What happens to the Business Assets upon termination of the Circle K agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
For avoidance of doubt, upon the expiration of the Term hereof or upon earlier termination hereof, Purchaser shall comply with all post-termination/post-expiration obligations set forth in the Franchise Agreement, and Seller shall have the right to purchase the Business Assets (as defined in the Franchise Agreement) pursuant to the terms of the Franchise Agreement.
Termination Date of this Agreement, Franchisee shall immediately:
- Return of Operations Manual; Other Post-Termination Obligations. Beginning on the
(a) Cease any and all use of the Circle K trademarks and business system;
- (b) Return to Franchisor the Circle K Operating Manual and any other manuals, advertising materials, and any other proprietary information that Franchisor has provided to Franchisee for the operation of the Store;
- (c) Cease any and all use of, and return to Franchisor, the "Software," as defined in the Electronic Point of Sale and Software Agreement, and shall otherwise comply with Franchisee's post-term obligations as set forth in said Agreement;
- (d) Refrain from holding itself out as a present or former Circle K Franchisee; and,
- (e) Otherwise comply with Franchisee's post-term obligations as set forth in Section 14.7 of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, upon the expiration or termination of the Motor Fuel Agreement, Circle K has the right to purchase the Business Assets as defined in the Franchise Agreement.
Additionally, upon termination of the Circle K agreement, the franchisee must cease all use of Circle K trademarks and the business system. The franchisee is also required to return the Circle K Operating Manual, any other manuals, advertising materials, and any other proprietary information provided by Circle K. The franchisee must also cease using and return the "Software" as defined in the Electronic Point of Sale and Software Agreement.
Furthermore, the franchisee must refrain from presenting themselves as a current or former Circle K franchisee and comply with all post-termination obligations as outlined in Section 14.7 of the Franchise Agreement. These measures ensure that the franchisee no longer represents the Circle K brand and that all proprietary information is returned to Circle K, maintaining brand consistency and protecting confidential business practices.