What is the 'Due Diligence Period' for Petro Stopping Center, and what rights does Petro Stopping Center have during this period?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of thirty (30) days following our receipt of the Appraiser's determination of value, we have the right to conduct a due diligence investigation (the "Due Diligence Period") of your franchise, the Operating Assets, and all of your rights, liabilities and obligations.
You must give us reasonable access to your facilities, books and records during the Due Diligence Period.
In addition, you must otherwise reasonably cooperate with us to make yourself and necessary third parties available during the Due Diligence Period.
We are under no obligation to continue with our due diligence if, the results of our due diligence are not satisfactory to us for any reason or if we are not satisfied with the Appraiser's opinion of value, to be determined in our sole discretion.
In that case, we will notify you in writing that we are withdrawing our offer to purchase your Petro Center.
At any time during the Due Diligence Period, we have the unconditional right to withdraw our offer.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the Due Diligence Period lasts for thirty days following Petro Stopping Center's receipt of the appraiser's determination of value. During this period, Petro Stopping Center has the right to conduct a due diligence investigation of the franchise, its operating assets, and all associated rights, liabilities, and obligations.
During the Due Diligence Period, the franchisee must provide Petro Stopping Center with reasonable access to their facilities, books, and records. The franchisee must also cooperate to make themselves and necessary third parties available to Petro Stopping Center.
Petro Stopping Center is not obligated to continue its due diligence if the results are unsatisfactory for any reason or if they are not satisfied with the appraiser's opinion of value, which is to be determined at their sole discretion. Petro Stopping Center has the unconditional right to withdraw its offer to purchase the Petro Stopping Center at any time during the Due Diligence Period. If Petro Stopping Center chooses to withdraw, they must notify the franchisee in writing.