What is the consequence if a Circle K licensee fails to comply with the CIRCLE K Image Guide?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) TMC hereby grants Licensee the non-exclusive right to use the CIRCLE K® trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, images and/or other brand identifications identified on Exhibit A to this Agreement (the "Proprietary Marks") at the Premises and solely in connection with the advertising, marketing, and resale of motor fuel products including, without limitation, motor gasoline, on and off road diesel fuel and other specialty fuel (collectively, the "Products") all of which must meet TMC's standards and requirements.
- (b) Licensee shall, at Licensee's sole expense, comply, and cause the Premises to comply, in full, with TMC's branding, image, and appearance standards, policies, and guidelines set forth in the CIRCLE K Image Guide which TMC may modify from time to time (the "CIRCLE K Image Guide"). Licensee acknowledges, warrants and represents that it has received a copy of the CIRCLE K Image Guide and Licensee understands and agrees that Licensee's failure to comply, in full, with standards, policies, and guidelines set forth in the CIRCLE K Image Guide will cause irreparable harm to TMC, and any such failure shall be a material breach of this Agreement. Licensee acknowledges and agrees that it is required to purchase all items containing the Proprietary Marks, including all signage, from TMC's approved suppliers. TMC will provide Licensee with a list of approved suppliers, which list TMC may modify from time to time.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a licensee's failure to comply with the standards, policies, and guidelines set forth in the CIRCLE K Image Guide constitutes a material breach of the agreement, and Circle K believes that this failure will cause irreparable harm to them.
If a Circle K licensee breaches any image or appearance standard, they must immediately correct the breach to bring the premises into full compliance with Circle K's standards and requirements. Should the licensee fail to correct any breach within thirty days after receiving written notice of the breach, Circle K has the option, but not the obligation, to correct the breach themselves.
If Circle K exercises its option to correct the breach, the licensee will be required to immediately pay Circle K all reasonable expenses incurred to correct the breach upon demand. However, this does not waive or modify any of Circle K's rights or the licensee's obligations under the agreement.