What sections of the Renewal Franchise Agreement are deleted regarding renewal obligations for Circle K?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Agreement Regarding Fuel and Franchise. Upon Franchisor's exercise of the Right of First Refusal, Franchisor and Franchisee will enter into (i) Franchisor's standard form of Franchise Agreement for the operation of a retail convenience store and motor fuel business under the Circle K trade name and service marks utilizing the Business System ("Circle K Business Franchise Agreement"), which Circle K Business Franchise Agreement will replace and supersede this Agreement, and (ii) all related agreements, including, without limitation, the Motor Fuel Supply Agreement, pursuant to which Franchisor will supply Circle K branded fuel to Franchisee at the Franchised Location, which Motor Fuel Supply Agreement will be updated to reflect the price and delivery terms offered by Franchisor in exercising the Right of First Refusal. Franchisee agrees and acknowledges that the Circle K Business Franchise Agreement may include terms and conditions (including fees, funding and requirements related to technology and reporting) that may be materially different from the terms and conditions of this Agreement, provided the pricing and term of fuel supply shall not be materially different. If Franchisor elects not to exercise the Right of First Refusal, Franchisee's acceptance of a More Favorable Offer or Bona Fide Offer will be subject to Franchisor's prior written approval of the brand of fuel to be offered at the Franchised Location. If Franchisor elects to exercise the Right of First Refusal but Franchisee refuses to sign the Circle K Business Franchise Agreement, this Agreement will be subject to immediate termination and, if terminated, Franchisee will be required to comply with all of the post-termination obligations hereunder, including but not limited to the payment of liquidated damages as well as the unamortized portion of any funding provided by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpt does not provide specific information about which sections of the Renewal Franchise Agreement are deleted regarding renewal obligations for Circle K. However, it does mention the conditions of the agreement between Circle K and the franchisee.
The document outlines the terms and conditions of the Circle K Business Franchise Agreement, which may include terms and conditions (including fees, funding, and requirements related to technology and reporting) that may be materially different from the terms and conditions of the current agreement, provided the pricing and term of fuel supply shall not be materially different. It also states that if Circle K exercises the Right of First Refusal but the franchisee refuses to sign the Circle K Business Franchise Agreement, the current agreement will be subject to immediate termination, and the franchisee will be required to comply with all post-termination obligations, including the payment of liquidated damages and the unamortized portion of any funding provided by Circle K.
To fully understand the renewal obligations, a prospective franchisee should ask Circle K for a copy of the Renewal Franchise Agreement and clarification on any sections that are deleted or modified compared to the original agreement. This will help the franchisee understand their rights and obligations upon renewal and make an informed decision about whether to renew their franchise agreement.