In a dispute related to the Assignment, who is responsible for attorney's fees for a Petro Stopping Center?

According to the 2025 Petro Stopping Center Franchise Disclosure Document, the franchisee is responsible for attorney's fees and litigation expenses if they breach the terms of the lease. Specifically, the franchisee agrees to indemnify and hold the franchisor harmless from any claims arising from their breach of the lease, which includes attorney's fees. This obligation extends to the franchisor, its affiliates, and their respective officers, directors, employees, agents, representatives, successors, and assigns. This means that if the franchisor incurs legal costs due to the franchisee's failure to meet lease obligations, the franchisee must cover those expenses.

This requirement places a significant financial responsibility on the Petro Stopping Center franchisee. Lease agreements can be complex, and any misstep or failure to comply with the lease terms could lead to legal action. The franchisee's responsibility to cover attorney's fees adds another layer of risk, as legal costs can be substantial. Therefore, franchisees must ensure they fully understand and adhere to all lease terms to avoid potential breaches and associated legal expenses.

For a prospective Petro Stopping Center franchisee, this underscores the importance of carefully reviewing the lease agreement and seeking legal counsel to fully understand their obligations. It also highlights the need for diligent management and compliance with all lease terms throughout the franchise term. Furthermore, it would be prudent to maintain adequate insurance coverage to protect against potential liabilities arising from lease-related disputes.