What is the geographic scope of the Maryland Addendum to the Circle K Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO FRANCHISE AGREEMENT FOR THE STATE OF MARYLAND
This Addendum shall pertain to franchises sold in the state of Maryland and shall be for the purpose of complying with Maryland statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement shall be amended as follows:
- The following sentence is added at the end of Article 5.1 of this Agreement:
Based upon our financial condition, the Maryland Securities Commissioner has imposed a fee deferral requirement. Therefore, you will not be required to pay the initial fees due to us and/or our affiliates, including the Initial Franchise Fee and any other fees or costs, until we have completed all our pre-opening obligations to you and you begin operating your franchise business.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the Maryland Addendum to the Franchise Agreement pertains specifically to franchises sold in the state of Maryland. This addendum is designed to ensure compliance with Maryland's statutes and regulations related to franchising.
The addendum explicitly states that it applies to franchises sold within Maryland, indicating that its provisions are only relevant to franchisees operating Circle K stores in that state. This ensures that the franchise agreement adheres to Maryland-specific legal requirements.
One notable provision in the Maryland Addendum addresses initial fees. Due to Circle K's financial condition, the Maryland Securities Commissioner has imposed a fee deferral requirement. Franchisees in Maryland are not required to pay initial fees, including the Initial Franchise Fee, until Circle K has fulfilled all pre-opening obligations and the franchisee begins operating their Circle K business.
Additionally, the addendum outlines specific rights and protections for Maryland franchisees under the Maryland Franchise Registration and Disclosure Law, including the ability to bring lawsuits in Maryland for claims arising under that law and stipulations regarding waivers and disclaimers in franchise-related documents.