Under what condition will the Motor Fuel Agreement renew for Circle K franchisees?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Motor Fuel Agreement (the "Agreement") is made and entered into between TMC Franchise Corporation("Seller") and, ("Purchaser"). |
|---|
| WITNESSETH: |
| In consideration of the mutual promises herein contained, Seller, or its affiliate on behalf |
| of Seller, will sell and deliver to Purchaser at the premises located at |
| (the "Premises"), and Purchaser will purchase, receive and pay for, branded motor fuel product(s) |
| under the CIRCLE K® |
| trademarks, service marks, trade names, brand names, trade dress, logos, |
| color patterns, color schemes, design schemes, insignia, image standards or other brand |
| identifications (the "Proprietary Marks"), and other products, of the kind and in the quantities and |
| under the terms and conditions specifically set forth in Commodity Schedule(s) attached hereto |
| and made a part hereof. |
| 1. |
| Term; Renewal. The term ("Term") of this Agreement will begin on the Effective Date |
| (as |
| defined on signature page hereto) and will terminate upon the expiration or earlier termination of |
| the Convenience Store Franchise Agreement entered into between Seller and Purchaser governing |
| the Premises (the "Convenience Store Franchise Agreement"), unless terminated earlier pursuant |
| to the terms hereof. The Term will renew if and only if the Franchise Agreement is renewed, in |
| accordance with the renewal terms and conditions set forth in the Franchise Agreement. |
| 2. |
| Products. |
| Purchaser agrees that Seller will be the exclusive supplier of all of Purchaser's |
| motor fuel requirements at the Premises at all times during the Term. The following Commodity |
| Schedule(s) forming a part of this Agreement were affixed at or before the signing hereof. |
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Motor Fuel Agreement's term will renew if the Convenience Store Franchise Agreement is renewed. The renewal must be in accordance with the renewal terms and conditions outlined in the Franchise Agreement. This means a Circle K franchisee's ability to continue selling motor fuel under the Circle K brand is directly tied to the renewal of their overall franchise agreement.
For a prospective Circle K franchisee, this highlights the importance of understanding the renewal terms of the Convenience Store Franchise Agreement. Failing to meet those renewal conditions would not only jeopardize the franchise itself but also the right to sell motor fuel under the Circle K brand. This interdependency underscores the need for careful planning and adherence to the franchise agreement terms to ensure long-term business viability.
This condition is fairly standard in franchise agreements where the sale of specific products (in this case, motor fuel) is integral to the overall franchise operation. The franchisor, Circle K, maintains control over its brand and product distribution by linking the Motor Fuel Agreement to the broader Franchise Agreement. Franchisees should pay close attention to performance metrics, compliance requirements, and any other conditions that could impact their ability to renew their Franchise Agreement, and by extension, their Motor Fuel Agreement.