How long does Circle K have to provide a 'Notice of Exercise' after receiving the Expiration Notice from a franchisee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If we wish to exercise the Franchisor Fuel Supply Right, we will deliver written notice to that effect ("Notice of Exercise") to you within 30 days of our receipt of the Expiration Notice. Upon delivery of the Notice of Exercise, we and you will then work together to accomplish a smooth transition of the fuel supply at the Franchised Location from the third-party supplier to us, and in connection therewith, we and you will enter into, as soon as reasonably practicable: (i) our standard form of franchise agreement for the operation of the Other Circle K Franchised Outlet (i.e., a combined retail convenience store and motor fuel business operating under the Circle K trade name and service marks and the Circle K business system) (such franchise agreement, which Circle K Business Franchise Agreement will replace and supersede your existing Franchise Agreement; provided, that you will not be required to pay an Initial Franchise Fee, and (ii) all related agreements, including, without limitation, a Motor Fuel Supply Agreement then-offered by us, pursuant to which we will supply Circle K branded fuel to you at the Franchised Location, in accordance with the terms included in our then-current Franchise Disclosure Document for the Other Circle K Franchised Outlets, provided, that if you have timely presented to us a Third-Party Fuel Offer as described above, the Motor Fuel Supply Agreement will be revised to include substantially the same price and delivery terms as such Third-Party Fuel Offer. You acknowledge that the Circle K Business Franchise Agreement may include terms and conditions (including fees, funding and requirements related to technology and reporting) that may be materially different from the terms and conditions of the Franchise Agreement.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 10–16)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, if Circle K wishes to exercise its Franchisor Fuel Supply Right, it must deliver a written 'Notice of Exercise' to the franchisee within 30 days of receiving the franchisee's 'Expiration Notice'.
Upon delivering this notice, Circle K and the franchisee will collaborate to ensure a smooth transition of the fuel supply at the franchised location from the existing third-party supplier to Circle K. As part of this transition, both parties will enter into Circle K's standard franchise agreement for operating a combined retail convenience store and motor fuel business under the Circle K brand. This new franchise agreement will replace the existing one, and the franchisee will not be required to pay an initial franchise fee.
In addition to the franchise agreement, Circle K and the franchisee will also enter into related agreements, including a Motor Fuel Supply Agreement. This agreement will stipulate that Circle K will supply Circle K branded fuel to the franchisee at the location, following the terms outlined in Circle K's current Franchise Disclosure Document for Other Circle K Franchised Outlets. However, if the franchisee has already presented a Third-Party Fuel Offer, the Motor Fuel Supply Agreement will be revised to include substantially the same price and delivery terms as that offer. Franchisees should be aware that the new Circle K Business Franchise Agreement may contain terms and conditions, including those related to fees, funding, technology, and reporting, that differ significantly from the original Franchise Agreement.