What criminal convictions can lead to termination of the Petro Stopping Center franchise agreement?

According to the 2025 Petro Stopping Center Franchise Disclosure Document, the franchise agreement can be terminated if you (or any of your Owners) are or have been convicted by a trial court of, or plead or have pleaded no contest, or guilty, to, a felony or other serious crime or offense. This clause gives Petro Stopping Center the right to terminate the agreement without providing an opportunity to cure the default.

This is a fairly standard clause in franchise agreements. Franchisors want to protect their brand's reputation and avoid being associated with individuals who have committed serious crimes. The inclusion of "no contest" pleas is also typical, as it prevents franchisees from avoiding termination by entering such a plea. The phrase "other serious crime or offense" is vague and could be subject to interpretation, so it would be wise to seek clarification from Petro Stopping Center regarding what specific offenses they consider serious enough to warrant termination.

For a prospective franchisee, this means that any past or present felony convictions, or pleading guilty or no contest to a felony or other serious crime, by the franchisee or any of their owners, could lead to immediate termination of the franchise agreement. This could result in the loss of the franchise and any investment made into it. It is important for potential franchisees to be aware of this clause and to disclose any such convictions or pleas to Petro Stopping Center during the application process.

It is also important to note that this clause applies not only to the franchisee but also to any of their owners. This means that if an owner of the franchise is convicted of a felony or other serious crime, the franchise agreement could be terminated, even if the franchisee themselves has not committed any crime. This highlights the importance of carefully vetting all owners of the franchise to ensure that they do not have any criminal convictions that could jeopardize the franchise agreement.