What is the required action of the Circle K franchisee regarding advertising and promotional programs designated by the franchisor?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ee (from the Local and Regional Promotional Fees) any pre-approved expenditures in the amount of $.50 for each $1.00 Franchisee spends, up to a maximum reimbursement of $4,000.
- 6.3 Advertising and Customer Goodwill Programs. Franchisor may, from time to time, initiate sales, loyalty, and marketing programs intended to promote and enhance the business of all Circle K Stores, and Franchisee will participate fully therein according to the terms, standards and requirements of the programs as from time to time established by Franchisor, unless Franchisee's participation is otherwise excused in writing by Franchisor. Such programs may include, by way of illustration and not of limitation, gift certificates, coupons, catalog and other direct mail, telemarketing, interchange programs, combination selling programs, or advertising in the yellow pages with other franchisees. The initiation of any such program will not obligate Franchisor to continue the program for any specific time period and Franchisor may modify or discontinue any such program at any time. Franchisee agrees that it may be required to purchase, at its own cost, equipment, supplies and materials and/or license software as part of its participation in these programs, and Franchisee may be required to complete training related to such programs. Upon termination of Franchisee's participation in any program, Franchisee must return to Franchisor any materials related to the program previously provided to Franchisee. In addition, Franchisor may, from time to time, develop advertisements or promotions for the use in radio or television media. Franchisor may make such advertisements or promotions available to Franchisee upon Franchisee's request; provided, that Franchisee will be solely responsible to place the advertisement or promotion and pay for media costs and the costs of voice-over, footage or other costs to identify the location of the Store.
- 6.4 Franchisee's Advertising. All advertising, regardless of the form of media used for advertising, including electronic media, social media, press releases, and the internet, done by Franchisee will be subject to Franchisor's prior written approval with respect to form and content, to be obtained in the following manner: copy of the proposed advertising or press release (specifying the anticipated publication date and the medium) will be submitted to Franchisor at least thirty (30) days prior to the anticipated publication date. Franchisor will have thirty (30) days after receiving such copy to approve or disapprove it. A disapproved copy may be re-submitted with corrections, and Franchisor will have ten (10) additional business days to approve or
disapprove any such re-submitted copy. Franchisor's failure to respond within the designated period will be deemed an approval; provided, however, that Franchisor's approval of specified advertising (affirmatively or by failure to object) will not preclude Franchisor from subsequently disapproving the same or similar copy.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must fully participate in sales, loyalty, and marketing programs initiated by Circle K to promote and enhance the business of all Circle K stores, unless the franchisee is excused in writing by Circle K. These programs may include gift certificates, coupons, direct mail, telemarketing, interchange programs, combination selling programs, or advertising in the yellow pages with other franchisees.
Circle K also reserves the right to form an advertising council composed of elected franchisees. If such a council is formed and a franchisee is elected, the franchisee must abide by all rules and regulations promulgated by the council and regularly participate in its meetings. Additionally, Circle K may establish or designate advertising cooperative associations and/or local marketing groups (LMGs) comprised of franchisees in a specific geographic territory. If an LMG is formed in the geographic region where the franchisee's store is located, the franchisee must participate in the LMG. All advertising and promotions conducted by the LMG must be pre-approved in writing by Circle K. All Circle K stores owned by Circle K or its affiliates within that geographic area will also join the LMG on the same terms and conditions as the franchisee.
Furthermore, franchisees are required to conduct a grand opening advertising and promotional campaign within 100 days of opening their store, unless exempted by Circle K. Circle K will assist with developing and carrying out the campaign and provide grand opening materials. All grand opening activities and related publicity and promotional materials must receive Circle K's prior written approval. The franchisee bears the full cost of the grand opening advertising campaign, including price reductions and customer inducements. However, Circle K will reimburse the franchisee (from the Local and Regional Promotional Fees) $0.50 for each $1.00 the franchisee spends, up to a maximum reimbursement of $4,000 for pre-approved expenditures.