factual

In case of conflict, which document controls between the Lease Agreement and the Assignment for a Petro Stopping Center?

Petro_Stopping_Center Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (i) The Lease Agreement is subordinate to the terms of the Franchise Agreement and the Assignment.

Source: Item 4 — Other Owners: (FDD pages 228–302)

What This Means (2025 FDD)

According to the 2025 Petro Stopping Center Franchise Disclosure Document, the Lease Agreement is subordinate to both the Franchise Agreement and the Assignment. This means that if there are conflicting terms between the Lease Agreement and either the Franchise Agreement or the Assignment, the terms of the Franchise Agreement and the Assignment will take precedence.

For a prospective Petro Stopping Center franchisee, this subordination clause is significant. It ensures that Petro Stopping Center maintains control and consistency across its franchise network. If a franchisee negotiates lease terms that conflict with the standard franchise agreement, those lease terms will not be enforceable to the extent they contradict the Franchise Agreement or Assignment.

This provision protects Petro Stopping Center's interests by preventing franchisees from potentially undermining the franchise system through individually negotiated lease terms. It also provides clarity and consistency in the relationship between the franchisor, franchisee, and lessor. Franchisees should carefully review all three documents (Franchise Agreement, Lease Agreement, and Assignment) to understand their rights and obligations and to identify any potential conflicts.

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.