factual

What aspects of the Circle K non-exclusive license are detailed on page 2?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

ment is so terminated, Franchisee must comply with all post-termination obligations set forth herein, including but not limited to the payment of Liquidated Damages.

  • 2.2 Franchisor's Reservation of Rights. Except for the limited License granted to Franchisee hereunder, all other rights related to the Business System and the Marks not specifically granted to Franchisee hereunder are expressly reserved by Franchisor and its Affiliates. Franchisee acknowledges that the License granted hereby relates solely to the Franchised Location, affords Franchisee no rights regarding other licenses or locations, and does not give Franchisee any exclusive right to market or sell to any prospective customers or any exclusive right to any territory. Without limiting the generality of the foregoing, Franchisee acknowledges and agrees that Franchisor and its Affiliates have expressly reserved certain rights to the use of the Marks, the Business Systems, the Methods, and Confidential Information in connection with their own convenience store and retailing operations, in connection with licensing the same or similar products or services utilizing the same or similar Marks, or any other trademarks, service marks or names, in connection with the manufacture and sale of products at wholesale and at retail, and in connection with granting such rights to others pursuant to a franchise agreement, some or all of which activities may compete, directly or indirectly, with Franchisee's operation of the Store. Franchisee agrees that it will not in any way interfere with the business operations of Franchisor, its Affiliates or other franchisees. Franchisor has the right to make such changes to the Business System as it deems appropriate, including without limitation, changes to the building appearance and "image" requirements. Because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor has the right to vary the standards for any license owner based upon the peculiarities of a particular site or circumstance, density of population, business potential, population or trade area, existing business practices, governmental requirements, local ordinances, or any other condition that Franchisor deems to be potentially significant to the successful operation of a Circle K Store. A grant by Franchisor of one or more variances to one or more other franchisees will not entitle Franchisee to the same or a different variation.
  • 2.3 Use of Franchised Location; No Subfranchising.

Source: Item 22 — CONTRACTS (FDD page 100)

What This Means (2025 FDD)

According to Circle K's 2025 Franchise Disclosure Document, page 2 details the non-exclusive nature of the license granted to franchisees. The document states that the license allows the franchisee to operate a Circle K store at a specific location, but it does not grant any exclusive rights to a territory or customer base. Circle K retains all rights to the Business System and Marks not explicitly given to the franchisee. This means Circle K can operate its own stores or grant licenses to others that may compete with the franchisee's store.

Circle K reserves the right to use the Marks, Business Systems, Methods, and Confidential Information for its own convenience store and retailing operations, as well as for licensing similar products or services. This includes manufacturing and selling products at wholesale and retail, and granting these rights to others through franchise agreements. These activities may directly or indirectly compete with the franchisee's store. The franchisee is prohibited from interfering with the business operations of Circle K, its affiliates, or other franchisees.

Furthermore, Circle K can modify the Business System, including changes to the building appearance and image requirements. The document also allows Circle K to vary standards for any license owner based on specific site conditions, population density, business potential, existing business practices, governmental requirements, local ordinances, or any other condition deemed significant to the store's success. Granting variances to other franchisees does not entitle the franchisee to the same or a different variation. The franchisee must operate the store in strict compliance with the terms and conditions of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.