What is a Circle K franchisee prohibited from doing that would diminish the value of the Marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
will notify Franchisor of such engagement, which shall be governed by a written contract that includes the same restrictions as in Paragraphs (1) – (9) of section 9.6(c) and imposes reasonable confidentiality obligations and privacy and security controls on the Subprocessor.
- 9.7 Ethical Business Conduct. Franchisee agrees to adhere to good business practices, observing high standards of honesty, integrity, fair dealing and ethical business conduct and good faith in all business dealings with customers, vendors, Franchisee's employees, Franchisor's corporate employees, and all other Circle K franchisees. Franchisee must not engage in deceptive, misleading or unethical practices or conduct that may have a negative impact on the reputation and goodwill associated with the Marks.
- 9.8 Crisis Situations. In the interest of protecting the Circle K brand, the Marks and the Business System, Franchisor has the sole and absolute right to determine a response, including what steps will be taken and what communications will be made, in instances of a Crisis, and Franchisee agrees to comply with and implement Franchisor's directions in response to a Crisis. "Crisis" means an event or development that negatively impacts the Circle K brand or the Business System in such a way that Franchisor determines may cause substantial harm or injury to the Marks, the Business System, or the reputation or image of the Circle K brand.
ARTICLE 10 NON-COMPETITION
10.1 Covenant Not to Compete.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must not engage in any deceptive, misleading, or unethical practices that could negatively impact the reputation and goodwill associated with the Circle K Marks. This means franchisees are expected to maintain high standards of honesty, integrity, and fair dealing in all their business interactions, including those with customers, vendors, employees, corporate staff, and other Circle K franchisees.
To protect the Circle K brand, Marks, and Business System, Circle K retains the sole right to determine the appropriate response in crisis situations. A 'Crisis' is defined as any event that could substantially harm the brand, Business System, or reputation of Circle K. Franchisees must comply with and implement Circle K's directives during such events.
Furthermore, franchisees are required to operate their stores in strict compliance with the terms of the Franchise Agreement, using the Marks as prescribed within the Business System. Franchisees must also avoid interfering with the business operations of Circle K, its affiliates, or other franchisees. This ensures uniformity and protects the brand's image across all locations.