Under what condition is the Circle K agreement binding upon the Seller?

According to the 2025 Circle K Franchise Disclosure Document, the agreement becomes binding upon both the franchisee and franchisor (TMC Franchise Corporation) and their respective successors and assigns. This means that once the agreement is properly executed, both parties are legally obligated to fulfill their commitments as outlined in the franchise agreement. This ensures that both Circle K and the franchisee are held accountable for their responsibilities from the start. The agreement is effective as of the date TMC signs the Circle K Branding Agreement.

This binding effect extends to any successors or assignees of either party. For instance, if the franchisee sells the business to a new owner, the agreement remains in effect, and the new owner must also adhere to its terms, assuming the assignment is approved by Circle K. Similarly, if Circle K were to be acquired by another company, the acquiring company would also be bound by the existing franchise agreements. This provides a level of stability and continuity for both parties involved.

It is also important to note that the franchisee acknowledges that the representations and agreements set forth in Section 4 are a material inducement to Franchisor to enter into this Agreement, such that Franchisor would not have entered into this Agreement in the absence of such agreements. This highlights the importance of the franchisee's initial commitments and assurances in securing the franchise agreement with Circle K.