What is the significance of Section 12(e) in the Circle K Branding Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
e franchise and related agreements. You should read these provisions in the agreements attached to this franchise disclosure 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). |
| w. Choice of law | Section 20.5; Section | Arizona law applies (subject to state law). |
| 43 of Motor Fuel | ||
| Agreement; Section | ||
| 12(e) of Branding | ||
| Agreement | ||
| Section in | ||
| ------------------------------------ | -------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Provision | Franchise or other | Summary |
| agreement* | ||
| Agreement | monetary obligations must be paid in full; you must remodel | |
| your Store; sign a release; sign the then-current franchise | ||
| agreement; you must have right to lease the premises for the | ||
| length of the renewal term; and you must pay us a | ||
| renewal fee. | ||
| Motor Fuel Agreement: You must provide prior written notice | ||
| to us; |
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(e) of the Branding Agreement outlines the choice of law. Arizona law applies to the Branding Agreement, although this is subject to state law. This means that the Branding Agreement between Circle K and the franchisee will be interpreted and enforced according to Arizona law, unless otherwise superseded by conflicting state laws.
For a prospective Circle K franchisee, this is important because it determines the legal framework governing the Branding Agreement. Franchisees should be aware that while Arizona law generally applies, specific state laws where their Circle K store is located could take precedence. This could affect how certain provisions of the Branding Agreement are interpreted and enforced in practice.
It is common for franchise agreements to specify a choice of law to provide clarity and predictability in legal disputes. Specifying Arizona law allows Circle K to have a uniform legal standard across its franchise system, while acknowledging that local state laws may sometimes override this. Prospective franchisees should consult with a legal professional to understand how both Arizona law and the laws of their specific state might impact their rights and obligations under the Branding Agreement.