What is the significance of Section 12(d) in the Circle K Branding Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other agreement* | Summary |
|---|---|---|
| forum | 42 of Motor Fuel Agreement; Section 12(d) of Branding Agreement | in a state or federal court in the county where our corporate headquarters are located at the time of the dispute (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 79–85)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Section 12(d) of the Branding Agreement specifies the forum for dispute resolution. This means that any legal disputes between the franchisee and Circle K will be heard in a state or federal court located in the county where Circle K's corporate headquarters are located at the time of the dispute. This is subject to state law, which may provide additional stipulations or protections for the franchisee.
For a prospective Circle K franchisee, this clause is significant because it dictates where they may have to travel and incur legal costs if they have a dispute with the company. It is common for franchise agreements to include forum selection clauses that favor the franchisor, but franchisees should be aware of this and factor in potential travel and legal expenses if a dispute arises.
It is important to note that the specific location of Circle K's corporate headquarters at the time of the dispute will determine the jurisdiction. Franchisees should consider the potential implications of this clause, especially if they are located far from Circle K's headquarters. Consulting with a legal professional to understand the full ramifications of this clause is advisable before signing the franchise agreement.