In the context of the Conditional Assignment and Assumption of and Amendment to Lease, who is undertaking the development and construction of the Petro Stopping Center for the franchisee, if applicable?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS CONDITIONAL ASSIGNMENT AND ASSUMPTION OF AND |
|---|
| AMENDMENT TO LEASE |
| (this "Assignment") is made, entered into and effective as of the |
| effective date of the Lease (as defined hereinbelow), by, between and among PETRO |
| FRANCHISE SYSTEMS LLC, with its principal business address located at 24601 Center Ridge |
| Road, Westlake, Ohio 44145-5634 (the "Franchisor"), and whose |
| current principal place of business is (the "Franchisee"), |
| and, whose current principal place of business is |
| (the "Lessor"). |
| BACKGROUND INFORMATION |
| The |
| Franchisor |
| entered |
| into |
| that |
| certain |
| Franchise |
| Agreement |
| (the |
| "Franchise |
| Agreement") dated as of, 202 with the Franchisee, pursuant to which |
| the Franchisee plans to own and operate a Petro |
| Center (the "Petro |
| Center") located at |
| (the "Site"). |
| In addition, pursuant to that certain Lease Agreement (the "Lease"), the Franchisee has |
| leased or will lease certain land on which the Petro |
| Center is or will be located from Lessor. The |
| Franchise Agreement requires the Franchisee to deliver this Assignment to the Franchisor as a |
| condition to the grant of a franchise. |
| Pursuant to the Lease and if applicable, Lessor is undertaking development and |
| construction of the Petro Center for the Franch |
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the Lessor may be responsible for the development and construction of the Petro Stopping Center for the franchisee, if applicable. The document states that the Lease Agreement outlines the specifics of this arrangement. The franchisor, Petro Franchise Systems LLC, may also provide development plans and information regarding Petro System Standards directly to the Lessor.
However, the franchisee remains responsible for ensuring the Petro Stopping Center is developed, constructed, and opened according to Petro System Standards by the specified Opening Deadline, as defined in the Franchise Agreement. This obligation is not waived or limited by the franchisor's provision of information to the Lessor. The Lessor's obligations under the Lease are also not limited by this arrangement.
Petro Stopping Center retains certain rights and controls over the site, including the right of first refusal if the Lessor decides to sell the property. The franchisor also has the right to access the site for inspections without prior notice to the Lessor, as granted under the Franchise Agreement. The Lease Agreement is subordinate to the terms of the Franchise Agreement and the Assignment, and it cannot be modified without the written consent of Petro Stopping Center.