During the Diligence Period, what rights does Circle K have to access the franchised location?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor or its designees to access the Franchised Location to remove the signage or materials containing the Marks and otherwise to secure Franchisee's compliance with this Section 14.7. If Franchisee continues to operate a convenience store business at the Franchised Location after the termination of this Agreement, Franchisee will prominently display a notice to the public on the premises for a period of not less than six (6) months after termination indicating that it is no longer a Circle K franchisee or an authorized franchisee under the Business System;
(D) for a period of twelve months subsequent to expiration or termination of this Agreement, Franchisee will be subject to the provisions of Article 16;
(E) if Franchisor exercises (in its sole discretion) its purchase right under Section 16.1 or if Franchisor is the lessor under the Lease, then, upon request by Franchisor, peaceably surrender possession, occupancy, control and use of the Franchised Location to Franchisor or its designee.
Franchisee will, at the request of Franchisor, promptly execute assignments or other transfer documentation in the form requested by Franchisor to perfect the transfer to Franchisor or its designee of Franchisee's interest in or to the right to use and occupy the Franchised Location.
The assumption of possession, occupancy and control of the Franchised Location by Franchisor (or its designee) will not relieve Franchisee of any outstanding unpaid obligations that may have accrued prior to the time of assumption of control by Franchisor (or its designee); all such obligations will remain the obligations of Franchisee.
If Franchisor elects not to assume possession and control of the Franchised Location, Franchisee will, at Franchisee's expense, make such modifications or alterations thereto immediately upon termination or expiration of this Agreement as Franchisor may demand to prevent the operation of any business therein being confused by the public with a business affiliated with Franchisor for any purpose and will otherwise comply with its obligations under this Section 14.7, including without limitation Section 14.7(C).
If Franchisee owns or leases the Franchised Location from someone other than the Franchisor or its Affiliates, this provision does not apply;
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Circle K retains specific rights to access the franchised location under certain circumstances, primarily related to the termination or expiration of the franchise agreement. If the franchise agreement is terminated, Circle K or its representatives can access the location to remove signage and materials bearing Circle K's trademarks and ensure the franchisee complies with obligations.
If the franchisee continues to operate a convenience store at the location after the agreement ends, they must display a notice stating they are no longer a Circle K franchisee for at least six months. Furthermore, for twelve months after the agreement expires or terminates, the franchisee remains subject to certain provisions outlined in the agreement.
Circle K also has the right to take possession of the location if it exercises its purchase option or if Circle K is the lessor. In such cases, the franchisee must surrender the location. However, Circle K's assumption of the location does not relieve the franchisee of any outstanding financial obligations. If Circle K chooses not to take possession, the franchisee must make alterations to prevent confusion with a Circle K business. These stipulations ensure Circle K can protect its brand and maintain control over locations that previously operated under its name.