Under what circumstances can the Circle K agreement be terminated immediately due to the underlying agreement?

According to Circle K's 2025 Franchise Disclosure Document, the Credit Network Agreement between TMC Franchise Corporation and the Purchaser (franchisee) can be terminated immediately if the Underlying Agreement is terminated, expires, or is not renewed. The Underlying Agreement refers to either the Circle K Convenience Store Franchise Agreement or the Circle K Motor Fuel Agreement/Branding Agreement, depending on whether the Circle K location sells motor fuel.

This means that the Credit Network Agreement, which governs the franchisee's participation in Circle K's credit card program, is directly tied to the status of the main franchise agreement or fuel supply agreement. If the franchisee loses the right to operate the Circle K store or sell Circle K-branded fuel for any reason, the Credit Network Agreement will also end immediately.

This condition highlights the importance of maintaining a good standing under the primary franchise or fuel agreements. Franchisees should be aware that any event leading to the termination, expiration, or non-renewal of these core agreements will automatically result in the termination of their ability to participate in the Circle K credit card program. This could impact their business operations, as they would no longer be able to process credit card transactions under the terms of the Credit Network Agreement.