Does the Circle K franchisee have an exclusive right to use the Marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the limited License granted to Franchisee hereunder, all other rights related to the Business System and the Marks not specifically granted to Franchisee hereunder are expressly reserved by Franchisor and its Affiliates.
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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to the franchisee. This means that while franchisees have the right to operate a Circle K store using the brand's trademarks and business system, this license is specifically limited to the franchised location.
The agreement explicitly states that franchisees do not receive any exclusive rights to market or sell to prospective customers, nor do they have exclusive territorial rights. Circle K retains all other rights related to the business system and trademarks that are not specifically granted to the franchisee. This allows Circle K and its affiliates to operate their own convenience stores, license similar products or services under the same or similar trademarks, manufacture and sell products at wholesale and retail, and grant franchise rights to others, even if these activities compete directly or indirectly with the franchisee's store.
In practical terms, a Circle K franchisee should be aware that the franchisor can establish other Circle K locations or authorize other franchisees to operate nearby, potentially impacting their customer base and sales. The franchisee cannot claim any exclusive territory or prevent Circle K from engaging in activities that might compete with their store. This non-exclusive arrangement is a common practice in the franchise industry, allowing franchisors to expand their brand presence and maintain flexibility in their business operations.