What actions are Circle K licensees prohibited from taking that could damage the value of the Proprietary Marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Licensee may not use the Proprietary Marks or TMC's name as part of Licensee's corporate name or other name.
(e) Licensee agrees that it will take no action, or otherwise do anything or fail to do anything that will diminish, reduce, injure, dilute, or otherwise damage the value of the Proprietary Marks or other TMC trademarks or identifications.
(f) If Licensee breaches any TMC image or appearance standard Licensee must immediately correct each breach to bring the Premises into full compliance with TMC's standards and requirements.
If Licensee fails to correct any breach within thirty (30) days after Licensee's receipt of written notice of such breach, TMC will have the option (but not the obligation) to correct the breach.
If TMC exercises its option hereunder, Licensee will be required to immediately pay TMC, upon demand, all reasonable expenses incurred by TMC to correct the breach.
Nothing contained in this subparagraph (f) shall be understood or deemed to waive or
modify any of TMC's rights, or any of Licensee's obligations, under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, licensees are prohibited from taking actions that could harm the value of Circle K's Proprietary Marks. Specifically, a licensee cannot use the Proprietary Marks or Circle K's name as part of the licensee's corporate name or any other name. Additionally, the licensee must not take any action or fail to take any action that could diminish, reduce, injure, dilute, or otherwise damage the value of the Proprietary Marks or other Circle K trademarks or identifications.
This restriction is crucial for maintaining the integrity and value of the Circle K brand. By preventing licensees from misusing the trademarks or taking actions that could harm the brand's reputation, Circle K aims to ensure consistent quality and customer perception across all locations. This protects the overall brand equity and benefits all franchisees by preserving customer trust and recognition.
If a licensee breaches any Circle K image or appearance standard, they must immediately correct the breach to comply with Circle K's standards. Should the licensee fail to correct the breach within 30 days after receiving written notice, Circle K has the option to correct the breach themselves, with the licensee required to pay all reasonable expenses incurred by Circle K to rectify the issue. This provision underscores the importance Circle K places on maintaining its brand standards and provides a mechanism for ensuring compliance, although it does not waive any other rights or obligations under the agreement.