factual

Are the remedies outlined in the Circle K agreement exclusive, or are they cumulative with other rights and remedies?

Q: Are the remedies outlined in the Circle K agreement exclusive, or are they cumulative with other rights and remedies?

- 12. Remedies and Attorneys' Fee. All rights and remedies of Franchisor and of Franchisee under this Agreement shall be cumulative and none shall exclude any other right or remedy allowed at law or in equity. Nothing herein shall bar Franchisor's right to obtain injunctive relief against threatened conduct that will cause a loss or damage, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. The nonprevailing party or parties shall pay the prevailing party's fees in any proceeding to enforce the terms and conditions of this Agreement. Source: Item 23 — RECEIPTS (FDD pages 100–359)

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Remedies and Attorneys' Fee. All rights and remedies of Franchisor and of Franchisee under this Agreement shall be cumulative and none shall exclude any other right or remedy allowed at law or in equity. Nothing herein shall bar Franchisor's right to obtain injunctive relief against threatened conduct that will cause a loss or damage, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. The nonprevailing party or parties shall pay the prevailing party's fees in any proceeding to enforce the terms and conditions of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 100–359)

What This Means (2025 FDD)

According to the 2025 Circle K Franchise Disclosure Document, the rights and remedies available to both Circle K and the franchisee are cumulative. This means that neither party is limited to only the remedies specified in the franchise agreement. They can also pursue any other rights or remedies available under the law or in equity.

Specifically, Circle K retains the right to seek injunctive relief against any actions that threaten to cause loss or damage. This allows Circle K to take immediate legal action to prevent potential harm, such as a franchisee violating brand standards or misusing confidential information. Additionally, the agreement stipulates that the non-prevailing party in any legal proceeding to enforce the agreement's terms and conditions will be responsible for paying the prevailing party's legal fees. This provision can act as a deterrent against frivolous lawsuits and ensures that the party in the right is not unduly burdened by legal costs.

For a prospective Circle K franchisee, this clause offers a degree of protection, ensuring that they have access to all available legal avenues if Circle K breaches the agreement. However, it also means that the franchisee could be responsible for Circle K's legal fees if they lose a dispute. Therefore, franchisees should fully understand their obligations under the agreement and seek legal counsel if they believe Circle K is in breach of contract.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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