Where must arbitration take place for a Circle K dispute?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitration must take place in Maricopa County, Arizona (or the county in which TMC's headquarters are located at the time arbitration is demanded).
The arbitrator must follow the law and not disregard the terms of this Agreement.
The arbitrator must have at least 5 years of significant experience in franchise law.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, any arbitration between TMC (presumably, The McLane Company, Inc., Circle K's parent company) and the licensee must occur in Maricopa County, Arizona. However, there is a condition: if TMC's headquarters are not located in Maricopa County at the time arbitration is demanded, the arbitration will take place in the county where TMC's headquarters are located.
This means that a Circle K franchisee may be required to travel to Arizona for arbitration, or to wherever TMC's headquarters are located. Franchisees should factor in potential travel costs and legal fees associated with arbitration when evaluating the franchise opportunity.
It is also important to note that the arbitrator must have at least 5 years of significant experience in franchise law and must follow the law and not disregard the terms of the agreement. This requirement aims to ensure that the arbitrator is knowledgeable about franchise-specific legal issues and can make informed decisions based on the agreement and applicable laws.