Does the Petro Stopping Center franchise agreement allow for automatic renewal?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| i. Your obligation on termination/non-renewal | Section 19 | Your obligations include: pay us any Royalties, Monthly Advertising Fees, or any other amounts owed us or our Affiliates, interest due on any of the foregoing and all other amounts owed to us which are then unpaid within 15 days; stop operations of Petro Center as a Petro-branded facility; cease to identify yourself or any business as a current or former Petro Centers, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark or other indicia of a Petro Center in any manner or for any purpose or utilize for any purpose any trade name, trade or | |
|---|---|---|---|
| service mark or other commercial symbol that | |||
| indicates or suggests a connection or association | |||
| with us; take such action as may be required to | |||
| cancel | |||
| all | |||
| fictitious | |||
| or | |||
| assumed | |||
| name | |||
| or | |||
| equivalent registrations relating to your use of any | |||
| Mark; and deliver to us all signs, marketing | |||
| materials, forms and other materials containing | |||
| any Mark or otherwise identifying or relating to a | |||
| Petro Center and allow us, without liability to you | |||
| or third parties, to remove all such items from the | |||
| Petro Center. You may be required to promptly | |||
| and at your own expense make such alterations | |||
| we specify to distinguish the Petro Center clearly | |||
| from its former appearance and from other Petro | |||
| Centers so as to prevent confusion by the public. | |||
| In addition, you may be required to notify the | |||
| telephone company and all telephone directory | |||
| publishers of the termination or expiration of your | |||
| right to use any telephone, telecopy or other | |||
| numbers and any regular, classified or other | |||
| telephone directory listings associated with any | |||
| Mark, authorize the transfer of such numbers and | |||
| directory listings to us or at our direction and/or | |||
| instruct the telephone company to forward all | |||
| calls made to your telephone numbers to numbers | |||
| we specify. If you hold over following expiration, | |||
| you shall be deemed to be on a month-to-month | |||
| basis under the terms of the Franchise Agreement | |||
| and | |||
| the |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 66–78)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchise agreement for Petro Stopping Center does not appear to offer automatic renewal. The document includes a table that summarizes provisions related to renewal, termination, transfer, and dispute resolution, but the excerpt does not provide details on automatic renewal terms.
However, the excerpt does state that if a franchisee holds over following the expiration of the franchise agreement, they will be deemed to be operating on a month-to-month basis under the terms of the original agreement. This implies that the franchise does not automatically renew for another full term.
To fully understand the renewal options, a prospective Petro Stopping Center franchisee should review the specific section of the franchise agreement that deals with renewal (Section 19) and discuss renewal terms directly with the franchisor. This will clarify the conditions and procedures required for renewal, and whether any automatic renewal provisions exist outside of the month-to-month holdover clause.