What is the 'Notice Date' in the context of a Circle K franchise's third-party fuel supply arrangement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
If at the time you enter into a Franchise Agreement with us, you are subject to a third-party fuel supply arrangement to sell at the Franchised Location third-party motor fuel, we will have a right (but not an obligation) to begin supplying Circle K branded fuel to you upon expiration of the third-party fuel supply arrangement (the "Franchisor Fuel Supply Right"). You will be required to provide written notice of the third-party fuel supply arrangement's expiration (the "Expiration Notice") to us at least six months prior to
the expiration of such third-party fuel arrangement (the date of such Expiration Notice, the "Notice Date"). If, prior to the Notice Date, you have secured a new bona fide written offer from a reputable third-party fuel supplier setting forth fuel supply terms for the Franchised Location that are binding on the offeror (a "Third-Party Fuel Offer"), you will be required to provide to us a copy of the Third-Party Fuel Offer (including related documentation) together with the Expiration Notice.
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, the 'Notice Date' is specifically defined in relation to a franchisee's existing third-party fuel supply arrangement. If a franchisee has an agreement with another fuel supplier when they join the Circle K system, Circle K has the right, but not the obligation, to become the fuel supplier when that existing agreement expires.
The 'Notice Date' is the date the franchisee provides written notice to Circle K about the expiration of their current third-party fuel supply arrangement. This written notice, called the 'Expiration Notice,' must be given to Circle K at least six months before the third-party fuel supply arrangement expires. This six-month window allows Circle K to decide whether they want to exercise their right to supply fuel to the franchise location.
Furthermore, if the franchisee receives a legitimate written offer from another third-party fuel supplier before the 'Notice Date,' they must provide Circle K with a copy of this offer along with the Expiration Notice. This allows Circle K to potentially match the offer if they choose to become the fuel supplier. Understanding the 'Notice Date' is crucial for franchisees with existing fuel supply agreements as it dictates the timeline for informing Circle K and potentially negotiating future fuel supply terms.