What is Circle K's obligation when terminating the agreement with notice?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of termination of this Agreement or Purchaser's right to participate in the Credit Card Program, TMC or its designee will continue to purchase credit card sales invoices from Purchaser for a period of 10 days following termination; provided the credit card sales invoices submitted by Purchaser are for transactions at the Premises that occurred prior to the date of termination and otherwise comply with the terms of this Agreement. For avoidance of doubt, Purchaser's repurchase obligations set forth herein will also continue beyond the date of termination. Termination of this Agreement or the Credit Card Program will not affect the rights or obligations of either party under this Agreement that may have arisen or accrued prior to the date of termination.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Circle K's obligations upon termination with notice primarily involve the handling of credit card sales invoices within the Credit Card Program. Specifically, if Circle K terminates the agreement or a franchisee's right to participate in the Credit Card Program, Circle K or its designee will continue to purchase credit card sales invoices from the franchisee for 10 days following the termination date. This is provided that the credit card sales invoices submitted by the franchisee are for transactions that occurred at the premises before the termination date and comply with the agreement terms.
However, the franchisee's repurchase obligations continue even after the termination date. The termination of the agreement or the Credit Card Program does not affect either party's rights or obligations that arose before the termination date. This ensures that any pending financial matters or responsibilities are resolved according to the terms of the agreement, even after the franchise relationship ends.
It is important to note that this obligation pertains specifically to the Credit Card Program. The FDD does not detail Circle K's broader obligations when terminating the agreement with notice concerning other aspects of the franchise operation. A prospective franchisee should seek clarification from Circle K regarding all obligations and procedures related to termination, including those related to inventory, equipment, and other operational aspects not explicitly covered in this section.