Under what condition is the Circle K seller not obligated to make deliveries?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
duct(s) covered by this Agreement shall be as set forth in the attached Commodity Schedule(s).
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- Taxes. It is agreed that any duty, tax, fee or other charge which Seller may be required to collect or pay under any municipal, state, federal or other laws now in effect or hereafter enacted with respect to the production, manufacture, inspection, transportation, storage, sale, delivery or use of the product(s) covered by this Agreement shall be added to the prices to be paid by Purchaser for product(s) purchased hereunder.
11. Delays or Failure to Perform.
- (a) Any delays in or failure of performance of either party hereto shall not constitute default hereunder or give rise to any claims for damages of and to the extent that such delay or failure is caused by occurrences including, but not limited to, acts of God or the public enemy; expropriation or confiscation of facilities; compliance with any order or request of any governmental authority; acts of war, rebellion, terror, or sabotage or damage resulting there from; embargoes or other import or export restrictions; fires, floods, explosions, accidents, or breakdowns; riots; strikes or other concerted acts of workers, whether direct or indirect; or any other causes whether or not of the same class or kind as those specifically above named which are not within the control of the party affected and which, by the exercise of reasonable diligence, said party is unable to prevent or provide against. A party whose performance is affected by any of the causes set forth in the preceding sentence shall give prompt written notice thereof to the other party.
- (b) Seller shall be under no obligation to make deliveries hereunder at any time when in Seller's sole judgment it has reason to believe that the making of such delivery would be likely to cause strikes to be called against it or cause its properties to be picketed.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the seller is not obligated to make deliveries under certain circumstances. Specifically, the seller is not required to make deliveries if, in their judgment, they believe that doing so would likely cause strikes to be called against them or cause their properties to be picketed. This clause provides Circle K with the ability to avoid potential labor disputes or disruptions that could arise from making deliveries under certain conditions.
Additionally, Circle K is not required to make up for deliveries that were omitted due to certain causes. These causes include acts of God or public enemies, expropriation or confiscation of facilities, compliance with governmental orders, acts of war, rebellion, terror, sabotage, embargoes, fires, floods, explosions, accidents, riots, strikes, or any other causes beyond the seller's control that they cannot prevent with reasonable diligence. In such cases, Circle K is obligated to provide prompt written notice to the purchaser regarding the delay or failure to perform.
Furthermore, Circle K may refuse to deliver products if they believe that any UST (Underground Storage Tank), hose, connection, or associated equipment is not safely maintained or in compliance with applicable safety standards. This provision ensures that Circle K can avoid potential safety hazards and legal liabilities associated with delivering products to locations with unsafe equipment. This condition underscores Circle K's emphasis on safety and compliance within its franchise operations.