What are the Circle K franchisee's obligations regarding the defense or enforcement of rights to the marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
service marks, logo types, trade styles, designs, signs, symbols, or slogans other than the Marks in connection with the Store. Any unauthorized use of the Marks or the Business System by Franchisee will constitute an infringement of Franchisor's (or its Affiliates') rights and will constitute a material default under this Agreement.
- 4.3 Franchisee's Business Name.
Franchisee will not use any of the Marks or anything similar thereto, in or as part of its corporate, sole proprietorship, partnership or other legal entity name.
Franchisee will at all times hold itself out to the public as an independent contractor operating the Store pursuant to a license from Franchisor.
- 4.4 Substitution of Marks.
Franchisor has the right to modify, or discontinue the use of, any Marks or to substitute different trade names, service marks, trademarks, logos, designs, and commercial symbols as the Marks used to identify the Store or in connection with the operation of the Store.
Subject to Section 4.5, upon Franchisor's written instructions, Franchisee will, at its expense, and within the time period specified by Franchisor, make all modifications to the Marks displayed or otherwise used at the Franchised Location as required by Franchisor, and if so directed by Franchisor, Franchisee will cease using all discontinued Marks and commence using the "new" Marks.
- 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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the brand's trademarks. The franchisee cannot use any unauthorized marks or business systems, as this would infringe upon Circle K's rights and constitute a breach of the agreement. Franchisees also cannot use Circle K's marks as part of their legal entity name and must present themselves as independent contractors operating under a license from Circle K. Franchisees are expected to use good business practices and ethical conduct that does not negatively impact Circle K's brand reputation. Franchisees must comply with the franchisor's directions during crisis situations to protect the Circle K brand.
Circle K retains the right to modify or discontinue any marks and substitute them with different trademarks or logos. Franchisees are obligated to implement these changes at their own expense upon written instruction from Circle K. This includes making necessary modifications to the marks displayed at the franchised location and ceasing the use of discontinued marks.
Circle K maintains the sole and absolute right to determine the response to any crisis that may negatively impact the Circle K brand, marks, or business system. The franchisee is obligated to comply with and implement Circle K's directions in response to such a crisis. Franchisees are also expected to adhere to high standards of honesty, integrity, fair dealing, and ethical business conduct in all their dealings with customers, vendors, employees, and other franchisees to protect the goodwill associated with the marks.