Under what conditions can a Circle K purchaser assign their interest in the Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Assignment. Purchaser shall not assign its interest in this Agreement, directly or indirectly, without the prior written consent of TMC, which consent shall not be unreasonably withheld. Any assignment or transfer of Purchaser's interest in this Agreement without such prior written consent shall be null and void and of no effect.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, a purchaser is restricted from assigning their interest in the Credit Network Agreement without prior written consent from TMC. This consent from Circle K will not be unreasonably withheld. If a purchaser attempts to assign or transfer their interest without obtaining written consent, the action will be considered void and have no legal effect.
This requirement for written consent gives Circle K control over who becomes involved in the agreement. This protects Circle K's interests by ensuring that any new party meets their standards and is capable of fulfilling the obligations of the agreement. It is a fairly standard practice in franchising to maintain control over who operates under their brand and system.
For a prospective Circle K franchisee, this means that if they wish to sell their business or transfer their rights under the Credit Network Agreement, they must first seek and obtain Circle K's approval. Failing to do so could result in the attempted transfer being deemed invalid, potentially leading to legal and financial complications.