How long does a Circle K franchisee have to remedy a material breach of the agreement after receiving notice?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee fails, refuses, or neglects to promptly pay when due any monies owing to Franchisor or any of its Affiliates, or if Franchisee fails to satisfy any third-party obligations with respect to the operation of the Store, Franchisee must remit such monies to Franchisor or satisfy such third-party obligations, as the case may be, within five (5) days after receiving notice from Franchisor of the same.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, a franchisee has five days to remit monies owed to Circle K or satisfy third-party obligations after receiving notice from Circle K regarding non-payment of fees.
However, the FDD also states that Circle K may terminate the agreement immediately without providing an opportunity to cure for certain material breaches. These breaches include providing materially false or misleading information, abandonment of the store, misconduct that reflects unfavorably on the Business System, or multiple defaults.
Prospective Circle K franchisees should carefully review the franchise agreement, particularly Article 14, to fully understand the conditions that constitute a material breach and the corresponding cure periods or lack thereof. Understanding these conditions is crucial for maintaining compliance and avoiding potential termination of the franchise agreement.