What is the Licensee's obligation regarding Circle K's branding, image, and appearance standards as outlined in the Circle K Image Guide?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) TMC hereby grants Licensee the non-exclusive right to use the CIRCLE K® trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, images and/or other brand identifications identified on Exhibit A to this Agreement (the "Proprietary Marks") at the Premises and solely in connection with the advertising, marketing, and resale of motor fuel products including, without limitation, motor gasoline, on and off road diesel fuel and other specialty fuel (collectively, the "Products") all of which must meet TMC's standards and requirements.
- (b) Licensee shall, at Licensee's sole expense, comply, and cause the Premises to comply, in full, with TMC's branding, image, and appearance standards, policies, and guidelines set forth in the CIRCLE K Image Guide which TMC may modify from time to time (the "CIRCLE K Image Guide"). Licensee acknowledges, warrants and represents that it has received a copy of the CIRCLE K Image Guide and Licensee understands and agrees that Licensee's failure to comply, in full, with standards, policies, and guidelines set forth in the CIRCLE K Image Guide will cause irreparable harm to TMC, and any such failure shall be a material breach of this Agreement. Licensee acknowledges and agrees that it is required to purchase all items containing the Proprietary Marks, including all signage, from TMC's approved suppliers. TMC will provide Licensee with a list of approved suppliers, which list TMC may modify from time to time.
- (c) It is further expressly understood and agreed that TMC will have the right to substitute, change or modify the Proprietary Marks during the Term or any Renewal Term of this Agreement, and Licensee) must comply with any substitution, change or modification. In the event of such substitution, change or modification, all references to the Proprietary Marks herein shall be deemed to refer to the substituted, changed or modified trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, image standards and/or other brand identifications.
- (d) Licensee may not use the Proprietary Marks or TMC's name as part of Licensee's corporate name or other name.
- (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.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the licensee is obligated to comply fully, at their own expense, with Circle K's branding, image, and appearance standards, policies, and guidelines as detailed in the Circle K Image Guide, which Circle K may modify periodically. The licensee acknowledges receipt of the Circle K Image Guide and understands that failure to comply fully with these standards constitutes a material breach of the agreement, causing irreparable harm to Circle K. The licensee must purchase all items containing Circle K's proprietary marks, including signage, from Circle K's approved suppliers, and Circle K will provide a list of these suppliers, which it may also modify.
Circle K retains the right to substitute, change, or modify its proprietary marks during the agreement's term, and the licensee must comply with any such changes. All uses of Circle K's proprietary marks must conform to the standards set by Circle K. The licensee may not use Circle K's proprietary marks or name as part of the licensee's corporate or other name and must not take any action that could diminish the value of Circle K's proprietary marks.
If the licensee breaches any Circle K image or appearance standard, they must immediately correct the breach to bring the premises into full compliance with Circle K's standards. If the licensee fails to correct any breach within 30 days after receiving written notice, Circle K has the option to correct the breach, and the licensee will be required to pay all reasonable expenses incurred by Circle K to correct the breach upon demand.
These stipulations are typical in franchising, as maintaining brand consistency and image is crucial for franchise systems. Franchisees should carefully review the Circle K Image Guide and any updates to understand the specific requirements and associated costs to avoid potential breaches of the franchise agreement.