Does the lessor need to consent to the use of Circle K marks and signs on the premises?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If you will occupy your Store under a lease negotiated by you with a third party, you must submit the lease to us for prior written approval. Our approval may be conditioned on the following terms and conditions appearing in the lease:
- (1) The initial term, or initial term with renewal terms, must be for at least 10 years, or the term of the Convenience Store Franchise Agreement, whichever is longer.
- (2) The Lessor consents to your use of the Marks and signs as required for a Circle K franchise, and to your operation of a convenience store on the premises.
- (3) You are prohibited from subleasing or assigning all or part of the occupancy rights or extending or renewing the lease without our prior written consent.
- (4) The Lessor must agree to provide to us copies of notices of default and any material breaches given to you under the lease.
- (5) We have the right to enter the premises to make necessary modifications to protect the Marks or the Business System or to cure any default under the Convenience Store Franchise Agreement or the lease.
- (6) We (or someone we designate) have the option, upon default, expiration or termination of the Convenience Store Franchise Agreement, and upon notice to the lessor, to assume your rights under the lease, including the right to assign or sublease. You must furnish us with a copy of any signed lease within 10 days after it is signed.
- (7) If you lose your lease for any reason, including your decision not to enter into a new term, before the end of the 10-year term of your Convenience Store Franchise Agreement, you will be responsible for the payment to TMC of all liquidated damages due under your Convenience Store Franchise Agreement, and the repayment of any unamortized Equipment/Construction Funding, if provided to you by TMC.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 45–52)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if a franchisee leases their store location from a third party, Circle K requires that the lease agreement includes specific terms. One of these terms is that the lessor must consent to the franchisee's use of Circle K's trademarks and signs on the property. This requirement ensures that Circle K maintains brand consistency and control over its image at all franchised locations.
This stipulation protects Circle K's brand identity and ensures that all locations properly display the company's branding. For a prospective franchisee, this means they must ensure that any lease agreement they negotiate includes this consent clause. Failing to do so could result in Circle K not approving the lease.
Furthermore, Circle K needs to approve the lease, and the initial or renewal term must be at least 10 years or the length of the Convenience Store Franchise Agreement, whichever is longer. The lease must also include clauses preventing subleasing or assignment without Circle K's written consent, obligating the lessor to provide Circle K with default notices, granting Circle K the right to enter the premises for modifications or to cure defaults, and giving Circle K the option to assume the lease upon termination of the franchise agreement. These requirements are in place to protect Circle K's interests and ensure the continued operation of the franchise, even in the event of franchisee default or termination.