What obligations of the Franchisee must the proposed transferee expressly assume in writing when transferring a Circle K franchise?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The proposed transferee will have expressly assumed in writing all of the obligations of Franchisee and executed all agreements with Franchisor or its Affiliates as required of Franchisee, appointed a Store Manager, assumed all other agreements pertaining to the Store (and all third parties to such agreements will have consented in writing to such assumptions), complied with all applicable provisions of this Agreement, and will have executed the Guaranty attached hereto.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a proposed transferee must expressly assume in writing all of the obligations of the franchisee. This includes executing all agreements with Circle K or its affiliates as required of the franchisee.
Additionally, the transferee must appoint a store manager and assume all other agreements pertaining to the store. Consent in writing from all third parties to such agreements must be obtained. The transferee must also comply with all applicable provisions of the franchise agreement and execute the guaranty attached to the agreement.
In practical terms, this means that anyone buying a Circle K franchise must be prepared to step into the shoes of the original franchisee completely. They must be willing to take on all existing contractual obligations, ensure proper management is in place, and adhere to all the rules and regulations set forth by Circle K. This protects Circle K by ensuring that new franchisees are fully committed to upholding the standards and agreements of the franchise system.