What is the permitted use of the franchised location for a Circle K franchisee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Use of Franchised Location; No Subfranchising.
Franchisee agrees to operate the Store under the Business System using the Marks in strict compliance with the terms and conditions of this Agreement.
Franchisee will operate the Store under the name "Circle K" (the "Franchised Name"), and will not change the Franchised Name or use any other marks or names in the Franchised Name, or in any other manner, except with Franchisor's prior written approval.
Franchisee may not operate any other business at the Franchised Location without prior written approval from Franchisor.
Franchisee may not use or attempt to use the Store or the Franchised Location for any purpose other than as permitted hereunder, or separately approved in writing by Franchisor, nor may Franchisee sublease, subfranchise, or transfer (other than in compliance with the terms of this Agreement) to any other person or entity the Store or the Franchised Location's leasehold interest or other rights relating in whole or in part to the Franchised Location.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a franchisee must operate the store under the Circle K Business System, using the brand's marks and in strict compliance with the franchise agreement. The franchisee must operate the store under the name "Circle K" and cannot change this name or use any other marks or names without prior written approval from Circle K.
The franchisee is restricted from operating any other business at the franchised location without obtaining prior written approval from Circle K. Furthermore, the franchisee cannot use the store or franchised location for any purpose other than what is permitted under the franchise agreement or separately approved in writing by Circle K. The franchisee is also prohibited from subleasing, subfranchising, or transferring any rights related to the store or franchised location to another party without complying with the terms of the agreement.
Circle K retains significant control over the use of the franchised location, ensuring that it aligns with the brand's standards and business system. This includes the right to approve any additional businesses operated at the location and strict adherence to the Circle K name and branding. These restrictions are typical in franchising, as they protect brand consistency and prevent unauthorized use of the franchisor's intellectual property. A prospective franchisee should carefully consider these limitations and ensure they are comfortable operating within these guidelines.