What is Exhibit 'B' attached to the Petro Stopping Center franchise agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) when you sign this Agreement, each of your Principal Owners and their spouses will sign and deliver to us our standard form of Guaranty attached to this Agreement as Exhibit "B", undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, Exhibit 'B' to the franchise agreement is the standard form of Guaranty. When the franchisee signs the agreement, each principal owner and their spouses must also sign and deliver this Guaranty. This document ensures that these individuals are jointly and individually bound by all the provisions outlined in the franchise agreement, as well as any other agreements between the franchisee and Petro Stopping Center.
This requirement means that the financial and legal obligations of the franchise extend beyond the business entity itself to the personal assets and liabilities of the principal owners and their spouses. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract by the franchisee.
Prospective franchisees should carefully review the Guaranty with their legal and financial advisors to fully understand the implications of personally guaranteeing the franchise obligations. They should also consider the potential risks to their personal assets and financial well-being before signing the franchise agreement and the Guaranty.