What are Circle K franchisees required to purchase under the Motor Fuel Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Circle K Franchise Disclosure Document, franchisees are required to purchase specific items under the Motor Fuel Agreement. Specifically, franchisees must purchase all items containing Circle K's Proprietary Marks, including all signage, from Circle K's approved suppliers. Circle K will provide franchisees with a list of approved suppliers, which Circle K may modify from time to time.
This requirement ensures brand consistency across all Circle K locations. By mandating the use of approved suppliers for items bearing the Proprietary Marks, Circle K maintains control over the quality and appearance of its branding. This protects the brand's image and reputation.
For a prospective Circle K franchisee, this means they will not be able to source signage or other branded items independently. They must purchase these items from the suppliers approved by Circle K. While this may limit the franchisee's choice and potentially impact costs, it also ensures that the branding meets Circle K's standards. Franchisees should carefully review the list of approved suppliers and understand the associated costs before entering into the agreement.
Furthermore, Circle K retains the right to substitute, change, or modify the Proprietary Marks during the term of the agreement. Franchisees must comply with any such changes, which may require them to purchase new signage or other branded items to reflect the updated marks. This is a crucial point for franchisees to consider, as it could involve additional expenses during the franchise term.