Does Petro Stopping Center designate or approve suppliers for all assets used in the operation of a Petro Stopping Center?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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Any fees paid to Petro Franchise or its Affiliates are not refundable. Fees paid to any third party may be refundable, depending upon the contracts, if any, between you and that third party.
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Sources of Products and Services
To ensure the high standards of quality and service maintained in the Petro Center, you must operate the Petro Center in strict conformity with the Petro System Standards that we provide in the Manuals or otherwise in writing. We may update and revise the Petro System Standards and will notify you of these changes by electronic or written communication (including the Internet). You must review, understand, adhere to and abide by all Petro System Standards. We may modify, add to, or rescind any Petro System Standard to adapt the Petro System to changing conditions, competitive circumstances, business strategies, business practices, technological innovations and other changes we deem appropriate in our business judgment. You must comply with all such modifications, additions, and rescissions.
The standards and specifications we provide to you may include, but are not limited to, any or all of the following:
- design, layout, decor, appearance and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out leasehold improvements, fixtures, furnishings, equipment and signs; periodic painting; and use of interior and exterior signs, emblems, lettering and logos, and illumination;
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- types, models and brands of required fixtures, furnishings, equipment, signs, computers, software, materials and supplies;
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- required or authorized Services and Products and product or service categories;
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- designated or Approved Suppliers (which may include us or our Affiliates) of all assets used or usable in the operation of your Petro Center (the "Operating Assets"), Computer Systems, Proprietary Supplies, Motor Fuel, Products and Services.
In order to maintain the quality and uniformity of the Products and Services offered at the Petro Center, we may require you to purchase all items, goods, products, ingredients, fixtures, furnishings, equipment, décor items and signage from suppliers (which may include us or our Affiliates) who demonstrate to our continuing satisfaction the ability to meet the Petro System Standards; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and who have been approved in writing by us and not thereafter disapproved ("Approved Suppliers").
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.
We do, however, have the absolute right to limit the suppliers with whom you deal. We may restrict your sources of materials, fixtures, equipment, furniture, signs, products, goods, and services now and in the future, in order to protect our trade secrets, assure quality, assure a reliable supply of products and services that meet our Petro System Standards, achieve better terms and delivery service, control usage of the Marks, and monitor the manufacture, packaging, processing and sale of these items. If we, at our option, limit the sources of certain materials, fixtures, equipment, furniture, signs, products, goods, and services to us, or to our Affiliates and/or specified exclusive or approved sources, then you must acquire these only from these approved sources at prices we or they decide to charge. Specifically, we reserve the right to designate ourself or an Affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and we have no obligation to evaluate or consider alternative suppliers of Proprietary Supplies or Motor Fuel. Any purchases you make from us or from our Affiliates, whether required or voluntary, may be at prices exceeding our cost.
If you desire to purchase or lease any unapproved product, supplies, service or equipment or purchase or lease any approved product, supplies, service or equipment from an unapproved supplier, you must notify us in writing and request approval. We have the right to require that our representatives be permitted to inspect the proposed supplier's facilities and test or evaluate the proposed supplier's product, supplies, service or equipment. We have the right to request that samples be delivered to us or to an independent testing facility chosen by us.
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, Petro Stopping Center may designate or approve suppliers for all assets used in the operation of a Petro Stopping Center. To ensure quality and service standards, franchisees must operate in strict accordance with the Petro System Standards, which Petro Stopping Center may revise and update.
The standards and specifications provided by Petro Stopping Center may include designated or Approved Suppliers for all assets used in the operation of your Petro Center, referred to as "Operating Assets". These assets include computer systems, proprietary supplies, motor fuel, products, and services. Petro Stopping Center may require franchisees to purchase items, goods, products, ingredients, fixtures, furnishings, equipment, décor items, and signage from suppliers who meet the Petro System Standards and are approved in writing by Petro Stopping Center.
Petro Stopping Center reserves the right to require franchisees to purchase products, proprietary supplies, and/or motor fuel from them, their affiliates, or Approved Suppliers. They specify certain brands of products, such as tires, motor oil, and coffee, that franchisees must offer at their Petro Center. Petro Stopping Center has the absolute right to limit the suppliers with whom franchisees deal to protect trade secrets, assure quality, ensure a reliable supply of products and services, achieve better terms and delivery service, control usage of the marks, and monitor the manufacture, packaging, processing, and sale of these items.
Petro Stopping Center can designate themselves or an affiliate as the sole Approved Supplier of Proprietary Supplies and/or Motor Fuel and have no obligation to evaluate or consider alternative suppliers. Purchases from Petro Stopping Center or their affiliates, whether required or voluntary, may be at prices exceeding their cost. For the fiscal year ended December 31, 2024, TA Operating's revenue from required purchases and leases by franchisees totaled $229,691. Neither Petro Stopping Center, their Affiliates, nor the individuals listed in Item 2 are the sole approved suppliers of any products or services, except their Affiliates are the sole approved supplier of the Proprietary Systems (rewards computer system, a proprietary shop system, and a proprietary shower system) and shower towels.