What costs is a Circle K franchisee responsible for related to the collection of obligations or enforcement of the agreement?

According to Circle K's 2025 Franchise Disclosure Document, a franchisee is responsible for indemnifying Circle K for all costs it incurs in proceedings related to enforcing the franchise agreement. This includes, but is not limited to, actions regarding the Marks and the Business System, obligations upon termination or expiration, assignment of the agreement, covenants not to compete, confidentiality, or any act or omission by the franchisee, the store, or employees that violates laws, is dishonest, endangers others, or impairs goodwill.

In practical terms, this means that if Circle K has to take legal action against a franchisee to enforce the terms of the franchise agreement, the franchisee will be responsible for covering Circle K's legal costs. These costs could include attorney fees, court costs, and other expenses associated with the legal proceedings. This indemnification clause is a significant financial responsibility for the franchisee.

This type of clause is relatively standard in franchise agreements, as it protects the franchisor's interests and ensures that franchisees comply with the terms of the agreement. Prospective franchisees should carefully review this section of the franchise agreement and understand the potential financial implications before signing.