What happens to the Circle K convenience store located at the Premises when the license is assigned?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) This Agreement is personal to Licensee. Licensee's interest in this Agreement shall not be transferred or assigned by Licensee in whole or in part, directly or indirectly, without the prior written consent of TMC and provided the following conditions are satisfied: (i) new Licensee ("Assignee") meets TMC's qualifications, (ii) Assignee signs TMC's current form of branding agreement, (iii) Assignee assumes all obligations under this Agreement, (iv) the CIRCLE K convenience store located at the Premises is also transferred to Assignee in accordance with the assignment conditions set forth in Licensee's Franchise Agreement, (v) any Sublicense Agreements entered into in connection with this Agreement are also transferred to Assignee, (vi) all amounts due TMC are paid in full, and (vii) release signed by Licensee.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if a licensee seeks to assign their interest in the Branding Agreement, the Circle K convenience store located at the Premises must also be transferred to the Assignee. This is contingent upon several conditions being met.
First, the new licensee, or Assignee, must meet Circle K's qualifications. Second, the Assignee must sign Circle K's current form of branding agreement. Third, the Assignee must assume all obligations under the existing agreement. Finally, all amounts due to TMC Franchise Corporation must be paid in full, and the current licensee must sign a release.
This means that a Circle K franchisee cannot simply transfer the branding agreement without also transferring the physical store and ensuring the new operator is fully qualified and compliant with Circle K's standards. This protects Circle K's brand and ensures consistent operation across all locations.