What does the Circle K Franchisee agree to indemnify the Franchisor Parties against?

According to the 2025 Circle K Franchise Disclosure Document, the franchisee agrees to indemnify, defend, and hold the Franchisor Parties harmless from any liability, damage, injury, or loss, including attorney's fees and all costs, that the Franchisor Parties may incur. This indemnification covers issues arising out of or relating to three specific areas.

First, the indemnification applies to matters related to the Franchise Agreement itself. This means if any claims or disputes arise directly from the terms and conditions outlined in the agreement, the franchisee is responsible for protecting the franchisor. Second, the franchisee must indemnify the franchisor for issues related to the operation of the Circle K store at the authorized location, both before and through the effective date of the agreement. This is a broad requirement that covers any operational liabilities.

Third, the franchisee is responsible for indemnifying the franchisor against any losses resulting from the franchisee's breach of the Franchise Agreement. This clause ensures that if the franchisee violates the terms of the agreement, they will bear the financial responsibility for any resulting damages or legal costs incurred by Circle K. This indemnification clause is a standard practice in franchising, designed to protect the franchisor from liabilities caused by the franchisee's actions or inactions.