FDD Items 3 & 4 · 2024 filing
Circle K litigation history
What Circle K disclosed about lawsuits, arbitrations and bankruptcy in the 2024 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $180K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
TMC as plaintiff: 2 cases (v. Broadway Restaurants re post-termination obligations, settled $30,722 paid to TMC; v. Golen et al. re liquidated damages, settled with payment to TMC). TMC as defendant/cross-defendant: Universal Property Services v. Lehigh Gas et al. added TMC as defendant re misrepresentations in sale of 17 stores, settled 7/2024 with TMC paying $180,000. FTC order involving affiliate ACT and CrossAmerica re divestiture timing, $3.5M civil penalty paid.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigation cases (TMC v. Broadway, Universal Property Services v. Lehigh Gas, TMC v. Golen) suggest operational disputes and potential franchisor relationship issues
- Going Concern status is FALSE, but system decline warrants clarification on franchisor financial stability and long-term viability
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?