In the Petro Stopping Center franchise agreement, what date is referenced as the effective date of the agreement?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS CONDITIONAL ASSIGNMENT AND ASSUMPTION OF AND |
|---|
| AMENDMENT TO LEASE |
| (this "Assignment") is made, entered into and effective as of the |
| effective date of the Lease (as defined hereinbelow), by, between and among PETRO |
| FRANCHISE SYSTEMS LLC, with its principal business address located at 24601 Center Ridge |
| Road, Westlake, Ohio 44145-5634 (the "Franchisor"), and whose |
| current principal place of business is (the "Franchisee"), |
| and, whose current principal place of business is |
| (the "Lessor"). |
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, the effective date of the franchise agreement is referenced in the context of a Conditional Assignment and Assumption of and Amendment to Lease. The document states that the assignment is made and effective as of the effective date of the lease, which is defined within the document. This implies that the start date of the franchise operations is tied to the lease agreement for the property.
Additionally, the effective date is relevant to post-term non-compete covenants. Franchisees and their owners are restricted from engaging in competitive businesses for two years after the termination or expiration of the agreement. This restriction begins either on the termination/expiration date or the date the person begins complying with the restriction, whichever is later. This clause protects Petro Stopping Center from former franchisees immediately opening competing businesses nearby.
Furthermore, an addendum to the franchise agreement is described as being effective as of a particular day in 202_. The exact day is not specified in the excerpt, but the structure indicates that the addendum's terms become active on that date. This addendum modifies the original franchise agreement, and its effective date marks when these changes officially take effect.