What constitutes 'Operating Assets' for a Petro Stopping Center franchise?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Collateral The Operating Assets, including furniture, fixtures, equipment, supplies, accounts, receivables, inventory, operating assets, records, inventory and all tangible and intangible assets constituting the Petro Center and the Site, including the Lease,
replacements.
or real estate constituting the Site and all accessions and
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Operating Assets include furniture, fixtures, equipment, supplies, accounts, receivables, inventory, operating assets, records, inventory and all tangible and intangible assets constituting the Petro Center and the Site, including the Lease, replacements. It also includes real estate constituting the Site and all accessions.
This definition is important because the franchise agreement specifies that the Operating Assets serve as collateral. This means that Petro Franchise Systems LLC has a security interest in these assets, which could be at risk if the franchisee fails to meet certain obligations under the agreement.
Furthermore, the franchise agreement states that a transfer of ownership, possession, or control of the Operating Assets can only be made in conjunction with an approved transfer of the Franchise Agreement itself. This gives Petro Stopping Center significant control over who can operate a franchise and ensures that any new operator meets their standards.