What agreements can serve as the 'Underlying Agreement' for the Circle K Credit Network Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be effective commencing on the Effective Date and, except as set forth in paragraph 6 below, shall remain in effect for the same term (including any extensions thereof) as (a) the CIRCLE K® Convenience Store Franchise Agreement between TMC and Purchaser for the operation of the Circle K Business at the Premises, if no motor fuel is offered for sale to the public at the Premises (as defined below) or (b) the Circle K® Motor Fuel Agreement or Circle K® Branding Agreement, as applicable, between TMC and Purchaser, for the sale of Circle K-branded motor fuel at the Premises.
The Convenience Store Franchise Agreement, the Motor Fuel Agreement or the Branding Agreement pursuant to which this Agreement was executed by the parties shall be referred to herein as the "Underlying Agreement".
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Credit Network Agreement is tied to an 'Underlying Agreement,' which determines the term and conditions of the Credit Network Agreement. The Underlying Agreement can be one of three agreements.
If the Circle K location does not sell motor fuel, the Underlying Agreement is the Circle K Convenience Store Franchise Agreement. If the Circle K location does sell Circle K-branded motor fuel, the Underlying Agreement can be either the Circle K Motor Fuel Agreement or the Circle K Branding Agreement.
The Credit Network Agreement's term mirrors that of the Underlying Agreement, including any extensions. Termination or non-renewal of the Underlying Agreement automatically terminates the Credit Network Agreement. This means a Circle K franchisee's ability to participate in Circle K's credit card program is directly linked to the status and terms of their primary franchise or fuel agreement.