What is the significance of Section 42 in the Circle K Motor Fuel 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 42 of the Motor Fuel Agreement outlines the forum for dispute resolution. Specifically, it dictates that any legal disputes will be settled 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.
For a prospective Circle K franchisee, this means that if a dispute arises with Circle K related to the Motor Fuel Agreement, they may be required to litigate the matter in the specific jurisdiction where Circle K's headquarters are located. This could involve significant travel and legal expenses, depending on where the franchisee's Circle K store is located. Franchisees should be aware of this potential obligation and factor it into their risk assessment.
Choice of forum clauses are common in franchise agreements, as they provide the franchisor with a consistent and predictable legal environment. However, franchisees should carefully consider the implications of such clauses, as they may create a disadvantage in the event of a dispute. It is advisable for prospective franchisees to consult with an attorney to fully understand their rights and obligations under the Motor Fuel Agreement, including the forum selection clause.