Under what circumstance does the provision regarding possession of the franchised location not apply to a Circle K franchisee?

According to Circle K's 2025 Franchise Disclosure Document, the provision regarding the franchisor assuming possession, occupancy, and control of the franchised location does not apply if the franchisee owns or leases the location from someone other than Circle K or its affiliates. This means that if a franchisee has an independent lease or ownership arrangement with a third party for the Circle K store location, Circle K cannot directly take over the location as they might if they were the lessor.

This exception is significant for prospective franchisees as it clarifies the circumstances under which they maintain control over their business location, even after termination or expiration of the franchise agreement. If the franchisee has secured their own lease or owns the property, Circle K's ability to assume possession is limited. This could provide the franchisee with more leverage in negotiations or greater security in their investment.

However, even if the franchisee independently owns or leases the location, they are still obligated to make modifications or alterations to the property at their own expense immediately upon termination or expiration of the agreement. These changes must prevent the operation of any future business from being confused with a Circle K store. This obligation ensures that the franchisee cannot simply continue operating a similar business under a different name without removing Circle K branding and distinctive elements.