Does the FDD specify any exceptions to the forum selection 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). |
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 forum selection provision dictates where legal disputes must be resolved. Specifically, disputes must be resolved in a state or federal court located in the county where Circle K's corporate headquarters are located at the time of the dispute. However, this is explicitly noted to be 'subject to state law,' which introduces a critical exception.
This 'subject to state law' caveat means that if a state's laws prohibit or restrict out-of-state forum selection clauses in franchise agreements, those state laws would take precedence. For example, some states have franchise-specific laws that invalidate clauses requiring franchisees to litigate disputes outside of their home state. Therefore, while Circle K's standard agreement specifies a particular forum, a franchisee's rights and obligations could be significantly altered depending on the laws of the state in which they operate their franchise.
For a prospective Circle K franchisee, this means it is essential to consult with a legal professional familiar with franchise law in their specific state. They need to understand whether their state has any regulations that would override or modify the forum selection provision in Circle K's franchise agreement. This due diligence is crucial to understanding where they might have to litigate any potential disputes with Circle K and what legal protections their state provides.