Is Circle K entitled to recover attorney's fees from the licensee in legal actions?

According to Circle K's 2025 Franchise Disclosure Document, Circle K (referred to as TMC in the document) is entitled to recover reasonable attorney's fees and other legal costs from the licensee. This applies when Circle K incurs these costs to secure or protect its rights under the agreement or to enforce its terms, whether pursued through legal action or in equity.

This provision means that if a Circle K licensee breaches the licensing agreement and Circle K has to take legal action to enforce the agreement or protect its rights, the licensee may be responsible for covering Circle K's legal expenses. This could include attorney fees, court costs, and other related expenses. This clause aims to ensure that Circle K can pursue legal remedies without incurring a financial loss due to legal fees.

For a prospective Circle K licensee, this clause represents a significant financial risk. If a dispute arises and Circle K prevails in court or other legal proceedings, the licensee could be required to pay not only their own legal fees but also Circle K's, potentially leading to substantial financial burden. It is important for potential licensees to fully understand their obligations under the agreement and to seek legal counsel to assess the potential risks associated with this clause.