In the event of an Acceleration Event, what remedies does Circle K's seller have?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
nd interest accrued thereon shall automatically cease as of the Acceleration Date. Further, upon the occurrence of an Acceleration Event, the total principal of the Conversion/Improvement Amount as of the Disbursement Date and all accrued interest as of the Acceleration Date, less the Total Forgiven Amount as of the Acceleration Date ("Total Unforgiven Repayment"), shall become immediately due and payable to Seller. An Acceleration Event shall not affect any forgiveness of the Total Forgiven Amount prior to the Acceleration Date.
- (d) Seller shall have all legal and equitable remedies available to Seller with respect an Acceleration Event, whether under this Agreement, the Motor Fuel Agreement, the Security, or applicable law, and Seller may pursue same in any order or priority in Seller's sole discretion. Without limiting the foregoing, Seller's remedies shall include (i) the right to set-off or equitably recoup against any amount then due Purchaser under this Agreement, the Motor Fuel Agreement, or any other related agreement, instrument, note, or contract between Purchaser and Seller, and (ii) the right to terminate this Agreement in its entirety, effective in Seller's sole discretion on or at any time after the Acceleration Date, in which case the Total Unforgiven Repayment and any other amounts owed by Purchaser to Seller under this Agreement, the Motor Fuel Agreement, the Security or any other any other related agreement, instrument, note, or contract between Purchaser and Seller, shall become immediately due and
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, in the event of an Acceleration Event, the seller has several legal and equitable remedies available. These remedies can be pursued under the agreement itself, the Motor Fuel Agreement, the Security agreement, or any applicable law, and Circle K can choose the order and priority in which to pursue them.
Specifically, Circle K's remedies include the right to set-off or recoup any amount owed to the purchaser under the agreement, the Motor Fuel Agreement, or any related agreement. Circle K also has the right to terminate the agreement in its entirety, which becomes effective at Circle K's sole discretion on or after the Acceleration Date. If the agreement is terminated, the total unforgiven repayment amount, along with any other amounts owed by the purchaser to Circle K under the agreement, the Motor Fuel Agreement, the Security agreement, or any other related agreement, immediately becomes due and payable.
Upon termination of the agreement due to an Acceleration Event, interest will accrue on all outstanding amounts. The interest rate is set at eighteen percent (18%) per annum, compounded monthly, or at the highest lawful rate of interest authorized under state law, whichever is lower. This interest accrues from the date Circle K terminates the agreement until the full amount is paid. This clause ensures that Circle K is compensated for any delays in receiving the outstanding payments after an Acceleration Event.