What document must the current Circle K licensee sign to complete the assignment?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) This Agreement is personal to Licensee. Licensee's interest in this Agreement shall not be transferred or assigned by Licensee in whole or in part, directly or indirectly, without the prior written consent of TMC and provided the following conditions are satisfied: (i) new Licensee ("Assignee") meets TMC's qualifications, (ii) Assignee signs TMC's current form of branding agreement, (iii) Assignee assumes all obligations under this Agreement, (iv) the CIRCLE K convenience store located at the Premises is also transferred to Assignee in accordance with the assignment conditions set forth in Licensee's Franchise Agreement, (v) any Sublicense Agreements entered into in connection with this Agreement are also transferred to Assignee, (vi) all amounts due TMC are paid in full, and (vii) release signed by Licensee.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a current licensee must sign a release to complete the assignment of their interest in the License Agreement. The agreement is personal to the licensee and cannot be transferred without prior written consent from TMC. In addition to the release, several other conditions must be met for the assignment to be approved.
Specifically, the new licensee, referred to as the "Assignee," must meet TMC's qualifications. The Assignee is also required to sign TMC's current form of branding agreement and assume all obligations under the existing License Agreement. Furthermore, the Circle K convenience store at the premises must be transferred to the Assignee in accordance with the assignment conditions outlined in the licensee's Franchise Agreement.
Any sublicense agreements connected to the License Agreement must also be transferred to the Assignee. All outstanding amounts due to TMC must be paid in full before the assignment can proceed. These conditions ensure that the new licensee is qualified and committed to upholding the standards and obligations of the Circle K franchise system.