factual

What ancillary agreements may the transferee of a Petro Stopping Center be required to enter into?

Petro_Stopping_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (g) the transferee must have entered into our then-current form of franchise agreement and such other then-current ancillary agreements as we may require.

The thencurrent form of franchise agreement may have significantly different provisions including a higher royalty fee and advertising contribution than that contained in this Agreement.

The then-current form of franchise agreement will expire on the expiration date of this Agreement and will contain the same renewal rights, if any, as are available to you;

Source: Item 14 — Other investments (FDD pages 131–208)

What This Means (2025 FDD)

According to Petro Stopping Center's 2025 Franchise Disclosure Document, a transferee may be required to enter into ancillary agreements. Specifically, the transferee must enter into Petro Stopping Center's then-current form of franchise agreement. The then-current form of the franchise agreement may have significantly different provisions, including a higher royalty fee and advertising contribution than the original agreement. The new franchise agreement will expire on the same date as the original agreement and will contain the same renewal rights, if any, as the original agreement.

In addition to the franchise agreement, the transferee may have to enter into "such other then-current ancillary agreements as we may require." This gives Petro Stopping Center broad discretion to require additional agreements as part of the transfer process.

It is important for prospective franchisees to understand that the terms of the franchise agreement and any ancillary agreements can change over time. Therefore, a transferee may be subject to different and potentially more onerous terms than the original franchisee. A prospective franchisee should carefully review the then-current form of franchise agreement and any other required agreements before completing a transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.