How does Petro Stopping Center define 'capital'?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
and maintenance of the Petro Center that we determine from time to time to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Petro Centers;
- (r) your acquisition and use of the Computer Systems we designate; and
- (s) your compliance with and agreement to all of our e-mail, spam, copyright notice and takedown, privacy, intranet and internet, website, hyperlink, wireless/wi-fi, bluetooth, internet telephony, and other communications policies designated by us from time to time, regardless of the technology or media.
- 7.3 Modification of Petro® System Standards. We may periodically modify Petro System Standards, which may accommodate regional or local variations as we determine, and any such modifications may obligate you to invest additional capital in the Petro Center ("Capital Modifications") and/or incur higher operating costs; provided, however, that such modifications will not alter your fundamental status and rights under this Agreement. You understand and acknowledge that our changes to Petro System Standards may include, among other things, changes to the Marks, the Petro Center facade and structure, Operating Assets, the Products and Services to be offered at the Petro Centers, interior specifications and equipment. You agree to comply with these changes to Petro System Standards. We agree to give you 60 days to comply with Capital Modifications we require, but if a Capital Modification
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, 'capital' is defined within the context of modifications to Petro System Standards. These standards may be adjusted periodically to accommodate regional or local variations, and such changes may require franchisees to invest additional capital in their Petro Centers. These investments are referred to as "Capital Modifications."
These Capital Modifications can include changes to the Petro brand's marks, the Petro Center's facade and structure, operating assets, the products and services offered, and interior specifications and equipment. Franchisees are obligated to comply with these changes. Petro Stopping Center will provide franchisees with 60 days to comply with required Capital Modifications. However, if a Capital Modification requires an expenditure of more than $25,000, Petro Stopping Center will grant franchisees four months from the date of the request to comply.
It is important to note that these Capital Modifications are separate from the costs franchisees will incur to repair, replace, or refurbish their Petro Center, inventory, supplies, equipment, and fixtures. Additionally, Capital Modifications do not include expenditures made to comply with applicable laws or governmental rules and regulations. This distinction is important for franchisees to understand, as it clarifies what types of investments are considered Capital Modifications versus other necessary expenses for maintaining and operating the Petro Stopping Center.