When signing the Circle K agreement, what additional agreement must the Purchaser sign?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) The term of this Agreement ("Term") shall be effective commencing on the Effective Date (as defined on the signature page hereto) and shall remain in effect for the same term (including any extensions or renewals thereof) as the CIRCLE K® Motor Fuel Agreement between Seller and Purchaser entered into concurrently herewith (the "Motor Fuel Agreement"), unless earlier terminated in accordance with the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, when signing the Circle K agreement, the Purchaser must also sign the CIRCLE K® Motor Fuel Agreement. The term of the initial agreement is tied to the term of the Motor Fuel Agreement, including any extensions or renewals. This means the duration of the franchise agreement is directly linked to the fuel supply agreement.
This requirement ensures that Circle K franchisees who sell motor fuel also agree to purchase their fuel from Circle K under the terms of the Motor Fuel Agreement. This arrangement is common in the convenience store industry, where fuel sales are a significant revenue stream. By linking the franchise term to the fuel agreement, Circle K maintains control over its fuel distribution network and ensures a consistent supply chain.
Prospective franchisees should carefully review the terms of the Motor Fuel Agreement, including pricing, supply obligations, and termination clauses, as these will directly impact their business operations and profitability. Understanding the conditions of both agreements is crucial, as the termination of one agreement could affect the other.