Does the Petro Stopping Center franchise agreement create a fiduciary relationship?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
20.2 Independent Contractors. You and we understand and agree that this Agreement does not create a fiduciary relationship between you and us, that we and you are and will be independent contractors and that nothing in this Agreement is intended to make either you or us a general or special agent, joint venturer, partner or employee of the other for any purpose. You have no authority, express or implied, to act as our agent. You agree to conspicuously identify yourself in all dealings with customers, suppliers, public officials, your Personnel and others as the owner of the Petro Center under a franchise we have granted and to place such notices of independent ownership on such forms, business cards, stationery and advertising and other materials as we may require from time to time.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the franchise agreement does not create a fiduciary relationship between the franchisor and the franchisee. The agreement explicitly states that the relationship is that of independent contractors. This means that neither party is legally obligated to act in the best interests of the other, which is a common characteristic of a fiduciary relationship.
This distinction is important for prospective Petro Stopping Center franchisees because it clarifies the legal obligations and responsibilities of each party. As independent contractors, franchisees are responsible for managing their own business operations and are not considered agents or employees of the franchisor. This independence allows franchisees to make their own business decisions, but it also means they bear the risks and rewards of their own efforts.
The franchise agreement also specifies that neither Petro Stopping Center nor the franchisee can make agreements, warranties, or incur debts on behalf of the other party without express written authorization. This further reinforces the independent nature of the relationship and limits the liability of each party for the actions of the other. Franchisees should be aware of this independent contractor status and ensure they understand their rights and responsibilities under the franchise agreement.