factual

Under the Circle K franchise agreement, where must arbitration take place?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

The arbitration must take place in Maricopa County, Arizona (or the county in which TMC's headquarters are located at the time arbitration is demanded).

Source: Item 23 — RECEIPTS (FDD pages 100–359)

What This Means (2025 FDD)

According to the 2025 Circle K Franchise Disclosure Document, any arbitration between TMC and the licensee must occur in Maricopa County, Arizona. However, there is a caveat: if TMC's headquarters are located in a different county at the time arbitration is demanded, the arbitration will take place in that county instead. This location clause is specified within the Circle K Branding Agreement outlined in Exhibit H.

This means that a Circle K franchisee could be required to travel to Arizona for arbitration, or potentially to another location if TMC moves its headquarters. Franchisees should factor in potential travel costs and legal fees associated with arbitration when evaluating the franchise opportunity. It is important to note that this arbitration clause is subject to the Federal Arbitration Act and follows the Center for Public Resources Rules for Non-Administered Arbitration of Business Disputes.

It is also important to note that certain claims are exempt from arbitration, specifically any action for declaratory or equitable relief, including actions seeking injunctive relief or specific performance to prevent harm to tangible or intangible property. This exception allows Circle K or the franchisee to pursue court action for these specific types of claims, rather than being limited to arbitration.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.