What is the duration of the post-term non-compete covenant for a Petro Stopping Center franchise after termination or expiration of the Franchise Agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Post-Term Non-Compete Covenants. You and your Owners agree that, for a period of two (2) years commencing on the effective date of termination or expiration of this Agreement, or the date on which a Person restricted by this Section begins to comply with this Section, whichever is later, neither you nor any of your Owners (nor any of your or your Owners' spouses or children) will:
- (i) have any direct or indirect interest as a disclosed or beneficial Owner, investor, partner, director, officer, employee, franchisee, licensee, consultant, operator, licensor, manager, representative, landlord, sub-landlord, tenant or agent or in any other capacity in any Competitive Business operating:
- within the Protected Area (if any), including at the Site;
- within 75 miles of the Protected Area (if any), and if not, within 75 miles of the Site, and including at the Site;
- within 75 miles of any other Petro Center (franchised or otherwise) in operation or which is under construction and granted the right to operate in such area on the later of the effective date of the termination or expiration of this Agreement or the date on which a Person restricted by this Section complies with this Section; or
- anywhere in the United States or Canada in connection with a regional or national chain operating a Competitive Business (including but not limited to Pilot, Bosselman, Flying J, Love's, or Sapp Bros.).
- (ii) lease, license or otherwise permit the Site, or any portion of it, to be used or occupied by a regional or national chain operating a Competitive Business (including but not limited to Pilot, Bosselman, Flying J, Love's, or Sapp Bros.).
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, both the franchisee and their owners are subject to a post-term non-compete covenant for a period of two years. This restriction begins on the effective date of the termination or expiration of the Franchise Agreement, or the date on which a person restricted by this section begins to comply with it, whichever is later.
During this two-year period, the franchisee and their owners (including spouses and children) are prohibited from having any direct or indirect interest in a Competitive Business. This includes being an owner, investor, partner, director, officer, employee, franchisee, licensee, consultant, operator, licensor, manager, representative, landlord, sub-landlord, tenant, or agent.
The non-compete restrictions apply within specific geographic areas: the Protected Area (if any), within 75 miles of the Protected Area (or 75 miles of the Site if there is no Protected Area), within 75 miles of any other Petro Center, and anywhere in the United States or Canada in connection with a regional or national chain operating a Competitive Business such as Pilot, Bosselman, Flying J, Love's, or Sapp Bros. Additionally, the franchisee cannot lease or license the Site to a regional or national chain operating a Competitive Business.