factual

Does the Circle K franchise agreement create third-party beneficiary rights for any person or entity?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

FRANCHISOR'S FRANCHISE RELATIONSHIP IS EXCLUSIVELY WITH FRANCHISEE.

NOTHING IN THIS AGREEMENT MAY BE CONSTRUED AS CREATING ANY FRANCHISE OR FRANCHISE RELATIONSHIP WITH THE KEY INDIVIDUAL OR ANY OWNER OF A CORPORATE/ENTITY FRANCHISEE.

Source: Item 22 — CONTRACTS (FDD page 100)

What This Means (2025 FDD)

According to Circle K's 2025 Franchise Disclosure Document, the franchise relationship is exclusively with the franchisee. The franchise agreement explicitly states that nothing within the agreement should be interpreted as creating any franchise or franchise relationship with the Key Individual or any owner of a corporate/entity franchisee. This clarifies that the agreement is solely between TMC Franchise Corporation (Franchisor) and the Franchisee.

This provision is important for prospective franchisees as it confirms that no other party besides the franchisee has rights or obligations under the franchise agreement. This means that a store manager, key individual, or owner of the franchisee entity cannot claim any rights or benefits from the franchise agreement. The franchisee is the only party who can enforce the agreement against Circle K, and vice versa.

This type of clause is common in franchise agreements to ensure clarity and prevent third parties from claiming rights or benefits under the agreement. It protects Circle K from potential claims by individuals who are not direct parties to the agreement. Franchisees should be aware of this provision and understand that their relationship with Circle K is exclusive and does not extend to other individuals or entities associated with their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.