What happens if any part of the Circle K agreement violates a law?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be governed by the laws of Arizona. This Agreement is the entire agreement of the parties relative to this subject and will not be waived, altered or rescinded in whole or in part, except by an express writing by the parties. The provisions of this Agreement are severable and the invalidity or unenforceability of any of them will not affect the remainder of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the provisions of the franchise agreement are severable. This means that if any part of the agreement is found to be invalid or unenforceable, it will not affect the rest of the agreement. The remaining provisions will still be valid and enforceable. This is a fairly standard clause in franchise agreements, designed to protect the overall agreement from being invalidated by a single problematic provision.
For a prospective Circle K franchisee, this clause offers some assurance that the entire agreement will not be thrown out due to a single legal issue. It allows for the possibility of resolving specific issues without jeopardizing the entire franchise relationship. However, it's important to understand that this does not protect a franchisee from all legal challenges. If a core provision of the agreement is deemed invalid, it could still significantly impact the franchisee's rights and obligations.
It is important for a prospective franchisee to have a lawyer review the franchise agreement to understand the full implications of the severability clause and how it might affect their specific circumstances. While the clause aims to maintain the agreement's integrity, the impact of an unenforceable provision can vary depending on its importance to the overall franchise operation. Franchisees should also be aware of their responsibilities to comply with all applicable laws related to their business, including data protection and payment card industry standards.