is also prohibited from contesting Circle K's rights to the marks, trade secrets, or proprietary business system.