Is a Circle K franchisee allowed to contest TMC's rights to the Circle K Marks?

According to Circle K's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from contesting the rights to Circle K's trademarks, trade secrets, or its proprietary business system. This restriction is a standard practice in franchising, as the brand's trademarks and business system are critical assets.

The FDD states that Circle K's parent company, Circle K Stores Inc., owns the Circle K Marks and licenses them to TMC (likely Trademark Company). TMC then sublicenses the Circle K Marks to franchisees. This licensing structure ensures that franchisees can legally operate under the Circle K brand.

This means that as a Circle K franchisee, you must immediately notify Circle K if you become aware of any infringement or challenge to the use of their Marks. Circle K retains the right to take any action it deems appropriate to manage and resolve disputes concerning the Marks. While franchisees can hire their own attorney to defend themselves in trademark actions, they are responsible for their own legal expenses unless the claim arises directly from their compliant use of the Marks under the franchise agreement. In that specific case, Circle K will defend, indemnify, and hold the franchisee harmless from any losses.