Can *On the Run*® franchisees solicit customers in a Circle K franchisee's trade area?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The On the Run® businesses sell goods and services similar to the franchise offered under this Disclosure Document. Specifically, the On the Run® business offers convenience store franchises under the On the Run® mark. Currently, the outlets operated under the On the Run® mark will be franchised, but we reserve the right to own or operate outlets under the On the Run® mark. Franchisees using the On the Run® mark have the right to solicit customers in your trade area. The On the Run® franchise business is operated from the same offices as the Circle K franchise business, at 1130 West Warner Road, Tempe, Arizona 85284. We currently provide training for On the Run® franchisees in the same facility as Circle K franchisees.
We may grant franchises for On the Run® stores or operate On the Run® stores at any location as determined by us, regardless of proximity to your Store.
Source: Item 12 — TERRITORY (FDD pages 72–75)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, On the Run® franchisees do have the right to solicit customers in a Circle K franchisee's trade area. Circle K may grant franchises for Circle K stores or On the Run® stores at any location, regardless of proximity to a franchisee's store. This means that a Circle K franchisee could face direct competition from another Circle K store, an On the Run® store, or other channels of distribution that Circle K controls.
Circle K emphasizes that the On the Run® businesses sell goods and services similar to those offered under the Circle K franchise. The On the Run® business offers convenience store franchises under the On the Run® mark. The On the Run® franchise business is operated from the same offices as the Circle K franchise business, located at 1130 West Warner Road, Tempe, Arizona 85284, and training for both franchises is conducted in the same facility.
This lack of territorial protection is a significant factor for prospective franchisees to consider. Circle K franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels or competitive brands that Circle K controls. The Franchise Agreement grants the right to operate one convenience store only at the specified location, and relocation requires Circle K's prior written consent and construction of the new site at the franchisee's sole cost and expense, including a relocation fee of 50% of the Initial Franchise Fee.