If a Circle K franchisee secures a Third-Party Fuel Offer, what must they provide to Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If at the time you enter into a Franchise Agreement with us, you are subject to a third-party fuel supply arrangement to sell at the Franchised Location third-party motor fuel, we will have a right (but not an obligation) to begin supplying Circle K branded fuel to you upon expiration of the third-party fuel supply arrangement (the "Franchisor Fuel Supply Right"). You will be required to provide written notice of the third-party fuel supply arrangement's expiration (the "Expiration Notice") to us at least six months prior to
the expiration of such third-party fuel arrangement (the date of such Expiration Notice, the "Notice Date"). If, prior to the Notice Date, you have secured a new bona fide written offer from a reputable third-party fuel supplier setting forth fuel supply terms for the Franchised Location that are binding on the offeror (a "Third-Party Fuel Offer"), you will be required to provide to us a copy of the Third-Party Fuel Offer (including related documentation) together with the Expiration Notice.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 10–16)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if a franchisee has a third-party fuel supply arrangement and secures a new offer from another fuel supplier, they must provide Circle K with specific documentation. Specifically, the franchisee is required to give Circle K a copy of the Third-Party Fuel Offer, including all related documentation, along with written notice of the current fuel supply arrangement's expiration. This notice, called the "Expiration Notice," must be provided to Circle K at least six months before the existing fuel arrangement expires. The date of this notice is referred to as the "Notice Date."
This requirement allows Circle K to decide whether to exercise its right to begin supplying Circle K-branded fuel to the franchisee upon the expiration of the existing third-party agreement. This is referred to as the "Franchisor Fuel Supply Right." By providing the Third-Party Fuel Offer and the Expiration Notice, the franchisee enables Circle K to evaluate the terms of the offer and determine whether it wants to match or improve upon those terms to retain the fuel supply business at the franchise location.
If Circle K decides to exercise its Franchisor Fuel Supply Right, the franchisee will be required to transition to Circle K-branded fuel. If Circle K chooses not to exercise this right, the franchisee's acceptance of the Third-Party Fuel Offer is subject to Circle K's prior written approval of the fuel brand to be offered at the franchised location. This process ensures that Circle K maintains some control over the fuel being sold at its branded locations, even when sourced from a third party.