Where can I find the definition of terms used in the Circle K franchise agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to terms defined elsewhere in this Agreement, the capitalized terms used in this Agreement shall have the definitions set forth in Schedule 1 attached hereto.
Schedule 1 to Convenience Store Franchise Agreement – Definitions
In addition to terms defined elsewhere in this Agreement, for purposes of this Agreement, the following terms will have the following meanings:
-
- "Affiliate" means, with respect to a party hereto, any person or entity that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party.
The term "control" of an entity means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities, by contract or otherwise.
For avoidance of doubt, an affiliate of Franchisor includes, without limitation, Circle K Stores Inc. and any of its subsidiaries, and Alimentation Couche-Tard and any of its subsidiaries, now existing or hereinafter formed or acquired.
-
- "Agreement" means this Franchise Agreement, and all amendments, addenda, modifications, Exhibits or extensions thereto that may be mutually agreed upon by Franchisor and Franchisee.
-
- "Business System" means the Methods, Techniques, and Marks.
-
- "Circle K Store" means a retail convenience store operating under the name "Circle K" and under the other Marks and the Business System, which is a full service convenience store with sufficient floor space, vehicle parking, and inventory levels to offer all of the merchandise and services of a traditional convenience store and that complies with the specifications of a Circle K Store as more fully described in the Business Systems Manuals.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, definitions of terms used in the franchise agreement can be found in two places. Article 1 of the franchise agreement states that capitalized terms have the definitions set forth in Schedule 1 attached to the agreement. Schedule 1 provides definitions for terms such as "Affiliate", "Agreement", "Business System", and "Circle K Store".
Schedule 1 includes definitions for several key terms relevant to the franchise agreement. For example, "Affiliate" refers to any entity that directly or indirectly controls or is controlled by a party, including Circle K Stores Inc. and Alimentation Couche-Tard. "Agreement" means the franchise agreement itself, along with any amendments or exhibits. "Business System" is defined as the methods, techniques, and marks associated with the Circle K brand. "Circle K Store" is defined as a retail convenience store operating under the Circle K name, offering a full range of merchandise and services as described in the Business Systems Manuals.
These definitions are important for a prospective franchisee to understand their rights and obligations under the franchise agreement. Knowing the precise meaning of terms like "Business System" and "Confidential Information" can help a franchisee ensure they are operating the business in compliance with Circle K's standards and protecting the company's proprietary information. Reviewing Schedule 1 and Article 1 carefully is a critical step in understanding the full scope of the Circle K franchise agreement.