What is the scope of the Circle K franchisee's right to use the Marks limited to?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
ment is so terminated, Franchisee must comply with all post-termination obligations set forth herein, including but not limited to the payment of Liquidated Damages.
- 2.2 Franchisor's Reservation of Rights. Except for the limited License granted to Franchisee hereunder, all other rights related to the Business System and the Marks not specifically granted to Franchisee hereunder are expressly reserved by Franchisor and its Affiliates. Franchisee acknowledges that the License granted hereby relates solely to the Franchised Location, affords Franchisee no rights regarding other licenses or locations, and does not give Franchisee any exclusive right to market or sell to any prospective customers or any exclusive right to any territory. Without limiting the generality of the foregoing, Franchisee acknowledges and agrees that Franchisor and its Affiliates have expressly reserved certain rights to the use of the Marks, the Business Systems, the Methods, and Confidential Information in connection with their own convenience store and retailing operations, in connection with licensing the same or similar products or services utilizing the same or similar Marks, or any other trademarks, service marks or names, in connection with the manufacture and sale of products at wholesale and at retail, and in connection with granting such rights to others pursuant to a franchise agreement, some or all of which activities may compete, directly or indirectly, with Franchisee's operation of the Store. Franchisee agrees that it will not in any way interfere with the business operations of Franchisor, its Affiliates or other franchisees. Franchisor has the right to make such changes to the Business System as it deems appropriate, including without limitation, changes to the building appearance and "image" requirements. Because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor has the right to vary the standards for any license owner based upon the peculiarities of a particular site or circumstance, density of population, business potential, population or trade area, existing business practices, governmental requirements, local ordinances, or any other condition that Franchisor deems to be potentially significant to the successful operation of a Circle K Store. A grant by Franchisor of one or more variances to one or more other franchisees will not entitle Franchisee to the same or a different variation.
- 2.3 Use of Franchised Location; No Subfranchising. Franchisee agrees to operate the Store under the Business System using the Marks in strict compliance with the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, a franchisee's right to use Circle K's Marks is limited. The license granted to the franchisee is non-exclusive and applies solely to the specific Franchised Location. This means the franchisee has no rights regarding other licenses or locations and does not have any exclusive right to market or sell to prospective customers, nor any exclusive territorial rights. All other rights related to the Business System and the Marks not specifically granted to the franchisee are expressly reserved by Circle K and its affiliates.
Circle K retains the right to use the Marks, Business Systems, Methods, and Confidential Information in connection with their own convenience store and retailing operations. This includes licensing similar products or services using the same or similar Marks, manufacturing and selling products at wholesale and retail, and granting such rights to others through franchise agreements. These activities may directly or indirectly compete with the franchisee's store operations. The franchisee is prohibited from interfering with the business operations of Circle K, its affiliates, or other franchisees.
The franchisee must operate the store under the Business System, using the Marks in strict compliance with the terms and conditions of the Franchise Agreement. The franchisee will operate under the name "Circle K" and cannot change it or use other marks without Circle K's prior written approval. The franchisee must also clearly indicate that the store is independently owned and operated as a franchised Circle K store. Circle K has the right to modify or discontinue the use of any Marks or substitute different trade names and commercial symbols, and the franchisee is obligated to make the required modifications at their own expense upon Circle K's instructions.