What access must a franchisee grant to Petro Stopping Center during the Due Diligence Period?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of thirty (30) days following our receipt of the Appraiser's determination of value, we have the right to conduct a due diligence investigation (the "Due Diligence Period") of your franchise, the Operating Assets, and all of your rights, liabilities and obligations.
You must give us reasonable access to your facilities, books and records during the Due Diligence Period.
In addition, you must otherwise reasonably cooperate with us to make yourself and necessary third parties available during the Due Diligence Period.
We are under no obligation to continue with our due diligence if, the results of our due diligence are not satisfactory to us for any reason or if we are not satisfied with the Appraiser's opinion of value, to be determined in our sole discretion.
In that case, we will notify you in writing that we are withdrawing our offer to purchase your Petro Center.
At any time during the Due Diligence Period, we have the unconditional right to withdraw our offer.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, during the Due Diligence Period, a franchisee must provide reasonable access to their facilities, books, and records. The Due Diligence Period is a 30-day window that Petro Stopping Center has to investigate the franchise, its operating assets, and all associated rights, liabilities, and obligations after the appraiser determines the value of the business.
In practical terms, this means that if Petro Stopping Center is considering purchasing a franchise location, the franchisee must allow them to thoroughly examine the physical premises, financial documents, and any other relevant information. This enables Petro Stopping Center to assess the true value and condition of the franchise before finalizing the purchase.
Furthermore, the franchisee must reasonably cooperate by making themselves and any necessary third parties available during this period. This suggests that the franchisee should be prepared to answer questions, provide clarifications, and facilitate communication with relevant parties such as suppliers or employees. Petro Stopping Center is not obligated to continue with the purchase if the results of the due diligence are unsatisfactory to them for any reason.
This requirement ensures that Petro Stopping Center has the opportunity to conduct a comprehensive evaluation before committing to the purchase, protecting their investment and ensuring a smooth transition. For the franchisee, it means being prepared to open their business up for scrutiny and to cooperate fully with Petro Stopping Center's investigation.