In the event of litigation between Circle K and the licensee, where is the venue?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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- any action in ejectment or for possession of any interest in real or personal property.
- (d) Choice of Venue. Unless otherwise prescribed by applicable law, and subject to the provisions of Sections 12(a) and 12(b) regarding mediation and arbitration, all litigation, lawsuits, court hearings, proceedings or other actions initiated by either party against the other party will be venued in Maricopa County, Arizona. Consequently, Licensee, each of its officers, Directors, members or shareholders do hereby agree to submit to personal jurisdiction in Maricopa County, Arizona, for the purpose of any action or dispute arising out of this Agreement, the Premises or the Motor Fuel Business, and do hereby agree and stipulate that any such proceedings will be exclusively venued in Maricopa County, Arizona.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, unless otherwise prescribed by applicable law, and subject to mediation and arbitration, all litigation initiated by either party against the other will be venued in Maricopa County, Arizona. The licensee, along with their officers, directors, members, or shareholders, agrees to submit to personal jurisdiction in Maricopa County, Arizona, for any action or dispute arising out of the agreement, the premises, or the motor fuel business. They also agree that any such proceedings will be exclusively venued in Maricopa County, Arizona.
This means that if a Circle K franchisee has a legal dispute with Circle K that ends up in court, the case will be heard in Maricopa County, Arizona. This applies to all lawsuits, court hearings, proceedings, or other actions initiated by either Circle K or the franchisee against each other. The franchisee is essentially agreeing to be subject to the jurisdiction of the courts in Maricopa County, Arizona.
This is a significant point for prospective franchisees to consider, as it may require them to travel to Arizona for any legal proceedings. It is common for franchise agreements to specify a particular venue for dispute resolution, often the location of the franchisor's headquarters. Franchisees should be aware of this clause and factor in the potential costs and inconvenience of litigating in a distant location.