What is the Circle K Franchisee acknowledging regarding the License granted to them in the Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the franchisee acknowledges several key limitations and conditions regarding the license granted to them. The license is specifically for the franchised location and does not extend to other licenses or locations. This means a franchisee cannot assume that the rights granted for one Circle K store apply to any other potential locations they might be interested in.
Furthermore, the franchisee acknowledges that the license does not provide any exclusive rights to market or sell to prospective customers, nor does it grant any exclusive territorial rights. This implies that Circle K can license other franchisees or operate its own stores in the same area, potentially creating competition for the franchisee's store. Circle K and its affiliates retain all rights to the Business System and the Marks that are not specifically granted to the franchisee.
Circle K also reserves the right to use the Marks, Business Systems, Methods, and Confidential Information for its own convenience store and retailing operations, for licensing similar products or services, for manufacturing and selling products at wholesale and retail, and for granting such rights to others through franchise agreements. These activities may directly or indirectly compete with the franchisee's store. The franchisee agrees not to interfere with the business operations of Circle K, its affiliates, or other franchisees. This reinforces that Circle K maintains broad control over its brand and business system, and franchisees must operate within those established parameters without impeding the operations of the wider Circle K network.