What does the Circle K franchisee agree to do regarding indemnification of the Franchisor Parties?

According to Circle K's 2025 Franchise Disclosure Document, the franchisee agrees to indemnify, defend, and hold the Franchisor Parties harmless. This means the franchisee is responsible for protecting Circle K from any liability, damage, injury, or loss, including attorneys' fees and all costs, that the Franchisor Parties may incur.

The franchisee's indemnification obligations extend to issues arising out of or relating to three specific areas. First, the Franchise Agreement itself. Second, the operation of the Circle K store at the authorized location, covering any time before, on, and after the effective date of the agreement. Third, any breach of the Franchise Agreement by the franchisee.

This indemnification clause places a significant responsibility on the franchisee. It means that if a customer sues Circle K due to an incident at the franchisee's store, or if Circle K incurs legal costs due to the franchisee's actions, the franchisee is responsible for covering those costs. This is a common provision in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's operation of the business. Prospective franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and risk management practices in place.