What is the 'Franchised Location' for the Circle K store defined as?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Franchised Location is defined as the location described in the Data Sheet attached as Exhibit 1 to the Franchise Agreement. Circle K grants the franchisee a non-exclusive license to operate a Circle K store at this location, in accordance with the Circle K Business System and using the Circle K Marks.
The franchisee must construct the store according to the agreement's requirements and open it within a specific timeframe. For a Conversion Store, the opening deadline is one year after the Effective Date, while for a New Store, it is two years. Failure to meet these deadlines can result in the termination of the agreement, with the franchisee liable for post-termination obligations, including liquidated damages.
The franchisee is obligated to operate the Circle K store under the Business System and using the Marks, strictly following the agreement's terms. The store must operate under the name "Circle K," and any changes to the name or use of other marks require prior written approval from Circle K. The franchisee cannot operate any other business at the Franchised Location without Circle K's prior written consent. Furthermore, the franchisee cannot sublease, subfranchise, or transfer any rights related to the Franchised Location without Circle K's permission.