What is the deadline for a Circle K franchisee to tender the defense of a trademark action to TMC?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately if you learn about an infringement of or challenge to your use of our Marks. We have the right to take whatever action we believe is, in our judgment, appropriate. TMC and our affiliates have the right to manage and resolve disputes with third parties concerning the Marks. Except as noted below, we are not required to defend you against any claim opposing your use of the Marks. You may tender the defense of any trademark action to us within 7 days after you receive it. You can hire your own attorney to defend you in this action, but you must pay your own legal expenses. If any claim relates just to your use of the Marks in complete compliance with your Convenience Store Franchise Agreement, Motor Fuel Agreement and/or Branding Agreement, we will defend you against any such claim and will protect, indemnify, and hold you harmless from any loss from this claim. You may not contest our rights to the Marks, trade secrets, or our proprietary and distinctive business system.
Source: Item 13 — TRADEMARKS (FDD pages 75–76)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee has a limited window to request defense from TMC (presumably, Circle K's parent company) in the event of a trademark action. Specifically, the franchisee must tender the defense of any trademark action to TMC within 7 days after receiving notice of it. This is a crucial deadline, as missing it could mean the franchisee is solely responsible for their legal defense.
While Circle K franchisees have the option to hire their own attorney to defend them in such actions, they must bear the associated legal expenses unless they tender the defense to TMC within the specified 7-day period. However, even if the franchisee hires their own attorney, they may not contest Circle K's rights to the Marks, trade secrets, or proprietary business system.
It's important to note that Circle K will defend the franchisee and provide indemnity only if the claim relates to the franchisee's use of the Marks in complete compliance with the Convenience Store Franchise Agreement, Motor Fuel Agreement, and/or Branding Agreement. This highlights the importance of adhering strictly to Circle K's guidelines and agreements regarding trademark usage to ensure the franchisor's support in case of a legal challenge.