Does Circle K have any restrictions on assigning the Convenience Store Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other agreement* | Summary |
|---|---|---|
| j. Assignment of contract by franchisor | Section 15.1; Section 19(a) of Motor Fuel Agreement ; Section 8(c) of Branding Agreement | Convenience Store Franchise Agreement: No restriction on our right to assign. Motor Fuel Agreement: No restriction on our right to assign, but must provide 10 days' advance written notice. Branding Agreement: No restriction on our right to assign, but must provide 10 days' advance written notice. |
| k. "Transfer" by franchisee - defined | Section 15.2; Section 19(a) of Motor Fuel Agreement; Section 8(b) of Branding Agreement | Convenience Store Franchise Agreement: Includes transfer of interest in Convenience Store Franchise Agreement or assets or ownership change of more than 50%, or change in effective control as defined by Franchisor. Motor Fuel Agreement: includes transfer of a 25% or greater interest in franchisee and/or Motor Fuel Agreement. Branding Agreement: includes a transfer of a 25% or greater interest in franchisee and/or Branding Agreement. |
| l. Franchisor approval of transfer by franchisee | Section 15.2; Section 3.14 of Software Agreement; Section 19(a) of Motor Fuel Agreement; Section 8(a) of Branding Agreement | Convenience Store Franchise Agreement: We have the right to approve all transfers but will not unreasonably withhold approval. Software Agreement: Any transfer by you is subject to our prior written consent. Motor Fuel Agreement: we have the right to approve all transfers but will not unreasonably withhold approval. Branding Agreement: we have the right to approve all transfers but will not unreasonably withhold approval. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 79–85)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K has the right to approve all transfers of the Convenience Store Franchise Agreement, but will not unreasonably withhold approval. A transfer by the franchisee includes transfer of interest in the Convenience Store Franchise Agreement or assets or ownership change of more than 50%, or change in effective control as defined by Circle K.
For a Motor Fuel Agreement, a transfer includes transfer of a 25% or greater interest in franchisee and/or Motor Fuel Agreement. For a Branding Agreement, a transfer includes a transfer of a 25% or greater interest in franchisee and/or Branding Agreement.
As is typical in franchising, Circle K maintains some control over who becomes a franchisee to protect its brand and ensure that new franchisees meet their standards. The FDD outlines that Circle K can assign the agreement with no restrictions, but they must provide 10 days' advance written notice for the Motor Fuel Agreement and Branding Agreement.