Where must the Circle K franchisee purchase all motor fuel requirements from?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) TMC hereby grants Licensee the non-exclusive right to use the CIRCLE K® trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, images and/or other brand identifications identified on Exhibit A to this Agreement (the "Proprietary Marks") at the Premises and solely in connection with the advertising, marketing, and resale of motor fuel products including, without limitation, motor gasoline, on and off road diesel fuel and other specialty fuel (collectively, the "Products") all of which must meet TMC's standards and requirements.
(b) Licensee shall, at Licensee's sole expense, comply, and cause the Premises to comply, in full, with TMC's branding, image, and appearance standards, policies, and guidelines set forth in the CIRCLE K Image Guide which TMC may modify from time to time (the "CIRCLE K Image Guide").
Licensee acknowledges, warrants and represents that it has received a copy of the CIRCLE K Image Guide and Licensee understands and agrees that Licensee's failure to comply, in full, with standards, policies, and guidelines set forth in the CIRCLE K Image Guide will cause irreparable harm to TMC, and any such failure shall be a material breach of this Agreement.
Licensee acknowledges and agrees that it is required to purchase all items containing the Proprietary Marks, including all signage, from TMC's approved suppliers.
TMC will provide Licensee with a list of approved suppliers, which list TMC may modify from time to time.
- (c) It is further expressly understood and agreed that TMC will have the right to substitute, change or modify the Proprietary Marks during the Term or any Renewal Term of this Agreement, and Licensee) must comply with any substitution, change or modification.
In the event of such substitution, change or modification, all references to the Proprietary Marks herein shall be deemed to refer to the substituted, changed or modified trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, image standards and/or other brand identifications.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees are required to purchase all items containing Circle K's Proprietary Marks, including all signage, from TMC's approved suppliers. TMC will provide franchisees with a list of approved suppliers, which TMC may modify from time to time. The franchisee must comply with Circle K's branding, image, and appearance standards, policies, and guidelines set forth in the CIRCLE K Image Guide, which TMC may modify from time to time. The franchisee acknowledges that failure to comply with these standards will cause irreparable harm to TMC and will be a material breach of the agreement.
This means that franchisees do not have the freedom to choose their own suppliers for branded items. This ensures brand consistency across all Circle K locations, but it also means that franchisees may not be able to find cheaper alternatives. Franchisees are required to adhere to the CIRCLE K Image Guide, and failure to do so can result in a breach of contract.
Circle K also retains the right to change or modify the Proprietary Marks during the term or any renewal term of the agreement, and the franchisee must comply with any such changes. This gives Circle K significant control over its brand and image, and franchisees must be prepared to adapt to any changes that Circle K makes. Franchisees should carefully review the CIRCLE K Image Guide and the list of approved suppliers to understand the full extent of these requirements.