Is Circle K required to match any price terms in an offer that it considers unlawful?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Seller may match the Offer by agreeing to deliver and sell to Purchaser motor fuels under a brand other than the brand contained in the Offer, on terms and conditions regarding price, quantity and equipment or other prospective investment in the Premises substantially equivalent to those presented in the Offer. Seller may meet the Offer for the delivery and sale of unbranded motor fuels by offering unbranded or branded motor fuels on terms and conditions substantially equivalent to those presented in the Offer. If the Offer, whether for branded or unbranded motor fuels, contains any special price terms or guarantees regarding price, Seller must agree to match these price terms; provided, however, that Seller shall not be required to match any price terms that Seller, in good faith, considers unlawful under applicable law and such failure to match price terms shall not constitute a failure to match the Offer. Seller shall have the right to assign its rights under this Section 21(d) to a third party.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K is not required to match any price terms in an offer that it considers unlawful. Specifically, if a Circle K franchisee receives a bona fide offer to sell or supply motor fuels for resale at their premises, Circle K has the option to match that offer.
Circle K can match the offer by agreeing to deliver and sell motor fuels under a different brand or as unbranded fuel, with substantially equivalent terms regarding price, quantity, and equipment investments. If the offer includes special price terms or guarantees, Circle K must generally agree to match them.
However, Circle K is not obligated to match any price terms that it, in good faith, considers unlawful under applicable law. The FDD states that such a failure to match unlawful price terms will not be considered a failure to match the offer overall. This provision protects Circle K from being forced to comply with potentially illegal pricing practices.