If the Circle K franchisee is a legal entity, what are the requirements for the designated "Key Individual"?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
plicable law prohibits collection of royalty fees on sale of alcoholic beverages from the Store, the definition of Gross Sales will not include any income from the sale of alcoholic beverages.
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- "Guarantor" or "Guarantors" means all persons or entities that execute a Personal Guaranty attached as Exhibit 5.
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- "Key Individual" means (a) Franchisee, if Franchisee is an individual, or (b) an individual designated by Franchisee with the authority and responsibility for the operation and management of the Store and identified by name on the signature page of this Agreement, if Franchisee is a legal entity. The Key Individual must be a person authorized to represent and bind Franchisee in all matters arising under this Agreement (including all related agreements) and all matters relating to the Store.
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- "Marks" means the name "Circle K," and certain other distinctive trademarks, trade names, service marks, copyrights, interior and exterior building designs and specifications (including the unique motif, décor, and color combinations that comprise the trade dress of Circle K Stores), slogans, logos, social media indicators, social media handles and commercial symbols together with all goodwill associated therewith, as identified in the Business Systems Manuals or otherwise by Franchisor in writing.
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Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if the franchisee is a legal entity, they must designate a "Key Individual." This individual is responsible for the store's operation and management and must be named on the signature page of the Franchise Agreement. The Key Individual is authorized to represent and bind the franchisee in all matters related to the agreement and the store.
Furthermore, the Key Individual identified in the Franchise Agreement must be the same individual identified as the "Key Individual" under any Motor Fuel Agreement between the franchisee and Circle K. This ensures consistency and clarity in responsibilities across different agreements.
The Key Individual must complete all required training, and any substitute Key Individual must be pre-approved in writing by Circle K. It is important to note that Circle K's franchise relationship is exclusively with the franchisee, and the agreement should not be construed as creating any franchise relationship with the Key Individual or any owner of a corporate/entity franchisee. This clarifies that the Key Individual acts as a representative of the franchisee entity, not as a direct franchisee themselves.