Upon termination of the agreement, does Circle K have the right to purchase the Business Assets?

According to Circle K's 2025 Franchise Disclosure Document, Circle K does have the right to purchase the Business Assets upon the expiration or termination of the agreement. Specifically, upon the expiration or earlier termination of the agreement, the purchaser must comply with all post-termination obligations outlined in the Franchise Agreement. As part of these obligations, Circle K retains the right to purchase the Business Assets, as defined within the Franchise Agreement, according to the terms specified therein.

This clause is important for prospective franchisees as it clarifies Circle K's options regarding the business's assets upon the agreement's end. The definition of 'Business Assets' would be found in the Franchise Agreement, which is a separate document. Understanding what constitutes 'Business Assets' is crucial, as it dictates what Circle K could potentially purchase from the franchisee at the end of the agreement.

This is a fairly standard clause in franchise agreements, allowing the franchisor to maintain control and consistency within their brand by potentially acquiring the assets of a terminated or expired franchise. Franchisees should carefully review the Franchise Agreement to fully understand the scope of 'Business Assets' and the terms under which Circle K can exercise its right to purchase them.