Does the FDD specify any exceptions to the choice of law provision for Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other agreement* | Summary |
|---|---|---|
| forum | 42 of Motor Fuel Agreement; Section 12(d) of Branding Agreement | in a state or federal court in the county where our corporate headquarters are located at the time of the dispute (subject to state law). |
| w. Choice of law | Section 20.5; Section | Arizona law applies (subject to state law). |
| 43 of Motor Fuel | ||
| Agreement; Section | ||
| 12(e) of Branding | ||
| Agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 79–85)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the choice of law provision specifies that Arizona law applies to franchise agreements, but this is subject to state law. This means that while Circle K generally prefers Arizona law to govern the agreements, there might be instances where the laws of the state in which the franchise is located take precedence.
For a prospective Circle K franchisee, this is an important consideration. It means that the specific legal landscape governing their franchise agreement could be influenced by the state in which they operate their Circle K business. This could affect how certain provisions of the franchise agreement are interpreted and enforced.
It would be prudent for potential franchisees to consult with a legal professional to understand how the choice of law provision and its exception might impact their specific situation, considering the state in which they plan to operate their Circle K franchise. This ensures they are fully aware of their rights and obligations under both the franchise agreement and applicable state laws.