What aspects of Petro Stopping Center development are covered in the FDD, including security interests?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Changes.
We may make changes to the Development Plans that we specify from time to time during the development of the Petro Center.
You and your respective vendors and service providers must not begin development, remodeling or otherwise construct the Petro Center until we have approved the Development Plans.
Our changes to the Development Plans during the build-out or development of your Petro Center may result in increased costs to you, and you agree to be responsible for such increased costs.
You and your respective vendors and services providers must make no changes to the approved Development Plans unless such changes are presented to and approved by us.
- (c) Compliance with Laws.
You are solely responsible for complying with all laws, ordinances, rules and regulations relating directly or indirectly to the development and operation of the Petro Center, including any laws, rules or regulations regarding public accommodations for Persons with disabilities.
You are solely responsible for any and all claims, liabilities, costs and images relating to non-compliance or alleged non-compliance with any such laws, rules, ordinances or regulations, and you must remedy, at your expense, any such non-compliance or alleged non-compliance.
We will not approve any service provider or supplier to you (e.g., architects, builders, designers, etc.) unless they, at our option, agree to assign to us the plans, drawings or designs, used by you in connection with their manufacture or modification of the Petro Center, or at our option, their agreement to license to us such plans, drawings or designs for use in connection with Petro Centers.
- (d) Diligent Efforts.
You must, at all times, make good faith diligent efforts to develop and open the Petro Center in a timely manner, including by promptly, expeditiously, and continuously working to: (i) obtain any necessary financing (pursuant to Section 4.4); (ii) obtain all governmental permits and approvals; and (iii) commence and complete construction.
- 5.2 Petro® Center Opening.
You agree not to open the Petro Center or any other aspect of the Petro Center for business until:
(a) we approve the Petro Center as developed, including any alterations to the Development Plans made by you, and you have acquired an opening inventory sufficient to meet our Petro System Standards;
(b) your Managing Owner and managers have completed training regarding the Petro System and Petro System Standards to our satisfaction as set forth in Section 6;
(c) pre-opening training of Personnel at the Site regarding the Petro System and Petro System Standards has been completed to our satisfaction;
(d) the Franchise Fee and all other amounts then due to us, your landlord, governmental authorities and your suppliers including Approved Suppliers, have been paid;
(e) you have obtained all required building, utility, sign, health, sanitation, business permits, certificates and licenses required to operate the Petro Center;
(f) we have been furnished with copies of all insurance policies required by this Agreement, or such other evidence of insurance coverage and payment of premiums as we request or accept;
(g) we have received signed counterparts of all required documents pertaining to your acquisition or lease of the Petro Center (including any required agreements between you and us); and
(h) we have provided you with written authorization to open the Petro Center for business.
5.3 Opening Deadline.
You agree to open the Petro Center for business no later than twenty four (24) months from the Agreement Date (the "Opening Deadline").
We may, in our sole discretion, agree in writing to extend the Opening Deadline, subject to your payment of an extension fee in accordance with our then current extension policies.
5.4 Security Interest/Assignment.
(a) Grant: By signing this Agreement you:
(i) grant to us, a first priority security interest in the Collateral, which interest we will agree to subordinate to an Approved Financing, which has met the requirements set forth in Section 4.4, in the form of an agreement with your lender that we approve.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, several aspects of the Petro Center's development are detailed, including changes to development plans, compliance with laws, diligent efforts required of the franchisee, the Petro Center opening process, and security interests.
The FDD states that Petro Stopping Center may make changes to the Development Plans during the development of the Petro Center, and any changes to the approved plans by the franchisee require Petro Stopping Center's approval. The franchisee is responsible for complying with all laws and regulations related to the development and operation of the Petro Center and must make diligent efforts to open the Petro Center in a timely manner, including obtaining financing, permits, and completing construction.
The franchisee cannot open the Petro Stopping Center until Petro Stopping Center approves the developed site, the franchisee has acquired sufficient opening inventory, the Managing Owner and managers have completed training, all due amounts have been paid, all required permits and licenses have been obtained, and required insurance policies have been furnished. The franchisee must open the Petro Center within 24 months from the agreement date, although Petro Stopping Center may extend this deadline for a fee.
Furthermore, by signing the agreement, the franchisee grants Petro Stopping Center a first priority security interest in the Collateral, which Petro Stopping Center will subordinate to an Approved Financing that meets specific requirements. This security interest is formalized through an agreement with the franchisee's lender, approved by Petro Stopping Center.