What is the Circle K licensee's obligation regarding actions that could damage the value of the Proprietary Marks?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Licensee agrees that it will take no action, or otherwise do anything or fail to do anything that will diminish, reduce, injure, dilute, or otherwise damage the value of the Proprietary Marks or other TMC trademarks or identifications.
(f) If Licensee breaches any TMC image or appearance standard Licensee must immediately correct each breach to bring the Premises into full compliance with TMC's standards and requirements.
If Licensee fails to correct any breach within thirty (30) days after Licensee's receipt of written notice of such breach, TMC will have the option (but not the obligation) to correct the breach.
If TMC exercises its option hereunder, Licensee will be required to immediately pay TMC, upon demand, all reasonable expenses incurred by TMC to correct the breach.
Nothing contained in this subparagraph (f) shall be understood or deemed to waive or
modify any of TMC's rights, or any of Licensee's obligations, under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a licensee is prohibited from taking any action that could harm the value of Circle K's Proprietary Marks or other trademarks and identifications. This obligation is in place to protect the brand's reputation and goodwill.
If a Circle K licensee violates any image or appearance standard, they must immediately correct the breach to ensure the premises fully complies with Circle K's standards and requirements. Should the licensee fail to correct the breach within 30 days after receiving written notice, Circle K has the option to correct the breach themselves. If Circle K exercises this option, the licensee is required to immediately pay all reasonable expenses incurred by Circle K to correct the breach upon demand.
This requirement ensures that all Circle K locations maintain a consistent brand image and quality, which is crucial for customer trust and brand recognition. Failure to comply with these standards can result in financial penalties and potential damage to the licensee's relationship with Circle K. Prospective franchisees should carefully review the Circle K Image Guide and understand the importance of adhering to these standards to avoid any breaches and associated costs.