What is the significance of Schedule 1 in the Circle K Franchise Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to terms defined elsewhere in this Agreement, the capitalized terms used in this Agreement shall have the definitions set forth in Schedule 1 attached hereto.
ARTICLE 2 GRANT OF LICENSE
2.1 Non-Exclusive License; Franchised Location; Store Opening. Subject to the terms and conditions herein, Franchisor hereby grants to Franchisee, and Franchisee hereby accepts, a non-exclusive license to establish and operate, during the Term, a Circle K Store, in conformity with the Business System, using the Marks (the "License"), at the location described in the Data Sheet attached hereto as Exhibit 1 (the "Franchised Location"). Franchisee agrees that the Store shall be constructed in accordance with the requirements of this Agreement and should be ready
to open within: (i) 1 year after the Effective Date, if the Store is a Conversion Store; or (ii) 2 years after the Effective Date, if the Store is a New Store. A failure to open a Conversion Store within one year or a New Store within two years will entitle Franchisor to immediately terminate this Agreement without Franchisor incurring any liability for such termination. If this Agreement is so terminated, Franchisee must comply with all post-termination obligations set forth herein, including but not limited to the payment of Liquidated Damages.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, Schedule 1 of the Franchise Agreement provides definitions for capitalized terms used throughout the agreement. This ensures clarity and consistency in interpreting the contract's provisions. Understanding these defined terms is crucial for Circle K franchisees to fully grasp their rights, responsibilities, and obligations under the agreement.
Schedule 1 defines key terms such as "Affiliate," clarifying the scope of entities related to the franchisor, including Circle K Stores Inc. and Alimentation Couche-Tard and their subsidiaries. It also defines "Agreement" to include any amendments or modifications, ensuring that all changes are incorporated. The schedule further defines "Business System" as the Methods, Techniques, and Marks, which are central to the Circle K franchise operation.
Additionally, Schedule 1 defines what constitutes a "Circle K Store," specifying that it must operate under the Circle K name, utilize the Business System, and offer the merchandise and services of a traditional convenience store while meeting the franchisor's specifications. By providing these definitions upfront, Schedule 1 aims to prevent ambiguity and potential disputes regarding the interpretation of the Franchise Agreement, which is a common practice in franchising.