Does the Circle K Franchisee have any rights regarding other licenses or locations beyond the Franchised Location?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 limited license specifically for the franchised location. This means the franchisee's rights are restricted to that particular Circle K store and location. The franchisee has no rights to other licenses or locations beyond the scope of the agreement for their specific store.
Circle K expressly reserves all other rights related to the Business System and the Marks that are not specifically granted to the franchisee. This includes the use of the Marks, Business Systems, Methods, and Confidential Information in connection with their own convenience store and retailing operations. Circle K also retains the right to license similar products or services using the same or similar Marks, manufacture and sell products at wholesale and retail, and grant such rights to others via franchise agreements. These activities may potentially compete with the franchisee's store.
The franchisee is also restricted from operating any other business at the Franchised Location without prior written approval from Circle K. Furthermore, the franchisee cannot sublease, subfranchise, or transfer the store or the Franchised Location's leasehold interest to anyone else, except in compliance with the terms of the franchise agreement. The franchisee must operate the Store under the Business System using the Marks in strict compliance with the agreement's terms and conditions.
If a franchisee wishes to relocate their Circle K store, they must obtain prior written approval from Circle K. The franchisee needs to submit a written request detailing the proposed new location and the reasons for the relocation. Circle K will then evaluate the request and make a decision within sixty days. If the relocation is approved, the franchisee is responsible for all costs associated with the move and must pay Circle K a relocation fee equal to 50% of the then-current initial franchise fee. Circle K also reserves the right to require the franchisee to execute the then-current form of franchise agreement in connection with the relocation.