Besides the expiration of the term, what other events can lead to the termination of the Circle K agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
spections of the Premises by Seller, and their respective representatives that are required under the Motor Fuel Agreement.
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- ATTORNEY'S FEES. To the fullest extent permitted by law, the prevailing party shall be entitled to all attorneys' fees, costs of suit and reasonable expenses incurred in order to secure, defend or protect the rights inuring to the prevailing party under this Agreement, or to enforce the terms thereof, in addition to any other relief to which the prevailing party may be entitled.
6. TERM; TERMINATION.
- (a) The term of this Agreement ("Term") shall be effective commencing on the Effective Date (as defined on the signature page hereto) and shall remain in effect for the same term (including any extensions or renewals thereof) as the CIRCLE K® Motor Fuel Agreement between Seller and Purchaser entered into concurrently herewith (the "Motor Fuel Agreement"), unless earlier terminated in accordance with the terms of this Agreement.
- (b) Upon the occurrence of an Acceleration Event, Seller shall have the right to terminate this Agreement in its entirety, as further set forth in paragraph 2(d) above. Notwithstanding the termination of this Agreement, Purchaser shall continue to be liable for all amounts owing to Seller under this Agreement, including but not limited to the Total Unforgiven Repayment, as further set forth in paragraph 2 above.
7. CONFIDENTIALITY AGREEMENT.
(a) Purchaser acknowledges and understands that the contents of this Agreement are confidential ("Confidential Information") and that Seller desires that the confidentiality of said contents be maintained. Except where otherwise required by law, Purchaser shall: (i) treat and maintain the Confidential Information as confidential; (ii) restrict disclosure of Confidential Information only to Purchaser and those officers, directors, employees, accountants, or attorneys of Purchaser who require disclosure to advise Purchaser with respect to the Confidential Information or prepare or maintain Purchaser's financial records and are directly connected with providing such advice or preparing or maintaining Purchaser's financial records;
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the Circle K agreement can be terminated prior to the end of its term under certain circumstances. One such event is the occurrence of an "Acceleration Event," which grants the seller the right to terminate the agreement. Even if the agreement is terminated, the purchaser remains responsible for all outstanding debts to the seller, including the Total Unforgiven Repayment.
Additionally, the agreement may be terminated under specific conditions outlined in Section 21, which do not involve liquidated damages. These include the death or incapacity of the purchaser (or the principal equity holder if the purchaser is an entity) that prevents them from personally operating the business. Termination can also occur due to condemnation or other taking of the franchised location through eminent domain, or the destruction of a significant portion of the location through no fault of the purchaser. Finally, Circle K can terminate the agreement if it makes a good faith decision to withdraw from marketing in the geographical area where the Circle K business is located.
Licensee's right to participate in the Transaction Card program may be limited or terminated if the Licensee fails to comply with the CIRCLE K Card Guide. Prospective Circle K franchisees should carefully review the agreement to fully understand the conditions that could lead to early termination and their obligations in such events.