Does the Circle K franchise agreement specify any requirements for the third-party fuel supplier offering a Third-Party Fuel Offer?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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If at the time you enter into a Franchise Agreement with us, you are subject to a third-party fuel supply arrangement to sell at the Franchised Location third-party motor fuel, we will have a right (but not an obligation) to begin supplying Circle K branded fuel to you upon expiration of the third-party fuel supply arrangement (the "Franchisor Fuel Supply Right"). You will be required to provide written notice of the third-party fuel supply arrangement's expiration (the "Expiration Notice") to us at least six months prior to
the expiration of such third-party fuel arrangement (the date of such Expiration Notice, the "Notice Date"). If, prior to the Notice Date, you have secured a new bona fide written offer from a reputable third-party fuel supplier setting forth fuel supply terms for the Franchised Location that are binding on the offeror (a "Third-Party Fuel Offer"), you will be required to provide to us a copy of the Third-Party Fuel Offer (including related documentation) together with the Expiration Notice.
If we wish to exercise the Franchisor Fuel Supply Right, we will deliver written notice to that effect ("Notice of Exercise") to you within 30 days of our receipt of the Expiration Notice.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 78–79)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, if a franchisee has a third-party fuel supply arrangement when entering into the Franchise Agreement, Circle K has the right to begin supplying Circle K branded fuel upon the expiration of that arrangement. The franchisee must provide written notice of the expiration at least six months prior to the expiration date. If the franchisee secures a new offer from a third-party fuel supplier, called a "Third-Party Fuel Offer", before the notice date, they must provide Circle K with a copy of this offer, including all related documentation, along with the expiration notice.
Circle K has the option to match the terms of the Third-Party Fuel Offer. If Circle K chooses not to exercise its right to supply fuel, the franchisee's acceptance of the Third-Party Fuel Offer is subject to Circle K's prior written approval of the fuel brand.
In summary, Circle K retains control over fuel supply either by matching third-party offers or approving the fuel brand if they decline to supply the fuel themselves. The Third-Party Fuel Offer must be from a reputable supplier and must set forth binding fuel supply terms for the location.