If mediation fails to resolve a dispute with Circle K, what is the next step?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If not resolved by mediation and except as qualified below, any dispute between TMC and Licensee or their respective affiliates arising under, out of, in connection with or in relation to this Agreement or the parties' relationship must be submitted to binding arbitration under the authority of the Federal Arbitration Act and in accordance with the Center for Public Resources Rules Non-Administered Arbitration of Business Disputes then in effect.
Any arbitration must be on an individual basis and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any other claim or any other proceeding involving third parties.
In the event a court determines that this limitation on joinder of or class action certification of claims is unenforceable, then this entire commitment to arbitrate will become null and void and the parties must submit all claims to the jurisdiction of the courts.
The arbitration must take place in Maricopa County, Arizona (or the county in which TMC's headquarters are located at the time arbitration is demanded).
The arbitrator must follow the law and not disregard the terms 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, if mediation does not resolve a dispute, the next step is binding arbitration. Any dispute between TMC Franchise Corporation and the Licensee (franchisee) must be submitted to binding arbitration under the Federal Arbitration Act, following the Center for Public Resources Rules Non-Administered Arbitration of Business Disputes. This arbitration is to be conducted on an individual basis, without class action claims.
The arbitration must occur in Maricopa County, Arizona, or the county where TMC's headquarters are located when arbitration is demanded. The arbitrator is required to follow the law and the terms of the Circle K Branding Agreement.
However, there is a condition: if a court determines that the limitation on joining claims or class action certification is unenforceable, the agreement to arbitrate becomes void, and all claims must be submitted to the courts. This clause ensures that franchisees and Circle K have a structured method for resolving disputes outside of court, while also specifying the legal framework and location for such proceedings.