After the Circle K franchise agreement terminates or expires, does the licensee's obligation to maintain the confidentiality of the Confidential Information continue?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
10. Confidentiality.
- (a) Licensee acknowledges that TMC may be disclosing and transmitting to it certain confidential and proprietary information of TMC, including without limitation guidelines, manuals, methods, policies, procedures, programs, software, firmware, specifications, standards, strategies, and other related information ("Confidential Information") in connection with Licensee's performance of this Agreement. Except where otherwise required by law, Licensee shall: (i) treat and maintain Confidential Information as confidential; (ii) use Confidential Information only for the operation of the Premises under this Agreement; and (iii) restrict disclosure of Confidential Information only to Licensee and its officers, directors employees, contractors or agents who are directly connected with the performance of work and require knowledge of the Confidential Information for Licensee's performance of its obligations hereunder.
- (b) Licensee may not use, or cause or permit to be used by, or disclose to, or cause or permit to be disclosed to, third parties any Confidential Information for purposes other than operating the Premises under this Agreement.
- (c) Licensee acknowledges that any failure to comply with the requirements of this paragraph 10 will cause TMC irreparable injury. The provisions of paragraph 10 will survive the termination or expiration of this Agreement and apply to all Confidential Information disclosed or transmitted to Licensee during the Term or any Renewal Term of this Agreement, whether prior to, during or after the expiration, termination, or nonrenewal of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the licensee's obligation to maintain the confidentiality of Circle K's Confidential Information survives the termination or expiration of the Branding Agreement. This means that even after the agreement ends, the franchisee is still legally bound to protect and not disclose any confidential information they received during their time as a Circle K franchisee.
The Circle K Branding Agreement defines Confidential Information as guidelines, manuals, methods, policies, procedures, programs, software, firmware, specifications, standards, strategies, and other related information. The franchisee must treat this information as confidential, use it only for operating the premises under the agreement, and restrict disclosure to only those within their organization who need it for their work.
This ongoing confidentiality obligation is a standard practice in franchising to protect the franchisor's proprietary business methods and trade secrets. Failure to comply with this requirement can result in legal action from Circle K, as the agreement specifically states that any breach of confidentiality will cause irreparable injury to TMC. Circle K is entitled to seek an injunction and specific enforcement of the confidentiality agreement, in addition to any other available remedies.