Is an oral modification of the Circle K agreement binding?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Agreement" means this Franchise Agreement, and all amendments, addenda, modifications, Exhibits or extensions thereto that may be mutually agreed upon by Franchisor and Franchisee.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchise agreement and any amendments, addenda, modifications, exhibits, or extensions must be mutually agreed upon by both Circle K and the franchisee. This implies that any changes to the original agreement require written consent from both parties to be considered valid and binding.
This requirement for written modifications is a standard practice in franchising. It protects both the franchisor and franchisee by ensuring that all changes to the agreement are documented and agreed upon in writing, reducing the potential for misunderstandings or disputes later on. Without written consent, any oral agreements or understandings may not be enforceable.
For a prospective Circle K franchisee, this means it is crucial to obtain written confirmation for any modifications or exceptions to the standard franchise agreement. Verbal promises or agreements made by Circle K representatives should be followed up with a formal written amendment to the franchise agreement to ensure they are legally binding. This protects the franchisee's interests and ensures clarity regarding the terms of the franchise relationship.