Under the Circle K agreement, what actions are purchasers prohibited from taking regarding the composition of products resold under Circle K's Proprietary Marks?

According to Circle K's 2025 Franchise Disclosure Document, purchasers are prohibited from altering the composition of products resold under Circle K's Proprietary Marks. Specifically, franchisees cannot mix, commingle, blend, adulterate, or otherwise change the composition of any product purchased and resold under the Circle K brand.

This restriction ensures that the quality and consistency of products sold under the Circle K name remain uniform, protecting the brand's reputation. Circle K retains the right to inspect the franchisee's premises and take samples of the products to ensure compliance with this requirement. If Circle K determines that the products have been altered, they have the option to cancel and terminate the agreement.

This provision is typical in franchising, where maintaining brand standards is crucial. Franchisees must adhere to these strict guidelines to ensure that customers receive the same quality of product across all Circle K locations. This also protects Circle K from liability issues that could arise from altered or adulterated products sold under their brand name.

Prospective franchisees should understand that this clause is non-negotiable and that failure to comply can result in termination of their franchise agreement. It is essential to maintain the integrity of the products as supplied by Circle K to avoid any potential breaches of contract.