What characteristics must a transferee and its owners possess to be approved to operate a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (iv) transfer of an interest in you, this Agreement, the Petro Center, your Lease or the Operating Assets in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law;
- (v) transfer of an interest in you, this Agreement, the Petro Center, your Lease or the Operating Assets, in the event of your death or the death of one of your Owners, by will, declaration of or transfer in trust or under the laws of intestate succession; or
- (vi) pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Petro Center, or the Operating Assets, including your transfer, surrender or loss of possession, control or management of the Lease or your Petro Center.
16.3 Conditions to Transfer. Prior to the time of any transfer consented to by us:
- (a) you (and your Owners) must be in compliance with this Agreement;
- (b) the transferee and its owners must be of good moral character and reputation, as determined in our reasonable judgment;
- (c) the transferee and its owners must have sufficient business experience, aptitude and financial resources to operate the Petro Center and must otherwise meet our then applicable standards for Petro Center franchisees;
- (d) you must have paid all amounts due us and have submitted all required reports and statements, and made payments to all Approved Suppliers and Preferred Vendors or made arrangements to do so satisfactory to us and them;
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 and its owners must meet specific conditions to be approved. The transferee and its owners must be of good moral character and reputation, as determined by Petro Stopping Center. They also need to demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the Petro Stopping Center, meeting the standards that Petro Stopping Center has in place at the time of the transfer.
Additionally, the transferee must agree to complete Petro Stopping Center's standard training program regarding the Petro System and Petro System Standards, and they must cover the expenses associated with this training. The transferee is also required to agree to be bound by all the terms and conditions outlined in the franchise agreement. These stipulations ensure that the new operator is well-prepared and committed to maintaining the standards and practices of the Petro Stopping Center franchise.
Prior to the transfer, the current franchisee must have paid all amounts due to Petro Stopping Center and have submitted all required reports and statements. They also need to have made payments to all Approved Suppliers and Preferred Vendors, or have arrangements in place that are satisfactory to Petro Stopping Center and its suppliers. Petro Stopping Center also needs to review the material terms and conditions of the transfer to ensure that the price and payment terms will not negatively impact the transferee's ability to operate the Petro Center effectively. Depending on the specifics of the transfer, Petro Stopping Center may choose to waive certain conditions if they are deemed inapplicable.