What rights does Circle K have to enter the premises and examine the contents of the purchaser's tanks or containers?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Seller is hereby given the right to enter the Premises and to examine at any time, and from time to time, the contents of Purchaser's tanks or containers in which said product(s) purchased hereunder are stored and to take samples there from and, if in the opinion of Seller, any samples taken are not said product(s) and in the condition in which delivered by Seller to Purchaser then Seller may at its option cancel and terminate this Agreement. Seller's inspection rights under the Franchise Agreement shall apply to this Agreement, and in connection therewith, Seller shall have the right to enter the Premises unimpeded to review and audit all station records including, but not limited to, all records of deliveries, sales and inventory reconciliation, to take samples of motor fuels stored at the Premises, and to inspect equipment and Purchaser's use of the Proprietary Marks. Any evaluation or inspection Seller conducts is not intended to exercise, and does not constitute, control over Purchaser's day-to-day operation of Purchaser's business or to assume any responsibility for Purchaser's obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K, as the seller, retains specific rights to enter the franchisee's premises to ensure product integrity and compliance. Circle K has the right to enter the premises at any time to examine the contents of the franchisee's tanks or containers where the products purchased from Circle K are stored. This includes the right to take samples of the products.
If Circle K determines that the samples taken are not the products delivered by them or are not in the condition in which they were delivered, Circle K has the option to cancel and terminate the agreement. This provision underscores Circle K's commitment to maintaining the quality and consistency of its branded products.
Furthermore, Circle K's inspection rights extend to reviewing and auditing all station records, including delivery, sales, and inventory reconciliation records. They also have the right to inspect equipment and the franchisee's use of Circle K's proprietary marks. However, the document clarifies that these evaluations and inspections are not intended to control the franchisee's day-to-day operations or assume responsibility for the franchisee's obligations under the agreement.