Where in the Circle K franchise agreement can I find details about the store opening process?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
/span>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.
ARTICLE 2 GRANT OF LICENSE
2.1 Non-Exclusive License; Franchised Location; Store Opening. Subject to the terms and conditions herein, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, a non-exclusive license to establish and operate, during the Term, a Circle K Store, in conformity with the Business System, using the Marks (the "License"), at the location described in the Data Sheet attached hereto as Exhibit 1 (the "Franchised Location"). Franchisee agrees that the Store shall be constructed in accordance with the requirements of this Agreement and should be ready
to open within: (i) 1 year after the Effective Date, if the Store is a Conversion Store; or (ii) 2 years after the Effective Date, if the Store is a New Store. A failure to open a Conversion Store within one year or a New Store within two years will entitle Franchisor to immediately terminate this Agreement without Franchisor incurring any liability for such termination. If this Agreement is so terminated, Franchisee must comply with all post-termination obligations set forth herein, including but not limited to the payment of Liquidated Damages.
- 2.2 Franchisor's Reservation of Rights. Except for the limited License granted to Franchisee hereunder, all other rights related to the Business System and the Marks not specifically granted to Franchisee hereunder are expressly reserved by Franchisor and its Affiliates. Franchisee acknowledges that the License granted hereby relates solely to the Franchised Location, affords Franchisee no rights regarding other licenses or locations, and does not give Franchisee any exclusive right to market or sell to any prospective customers or any exclusive right to any territory. Without limiting the generality of the foregoing, Franchisee acknowledges and agrees that Franchisor and its Affiliates have expressly reserved certain rights to the use of the Marks, the Business Systems, the Methods, and Confidential Information in connection with their own convenience store and retailing operations, in connection with licensing the same or similar products or services utilizing the same or similar Marks, or any other trademarks, service marks or names, in connection with the manufacture and sale of products at wholesale and at retail, and in connection with granting such rights to others pursuant to a franchise agreement, some or all of which activities may compete, directly or indirectly, with Franchisee's operation of the Store. Franchisee agrees that it will not in any way interfere with the business operations of Franchisor, its Affiliates or other franchisees. Franchisor has the right to make such changes to the Business System as it deems appropriate, including without limitation, changes to the building appearance and "image" requirements.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, details regarding the store opening process can be found in Article 2, Section 2.1 of the franchise agreement. This section states that the franchisee is granted a non-exclusive license to establish and operate a Circle K store at the location specified in the Data Sheet (Exhibit 1), and the store must be constructed according to the agreement's requirements.
The agreement specifies timeframes for opening the store: one year after the effective date for a Conversion Store and two years for a New Store. Failure to meet these deadlines allows Circle K to terminate the agreement immediately, without incurring liability. If the agreement is terminated, the franchisee must comply with post-termination obligations, including the payment of liquidated damages.
Additionally, Article 7.1 discusses store improvements, fixtures, and equipment, stating that Circle K must approve the site, which must meet their site selection criteria. The store building must conform to approved plans, designs, and equipment specifications. Circle K will provide a typical store floor plan and construction specifications. The franchisee is responsible for bringing the store into compliance with these specifications before the Open Date. Any contractors or architects must be pre-approved by Circle K. The franchisee is responsible for the costs of architectural, engineering, construction, and design services, although Circle K will consult on the design and layout upon request. Failure to meet these construction and furnishing standards may result in termination of the agreement. The Open Date is defined as the date Circle K deems the store to have first opened for business, according to the agreement's terms.