What is the 'Franchised Location' defined as in the Renewal Addendum for Circle K?
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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the 'Franchised Location' is defined within the franchise agreement as the specific location described in the Data Sheet attached as Exhibit 1. This location is where the franchisee is granted a non-exclusive license to operate a Circle K store during the term of the agreement.
The franchisee must construct the store according to the agreement's requirements and open it within a specific timeframe: one year for a Conversion Store or two years for a New Store, starting from the Effective Date. Failure to meet these deadlines can result in the termination of the agreement, with the franchisee liable for post-termination obligations, including potential liquidated damages.
Furthermore, the franchisee cannot change the Franchised Location without prior written approval from Circle K. To relocate, the franchisee must submit a written request detailing the proposed new location and reasons for relocation. Circle K will then make a decision within 60 days. If approved, the franchisee bears all relocation costs and must pay Circle K a relocation fee equal to 50% of the then-current initial franchise fee. Circle K also reserves the right to require the franchisee to execute the current franchise agreement form in connection with the relocation approval.