What must a Circle K franchisee do to ensure the renewal of the Motor Fuel Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration of the Term, Licensee will have the option to renew its rights under this Agreement consistent with any renewal option Licensee elects under the terms of its CIRCLE K Franchise Agreement ("Franchise Agreement") governing the Premises (as defined below) (the "Renewal Term") provided Licensee has complied with all of the following conditions:
- (A) Licensee has given TMC written notice of its request for a new license at least six (6) months prior to the expiration of the Term.
Licensee's failure to timely provide written notice to TMC will be deemed a rejection of the option to renew or operate pursuant to a new license.
TMC will not unreasonably withhold its approval of such request for an offer of a new license, provided the conditions set forth in this Section 2 have been satisfied.
(B) Licensee meets TMC's then-current requirements for new licensees.
(C) Licensee has complied in good faith with all material terms and conditions of this Agreement throughout the Term of this Agreement and is not in default of this Agreement or any other agreement with TMC or its affiliates.
(D) TMC and Licensee execute a mutual release of all claims relating to this Agreement subject to any incomplete performance or continuing obligations, unless such releases are prohibited by applicable law.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a licensee has the option to renew their rights under the Circle K Branding Agreement consistent with any renewal option they elect under the terms of their Circle K Franchise Agreement. To do so, the licensee must meet several conditions. First, the licensee must provide TMC Franchise Corporation with written notice of their request for a new license at least six months before the expiration of the current term. Failure to provide this notice on time will be considered a rejection of the renewal option.
In addition to providing timely notice, the licensee must also meet TMC's then-current requirements for new licensees, which could include updated financial or operational standards. The licensee must also demonstrate that they have complied in good faith with all material terms and conditions of the Branding Agreement throughout its term and must not be in default of this agreement or any other agreement with TMC or its affiliates. This implies consistent adherence to Circle K's standards and policies, as well as fulfilling all financial and operational obligations.
Finally, TMC and the licensee must execute a mutual release of all claims related to the Branding Agreement, subject to any incomplete performance or continuing obligations, unless such releases are prohibited by applicable law. Satisfying all these conditions does not guarantee renewal, but TMC will not unreasonably withhold approval of a request for a new license if all conditions are met.