What article in the Circle K franchise agreement addresses advertising and promotions?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 6 ADVERTISING AND PROMOTIONS
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, Article 6 of the franchise agreement pertains to advertising and promotions. This section outlines the franchisee's responsibilities regarding promotional fees, grand opening campaigns, and participation in advertising and customer goodwill programs. It also discusses the potential formation of advertising councils and local marketing groups.
Specifically, Circle K franchisees are required to pay a monthly promotional fee, a portion of which covers general costs associated with promoting Circle K stores. Franchisees are also expected to conduct a grand opening advertising and promotional campaign within 100 days of opening their store, with Circle K providing assistance and a grand opening materials package. However, the franchisee is responsible for all publicity and promotional costs associated with the grand opening, although Circle K may reimburse a portion of pre-approved expenditures.
Circle K also has the right to initiate sales, loyalty, and marketing programs, in which franchisees must participate unless excused in writing. Furthermore, Circle K may form advertising councils or local marketing groups (LMGs), and franchisees are obligated to participate in LMGs if one is established in their geographic region. All advertising and promotions conducted by the LMG must be pre-approved in writing by Circle K. These stipulations ensure that Circle K maintains control over its brand image and marketing strategies, while also requiring franchisees to contribute to and participate in promotional activities.