When does the Motor Fuel Agreement terminate for Circle K franchisees?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
spections of the Premises by Seller, and their respective representatives that are required under the Motor Fuel Agreement.
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- ATTORNEY'S FEES. To the fullest extent permitted by law, the prevailing party shall be entitled to all attorneys' fees, costs of suit and reasonable expenses incurred in order to secure, defend or protect the rights inuring to the prevailing party under this Agreement, or to enforce the terms thereof, in addition to any other relief to which the prevailing party may be entitled.
6. TERM; TERMINATION.
- (a) The term of this Agreement ("Term") shall be effective commencing on the Effective Date (as defined on the signature page hereto) and shall remain in effect for the same term (including any extensions or renewals thereof) as the CIRCLE K® Motor Fuel Agreement between Seller and Purchaser entered into concurrently herewith (the "Motor Fuel Agreement"), unless earlier terminated in accordance with the terms of this Agreement.
- (b) Upon the occurrence of an Acceleration Event, Seller shall have the right to terminate this Agreement in its entirety, as further set forth in paragraph 2(d) above. Notwithstanding the termination of this Agreement, Purchaser shall continue to be liable for all amounts owing to Seller under this Agreement, including but not limited to the Total Unforgiven Repayment, as further set forth in paragraph 2 above.
7. CONFIDENTIALITY AGREEMENT.
(a) Purchaser acknowledges and understands that the contents of this Agreement are confidential ("Confidential Information") and that Seller desires that the confidentiality of said contents be maintained. Except where otherwise required by law, Purchaser shall: (i) treat and maintain the Confidential Information as confidential; (ii) restrict disclosure of Confidential Information only to Purchaser and those officers, directors, employees, accountants, or attorneys of Purchaser who require disclosure to advise Purchaser with respect to the Confidential Information or prepare or maintain Purchaser's financial records and are directly connected with providing such advice or preparing or maintaining Purchaser's financial records; and (iii) not disclose any Confidential Information to any other person not permitted hereunder including, without limitation, any competitor or other person that Purchaser reasonably knows to be a competitor, of Seller.
(b) Purchaser acknowledges that Seller would be irreparably injured if Purchaser commits a breach of any of its obligations under this paragraph 7.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Motor Fuel Agreement's termination is tied to the agreement's term and any potential early termination. Specifically, the term of the agreement is effective commencing on the Effective Date and remains in effect for the same term (including any extensions or renewals) as the Circle K Motor Fuel Agreement, unless earlier terminated in accordance with the terms of the agreement.
An Acceleration Event can trigger the seller's right to terminate the agreement. However, even if the agreement is terminated, the purchaser remains liable for all outstanding amounts owed to the seller, including the Total Unforgiven Repayment. This means that a Circle K franchisee's obligations may extend beyond the termination date under certain circumstances.
Additionally, the termination provisions of the Franchise Agreement are incorporated into the Motor Fuel Agreement, meaning that the agreement can be terminated if the purchaser fails to cure a default within 30 days of receiving a notice of default. Reasons for default include failing to make timely payments within 5 days of notice, defaulting on other obligations within the agreement, failing to purchase at least 75% of the minimum volume requirements in the Commodity Schedules, or failing to maintain adequate inventory of motor fuel grades to meet customer demand. Upon expiration or earlier termination, the purchaser must comply with all post-termination obligations in the Franchise Agreement, and the seller has the right to purchase the Business Assets as defined in the Franchise Agreement.