What is the 'Underlying Agreement' as defined in the Circle K Credit Network Agreement?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The Convenience Store Franchise Agreement, the Motor Fuel Agreement or the Branding Agreement pursuant to which this Agreement was executed by the parties shall be referred to herein as the "Underlying Agreement".
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the "Underlying Agreement" in the context of the Credit Network Agreement refers to the specific agreement between TMC Franchise Corporation and the franchisee that governs the operation of the Circle K business at the premises. This definition is crucial because the Credit Network Agreement's term is directly tied to the term of the Underlying Agreement.
Specifically, the Underlying Agreement can take one of three forms, depending on the nature of the Circle K business at the location. If the Circle K location is a convenience store that does not sell motor fuel, the Underlying Agreement is the Circle K Convenience Store Franchise Agreement. If the location sells Circle K-branded motor fuel, the Underlying Agreement is either the Circle K Motor Fuel Agreement or the Circle K Branding Agreement.
This distinction is important for franchisees because the termination, expiration, or non-renewal of the Underlying Agreement automatically terminates the Credit Network Agreement. Therefore, franchisees need to understand which agreement serves as the Underlying Agreement for their specific Circle K location, as it dictates the terms and duration of their participation in the Circle K Credit Card Program.