What is the scope of the Circle K franchisee's indemnification obligation to the Franchisor Parties?

According to the 2025 Circle K Franchise Disclosure Document, the franchisee is obligated to indemnify, defend, and hold the Franchisor Parties harmless. This means the franchisee must protect Circle K from any liability, damage, injury, or loss, including legal fees and costs, that the Franchisor Parties might face.

The franchisee's indemnification responsibilities extend to issues arising from (a) the Franchise Agreement itself, (b) the operation of the Circle K store at the authorized location both before and through the effective date of the agreement, and (c) any breach of the Franchise Agreement by the franchisee. This broad scope means that a wide range of operational and contractual issues could trigger the franchisee's duty to indemnify Circle K.

This indemnification clause is a significant responsibility for Circle K franchisees. It requires them to bear the financial burden of potential liabilities, legal costs, and other losses incurred by Circle K due to the franchisee's actions or the store's operation. Prospective franchisees should carefully evaluate this obligation and consider obtaining appropriate insurance coverage and legal advice to mitigate these risks.