Are balances and transactions between Petro Stopping Center and its subsidiaries disclosed in the FDD?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent those statements include businesses other than that covered by the Franchise Agreement; those statements should include consolidating exhibits that show the operations of the franchised business separately from the others.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Petro Stopping Center requires franchisees to provide financial statements that include consolidating exhibits. These exhibits should separate the franchised business's operations from any other businesses included in the statements.
Specifically, if a franchisee's financial statements include businesses other than the franchised Petro Stopping Center, the statements must have consolidating exhibits. These exhibits are meant to isolate and clearly show the financial performance of the franchised business separately from any other business activities the franchisee may be involved in.
This requirement ensures that Petro Stopping Center receives a clear picture of the financial health of each franchise location, without the data being obscured by other business ventures of the franchisee. However, the FDD excerpt does not explicitly state whether balances and transactions between Petro Stopping Center and its subsidiaries are disclosed.