factual

What specific actions must a Circle K franchisee take to de-identify the premises upon termination or non-renewal, according to the Convenience Store Franchise Agreement?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Franchise or other agreement* Summary
its sublicense agreement, bankruptcy, assignment for benefit of creditors, garnishment of Branded Business.
i. Franchisee's obligations on termination / non renewal Section 14.7; Sections 1.4, 2.3.6 & 3.3 of Software Agreement; Section 25(d) of Motor Fuel Agreement; Section 9(d) and (e) of Branding Agreement Convenience Store Franchise Agreement: Payment of all amounts due, including liquidated damages as applicable and any reimbursement for Equipment/Construction Funding, complete de-identification, return all copies of Business Systems Manuals and other proprietary information, cease using the Circle K Marks (also see "r" below). Software Agreement: Return of TMC Software with executed certificate, assignment of equipment lease or sale of equipment to TMC, payment of any fees for disconnection and removal of equipment. Motor Fuel Agreement: Complete de-identification and cease using the Circle K Marks, payment of all amounts due including any incentive funding and liquidated damages. Branding Agreement: Complete de-identification and cease using the Circle K Marks, payment of all amounts due, including liquidated damages, and, at our option, require all retailers to de-identify or cease using the Circle K Marks.

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, upon termination or non-renewal of the Convenience Store Franchise Agreement, a franchisee is obligated to complete de-identification of the premises. This involves removing all Circle K Marks from the location. Additionally, the franchisee must pay all outstanding amounts due to Circle K, including any applicable liquidated damages and reimbursements for Equipment/Construction Funding. The franchisee must also return all copies of Business Systems Manuals and other proprietary information to Circle K and cease using the Circle K Marks.

These obligations are further detailed in Section 14.7 of the Convenience Store Franchise Agreement, as well as Sections 1.4, 2.3.6, and 3.3 of the Software Agreement; Section 25(d) of the Motor Fuel Agreement; and Sections 9(d) and (e) of the Branding Agreement. The Software Agreement also requires the franchisee to return the TMC Software with an executed certificate, assign the equipment lease or sell the equipment to TMC, and pay any fees for disconnection and removal of equipment. The Motor Fuel Agreement also requires complete de-identification and ceasing the use of Circle K Marks, along with payment of all amounts due, including any incentive funding and liquidated damages.

For a prospective Circle K franchisee, these stipulations highlight the importance of understanding the full scope of financial and operational responsibilities extending beyond the active franchise period. The de-identification process is a critical step to ensure a clean break from the Circle K brand and avoid any potential legal or financial repercussions. Franchisees should carefully review all agreements to fully understand their obligations upon termination or non-renewal to avoid potential disputes or additional costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.