What happens if the lease is terminated for a Circle K franchise location?

According to Circle K's 2025 Franchise Disclosure Document, if the lease for a Circle K location is terminated because of a franchisee's default, it constitutes a breach of the franchise agreement. If Circle K assumes control of the location and its business operations, the operation of the business will not be as an agent of the franchisee, and Circle K is not required to account to the franchisee for it.

Following the termination of the franchise agreement, Circle K has specific rights and the franchisee has certain obligations. Circle K can access the franchised location to remove signage and materials with Circle K's marks to ensure compliance. If the franchisee continues to operate a convenience store at the location after termination, they must prominently display a notice for at least six months stating that they are no longer a Circle K franchisee.

If Circle K is the lessor or exercises its purchase right, the franchisee must surrender possession of the location. The franchisee is also responsible for outstanding unpaid obligations accrued before Circle K took control. If Circle K chooses not to take possession, the franchisee must modify the location to prevent confusion with a Circle K business. For twelve months after the agreement's termination, the franchisee is subject to certain post-termination obligations.