What is the 'Term' referring to in the Circle K Motor Fuel Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Motor Fuel Agreement (the "Agreement") is made and entered into between TMC Franchise Corporation("Seller") and, ("Purchaser"). |
|---|
| WITNESSETH: |
| In consideration of the mutual promises herein contained, Seller, or its affiliate on behalf |
| of Seller, will sell and deliver to Purchaser at the premises located at |
| (the "Premises"), and Purchaser will purchase, receive and pay for, branded motor fuel product(s) |
| under the CIRCLE K® |
| trademarks, service marks, trade names, brand names, trade dress, logos, |
| color patterns, color schemes, design schemes, insignia, image standards or other brand |
| identifications (the "Proprietary Marks"), and other products, of the kind and in the quantities and |
| under the terms and conditions specifically set forth in Commodity Schedule(s) attached hereto |
| and made a part hereof. |
| 1. |
| Term; Renewal. The term ("Term") of this Agreement will begin on the Effective Date |
| (as |
| defined on signature page hereto) and will terminate upon the expiration or earlier termination of |
| the Convenience Store Franchise Agreement entered into between Seller and Purchaser governing |
| the Premises (the "Convenience Store Franchise Agreement"), unless terminated earlier pursuant |
| to the terms hereof. The Term will renew if and only if the Franchise Agreement is renewed, in |
| accordance with the renewal terms and conditions set forth in the Franchise Agreement. |
| 2. |
| Products. |
| Purchaser agrees that Seller will be the exclusive supplier of all of Purchaser's |
| motor fuel requirements at the Premises at all times during the Term. The following Commodity |
| Schedule(s) forming a part of this Agreement were affixed at or before the signing hereof. |
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the 'Term' in the Motor Fuel Agreement refers to the duration of the agreement. The Motor Fuel Agreement's term begins on the Effective Date, which is defined on the signature page of the agreement. The term will last as long as the Convenience Store Franchise Agreement between the Seller and the Purchaser is in effect, unless the Motor Fuel Agreement is terminated earlier according to its terms.
Specifically, the Motor Fuel Agreement's term is tied to the Convenience Store Franchise Agreement. This means that if the Convenience Store Franchise Agreement expires or is terminated, the Motor Fuel Agreement will also terminate, unless the Motor Fuel Agreement is terminated earlier by its own terms. The Motor Fuel Agreement will only be renewed if the Convenience Store Franchise Agreement is renewed, and the renewal will be in accordance with the terms and conditions set forth in the Convenience Store Franchise Agreement.
This arrangement ensures that the fuel supply agreement remains aligned with the operation of the Circle K convenience store. A prospective franchisee should carefully review the terms of both the Motor Fuel Agreement and the Convenience Store Franchise Agreement to understand the full duration and renewal conditions of their relationship with Circle K.