How is the 'Effective Date' determined for the Circle K franchise agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| 20.18 | Survival 56 | |
|---|---|---|
| 20.19 | Other Franchisees 56 | |
| SCHEDULES AND EXHIBITS | ||
| Schedule 1 | Definitions | |
| Exhibit 1 | Data Sheet 1-1 | |
| Exhibit 2 | Electronic Point of Sale and Software Agreement 2-1 | |
| Exhibit 3 | Electronic Funds Transfer Authorization 3-1 | |
| Exhibit 4 | Equipment/Construction Funding Agreement 4-1 | |
| Exhibit 5 | Personal Guaranty 5-1 |
CIRCLE K® CONVENIENCE STORE FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT (the "Agreement") is made and entered into as of the Effective Date (as set forth on the signature page hereto), by and be
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Franchise Agreement is made and entered into as of the Effective Date, which is set forth on the signature page of the agreement. The agreement is between TMC Franchise Corporation, as the Franchisor, and the Franchisee.
The Effective Date is a crucial element as it marks the commencement of the franchise relationship and sets the timeline for various obligations. For instance, a new Circle K store must be ready to open within two years of the Effective Date, while a conversion store has a one-year deadline. Failure to meet these deadlines can result in the termination of the agreement, with the franchisee potentially liable for liquidated damages.
The document also specifies that if the agreement is terminated within the first 12 months, liquidated damages will be calculated based on the average monthly royalty fee payments, or if the store has not opened, based on the average gross sales of Circle K franchisees in the same state. This highlights the importance of the Effective Date in determining the financial implications of the agreement.
The Circle K franchise agreement also mentions that the term of the agreement is tied to the Effective Date and remains in effect for the same term as either the Convenience Store Franchise Agreement or the Motor Fuel Agreement, depending on whether motor fuel is offered at the premises. This further emphasizes the significance of the Effective Date as the starting point for the entire franchise relationship and its associated obligations.