What is the definition of 'Proprietary Supplies' for a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain items are proprietary to the Petro System or its Affiliates, incorporate our trade secrets or bear the Marks, including employee clothing, uniforms, stationary, forms, Products and advertising materials or are otherwise designated as such by us ("Proprietary Supplies"). We reserve the right to require you to purchase Products, Proprietary Supplies, and/or Motor Fuel from us, our Affiliates, or Approved Suppliers. We currently specify certain brands of product (such as tires, motor oil, and coffee) that you must offer at your Petro Center. Although we have negotiated volume purchasing arrangements with Approved Suppliers of these products, we do not presently require you to purchase these branded products from a particular source.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Proprietary Supplies are specific items that are unique to the Petro System or its Affiliates. These items either incorporate Petro Stopping Center's trade secrets or display their trademarks. Examples of Proprietary Supplies include employee clothing, uniforms, stationary, forms, products, and advertising materials. Petro Stopping Center retains the right to designate other items as Proprietary Supplies as well.
Petro Stopping Center maintains control over the sourcing of these Proprietary Supplies, reserving the right to mandate that franchisees purchase them, along with other products and motor fuel, directly from Petro Stopping Center, its Affiliates, or Approved Suppliers. While franchisees may have some flexibility in choosing brands for certain products like tires, motor oil, and coffee from Approved Suppliers, Petro Stopping Center has the authority to limit the suppliers a franchisee can work with.
This control allows Petro Stopping Center to protect its trade secrets, ensure consistent quality, maintain a reliable supply chain, secure favorable terms, manage the use of its trademarks, and oversee the manufacturing, packaging, processing, and sale of these items. Franchisees must purchase these items exclusively from approved sources, potentially at prices determined by Petro Stopping Center or its designated suppliers, which may exceed Petro Stopping Center's own costs. Petro Stopping Center also designates its Affiliates as the sole Approved Supplier of Proprietary Systems and shower towels.