What is the duration of the post-term non-compete covenant for Petro Stopping Center franchisees and their owners?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
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) own, operate or assist in operating, or have any direct, indirect, or beneficial interest in (whether through stock ownership, partnership, trust, joint venture, management agreement or otherwise) any Competitive Business located:
- within the Protected Area (if any), including at the Site;
- within 60 miles of the Protected Area (if any), and if not, within [60] miles of the Site, and including at the Site;
- within 60 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
INTENTIONALLY OMITTED
(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.)
If any Person restricted by this Section 19.4(a) refuses voluntarily to comply with the foregoing obligations, the 2-year period will commence with the entry of a court order if necessary, enforcing this provision."
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center 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 either 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 their spouses and children) are prohibited from owning, operating, or assisting in operating any Competitive Business. This restriction applies within the Protected Area (if any), including at the Site of the Petro Stopping Center. It also extends to within 60 miles of the Protected Area (or 60 miles of the Site if there is no Protected Area) and within 60 miles of any other Petro Stopping Center, whether franchised or company-owned, that is in operation or under construction.
Additionally, the franchisee is not allowed to lease, license, or permit the Site to be used by a regional or national chain operating a Competitive Business, such as Pilot, Bosselman, Flying J, Love's, or Sapp Bros. If any person refuses to comply with these obligations, the two-year period will commence upon the entry of a court order enforcing the provision.