Under the Termination and Release Agreement, what rights, obligations, and responsibilities are terminated for a Circle K franchisee?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | NUMBER | | | | | COST | CENTER | | | | | | TITLE | | | | NUMBER | | | | NOTE: PLEASE ATTACH A VOIDED CHECK FOR THE REFERENCED ACCOUNT | | | | IN ORDER TO ENSURE YOUR ACCOUNT IS PROPERLY AND ACCURATELY | | | | DEBITED. | | | us of our termination in such time and in such manner as to afford CIRCLE K and
Exhibit 3 to Circle K Branding Agreement (Single Site)
CREDIT NETWORK AGREEMENT
[Attached as Exhibit 6 to the Convenience Store Franchise Agreement]
EXHIBIT I
Sample Termination and Release Agreements
Exhibit I-1
TERMINATION AND RELEASE AGREEMENT
(Convenience Store Franchise Agreement)
| THIS TERMINATION AND RELEASE AGREEMENT ("Agreement") is made and entered into by and between TMC Franchise Corporation ("Franchisor"), and ("Franchisee"). All capitalized terms not defined in this Agreement have the respective meanings set forth in the Franchise Agreement (as defined below). This Agreement is effective on the date Franchisor signs below (the "Effective Date"). |
|---|
| RECITALS |
| A. |
| Franchisor and Franchisee entered into a Franchise Agreement dated |
| (including all exhibits, attachments, |
| and amendments thereto, the |
| "Franchise Agreement"), whereby |
| Franchisee was granted the right to operate a Circle K store (the "Store") at (the |
| "Authorized Location"). |
| B-C. |
| [INSERT OTHER BACKGROUND INFORMATION.] |
| D. |
| Franchisor and Franchisee have agreed to terminate the Franchise Agreement and all rights, |
| obligations and responsibilities thereunder, subject to the terms and conditions of this Agreement. |
| AGREEMENTS |
| In consideration of the promises expressed herein and for other good and valuable consideration, |
| the sufficiency of which is hereby acknowledged, the parties agree as follows: |
| 1. |
| Termination of Franchise Agreement. |
| As of (the "Termination |
| Date"), the Franchise Agreement is deemed terminated and of no further force |
| and effect. |
| As of the |
| Termination Date, Franchisee has no further rights under or through the Franchise Agreement; provided, |
| however, Franchisee acknowledges and agrees that it will comply with the post-termination obligations set |
| forth in Section 3 below and as more fully stated in the Franchise Agreement. |
| 2. |
| Termination of Other Agreements. Franchisor and Franchisee acknowledge and agree that |
| any and all other agreements that Franchisee may have with Franchisor or its affiliates relating to the |
| operation of the Store (including, specifically, the Software Use Agreement between Franchisor and |
| Franchisee) (collectively, the "Other Agreements") are deemed terminated as of the Termination Date and |
| of no further force and effect. Notwithstanding the foregoing, Franchisee acknowledges that it must comply |
| with any and all obligations in the Other |
| Agreements which, by their nature, survive termination or |
| expiration of the Other Agreements. To the extent that any Other Agreements require the consent of a third |
| party prior to termination, Franchisor will obtain such consent and the third party's consent will be deemed |
| to be granted as of the Termination Date, regardless of when the consent is actually provided. |
Termination Date of this Agreement, Franchisee shall immediately:
- Return of Operations Manual; Other Post-Termination Obligations. Beginning on the
(a) Cease any and all use of the Circle K trademarks and business system;
- (b) Return to Franchisor the Circle K Operating Manual and any other manuals, advertising materials, and any other proprietary information that Franchisor has provided to Franchisee for the operation of the Store;
- (c) Cease any and all use of, and return to Franchisor, the "Software," as defined in the Electronic Point of Sale and Software Agreement, and shall otherwise comply with Franchisee's post-term obligations as set forth in said Agreement;
- (d) Refrain from holding itself out as a present or former Circle K Franchisee; and,
- (e) Otherwise comply with Franchisee's post-term obligations as set forth in Section 14.7 of the Franchise Agreement.
4. Release.
- A. Franchisee and its successors and assigns, affiliates, directors, officers, and shareholders and on behalf of any other party claiming an interest through them (collectively and individually referred to as the "Franchisee Parties" for purposes of this Section 4), release and forever discharge Franchisor, its predecessors, successors, assigns, affiliates, directors, officers, shareholders, and employees (collectively and individually referred to as the "Franchisor Parties" for purposes of this Section 4), of and from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, whether known or unknown, vested or contingent, which Franchisee Parties may now or in the future own or hold, that in any way relate to the Franchise Agreement, Other Agreements, or any other agreement between Franchisor and Franchisee, the Authorized Location, or the relationship between Franchisor and Franchisee through the Effective Date (collectively, the "Franchisee Parties Claims"), for known or unknown damages or other losses, including but not limited to any alleged violations of any deceptive or unfair trade practices laws, franchise laws, or other local, municipal, state, federal, or other laws, statutes, rules or regulations, and any alleged violations of the Franchise Agreement, Other Agreements or any other related agreement between Franchisor and Franchisee through the Effective Date.
- B.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to the 2025 Circle K Franchise Disclosure Document, the Termination and Release Agreement outlines the rights, obligations, and responsibilities that are terminated for a franchisee. Upon the termination date, the Franchise Agreement is terminated and of no further force and effect. The franchisee has no further rights under the Franchise Agreement, but must still comply with post-termination obligations. Any other agreements between the franchisee and Circle K or its affiliates related to the store's operation are also terminated, though obligations that naturally survive termination must still be complied with.
Specifically, the franchisee must cease all use of Circle K trademarks and the business system, return the Circle K Operating Manual and other proprietary information, and cease using and return the "Software" as defined in the Electronic Point of Sale and Software Agreement. The franchisee must also refrain from presenting themselves as a current or former Circle K franchisee and comply with post-term obligations as detailed in Section 14.7 of the Franchise Agreement.
Furthermore, the franchisee, along with its related parties, releases Circle K and its related parties from all claims, debts, liabilities, demands, obligations, costs, expenses, actions, and causes of action related to the Franchise Agreement, other agreements, the authorized location, or the relationship between Circle K and the franchisee. This release covers both known and unknown damages or losses, including alleged violations of deceptive trade practices, franchise laws, or other regulations. The franchisee also warrants that all third-party suppliers and vendors have been paid in full as of the agreement's effective date and agrees to keep the terms of the agreement confidential.