Under the Circle K agreement, can a claim be made for special, punitive, or consequential damages?

According to Circle K's 2025 Franchise Disclosure Document, the franchise agreement generally prohibits claims for special, punitive, or consequential damages. This means that if a dispute arises, neither Circle K nor the franchisee can typically seek these types of damages, which go beyond direct losses and aim to punish the other party or compensate for indirect harm.

However, there is an exception to this rule. If a court determines that a specific payment outlined in Section 21 of the agreement is unenforceable, Circle K reserves the right to pursue all available remedies, including consequential damages, to the extent they can be proven. This situation might arise if the predetermined payment is deemed unreasonable or unlawful.

This clause has significant implications for prospective Circle K franchisees. While it offers some protection against excessive damage claims, it also carries the risk that Circle K could pursue consequential damages in certain circumstances. Franchisees should carefully consider this provision and seek legal counsel to fully understand their rights and obligations under the franchise agreement.